i did book hotels at 5 stars hotel as well and they do ask and they insist it is required for the transaction

in the end, i give in anyway considering its a reputable 5 star hotel in KL

isn't it the same when u hand in ur cc to the waitress at the restaurant? they can easily record ur CVC as well

CC right now is still not safe
1) hold tight to it - as long as its with u its safe
2) if ppl have ur details such as card no. expiry. cvc, hold on to ur phone because it will require secure id code which will be send to ur phone

guess its a very weak security