Cyber-Crime: Where the real threats are for Auto Captives

©2014 Experian Limited. All rights reserved. Experian and the marks used herein are service marks or registered trademarks of Experian Limited. Other products and company names mentioned may be the trademarks of their respective owners. No part of this copyrighted work may be reproduced, modified, or distributed in any form or manner without prior written permission of Experian Limited.Experian Confidential.

Cybercrime – where are the real threats for Auto Captives

Nick MothershawExperian Director ID and Fraud Solutions

2©2015 Experian Limited. All rights reserved.Experian Public.

Our new FraudStats website

Join the conversation on Twitter @ID_and_Fraud

#FraudStats

http://stg1-britain.experian.com/identity-and-fraud/fraud-statistics/


Fraud as a % of ApplicationsFIRST PARTY


Fraud as a % of ApplicationsTHIRD PARTY


First / Third - Product AnalysisH1 2015

38%

95%

20%

84%

32%

23%

66%

77%

43%

62%

5%

80%

16%

68%

77%

34%

23%

57%

Current Accounts

Mortgages

Cards

Automotive

Loans

Savings Accounts

Insurance Policies

Insurance Claims

Total

First/Third Split 2015 H1

First Party Third Party

Black bars show 2014 split positon;


What type of Fraud?

ID Theft False ID Documents

Hidden Adverse

False Financial Documents

Misuse of Product

Employment

Fronting


Fraud Type AnalysisAUTOMOTIVE

RFF Category Distribution - Automotive 2014 H1 2015 DifferenceID Theft - Corporate 0% 1% 1%ID Theft - Current Address 2% 2% 1%ID Theft - Deceased Impersonation 0% 0% 0%ID Theft - False Documents 1% 1% 0%ID Theft - Other 12% 12% 0%Misrepresentation - Employment 8% 6% -2%Misrepresentation - False Documents 5% 4% -1%Misrepresentation - Fronting 26% 22% -3%Misrepresentation - Hidden Adverse 42% 44% 1%Misrepresentation - Insurance Staged 0% 0% 0%Misrepresentation - Undeclared Credit 0% 1% 1%Misrepresentation - Other 1% 1% 0%Avoiding/False Payments 2% 2% 1%Misuse of Product 3% 4% 1%Total 100% 100%


Who are the Fraudsters? – Mosaic AnalysisFirst Party Fraud - AUTOMOTIVE

Municipal Challenge

Urban Cohesion

Aspiring Homemakers-100%

-50%

0%

50%

100%

150%

200%

City

Pro

sper

ity

Pres

tige

Positi

ons

Coun

try

Livi

ng

Rura

l Rea

lity

Seni

or S

ecur

ity

Surb

urba

n St

abili

ty

Dom

estic

Suc

cess

Aspi

ring

Hom

emak

ers

Fam

ily B

asic

s

Tran

sient

Ren

ters

Mun

icip

al C

halle

nge

Vint

age

Valu

e

Mod

est T

radi

tions

Urba

n Co

hesio

n

Rent

al H

ubs

First Party Automotive - Variance to UK Population

2013

2014

2015


Map AnalysisAutomotive

THIRD PARTYFIRST PARTY

©2015 Experian Limited. All rights reserved. Experian and the marks used herein are service marks or registered trademarks of Experian Limited. Other products and company names mentioned may be the trademarks of their respective owners. No part of this copyrighted work may be reproduced, modified, or distributed in any form or manner without prior written permission of Experian Limited.Experian Public.

Cyber Incidents, Identity Theft & The Dark Web

©2015 Experian Limited. All rights reserved.Experian Public.

Insiderthreat

Organised crimeMore Cyber

focussed

State sponsored

Inside team developing

RussiaAsia

Business interruptionPolitical

Evolving threats - vectors


AdvancedMalware

Targeted EmployeeAttack

Cyber Extortion/Denial of Service

Not just links & PDF filesPhishing attacks

Using social mediaEmployee profiling

Physical PropertyCommercial Intellectual Property

Evolving threats - methods


ConsumersAn increased awareness of the risk posed by data breaches

Source: Experian Whitepaper 2.0, 2015

40% of British adults have already been affected by a data breach

65% are concerned about falling victim in the future

84% think companies should be penalised for compromising their customers' personal information

Focus

Humanising the incident

Effects on employees/ consumers

Reassure, support, secure

Govt. & Commercial Databases

Open &

Social Web

NameEmail

Card No.Telephone No.

A review of each step provides further insight into how we keep consumers better informed of data protection risks

Structured

Unstructured

Data

Step 1: Experian read and extract a selection of personal data on a variety of data sources

Step 2: Convert data forms into meaningful information

Step 3: Allows us to keep customers better informed about their online exposure

Our data and analytics offer a host of service capabilitiesAdvanced web crawlers tracking consumers exposed personal details

Email alert sent to:[email protected]> Update details


• Mandatory requirement to notify the Regulator

• Requirement to notify the consumer if data is not encrypted

• Regulatory penalties either 2%-5% of global revenue

• Requirement to have a live, practised Data Breach Response Plan

EU Data Protection RegulationsCurrently in draft expected approved legislation in early 2016 (2-Year phase in period)


Incident timeline

Experianpost breach incident service

NotificationWeb and Identity MonitoringCall Centre Support

Pre breachincident

Incidentreadiness

Post breachincident

IT ForensicsResponse Plan

Practise Response PlanEducation/Awareness

LegalIT Forensics

Press Relations

©2015 Experian Limited. All rights reserved. Experian and the marks used herein are service marks or registered trademarks of Experian Limited. Other products and company names mentioned may be the trademarks of their respective owners. No part of this copyrighted work may be reproduced, modified, or distributed in any form or manner without prior written permission of Experian Limited.Experian Public.

Today’s Digital Journey

Finding Fraud and Improving your Customers’ Experience

Experian Fraud Solutions

Hunter

Authenticate

Identity IQ

AutoDoc-ID

Device Recognition41st

How can we help you?


The Challenge - Achieving the right balance

Customer convenience and choiceFraud Risk Mitigation

Customer Preferences Data Footprint Market Approach

• More and more people prefer online.

• Some people want a Showroom experience.

• Might not be near a Dealership.

• Some people will use a financial advisor

• For consumers with data footprint can do more online, and more instantly

• For less data footprint need to revert to documents and face to face checks: when this is the case make this easy; give options

• Dealership: support for face to face checks. Expert driven

• Online: offer consumer options, maximise online conversion rate.

Vsüüü

üü

Online, Phone or Face-2-Face

https://upload.wikimedia.org/wikipedia/commons/e/e9/R%C3%A9pr%C3%A9sentation_d'internet.jpg


Online ApproachMore happy customers!

ID Validation

Letter to home

Send in Documents

Bring Documents

into Dealership

AbandonProceed

Ways to access a service - Today

ID ValidationPenny

Payment

Automatic Document Verification

Manual Document Verification

Knowledge Based

Questions

Phone call to Home

Card / Bank Account

Verification

AbandonProceed

Selfie Verification

Letter to Home

Ways to access a service - Tomorrow

• More customers get immediate access to products• Less customers abandon applications due to inconvenient processes


Support throughout the Digital Journey


Support throughout the Digital JourneyProtection against First Party Fraud, ID Theft and Cybercrime

HunterDevice

Recognition41st

DetectAuthenticate Identity IQ AutoDoc-ID

Identity as a Service

Bank Wizard

Absolute

Cyber-Crime: Where the real threats are for Auto Captives

Automotive

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