I was submitting an order on-line for refurbished electronics from a site I normally don't use. A window popped up for Verified by Visa asking for the CVV code again, also the last four digits of my social security number and asking me to create a password. It has our bank's logo on it.
Of course I was suspicious. I poked around the web and found the actual Visa site as well as this article which pretty much explains what happened to me along with the program.
I also went to my bank's web site and found a discussion of the program there.
The bottom line: This is a good thing. It essentially adds a password to your credit card. You have to supply this password when you use your card on-line.
I would have appreciated more warning but maybe there was something from the bank that I ignored.