Westpac NZ customers can now shop more safely online with a digital version of their credit or debit card, using a dynamic security code (CVC) that refreshes after 24 hours.
The digital card is stored securely in the Westpac One app and available to any Westpac One user. It has the same card number and expiry date as a customer's physical card. However, the changing security code means that even if criminals obtain the card details they can't use them on an ongoing basis, reducing the risk of fraud.
Westpac is the first New Zealand bank to offer a dynamic security code feature alongside instant issuance for debit cards, meaning a customer who gets a new or replacement debit card can start spending online straight away, rather than waiting for the physical card to arrive and be activated.
Westpac customers have lost more than $5m to credit and debit card fraud over the past 12 months. While that's lower than in the previous 12 months, it remains one of the most common types of financial crime.
Westpac NZ General Manager of Product, Sustainability and Marketing, Sarah Hearn, says the bank invests tens of millions of dollars a year in fraud and scam education and protection measures, helping reduce customer losses over the past two years.
"Online shopping is quick and convenient, and we're making it even more so by offering customers a digital version of their card, but we also want to give them a safer way to pay," Ms Hearn says.
"Dynamic security codes have a proven record of reducing online card fraud, with the incidence of fraud for the average Westpac customer in Australia with a digital card falling by 80% in the first two years after it was rolled out there.
"If a customer has their card details stolen online, the criminals may take some time before trying to transact on the card. In that scenario, they'd be unable to do so if the customer was using a dynamic security code, as the stolen code would've expired.
"While Westpac covers most card fraud losses for customers, unless they've contributed to the loss or failed to notify us promptly, finding fraudulent transactions on your card is a stressful experience.
"Reducing the risk of fraud in the first place means customers can shop with greater confidence and removes the stress of applying for reimbursement and getting a new card.
"On top of the security benefits, having a digital card means customers can continue to make essential purchases even if they don't have their physical card with them, and blind or vision-impaired customers have the option to use screen readers to have their details read aloud."
Ms Hearn says consumers should still take care to reduce the chances of their details being stolen when shopping online. This includes:
- Using their dynamic security code when making online payments;
- Looking for trusted retailers with a reputation for delivering on their goods and services;
- Being cautious about heavily-discounted items on unfamiliar websites;
