Dynamic Security Codes: A New Weapon in the War Against Online Fraud

DUBLIN, IRELAND – November 20, 2025

Card-not-present (CNP) fraud continues to plague the financial industry, costing banks and consumers billions annually. Now, a pioneering implementation of dynamic security code (DSC) technology by An Post Money, the financial services division of the Irish Post Office, is generating significant buzz and demonstrating a potential pathway towards drastically reducing this growing threat. After a 16-month trial, An Post Money reports zero CNP fraud for enrolled customers – a compelling result in the face of projected $12 billion in CNP fraud losses for US banks in 2025.

The Rising Tide of CNP Fraud

CNP fraud, occurring when criminals use stolen card details for online or phone transactions, is a persistent and evolving problem. Experts predict that global losses will reach nearly $36 billion this year, with the US and Asia-Pacific regions experiencing the most dramatic increases. “Fraudsters are becoming increasingly sophisticated, exploiting vulnerabilities in online payment systems and employing tactics like phishing and data breaches,” explains a security consultant specializing in financial crime. “Traditional security measures, like static CVV codes and 3D Secure, are often insufficient to combat these evolving threats.” The lack of a reliable, dynamic authentication method has left a significant gap in the industry’s defenses.

How Dynamic Security Codes Work

Safecypher, the UK-based technology company behind the DSC, offers a unique approach to combating CNP fraud. Unlike physical dynamic CVV cards which require issuing new cards, Safecypher’s solution integrates directly into a customer's mobile banking app. This integration generates a time-sensitive, dynamic security code visible within the app for a limited time, replacing the static CVV code traditionally printed on the card. The system utilizes multi-factor authentication (MFA) and biometric security, adding layers of protection. “The key is to move away from static data that can be easily stolen and towards a dynamic, real-time authentication method,” states a technology analyst. “Safecypher’s approach has the potential to significantly disrupt the CNP fraud landscape.”

An Post Money’s Success Story

After implementing Safecypher’s DSC within its Money app, An Post Money has reported a remarkable 32%+ voluntary opt-in rate among its customers. More impressively, the company has experienced zero CNP fraudulent transactions amongst the enrolled customers over a 16-month period, exceeding 600,000 transactions. This success has generated considerable interest from other financial institutions seeking effective fraud prevention solutions. “We saw a real opportunity to enhance security and build trust with our customers,” says a spokesperson for An Post Money. “Safecypher’s technology aligned perfectly with our goals, and the results have been astounding.” The implementation has not only reduced fraud but also increased card usage among enrolled customers by 50%, demonstrating the positive impact on customer engagement.

Beyond Ireland: Scaling Dynamic Security

The success of An Post Money’s implementation is sparking a broader conversation about the scalability of dynamic security codes. While other companies are exploring similar technologies – some with physical dynamic CVV cards – Safecypher's app-based approach offers a potentially more cost-effective and less disruptive solution. “The advantage of integrating into existing mobile banking apps is significant,” notes a fintech consultant. “It avoids the logistical challenges and expenses associated with issuing new cards.” However, broader adoption requires overcoming hurdles such as standardization, interoperability, and consumer education. “Banks need to work together to establish common standards and ensure seamless integration across different payment systems,” argues a payments industry expert. “Consumer education is also crucial to encourage widespread adoption and build trust in this new technology.”

While concerns regarding the user experience of MFA and security features are valid, the 32% voluntary opt-in rate suggests that customers are willing to embrace this type of security enhancement if it is seamless and provides tangible benefits. The technology's ability to enhance security, build trust, and even drive increased card usage demonstrates its potential to become a vital component of the future of online payments.