Fool.co.uk: Barclays new ID Fraud prevention scheme

Following news that Barclays Bank is handing out handheld chip-and-pin card readers as part of a new security initiative for its online banking customers, David Kuo, Head of Personal Finance at Fool.co.uk, says:

"As more of us go online to manage our finances, criminals are thinking of ingenious ways to con us of our money. Consequently, Barclays move to supply 500,000 customers with handheld chip-and-pin card readers is a welcome step to thwart cyber criminals.

"Anything that will stop crooks from taking our money is desirable. However, nearly 17 million people now use the Internet to access their bank accounts regularly, and every customer needs to know that their money is safe, not just the chosen few.

"That said, banks can only do so much in their fight against online fraud - customers need to be vigilant too. Online banking is still safe as long as we take adequate precautions. Installing anti-virus software and up-to-date personal firewalls are two simple ways to protect ourselves from bad people.

It is also important to treat every unsolicited e-mail with caution, which means we should never click on links in these emails or even reply to them. It is also vital that we don’t divulge our passwords and PINs.

"Barclays has now thrown down the gauntlet, and other banks need to rise to the challenge to stay one step ahead of criminals, and combat the rise in online banking fraud!"