Last updated: 22 December 2015
Digital security is more important than ever. If you’ve been following the news, you’ll know that a number of corporations have fallen prey to cyber-attackers and fraud scams. In November 2015, it emerged that major UK broadband and mobile provider, TalkTalk, had been victim of a huge data breach, jeopardizing 157,000 customers’ personal details, including bank login codes. Disturbingly, the toymaker, VTech, was also the victim of a massive cyber-attack, which resulted in head shots and chat messages of children being exposed, as well as personal information.
With more digital payments than ever before – in the US alone there’ll be $349.1 billion worth of transactions by the end of this year – it’s crucial that corporations find effective security solutions. One key problem is CNP fraud, which involves the gathering of static card information to impersonate cardholders and perform online transactions. It’s estimated to cause eye-watering global losses of $6.4 billion by 2018, as we discussed in our recent post on the cost of CNP crime.
Faced with multiple security threats, it can be tempting for organizations to throw everything at developing intricate security solutions. These might well be secure, but they could also have a negative impact on the consumer shopping experience.
Ultimately, failure to take into account customer convenience could slow down the growth of eCommerce, which would be an enormous shame. Clearly, security solutions have to place customer convenience at their core, which is why we’ve taken the approach we have.
Our Dynamic Code Verification (DCV) system means that the security code on the back of the card evolves continuously. Not only does this make CNP fraud more difficult by making the collection of static card information less effective for criminals, but it also preserves the seamless shopping experience. All customers need to do is turn over their card and enter the code currently displayed on the back. You can check out how DCV works in practice by viewing our cool Vine below.
DCV doesn’t just solve the problem of balancing customer convenience and security – it’s also a much-needed solution to deciding who buys a round of drinks at the football – have a look at our YouTube video to see why:
What else do you think can be done to secure eCommerce whilst preserving customer convenience? Let us know by tweeting at @Gemalto or by posting a comment below.