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Hacking Case Exposes Potential Flaw In Halifax And Lloyds' Security

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Hackers have found a way to get round a crucial step in Halifax and Lloyds online safety check

A Guardian Money reader has exposed a potentially major flaw in the security of the 22m current accounts operated by Lloyds and Halifax after hackers attempted to empty his account of £7,200.

Fraudsters have developed a way to get round one of the banks' crucial security checks for online account holders. While some banks give special anti-fraud card readers to customers to use at home, which generate a passcode for each significant online transaction, Lloyds and Halifax call the home phone or mobile of the account holder to check and authorise a payment.

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The problem with the Lloyds approach is that they don't strongly verify the identity of the caller when they call to confirm a transaction.

They assume that if the phone number matches their records and the answering party has a one-time code, then they are the account holder. As we have seen with this attempted theft, this is not reliable, particularly if a robust method of 2-factor authentication has not been used (e.g. pin sentry device, RSA secureID or similar). A lot of companies have taken to using a phone call as a method of 2FA, but with the availability of diversion services, this is not robust (interestingly, there is no viable method for text message diversion, so a one-time PIN sent by text message which could be entered into the site would avoid this problem - but open a new problem which is that the loss of a smart phone could be catastrophic).

For what it's worth, I when I wanted to make a large payment, my bank phoned me up and then proceeded to ask 5 further security questions to verify my identity, even though they had called my mobile number, and the original log in was made using 2FA.

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I have finally been able to shutdown down what was a Halifax phone account from 10+ years ago.

It took me 3 months - complaint off in the post.

They'd managed to keep my home address for the statement but not update my security address.

When I rang in, they were sending off security mail to the wrong address.

10 long phone calls to resolve all this.

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  • 406 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

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