As of the beginning of July, Monzo has introduced three new anti-fraud controls to combat fraud. The new features are Known Locations, Trusted Contacts, and Secret QR Codes.
James O’Sullivan, CEO at Nuke From Orbit, offered his reaction to the announcement.
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He said: ”Monzo’s new anti-fraud controls, Known Locations, Trusted Contacts, and Secret QR Codes, certainly increase security, but they also introduce additional friction to genuine transactions. The limitation on sending large amounts, depending on the definition of ‘large,’ is likely to affect only a small number of users, which should be acceptable. However, I suspect many users will keep the Secret QR Code on their phones for convenience.
“For Known Locations and Trusted Contacts, the true measure of security will be in how quickly and easily new ones can be set up. If adding a new location or contact only takes a few seconds, the security benefit may be minimal. On the other hand, if it is too cumbersome, users might face difficulties in accessing their accounts as needed.
“One important aspect is maintaining strong PIN hygiene”
“The introduction of new security controls marks progress, but they should not hinder legitimate users. Ironically, increased security measures have led to a resurgence of tactics like ‘shoulder surfing,’ where an attacker spies on an individual to obtain their personal information. Today, criminals exploit the enhanced security to access multiple accounts through a single device.
“While businesses are implementing these security measures, there is a critical need for customer education on safeguarding their smartphones for financial transactions right from the start. One important aspect is maintaining strong PIN hygiene. Our consumer survey revealed that 78% of people use their smartphones for mobile banking, 51% use them for digital wallets, but alarmingly, 45% use the same PIN for both their phones and mobile apps. Ensuring users understand and adopt these practices will be essential in maximising the effectiveness of the new security measures.”
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