Secure Technology Alliance reveals defense method against CNP fraud

According to the press release, with the widespread implementation of EMV in the US, fraudsters have shifted their focus to CNP fraud, highlighting static card security codes as a critical weakness. Accordingly, the white paper discusses the benefits of dynamic security codes for issuers, merchants, and cardholders, and the implementation impact on payments stakeholders.

For many online transactions, merchants require the user to enter the security code printed on the card to validate that the card is in the possession of the cardholder. These static security codes, if stolen, present a vulnerability that can lead to CNP fraud and a loss of revenue for merchants and issuers. 

Therefore, cards with a dynamic security code present a possible defense against CNP fraud by having a display and generating a frequently changing code. This hinders the ability of a fraudster using a duplicate card or stolen card data.