News

Home Office steps up mobile fraud measures

Kable

Published: 28 Aug 2009 12:44 BST

People buying new 'contactless' mobile phones will be encouraged to sign up to a national register in an effort to combat crime.

The Home Office has announced the move as part of a series of measures agreed with the mobile phone and banking industries to cut the potential for crime created by new near-field communication (NFC) technology.

The system makes it possible to swipe mobile phones against readers to pay for goods and services in the same way as debit, credit and pre-pay cards. However, there are fears that by authorising payments against bank or credit accounts, it could encourage new varieties of fraud linked with the theft of phones.

In response, the Home Office has agreed a set of guidelines with mobile phone suppliers and banks aimed at reducing the risks of fraud. Among them is that any customer who signs up for a phone able to make contactless payments will be encouraged to add their details to a National Mobile Phone Register to make it easier for stolen phones to be identified and recovered.

The register, which is run by the police, is linked to voluntary databases, such as Immobilise, where people can enter their phones' details. Approximately 22 million people are currently registered. In the event of a loss, owners can flag it up to the database.

Other guidelines include:

Disabling SIM cards and phones as soon as possible after a phone is reported lost or stolen;
Requiring verification, such as through a PIN code, on any contactless payment above £10;
Requiring additional security if more than a certain number of low-value transactions are carried out.

Home Office minister Alan Campbell said: "This technology is an exciting new development, but we must continue to work together to reduce any new opportunities for criminals to profit from mobile theft. As new technologies like this develop, we aim to consider where safeguards can be incorporated at the drawing-board stage."