This Morphing Credit Card Stops Fraud

Oberthur technologies has created a prototype credit card that changes its Card Verification Value Code (CVV Code) with every transaction to stop credit card fraud. Dynamic CVV codes will stop stolen credit card numbers from working, saving billions in credit card number theft annually.

Credit Card Fraud

Credit card fraud bilks consumers, merchants and banks of an estimated $205 billion per year. Credit card CVV codes are the three digit numbers on the backs of all credit cards. The codes are intended to fight credit card fraud. The codes work by requiring brick and mortar merchants to verify the card itself is present. They also give online merchants a second step in the chain of verifying a transaction’s authenticity, beyond just asking for the credit card number.

oberthur dynamic code cards cvv

The Oberthur Dynamic Code CVV Card.

The problem with CVV codes is that if someone can steal a credit card number, they can also steal a three digit CVV code. Online credit card fraud involving both stolen card numbers and stolen CVV codes is on the rise. Simply handing a credit card to a waiter with a smartphone or a pen could result in a stolen card number and CVV code.

dynamic cvv credit card

A tiny LCD screen changes the CVV number on the back of the card frequently.

New Tech Fights Credit Card Fraud

French digital data security firm Oberthur Technologies thinks it has found the solution. Imagine a card that can change its CVV number with every transaction. That’s exactly what Dynamic CVV Technology does. Instead of a static CVV number printed on the card, the card has a tiny LCD screen that displays a different CVV number for every transaction. Anyone stealing the card’s number and CVV code will find all future transactions denied when the CVV number changes. The only way to know an ever-changing CVV code is to steal the card itself, and in that case the card’s owner will have reported it missing.

The beauty of dynamic CVV numbers is, there’s no additional technology required by merchants and cardholders. Anyone stealing the card number and trying to sell it on a “dark website” will find the number totally useless. Meanwhile, the card holder can go on using the card without fear.

Look for the new cards to start hitting the shelves in 2015.

Afraid of fraud? Check out our article on How to Stop Identity Theft With a Fraud Alert.