Dynamic CVV Codes May Decrease Fraud
Oberthur Technologies is developing a new credit card to help combat fraud.
In place of the three digit CVV (card verification value) code on the back of your card, Oberthur’s new credit card will have a digital display that will generate a new code every hour.
The cards have been piloted in Mexico and Poland, and will be in the hands of French Consumers by the end of the year through deals made with Société Générale and Groupe BPCE. Oberthur is currently in negotiations with U.K. banks.
CVVs are on the back of cards to help ensure that a consumer actually has the card while paying for goods online, but cybercriminals know how to steal these codes. Since Oberthur’s CVV code is dynamic, though, a card number would be worthless to cybercriminals after an hour.
“In some ways, it’s surprising it has taken so long for this to appear,” Professor Alan Woodward, a cybersecurity expert at Surrey University, told the BBC. “The technology has existed for some time so now it will be a case of persuading card processors that it is worth doing.
“It may be costly for card operators as some extra infrastructure will be required to ensure our cards stay synchronised with the operator, but it happens already for many banks with the dongles they issue for login.”
Martin Ferenczi, President of Oberthur Technologies North America, confirmed these cards will cost issuers more than EMV cards. However, many believe this technology could eliminate card-not-present fraud, which makes up made up 65% of all card fraud, according to Network World.
Oberthur says the battery for the digital display lasts at least three years, meaning the battery should last until the card expires.