Rising fraud and greater security demands by financial watchdogs Finanstilsynet have resulted in an additional PIN code requirement for the 3.3 million Danes who use their Dankort online.
Nets, the company that administers the Dankort system, and the Danish internet trading association Foreningen for Dansk Internethandel (FDIH), said that customers are losing money as a result of internet fraud.
The new system requires that Danish online shops will ask for an additional code for card purchases above 450 kroner.
Familiar solution
The new system is similar to one already in use by many international cards, which requires shoppers to enter a one-time code that they receive via SMS.
“This gives us a solution that increases security and ensures easy payments for customers,” said FDIH director Niels Ralund. “Banks have also raised payment guarantees for web shops from 1,000 to 2,000 kroner.”
It is no secret that Dankort fraud is on the rise. In the first half of 2015, card customers were swindled out of 32 million kroner, and a large portion of that abuse was via the internet.
Fraud increasing
From the last half of 2014 to the first half of 2015, the volume of online fraud grew by 12 percent.
Danes use their Dankorts to spend 60 billion kroner online annually. In 2015, 140 million purchases or transfers were made via the web or mobile devices.
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The new requirements are expected to be introduced in the autumn.
