Strong Customer Authentication (SCA) is changing the way people pay for things online to help prevent fraud. From 14 March, SCA will be fully implemented. This means that when you shop online, you will need to confirm your identity when paying online to increase the security of transactions.  

This measure will go a long way to prevent unauthorised fraud, which caused £261.7 million of losses in the first half of last year for online card transactions. Unauthorised fraud can happen when your card details are used by someone else without your permission, for example if your card is lost or stolen. With SCA in place, fraudsters could be stopped from spending someone else's money online.  

So how does SCA work? In order for your payment provider to comply with the new regulations, they will ask you to verify your identity. This is usually done via a one-time password received by text or phone call, or by logging into your banking app. You should contact your bank if you need to discuss alternative options to verify. SCA will apply to most payments made online, e.g. low value payments typically under £25 - although you may need to verify your identity when setting up repeat payments, or after a few lower value payments are made.  

This protection is an important part of keeping people safe from fraud, so it's vital that you make sure your contact details are up to date with your bank so that SCA works properly for you.   

If you own or run a business, not only will SCA help keep your customers safe from fraud, it also has benefits for your business. SCA will help reduce a business's fraud loss, and it will shift the liability for fraud from the retailer to the payment provider. Payment service providers have been working with businesses throughout the process to ensure they are ready for SCA.Fom 14 March, SCA will be fully implemented to protect customers from unauthorised fraud.  

More information can be found here.