Barclays Bank is looking to introduce a handheld device for customers, which will generate a different password each time after reading the chip on your bank card.

Lloyds TSB is also looking at key rings which generate different passwords each time.

Banks are responsible for covering much of the £23.2 million customers lose annually to fraudsters.

Rebecca Fearnley from Which? told The Scotsman:

"Online banking is fairly secure and customers' liability if someone does use their account is pretty limited.

"If someone is using your account when you are not present, you are not liable as long as you took reasonable care and didn't give out your password."