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Jackie here. Could a changing security code be the key to fighting credit card fraud? One card manufacturer hopes that their prototype credit card with a changing verification code (that 3 digit code sometimes called a CVV) will be in your wallet soon. Let’s take a quick look at this idea for fighting credit card fraud.
The Card
At first glance, the new card from Oberthur Technologies looks just like any other credit card. It is a standard size and just .76 millimeters thick. The main difference between this card and the ones you already have is the changing code on the back. The code changes every 40 to 60 minutes to a new randomized number. This number is displayed on a small, postage stamp sized screen. The small screen is battery powered and designed to last 3 years without a charge.
If your card information is written down, it won’t work later as the code will have changed. Without the new code, the card won’t work. One potential downside to this is you could not input the card information to make automatic payments for bills and other expenses, as the CVV changes so often.
A Better Solution?
This card is touted as a better solution to credit card fraud than the CHIP-enabled cards companies are now using. These cards have a specialized chip that discourages fraud when used with a special reader, but fraudsters will likely circumvent the chips by heading online where chip verification isn’t currently possible.
Since this card can be used both online and off, it may be a more comprehensive solution to credit card fraud. Only time will tell if this card becomes available to the masses and will really cut down on fraud.