Has Oberthur Technologies cracked the code on combatting online credit card fraud?
The printed, static 3-digit CVV is the current credit-card industry standard.
The Oberthur dynamic-security solution, dubbed Motion Code, would replace the static, printed CVV with a dynamic CVV that is generated algorithmly and is automatically refreshed every hour. The dynamic CVV is displayed on a mini-screen. After the hour in which the dynamic CVV is generated the number is no longer operative making the data worthless to identity thieves.
The dynamic card verification process does not add any steps to the online purchase, says Oberthur. But the company is silent on whether the new technology will add time to the purchase transaction. A slower transaction may slow adoption. Also, it would be interesting to know how the mini-screen concept will work.
“Online fraud is now 65 percent of total card fraud. That’s why Oberthur developed its dynamic card-verification technology” says Martin Ferenczi, President of North America at Oberthur Technologies.
According to Oberthur, survey respondents overwhelmingly described the Oberthur card-security solution as “an efficient answer to online fraud,” or “easy to use” or “innovative.”
The survey covered 231 respondents, and was conducted online. Sixty percent of respondents were women and 40 percent were men. Five age brackets (18-24, 25-34, 35-44, 45-54 and 55-plus) were equally represented, according to the company.
Oberthur Technologies is present in the global payment, telecommunications and identity-security markets. Its international network serves clients in 140 countries. There is no question that online fraud is a serious problem for consumers, as well as their financial institutions and the merchants from whom they buy. Nor is the fact that Oberthur has the resources, bandwidth and experience to develop products that help reduce “card not present” fraud in question. The question is whether Oberthur’s Motion Code ™ dynamic card verification product can succeed in this mission where many others have failed.