Given the level of card fraud in the UK, particularly card not present fraud, it would be great if Starling could offer customers options to reduce their fraud risk.
One new promising technology is dynamic CVV generation. This can help reduce card not present fraud significantly as the security codes on the back of the card become one time use. Taking this further; I would prefer to have a card with no CVV printed on it and instead generate a code using the mobile app.
This technology seems to be available already from Gemalto:
As the CVV is only needed for remote transactions, removing it from the card and placing generation in the mobile app doesn’t really cause any additional inconvenience when using the card. It also provides a significant benefit fraud prevention wise as a stolen card would no longer be usable for remote transactions.
Obviously this may not be for everyone, but there is no reason a standard card with a dynamic CVV and ‘simple’ card with the traditional CVV could be issued for those who request it. I also understand that fraud losses are usually covered, but as a previous victim of fraud this is little consolation.
It would be great hear what others think about this, and from Starling about its viability for the company.