1224 fraud analytics and how to harness the data - fis...

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

Nicole Braccia

Nicole.Braccia@fisglobal.com

©2017 FIS and/or its subsidiaries. All Rights Reserved. FIS confidential and proprietary information.