Ever since Bitcoin was introduced to the world, the digital currency has been able to outline some of the flaws being found in the traditional payment structure. Especially credit cards pose a high security threat, as an assailant only needs to know the card number, expiry date, and CVV code to go on a shopping spree. BBVA Bancomer is stepping up their card security, however, as they have introduced dynamic CVV and CVC codes.
Also read: London Black Cab Drivers May Soon Accept Indirect Bitcoin Payments
Dynamic CVV/CVC Codes Via Mobile App
Increasing security in the traditional financial world as we know it today is anything but easy. Credit cards pose a major risk, as this type of transaction is often subject to fraud and chargebacks. Also, a credit card’s information is rather stagnant, as card numbers and CVV codes never change, unless the card has been replaced or expired.
BBVA Bancomer in Mexico is changing the static three-digit security codes on the back of debit and credit cards. Thanks to its mobile wallet application, cardholders are now able to use dynamic CVC/CVV codes, which are generated every twenty minutes. In doing so, BBVA Bancomer becomes the first bank in the world to publicly experiment with this technology.
The Dynamic Code Verification solution is designed to protect against “Card Not Present” fraud. This term indicates how an assailant would be able to make an online purchase with someone’s credit card details, as long as they know the card number, CVV code and expiry date. Ensuring a dynamic CVV code has to be used will require the customer to have the card present at all times.
Something had to change sooner or later in the online payment industry, as mobile banking, e-commerce, and m-commerce is growing exponentially. However, the level of security and trust remained stagnant, which is not an acceptable situation. Using a groundbreaking feature such as dynamic CVV/CVC technology, will be quite beneficial to consumers all over the world.
According to a statement made by BBVA Bancomer’s Najera Alva, more than 100,000 people are actively using the dynamic CVV/CVC technology through the bank’s mobile application. This just goes to show how many consumers are concerned about card security.
But BBVA is not only bank looking to increase plastic card security in the near future. OT Motion Code is available for physical purchases and is currently being tested by BNP Paribas. Rather than keeping a static three-digit code on the back of the card, there will be a small screen display generating periodic dynamic codes.
Bitcoin Remains Superior Payment Solution
Despite the efforts made by all of these banks to step up their security game, Bitcoin remains the most secure form of currency and transferring value around the world. With its nearly-instant transactions, low fees, and convenient way to store and manage funds, Bitcoin is slowly gaining ground in all corners of the world.
Even though Bitcoin is still a far cry away from becoming a mainstream currency, more and more people are starting to see the value of using it as a currency, rather than just an investment vehicle. Scarcity plays a key role in the process, and the fairly low price per Bitcoin is a tempting entry point for novice users.
Source: Finextra
