Australian Banks Introduce Dynamic CVV to Combat Online Payment Fraud

NAB, ANZ and Westpac have introduced CVV/CVC, which sees the three verification digits of a digital payment card routinely change for greater online security.

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The CVC or CVV is traditionally a static, three-digit number found on the back of a physical debit or credit card that acts as an additional layer of verification or security when a customer is transacting online.

Westpac has reportedly seen an 80 percent reduction in fraud compared with customers who use only a static CVC. The bank's digital CVC changes every 24 hours, a feature it started to roll out in 2020 and is currently being used by over 10,000 customers.

With a dynamic CVV, card numbers extracted from merchant shopping carts by fraudsters will no longer work to make purchases with stolen credentials.

NAB introduced its own dynamic CVV through its BNPL (buy now, pay later) app. ANZ introduced the feature on its cards in partnership with Visa, where the dynamic CVV changes every 12 hours.

CBA has reportedly said it has "no immediate plans" to introduce dynamic CVV, but that it invests heavily in security and customer data protection, and is continuing to investigate technologies and capabilities that will benefit its customers.