What is a primary risk involved in not requiring CVV2 for transactions?

The primary risk involved in not requiring CVV2 for transactions is indeed the increased chances of fraud. The CVV2, which is a three- or four-digit security code found on the back of credit and debit cards, serves as an additional layer of security designed to help verify that the person initiating the transaction possesses the physical card. When merchants do not require this code, they make it easier for fraudsters to complete unauthorized transactions using stolen card information.

Fraudulent transactions can lead to significant financial losses for both merchants and customers, as well as additional costs associated with chargebacks and potential damage to a merchant's reputation. Therefore, implementing a CVV2 verification process is a critical measure in reducing fraud risk in card-not-present transactions, such as those conducted online.

Other options presented do not address the fundamental purpose of the CVV2 directly related to transaction security, which is why they are less relevant in this context.