Company: Fidelity Bank (Bahamas) Limited
Industry: Financial services
Location: Bahamas

How Dynamic CVV2 slashed card-not-present fraud for a nimble bank in The Bahamas

We are extremely happy.
The reduction in card-
not-present fraud within
months of implementation
was incredible. The
^TM
CVVkey application is
secure, simple, and easy-
to-use.

CVVkey TM application is

Heatherdawn Blake-Brown
Director of Card Services
Fidelity Bank (Bahamas) Limited

Challenge

Implementation of chip card technology has reduced
counterfeit fraud considerably, so fraudsters have moved
to a new vulnerability: online shopping. As a result, CNP
fraud rates have increased significantly across the industry
in recent years. The global CNP rate is now five times higher
than the card-present fraud rate, and CNP transactions
comprise 83% of global fraud but only 49%
of total sales volume.

Fidelity Bank (Bahamas) Limited, an innovative bank that
serves The Bahamas, and services entities in the Cayman
Islands, was experiencing card-not-present (CNP) fraud
rates far above industry averages.

Fidelity wanted to reduce its CNP rates but the cost of an
in-house solution was challenging. However, as a nimble
institution, Fidelity can accelerate approval processes for
new initiatives with trusted partners, an advantage that
helped Fidelity find an immediate and effective solution to
its challenge.

Solution

To reduce levels of CNP fraud, Fidelity implemented Visa’s Dynamic Card Verification Value 2 (dCVV2)
service in March 2021 and completed migration of all cardholders to dCVV2 in August 2021.

Standard CVV2 is a static three-digit number printed on the back of a Visa card, which cardholders
use during a purchase to verify that they are in possession of the card. Visa’s dCVV2 service is a techenabled version of CVV2 in which the number changes regularly, either on a special physical card with
a display screen or via a mobile banking app. During an online purchase, the cardholder enters the
current dynamic CVV2 value, and the VisaNet system validates the dynamic code using the dCVV2
Authenticate service. VisaNet’s optional dCVV2 Convert service converts the dynamic CVV2 to the
static CVV2 prior to sending the request to the issuer for approval.

The cardholder’s ability to provide the correct dCVV2 number at any point in time provides greater
assurance that the legitimate card is being used. Not only does dCVV2 help to prevent fraudulent
transactions, it can also help lower fraud-related costs such as card reissuance, distribution, and fraud
investigations in the event of a data breach.

Fidelity was introduced to this solution by Keyno, a third-party provider of fraud-prevention
technology that facilitates Visa’s dCVV2 service via its own CVVkey™ code system. Using the dCVV2
Generate API from the Visa Developer Platform, Keyno is able to request the current dynamic code for
the cardholder, and display the value on the CVVkey™ app.

The partnership with Keyno made implementation of the technology seamless and easy for Fidelity.
Keyno was able to quickly configure CVVkey^TM specifically for Fidelity and deploy it to cardholders. By
working with Keyno, Fidelity was able to shorten the timeline for that step of the process from four
months to one.

Once the VisaNet system was set up to perform the validation of the codes, Fidelity worked with Keyno
to automatically enroll all of its cardholders and notify them about the new fraud-reducing technology.

Fidelity Bank’s results

The implementation of dCVV2 allowed Fidelity to significantly reduce CNP fraud, bringing the fraud
rates down from above industry average to a fraction of that initial rate.

Fidelity CNP fraud rate

Additionally, Fidelity expects to reduce fraud research costs and plastic reissuance costs by over 90%.
After averaging 1,000 reissued cards annually due to fraud, in 2022 so far the company has reissued
only five. Further, Fidelity customers have expressed their appreciation that their cards are now more
secure for online shopping.

Implementation
was seamless, with
excellent conversion
and implementation
support from Keyno
and Visa.

Heatherdawn Blake-Brown
Director of Card Services
Fidelity Bank (Bahamas) Limited

Overall dCVV2 results

The chart below shows aggregated fraud rates for all of Visa’s dCVV2
clients and compares the difference in fraud rates when their cardholders
used static CVV2 vs. dynamic CVV2. When dCVV2 was used, fraud rates
were reduced significantly.

One of the leading indicators of the success of dCVV2 is how successful it is
when the CVV2 is matched.

CVV2 matched (F44.10 = M)

*Fraud reporting not closed for these periods.

Learn more

For more information contact your Visa Representative.