On Jun 9, 2012, at 1:36 PM, Jay Ashworth wrote:
----- Original Message -----
From: "Owen DeLong" <owen@delong.com>
How does having the CVV number prove the card is in my possession?
I have memorized the CVV in addition to the 16 digits of the cards I commonly use and routinely enter them into online ordering without retrieving the card.
What prevents a fraudster from writing the CVV down along with the other card data?
Nothing, but lots of fraud scenarios don't involve a bad actor taking physical posession of your card: magstripe skimmers and charge-slip carbons being only 2 off-hand examples. Clearly, the percentage of fraud it blocks is more than the amount it costs.
The skimmers can use CVV1 and bypass the CVV2 protection in most cases (though that requires them to gen up a fake or fraudulent card and do card present transactions which does add risk for them). I haven't seen a charge slip carbon in so long that I find it hard to believe these would remain a significant factor today. It costs almost nothing, so a few fraudulent transactions blocked is probably enough. That doesn't change the fact that I believe there have to be more effective methods that wouldn't cost much more. Owen