Between April and December of 2019, there were around 24,000 fraud cases involving credit cards, debit cards, and net banking as per the Reserve Bank of India.
However, financial institutions have continuously aimed at making their credit cards safer with various security measures.
The CVV number is one of the basic levels of security offered to cardholders. This ensures a considerable level of protection against online frauds. Therefore, individuals should be aware of what CVV number stands for to step up security against online fraud.
What does CVV stand for?
CVV number or Card Verification Value refers to a unique code that issuers assign to a credit card or debit card. This 3 or 4 digit code is mainly found at the back of a card.
A CVV number is not the equivalent of the credit card PIN number. Instead, using this number during online transactions sends a signal to merchants that individuals have the card with them physically.
Financial institutions have strengthened their credit card security measures with CSC and CVV2 codes. CSC or Card Security Code and CVV2 are curated codes that generate by leveraging a second-generation process. As a result, these numbers become difficult to decode and thus ensure protection against online frauds.
Additionally, CVV is a Secure Socket Layer (SSL) certified technology that issuers use to add a protective layer against attempts of skimming, cloning, and phishing.
The CVV code is present in all types of credit cards, including travel, fuel, prepaid, student, business, and balance transfer credit cards.
Why is using CVV code for credit card transactions necessary?
E-commerce sites and online retail portals have mandated the use of CVV during online transactions. Therefore, individuals have a lower level of exposure to online frauds and consequent financial liabilities.
However, the fundamental reasons behind the compulsory integration of CVV number into credit card transactions include the following –
- Single-use – CVV is meant for single-use transactions as websites are legally not allowed to preserve this code. This suggests that individuals have to enter their CVV code every time they carry out online credit card payments. As a result, hackers cannot access these codes from a website’s database.
- Card-not-present transactions – The implementation of CVV in the transaction process implies that the card is physically present with an individual. Therefore, it becomes difficult for fraudsters to use CVV for card-not-present transactions.
Owing to the above reasons, the implementation of CVV is utmost necessary during credit card transactions. Individuals should also know about the types of credit card frauds and how to avoid them.
How to further reduce the possibility of online fraud?
Credit card users should actively take several measures to protect themselves against unauthorized transactions. These will also help them protect their credit cards from being hacked –
- Keep a regular track of credit card transactions through e-commerce websites. Thereby, you can single out unauthorized transactions if any.
- Do not use the same password for various online retail portals.
- Use a strong firewall and antivirus in the devices used to conduct credit card transactions.
- Finally, log out of third-party payment sites and mobile wallets after every transaction.
Individuals can opt for credit cards such as the Bajaj Finserv RBL Bank SuperCard for better security. With this premium card, individuals can benefit from security features such as in-hand security and zero-fraud liability cover.
Therefore, make sure never to share credit card CVV number with others to ensure the maximum level of security. Also, learn how to read credit card statements correctly and keep a regular track of transactions online.