What Is a Credit Card CVV Number?

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When billions of financial transactions are conducted each day, fraud and identity theft cases have never been higher. Not only do consumers have to worry about their physical credit or debit card being stolen, but they also have to worry about malicious websites stealing the information for nefarious purposes. Protecting one's identity has never been more important.

Even if you avoid questionable websites, review a site's security certificate, or check with the Better Business Bureau about a company's reputation, the potential for fraud and identity theft is high. Luckily, credit card companies added a small yet effective security measure to help reduce fraudulent activity: the "three-digit code on the back," otherwise known as the CVV code.