An Post Money has introduced a new system which it says will reduce payment card fraud and lead to more secure card payments.
In association with card payments security company, Safecypher, the company has introduced a 'Dynamic CVV' facility.
Instead of relying on the fixed CVV number on the back of the card, the customer can now generate a new CVV for one-time use during every payment transaction where they have to provide a CVV number online or over the phone.
The one-time use code will expire once it has been used so it will be of no use to fraudsters or cyber criminals.
CNP, also known as Card Authorisation fraud, is one of the most prevalent types of payment card fraud worldwide with losses this year predicted to reach $35.8 billion.
It occurs when criminals carry out transactions by phone or online using seemingly legitimate card details, including the account holder's name, full card number, expiry date, and registered CVV number.
"Unfortunately, these details can be compromised from previous transactions, as large databases containing this information are too-often sold to fraudsters or obtained through criminal methods such as phishing or hacking," An Post Money explains.
"Safecypher provides two-factor authentication of every payment by replacing the standard static 3-digit CVV on the reverse of the physical card with a randomly generated CVV which the customer uses on a one-time only basis, accessing a new CVV number for each new transaction in just one click," it adds.
This means that even if a card is compromised, one of the key security checks on current account payments can only be carried out by a person with access to the cardholder device and the An Post Money app.
Only the genuine cardholder will have access to the dynamic CVV for every transaction, created specifically just for that transaction.
