Banking

RHB Bank Launches Dynamic CVV Codes To Fight Card Fraud

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RHB in Malaysia is introducing fraud protection cards with mini screens on the back that auto-generate new card verification value (CVV) numbers, according to reports.

An algorithm will generate the new number for the card. The RHB Rewards Motion Code, as the bank calls the new offering, offers an alternative to standard cards with a static CVV code that only changes when the card is replaced.

A study done by Bank Negara Malaysia showed that upwards of 92 percent of total fraud losses were connected to card payment fraud. Also, most of it was done when the card wasn’t even present, with either stolen PIN numbers or CVV codes.

“RHB is proud to be at the forefront of fraud prevention in Malaysia,” said Nazri Othman, acting head of group retail banking at RHB Banking Group. “In our efforts to curb fraud, we continue to pursue innovation in line with our aspirations to be a digital-centric bank by 2022. By partnering with Visa and IDEMIA, we have been able to leverage on best-in-class security features to safeguard our customers’ financial resources. This card provides a complete end-to-end solution for RHB as an issuer and for our cardholders.” 

The bank wants to issue the new RHB Rewards Motion Code credit cards to next year to an estimated 21,000 customers, and it said it will waive annual fees on the card for the first year.

In other Malaysian banking news, Deutsche Bank announced in May that it was tapping Malaysias instant credit clearing system, DuitNow, to process payments for corporate clients.

In a press release, Deutsche Bank said the real-time fund transfer platform changes how corporate clients make and receive funds in Malaysia. “We are supportive of the government’s efforts to modernize the payments infrastructure in Malaysia and will continue to invest in such initiatives. DuitNow stands to greatly benefit our corporate clients by increasing the speed of local payments,” said Jacqueline William, head of global transaction banking for Malaysia.

According to Deutsche Bank, DuitNow moves the country from a check-based payment infrastructure to one in which an instant credit clearing system can process payments instantly. The system also enables the processing of payments at a cheaper rate.

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