Card-not-present (CNP) fraud could be all but eliminated thanks to a revolutionary card security innovation set to be rolled out by Oberthur Technologies (OT) next year.
OT has developed a dynamic back-of-card security CVC/CVV code that changes every hour on an e-paper panel. The issuers then verify the code using servers run by OT. At a stroke, the so-called ‘dCVV/CDC’ solution largely removes opportunities for most CNP fraud, says the company, as dishonest merchants will not have time to sell on card details for criminals to use before the code changes. It is a secure solution that OT expects to become a new industry standard and which it will sell to all, including its competitors. It is currently talking to banks and big providers and will run trials in Europe, Latin America and the US before a full roll-out in April or May 2015. OT’s payment business unit, which is run by MD Eric Duforest (pictured), believes the dynamic CVC/CVV solution offers the best combination of ease of use and deployment as it works with the existing card payment system and requires no new actions from either merchant or shopper. It also eliminates the need for potentially troublesome online fraud add-ons such as 3D-Secure or biometric solutions.
There are no plug-ins to install or codes that the user needs to generate – and e-merchants will not have to modify their web pages. OT picked up the essential technology in its acquisition of display card specialist NagraID Security in August. The chip and flexible battery used to run the display fit into the existing 1mm card dimensions and run for four years – which is the life of existing cards.
The company says the solution is the essence of secure elements and offers the security some mobile payments cannot as its system cannot be infected by viruses or malware. The solution promises to drastically reduce the explosion in CNP fraud – which, according to the European Central Bank, accounted for 60% of the value of total card fraud in Europe in 2012.
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