Fixed-line operator Telkom has added an extra layer of security for online transactions on its DSL TopUp tool and its doChat Portal.
According to the company, customers were notified that 3-D Secure, an XML-based protocol, developed by VISA, has been introduced on the relevant sites on 12 August.
Telkom says the application adds another authentication step for online payments and offers merchants higher coverage against fraud losses. The company explains that the service is widely used in SA and that all its customers were notified of the new security layer.
“The 3-D secure function will require final online authentication from your financial institution in order to process your TopUp request. This function will be introduced to combat fraudulent transactions and provides our customers with additional security,” reads a message to Telkom customer notifying them of the service.
But Telkom client Christopher Guy says he received no notification of the new service and that the requirements of the security technology have left him unable to top up his ADSL account to run his business.
Guy, a Discovery credit card holder, says the requirement for final online authentication from a financial institution has been a challenge for him.
He explains that top four bank FNB processes transactions on behalf of Discovery credit card holders and, as such, he is still having to chase down the authentication and may have to consider obtaining a new credit card from another financial institution to get through the new security layer.
He says the lack of communication from Telkom has left him unprepared to get comply with the new requirements effectively and he is still without ADSL.
Telkom maintains that it has notified all of its customers of the new service; however, the company only supports VISA and Mastercard as online payment options.
“3-D Secure is widely used in SA through many merchants and, if cardholders have registered once with the bank for 3-D Secure, they will not need to register again when using another merchant site,” explains Telkom.
While Telkom's efforts may be geared towards offering added security to the customer and protecting itself from fraudulent activity, experts warn that it should not be at the expense of the user.
Smothered by security
Speaking at the ITWeb Security Summit earlier this year, Dr Frans Lategan, security consultant at Absa, warned that online transaction sites continue to add new security every year, which is impacting usability.
“We are getting to the point where the average user cannot use online banking because there are so many checks and balances,” he noted.
There is no single clean sheet design to secure online transactions. However, the focus must be on usability, security and effectiveness, Lategan concluded.
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