On Jun 9, 2012, at 1:36 PM, Jay Ashworth wrote: > ----- Original Message ----- >> From: "Owen DeLong" <o...@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
