Fraudulent actions will be eased in UK

[img_assist|nid=7703|title=|desc=|link=none|align=left|width=100|height=66]The clearing period for a single transaction made over the internet or by phone will be shortened from three days to a few hours. This will be possible due to a new system to be launched on May 27. The service is to be known The Faster Payment system.

According to experts' warn customers may incur greater risk of being defrauded on account of the new system.

Payments may be made by customers by phone all day every day.

Security analysts however are concerned by the fact that on the score of less time banks will sped for investigating strange and suspicious transactions increase of fraudulent payments may occur.

A number of transactions via stolen financial data may complete before it comes to banks' attention.

Stephen Ley, a risk expert at Deloitte & Touche, says: "The Faster Payment system will be a challenge for banks which could lead to increased risk of fraud, as it will be harder for banks to detect and block fraud in the time window available.

"The existing process relies, in part, on banks having sufficient time to detect suspicious transactions."

"With more than 20million customers regularly using internet banking, increasing online safety is clearly a priority," he adds.

When it is launched the service will cover 5% of payments. By August the number of internet, phone and standing-order payments is expected to rise to 50%. And by the end of 2008 the system will process almost all internet and phone payments.

The service will be implemented by seven financial institutions which include Royal Bank of Scotland/NatWest, Barclays, HSBC and Lloyds TSB.

Only some telephone banking customers of Lloyds TSB will be enabled to send payments using the system. And by June 6 all personal customers are believed to have the possibility to use it too.

At Barclays' the customers initially will be able to send only 5 pounds. The number is predicted to raise to 100 pounds by early June and to 10,000 pounds by the middle of July.