Several European banks this year announced their intention to issue plastic cards with a variable security code. In them, the usual three-digit CVV-code on the back is replaced by a mini-display. The screen will display a security code that automatically changes at regular intervals. Will DCV cards become an effective weapon against fraudulent transactions ? - said Elena Vuevskaya, director of sales in the banking segment of Russia and the CIS at Gemalto.
As the e-commerce market grows, so does the intensity of online scams. The share of buyers who abandoned online purchases at the checkout stage is quite large - 69% of all online transactions in the world are not completed. The reason is simple: although some buyers simply decide to buy goods elsewhere, most cite fears of losing money due to online scams as the main reason.
These fears are not unfounded. The share of frauds carried out without the physical presence of a card (card-not-present, CNP) is 66% of the total number of fraudulent transactions with bank cards. In 2013, buyers in the eurozone lost a total of € 958 million due to this type of fraud.
Despite these disappointing statistics, e-commerce is attracting more and more consumers due to its convenience and low cost. In Russia, the e-commerce market is growing at an incredible pace: according to a recent survey of 1,000 Internet users, 81% paid for online purchases on the Internet, 48% of them with a payment card.
However, 34% of Russian consumers do nothing to ensure payment security, 42% rely only on antivirus, and only 24% of respondents use specialized software solutions to ensure payment protection. At the same time, 7% of respondents faced some form of financial data theft.
The problem of fraud at POS terminals in retail outlets is being successfully fought with the help of EMV cards. In view of this trend, hackers have decided to focus on online payments.
In order to reduce the likelihood of CNP fraud, cards with Dynamic Code Verification (DCV) technology have been developed, where the verification code (Card Verification Value, or CVV) is not printed on the card, but is displayed on a small display based on e-ink technology - and it changes every 20 minutes. Fraudsters can never compromise a card this quickly. It is quite logical that the more often the code changes, the higher the degree of security. This simple idea will keep the online shoppers familiar while significantly enhancing the security of your credit card information.
The potential of the technology is very high: it can reduce the likelihood of online fraud by 60%. Greater security lowers the cost of dealing with CNP fraud and improves customer retention. DCV cards will help banks offer innovative digital services while reducing implementation costs and without changing existing IT infrastructures.
In general, DCV cards are an effective weapon against fraudulent transactions, which are still the most important factor holding back the development of e-commerce.
As the e-commerce market grows, so does the intensity of online scams. The share of buyers who abandoned online purchases at the checkout stage is quite large - 69% of all online transactions in the world are not completed. The reason is simple: although some buyers simply decide to buy goods elsewhere, most cite fears of losing money due to online scams as the main reason.
These fears are not unfounded. The share of frauds carried out without the physical presence of a card (card-not-present, CNP) is 66% of the total number of fraudulent transactions with bank cards. In 2013, buyers in the eurozone lost a total of € 958 million due to this type of fraud.
Despite these disappointing statistics, e-commerce is attracting more and more consumers due to its convenience and low cost. In Russia, the e-commerce market is growing at an incredible pace: according to a recent survey of 1,000 Internet users, 81% paid for online purchases on the Internet, 48% of them with a payment card.
However, 34% of Russian consumers do nothing to ensure payment security, 42% rely only on antivirus, and only 24% of respondents use specialized software solutions to ensure payment protection. At the same time, 7% of respondents faced some form of financial data theft.
The problem of fraud at POS terminals in retail outlets is being successfully fought with the help of EMV cards. In view of this trend, hackers have decided to focus on online payments.
In order to reduce the likelihood of CNP fraud, cards with Dynamic Code Verification (DCV) technology have been developed, where the verification code (Card Verification Value, or CVV) is not printed on the card, but is displayed on a small display based on e-ink technology - and it changes every 20 minutes. Fraudsters can never compromise a card this quickly. It is quite logical that the more often the code changes, the higher the degree of security. This simple idea will keep the online shoppers familiar while significantly enhancing the security of your credit card information.
The potential of the technology is very high: it can reduce the likelihood of online fraud by 60%. Greater security lowers the cost of dealing with CNP fraud and improves customer retention. DCV cards will help banks offer innovative digital services while reducing implementation costs and without changing existing IT infrastructures.
In general, DCV cards are an effective weapon against fraudulent transactions, which are still the most important factor holding back the development of e-commerce.
