1224 fraud analytics and how to harness the data - fis...
TRANSCRIPT
Fraud AnalyticsHow to Harness the Data
May 22, 2017Nicole Braccia, Senior Director Enterprise Fraud Strategy
Session Agenda
• Understanding Industry Fraud Trends
• SecurLOCK at a Snapshot
• Improving your Fraud Strategy
Understanding Industry
Fraud Trends
4 MILLION RECORDS
COMPROMISED DAILY
35 RECORDS COMPROMISED EVERY SECOND
2,116 RECORDS COMPROMISED EVERY MINUTE
IDENTITY THEFT ACCOUNTS FOR
64% OF ALL KNOWN DATA
BREACHES
126,936 RECORDS
COMPROMISED HOURLY
What’s Trending
Source: The Insuffiency of Two-Factor Authentication White Paper, BIOCATCH
U.S. Current Affairs
• As of April 11th data breaches increased 37%
compared to same time in 2016
• 430 data breaches with 7.93M records
exposed
• Business sector accounts for 54% of total
data breaches
• Business sections accounts 78% of total
records
Global Fraud Predictions
• By 2020, card fraud worldwide is expected to
total $31.67 Billion
• Fraud losses are expected to grow annually
12% in 2017 & 2018
• CNP fraud accounts for 41.2% of Global Fraud
Sources: Neustar, The Nilson Report, ThreatMetrix
U.S. Fraud Landscape
• Fraudsters continue to evolve ensuring their
shops remain productive and profitable
• Even with the onset of EMV fraud losses
increased to $8.8 billion in 2016
• Fraud victims represented 14% growth with
average fraud losses at $961
• CNP incident grew 42% in 2016 while POS
only by 8%
SecurLOCK at a Snapshot
SecurLOCK POS Entry Mode
• Ecommerce attempted fraud represented
40.9% total fraud in 2016, increasing 7%
• Swiped maintained top attempted fraud at
47.0%, but experienced a reduction of 6%
• Fallback experienced 14% increase
representing 1.5% of attempted fraud
SecurLOCK Card Not Present
• Card Not Present confirmed fraud increased
14.7% from 2015
• Debit experienced largest increase averaging
18.7% while Credit averaged 12.3%
• Global client population regardless of issuer
Chip migration
SecurLOCK Fraud Decline Rate
• Overall confirmed fraud decline rate averaged
75%
• Q4 2016 averaged 73% compared to 70%
average in Q4 2015
• Cardholder fraud validation as a result of
fraud alert
• Legitimate Authorizations account for 99.84%
of total authorizations dollars
• Fraud accounts for remaining 0.16% of total
authorization dollars
• Real Time rules performed at 2.10 FPR
SecurLOCK Real Time Strategy
Good99.84%
Bad0.16%
SecurLOCK 2016 Real Time Results
Average Accounts with Confirmed
Fraud Mitigated Monthly
44,770
Average Fraud Dollars
Saved Monthly
$10.6M
Overall Fraud Dollars Saved
Increased by 18% from 2015
$127M
Improving your Fraud
Strategy
New Account Fraud Account Takeover Payments Fraud
Authentication Data AnalysisPost TransactionConsumer
Engagement
Transaction
Monitoring
ID Verification
Biometrics
OFAC
Device Authentication
Consumer ControlsTransaction Monitoring
Machine Learning
Business Intelligence
Predictive AnalyticsTransaction WarrantyCompromised Cards
Dedicated Analyst
Custom Rules
Global Rules
2-way Messaging
Fraud Mitigation
AssociationsTravel
Notification
Attack Types
Solutions in the Market
CAMS Alerts
Mitigation Categories
Malware Detection
Internal Fraud
Employee Fraud
Detection
Automated Chargeback
Dynamic Jailbreak Root Detection
ANI Spoofing
Fraud Solutions LandscapeAs the complexity of payments increases so does the demand for new fraud solutions
What’s influencing the Fraud Payment space?
Card fraud
continues to
accelerate
20% of
cards show
no activity
after false
positive
Fraud is
shifting to
Card-Not-
Present
U.S. drives
47% of all
global card
fraud
Rise of
application
fraud
Fraud Data
Consortium
Artificial
Intelligence
Machine
Learning
Fraud
Predictive
Analytics
Consumer
Biometric
Technology
Effectively Managing the Data
Leverage data across multiple business lines to make more informed decisions
Drive growth by identifying unique needs of business segments
Increase customer experiences by quickly identifying precise
customer segments
Empower internal resources with the right data and tools Strengthen your data by
adapting in real time to the changing environment
Scalability
Operational Excellence
Turn Data into
Business InsightsSynergy
Flexibility
Data Analysis
Enterprise Strategy for Omni-Channel ProtectionLeverage each channel’s unique processing to create a holistic view to fraud mitigation
• Fraud strategy across
multiple product lines
including credit, debit,
prepaid, & merchant
• Create a forum to allow
various fraud analyst
groups to talk and share
• Identify gaps in business
lines to start the solution
process
• Combine various fraud
roadmaps to drive into a
single through line
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