Walmart (NYSE: WMT) has introduced a new security policy that requires some shoppers to enter the three-digit security code on the back of their credit cards. The move is designed to help the retailer cut back on credit card fraud.
"Walmart has agreed with several card issuers to require the use of the three-digit security code on transactions over certain dollar thresholds," Walmart's Dianna Gee told KPRC of Houston.
Walmart's policy is unique in asking for this security code for in-person purchases, as such codes are typically only used to verify online purchases. The new measure, however, has some shoppers torn over whether it makes purchases more secure. Historically, security advisers have warned shoppers to never share the three-digit code for in-person transactions.
Walmart is adamant, however, that requiring users to enter the code for high-value transactions prevents users with phony cards from getting away with fraud since they will not be able to provide the three-digit code.
Walmart did not say if the three-digit code is stored separately from the remaining payment card information.
Security precautions have been top of mind for retailers in recent months, following data hacks at Target (NYSE: TGT), Michael's, Neiman Marcus and Sally Beauty (NYSE: SBH). This week, eBay (NASDAQ: EBAY) also said it had fallen victim to a security threat, but that users' payment data was not affected.
In response to the attacks, the Retail Industry Leaders Association and merchants including Target and JCPenney (NYSE: JCP), have launched an organization committed to preventing cyberattacks in response to a series of data breaches that compromised millions of shoppers' payment data.
Through the independent Retail Cyber Intelligence Sharing Center, retailers can share cyber threat information among themselves and with government agencies including the U.S. Department of Homeland Security, U.S. Secret Service and Federal Bureau of Investigation.
-See this KPRC of Houston report
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