I suppose, but I would suspect if that was the case any "golden key" or master code wouldn't be kept online at all. Why would it need to be in the first place? These companies make plenty of stupid decisions, but they aren't completely inept.
To me this seems like the safest option I've seen, let alone can think of to create a safe credit card. It prevents commonplace fraud on a great many levels here just because the information can only be used once. Scanners installed on ATMs and gas stations would be useless. Staff at restaurants and cashiers or anyone else handling the plastic card can't do anything with the information they record off the card during handling because it's invalidated the moment of the initial transaction they're supposed to be performing. With a normal card as they have to do is snap camera photos of both sides of a normal plastic card covertly, and they're good to have a spending spree later.
Credit card fraud is as simple as going to a grocery store, putting a high quality camera in a purse or sleeve, and making sure it records a visual of the front and back of a plastic card as the customer in front of you takes his out to swipe it. Then they can just go on line, look up the home address, snag the phone number for the name, and begin buying whatever they want on line. The system in place now goes beyond begging for fraud, and it's amazing more people don't try this. Plenty of cashiers and waiters do already.
I was glad to read some companies had already started trials... I'd get one of these the moment it was an option for my accounts.
