Can you spot the honest customer…

…from the fraudster?

Presentation by:Alex Bowes,

Corporate Sales Manager,192.com Business Services

Agenda

• Strategic Objectives• Trend Analysis• Key Aspects• Offline vs Online• Who are the fraudsters?• Online Verification• Online Options• Compliance• Best Practice

Strategic Objectives

• Identify and protect your customers

• Deter and detect fraudsters

• Increase transaction levels with legitimate customers

• Increase profits – reduce risk

Trend Analysis

Source: APACS

UK Fraud Losses in £

Millions

2004 vs. 2005

-9%-45%

-22%-25%

+21%

£0M

£20M

£40M

£60M

£80M

£100M

£120M

£140M

£160M

£180M

£200M

CN

P

Cou

nter

feit

Sto

len/

Lost

Mai

l Non

-

Rec

eipt

ID T

heft

Deterrence

Investigation

Fraudsters

Customers

Profits

& Risk

Systems

People Processes

Key Aspects…

Offline vs Online

Offline Online

Physical

e.g.’s• Vigilence• Detectives

e.g.’s • Encryption• Firewalls

Identity

e.g. photo IDs e.g.’s• Name + address• D.O.B• I.P. Validation• Neural Networks

Who are the fraudsters?

• Organised across borders– Use a computer in Africa, – With a European IP address – And US credit card

• Sophisticated– With timing and source of fraud times

• Persistent– 1 in 100 transactions is still worth it

Online Verification…

• Data Characteristics – Name, Address (Bill to / Ship to)– DOB, Mortality

• Document Details– Passports, Drivers License

• Personal Characteristics– Voice Recording– Biometric

Compliance…

• Regulators already impacting online gaming

• When will attention be re-focused on age-restricted products sold online– Alcohol sales– 18+ DVD sales & rentals– Weapons & knives

Best Practice…

• Are larger retailers more prone to fraud?

• If the fraudsters are organised, then we need to be too.

• To shut them down completely rather than allow them to migrate.

• Communication and organisation between retailers and partners is the key.

To beat the fraudster…

• Ensure your systems are up to speed– But future proof for tougher checks, DOB

checks, etc

• Be better organised than the criminals– Sharing information with peer group

Questions?

Alex BowesCorporate Sales Manager

192.com Business Services

Email: alex.bowes@192.comMobile: +44 (0)7725 203 386