Gemalto protects banks and card issuers against Card-Not-Present fraud with next generation payment
Gemalto, the world leader in digital security, announces the launch of Dynamic Code Verification, a comprehensive payment security solution that protects against Card-Not-Present (CNP) fraud on-line and ensures an easy user-experience cardholders have come to expect. This complete dynamic CVV/CVC solution includes an EMV payment display card that secures traditional in-store and eCommerce payments, ATM withdrawals, a mobile version, a validation server and associated services. The mobile offer is unique to Gemalto, supporting the digital vision of banks with mobile at the forefront of their business strategies.
The solution allows issuers to replace the static 3-digit visual cryptogram traditionally used for online purchases with a time based dynamic CVV/CVC displayed on the customer’s payment card or on their mobile. The code changes every 20 minutes, dramatically enhancing the security level of online transactions.
In South Africa, the South African Banking Risk Information Centre (SABRIC) reported a +21% increase in card-not-present fraud committed within South Africa, jumping from R56.7 million in 2013 to R68.9 million in 2014. “As eCommerce grows, so does fraud and the introduction of this enhanced security level should severely cut down online fraud and help banks in the region maintain their digital vision, while ensuring ease of deployment and minimising impact on existing infrastructures,” said François Chaffard, Director of Banking Solutions & Services for Middle East & Africa at Gemalto.
The Nilson Report estimates that total global fraud losses were $16.31 billion in 2014, a rise of 19% year-on-year. CNP fraud accounted for 25% of this figure, and is set to increase significantly. Banks have started to introduce solutions that provide a higher level of security but these can still be time consuming and impact on the overall customer experience. As a result the shopping cart abandonment rate is staggering, with 68%1 of online transactions initiated not completed.
Gemalto is the only company able to provide a fully integrated solution banks can implement easily, both in the physical card or mobile version, and with minimal cardholder education required. The enhanced security level reduces costs associated with CNP fraud management and delivers higher customer retention.
Consumer study and user testing recently conducted by an independent market research firm has demonstrated that end users intuitively understand the security benefits of this display bank card and are more likely to use this bank card as their first choice for everyday card transactions2. Enhanced technology also delivers a long product lifecycle, with battery life typically extending to four years.
“Gemalto’s Dynamic Code Verification solution provides banks with complete flexibility to meet individual customer preferences – card or mobile – and refine their customer segmentation model while maximising reach,” said Håkan Nordfjell, Senior Vice President of eBanking and eCommerce at Gemalto. “Gemalto is unique in being able to offer banks a complete CNP security solution, further supported by an extended portfolio of services such as consulting, integration, personalisation and fulfilment.”