This new 'smart' card may help fight fraud
The editorial content below is based solely on the objective assessment of our writers and is not driven by advertising dollars. However, we do receive compensation when you click on links to products from our partners. Learn more about our advertising policy
In an attempt to decrease the rate of card-not-present (CNP) fraud, French digital security company Oberthur Technologies recently introduced Motion Code, a credit card that randomly generates a new card verification value (CVV) every hour.
Several efforts have been made in recent years to combat card-present fraud (unauthorized transactions made in a face-to-face setting), such as the introduction of EMV technology. However, with the continued rise of ecommerce around the globe, there is an increased need to provide better security for transactions where a merchant cannot physically verify a credit card. According to Oberthur Technologies, card-not-present transactions, such as purchases made online or over the phone, represent 65 percent of total card fraud.
Motion Code technology aims to curb the growing CNP fraud problem by replacing the static CVV on a card with a dynamic version. A CVV is a three- or four-digit number that helps verify the legitimacy of a credit card for CNP transactions. Depending on the card type, the CVV can appear on the front or back of the credit card, and may also be referred to as a card security code (CSC), card verification code (CVC), card code verification (CCV) or security panel code (SPC).
In contrast to a card with a static CVV, the Motion Code card features a mini-screen on the back that displays the CVV and automatically refreshes it every hour. This adds an extra layer of security for the cardholder in the event that a computer hacker retrieves an online shopper’s credit card information and attempts to sell it on the dark web, or a thief steals an individual’s card number from a receipt in the trash. Without the most up-to-date CVV, the card becomes useless to the thief.
Shopping as usual
Powered by a thin lithium battery designed to last for three years, the Motion Code credit card provides a fully transparent experience for both the cardholder and the e-merchant. With no special plug-in to install on a browser and no button to press, a cardholder can continue to shop online as he or she would with a traditional credit card. Additionally, the e-merchant is not required to modify its website to include extra buttons or pop-up windows of any kind.
While Motion Code offers transparency and convenience, it also has its drawbacks. The card’s technology can only protect the user from phishing and cloning – not from physical card theft. Also, when shopping online, the cardholder must enter the randomly-generated CVV each time he or she makes an online purchase.
The Motion Code card is currently being tested in two financial institutions in France, as well as a bank in Poland. Oberthur Technologies expects to have the card in the hands of consumers in France by the end of this year.
- Chase to launch new Marriott Rewards card with a 100,000-point sign-up bonus – Chase has unveiled plans to launch a new Marriott Rewards Premier Plus card with 100,000 bonus points, 6 points per dollar at Marriott hotels and 2 points per dollar on everything else ...
- Get up to 80,000 bonus points and 10x points on hotel stays with Chase’s new IHG cards – Chase and IHG have added two new products to their credit card portfolio: the IHG Rewards Premier card and the IHG Rewards Club Traveler card ...
- Earn 75,000 miles each year with the new Barclays Arrival Premier card – Read on to see how – by combining the generous rewards rate with the annual bonus – you can earn more than 75,000 miles each year with the new Barclays Arrival Premier World Mastercard ...