WEBINAR

FIGHTING CNP FRAUD5 THINGS TO CONSIDER

April 2016

Eddie Glenn, Product Marketing Manager

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Our story starts with a stolen identity…

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Within just a few days…

charged over $5,000 in online purchases

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One of the financial institutions contacted the victim...

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This bank used iovation for fighting online fraud and began investigating…

USING DEVICE INTELLIGENCE TO FIGHT CNP FRAUD

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Every device tells a story.

Am I authorized for this account?

Where am I located? Do I have a fraud history?

What other devices does this consumer have?

How many accounts have I accessed?

Am I hiding from detection?

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Fighting CNP fraud requires deep device

intelligence.

RULE

1

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Which device is this?

Is it associated with bad devices?

Are there real time risk indicators?

Is it associated with abuse?

DEEP DEVICE INTELLIGENCE:BEYOND DEVICE RECOGNITION

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EVIDENCE

GEOLOCATIONAGE-BASED

ANOMALY

DEEP DEVICE INTELLIGENCE

RISK PROFILE

VELOCITY

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The devicehad a history…

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Fighting CNP fraud requires powerful analytics.

RULE

2

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Devices Per Account

Account Velocity

100+Transaction detail fields are searchable

Subscriber transaction detailsDevice attributes

Device associationsDevice history

Device evidence

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Device Details

130+Device Details Collected

Subscriber transaction detailsGeolocation

Device BrowserDevice hardware

Device OS

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Device history and device associations are critical.

RULE

3

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of transactions originate from devices first seen over a year ago.15%

CNP fraud crosses personal identities, devices, accounts, businesses, and can occur

over long periods of time.

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Separate personal identity from device identity.

RULE

4

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If personal identities are used for device identification, then stolen identities will contaminateyour device intelligence making it useless for catching CNP fraud

Who are the victims?Who are the fraudsters?

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.

The case grew larger and more complex…

It grew from a local case to a federal one

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• Bank Fraud• Social Security Fraud• Stolen Mail• Stolen Identity• Possession of document

making implementations

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Fraud evidence was placed

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Use a device intelligence network that tracks granular

fraud evidence. Everyone benefits.

RULE

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(Except fraudsters)

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Evidence shared across entire network

Over 45 Different Evidence Types

500k+Confirmed fraud reports are

placed each month

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From video surveillance, authorities obtained a face photo.

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The surveillance photo was matched to a photo on social media.

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The fraudster was arrested.

If you’re going to commit CNP fraud, don’t use Facebook.

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How does our CNP fraud story end?

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15 identity theft victims

20 major retailers targeted with CNP fraud

60 credit apps

$70K restitution

$100K in projected losses1

PersonFraud Ring

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EMV WON’T MAKE FRAUDSTERS GO AWAY.

They are shifting their focus from POS to CNP because of new standards.

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Percent increase in CNP fraud

79%Percent increase in

CNP fraud

133%

SOURCE: AITE GROUP, 2015

I N T E R N A T I O N A L C N P F R A U D R A T E SL O S S E S A F T E R I M P L E M E N T A T I O N O F E M V

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POS FRAUD

CNPFRAUD

$10B

$19B

2014 2018 2014 2018

$6B $5B

SOURCE: JAVELIN, 2015

BASED ON U.S. DATA

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POS FRAUD

CNPFRAUD

$10B

$19B

2014 2018 2014 2018

$6B $5B

SOURCE: JAVELIN, 2015.

BASED ON U.S. DATA

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Leverage deep device intelligence

Utilize insightful analytics

Leverage granular fraud evidence

Separate personal identity from device identity

F I G H T I N G C N P F R A U D5 T H I N G S T O C O N S I D E R

Device history and device associations are critical.

THANK YOU

Q&A

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U P C O M I N G E V E N T S

May 15-18, 2016Las Vegas, Nevada

May 23-26, 2016Orlando, Florida