Big Australian banks turn to dynamic CVV to fight payment fraud – Finance – Security

Three of Australia’s ‘Big Four’ banks have turned to Dynamic Card Verification Value (CVV) functionality to combat online payment fraud and boost digital consumer protection.

The CVC or CVV is traditionally a static three-digit number found on the back of a physical debit or credit card that acts as an additional layer of verification or security when a customer completes an online transaction.

The advent of digital payment cards means new dynamic verification options are now possible.

NAB, ANZ and Westpac have all introduced Dynamic CVV, also known as Dynamic Card Verification Code (CVC), which sees the three verification digits of a digital payment card change regularly for greater security in line.

Westpac spoke most recently about its own Dynamic Card Verification Code (CVC), stating that it has seen an 80% reduction in fraud compared to customers who only use a static CVC.

Westpac’s fraud and financial crime information manager Ben Young said in a Westpac wire publish digital HVAC changes every 24 hours.

The bank began rolling out the feature in 2020. It is currently used by more than 10,000 Westpac customers every day.

“Most card fraud comes from merchant shopping carts that have been compromised,” Young said.

Fraudsters extract card numbers from online shopping carts before selling those card numbers on the dark web.

“By this time, in the case of people who have made purchases using Dynamic CVC, it will have long since changed several times, so the subsequent attempt to make purchases with these [stolen payment] credentials will fail,” Young said.

NAB recently introduced its own dynamic CVV through its buy now, pay later app, Nab Now Pay Later, which showcased its “mini-app” development capabilities, according to CIO for Personal and Digital Banking Anastasia (Ana ) Cammaroto.

Meanwhile, product owner for ANZ Plus cards, Jon Levin, said iTnews its dynamic CVV implementation feature was designed by “the ANZx Cards team in our bespoke cloud native banking platform called Fabric” and in partnership with Visa “using new APIs they recently released developed”. The Dynamic CVV changes every 12 hours.

Levin added that “the new innovation for ANZ was to simplify our integration into Visa”.

“In the past, delivering a project like this would have been very complex with more than a dozen teams and systems involved,” he said.

“Our new Fabric technology and streamlined ANZx framework has allowed us to connect directly to Visa and unlock new technologies like this quickly and simply, it has also allowed us to continue to release future features in the same way. “

CBA is the only remaining “Big Four” bank that has yet to introduce a version of a dynamic CVV.

An ABC spokesperson said iTnews that it “invests heavily in security because the protection of our customers’ data is paramount”.

“Whereas [we have] no immediate plans to introduce Dynamic CVV, we continue to explore technologies and capabilities that will benefit our customers with a focus on minimizing friction in the customer experience,” the spokesperson said.

Latest statistics from Australian payments industry self-regulatory body AusPayNet reveal payment fraud via card transactions reached $490.1 million within 12 months until June 30, 2021.

AusPayNet CEO Andy White said iTnews that “financial institutions use a variety of techniques to protect their customers against online fraud and [to] maintain confidence in payments.

“Most of these techniques involve strong customer authentication, including dynamic CVV, one-time passwords distributed through mobile banking apps, and/or the use of biometrics (face/fingerprints, etc.) “, said White.

He added that AusPayNet’s card-not-present fraud framework supports the use of such techniques.


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Elaine R. Knight