International Banking Security

Seven years ago I was living and working in the UK. As any who has ever worked in a foreign country (to where they are from) knows, having a local bank account is important.

After I got my bank account in the UK, back in 2004, I noticed differences to the banking system securities over Canadian banks. Namely the chip & pin card had just been introduced in the UK, which didn't come into Canada until about 2008.

A couple of differences I noticed in this regard was when I first used both my debit and credit cards. In Canada I was use to having to input my pin with my debit card (swipe and enter pin, not yet the insert and enter pin) and signing for my credit card. One of the first places I used my UK debit card did not have the chip & pin set up, so my debit card was swiped, and I had to sign for it - like what I was use to doing for credit card. Then the first time I used my credit card I hadn't memorized my pin (didn't need to in Canada), so when I was prompted, I admitted to the clerk I didn't recall it. S/he hit a button and printed a receipt for me to sign instead.
Jump ahead about 4 years, to the introduction of chip and pin in Canada. When I first used my chip & pin (credit) card at a place that was set up for chip & pin, I hadn't memorized my pin (because chip & pin places were rare). I mentioned I hadn't memorized it yet and asked if there was a way to sign instead. The clerk said there was not, so I had to use a different card.

Back towards the topic:
When I left the UK I decided to keep my bank account there, thinking that perhaps one day I'd return. In the seven years since, I have only returned once to visit - but my life has taken a couple twists and turns, and I am really hoping to make it back this year.

Since that time I have kept my address current with the UK Bank, and have gone online regularly enough to move a little money between two accounts to keep them active. In that time I did lose my credit card (which I am fine with). I have also received information that I generally ignored.

Last week, however, I received a heftier envelope. Inside was a new security device (see pic above), which made me actually read the information with it.

Now I have seen the security on online banking getting more "advanced" over the years, and having accounts at 3 banks, plus credit cards at 2 others, I have seen the differences. Of the 4 Canadian online banking sites I visit (2 account + 2 credit cards), 2 of them require only the account / card number and password (1 account + 1 credit card), the other 2 also require me to answer 1 of 3 personal questions.

The UK bank account has always required me to enter a personal ID number, my date of birth, and 3 digits randomly chosen from an 8 digit pin. Now I am not sure if that is typical of UK / European banks, or just HSBC (and if that is HSBC everywhere, or just certain areas - since none of my Canadian banks is HSBC).
As of today, however, to access that account I have a couple more steps. On the little security device I have to enter a personal pin, to obtain a security code. Then on the web, I still have to enter my personal ID, now have to answer a security question, and enter the generated security code.

Although all of this seemed tedious and long as I set it up, it is not as annoying as I thought it might be... that is until I misplace my security device!
However, when I set it up I also put in other security questions which I think related to retrieving my accounts / passwords. Let's hope I never have to find out.