Two Factor Free

Alliance & Leicester has issued security technology to all its one million online banking customers, in a move intended to cut identity theft and internet fraud.

It is the first UK bank to respond on such a large scale to the threat of cyber criminals, by providing two-factor authentication technology free-of-charge to its entire online customer base.

Martha Bennett, research director at Forrester Research, says that phishing scams only cost UK banks £23.2m last year, but a far greater threat to the industry comes from concerned online customers switching back to more costly high-street and telephone banking services