Re: CVV numbers

[Owen DeLong <owen () delong com>]

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