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Verified by Visa?

Updated on 02 November 2007

By Benjamin Cohen

A record number of us will choose to do our shopping online this year, but Channel 4 News has discovered a serious flaw in an online security system.

A record number of us will choose to do our shopping online this year, but Channel Four News has discovered a serious flaw in an online security system.

The 'Verified by Visa' process, which is used on a variety of websites, is supposed to increase protection against online fraud, but now it appears it isn't as robust as its makers would want.

The problem with the system is that it is possible to by-pass the password by clicking 'forgotten password' and answering security questions instead. These include questions about date of birth, information which is easily obtainable from a stolen driver's license or an online social networking site.

Experts say its quite old technology, but Visa says the system is safer than having nothing.

Nationwide said that they strike a balance between security and usability. They also admitted that 'Verified by Visa' will not stop all card fraud, but say it can reduce levels.

New, tougher technology is expected to be rolled out next year.

Visa said that the system has reduced fraud and that it is up to banks who issue the credit/ debit cards to set the security questions.

The company added that in the new year it will introduce a new hardware based system to increase security for shopping online.

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