iovation presents Fighting CNP Fraud - April 2016
Transcript of iovation presents Fighting CNP Fraud - April 2016
![Page 1: iovation presents Fighting CNP Fraud - April 2016](https://reader031.fdocuments.net/reader031/viewer/2022022203/5870e30d1a28abcf288b5177/html5/thumbnails/1.jpg)
WEBINAR
FIGHTING CNP FRAUD5 THINGS TO CONSIDER
April 2016
Eddie Glenn, Product Marketing Manager
![Page 2: iovation presents Fighting CNP Fraud - April 2016](https://reader031.fdocuments.net/reader031/viewer/2022022203/5870e30d1a28abcf288b5177/html5/thumbnails/2.jpg)
2
Our story starts with a stolen identity…
![Page 3: iovation presents Fighting CNP Fraud - April 2016](https://reader031.fdocuments.net/reader031/viewer/2022022203/5870e30d1a28abcf288b5177/html5/thumbnails/3.jpg)
3
Within just a few days…
charged over $5,000 in online purchases
![Page 4: iovation presents Fighting CNP Fraud - April 2016](https://reader031.fdocuments.net/reader031/viewer/2022022203/5870e30d1a28abcf288b5177/html5/thumbnails/4.jpg)
4
One of the financial institutions contacted the victim...
![Page 5: iovation presents Fighting CNP Fraud - April 2016](https://reader031.fdocuments.net/reader031/viewer/2022022203/5870e30d1a28abcf288b5177/html5/thumbnails/5.jpg)
5
This bank used iovation for fighting online fraud and began investigating…
![Page 6: iovation presents Fighting CNP Fraud - April 2016](https://reader031.fdocuments.net/reader031/viewer/2022022203/5870e30d1a28abcf288b5177/html5/thumbnails/6.jpg)
USING DEVICE INTELLIGENCE TO FIGHT CNP FRAUD
![Page 7: iovation presents Fighting CNP Fraud - April 2016](https://reader031.fdocuments.net/reader031/viewer/2022022203/5870e30d1a28abcf288b5177/html5/thumbnails/7.jpg)
7
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?
![Page 8: iovation presents Fighting CNP Fraud - April 2016](https://reader031.fdocuments.net/reader031/viewer/2022022203/5870e30d1a28abcf288b5177/html5/thumbnails/8.jpg)
8
Fighting CNP fraud requires deep device
intelligence.
RULE
1
![Page 9: iovation presents Fighting CNP Fraud - April 2016](https://reader031.fdocuments.net/reader031/viewer/2022022203/5870e30d1a28abcf288b5177/html5/thumbnails/9.jpg)
9
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
![Page 10: iovation presents Fighting CNP Fraud - April 2016](https://reader031.fdocuments.net/reader031/viewer/2022022203/5870e30d1a28abcf288b5177/html5/thumbnails/10.jpg)
10
EVIDENCE
GEOLOCATIONAGE-BASED
ANOMALY
DEEP DEVICE INTELLIGENCE
RISK PROFILE
VELOCITY
![Page 11: iovation presents Fighting CNP Fraud - April 2016](https://reader031.fdocuments.net/reader031/viewer/2022022203/5870e30d1a28abcf288b5177/html5/thumbnails/11.jpg)
11
The devicehad a history…
![Page 12: iovation presents Fighting CNP Fraud - April 2016](https://reader031.fdocuments.net/reader031/viewer/2022022203/5870e30d1a28abcf288b5177/html5/thumbnails/12.jpg)
12
Fighting CNP fraud requires powerful analytics.
RULE
2
![Page 13: iovation presents Fighting CNP Fraud - April 2016](https://reader031.fdocuments.net/reader031/viewer/2022022203/5870e30d1a28abcf288b5177/html5/thumbnails/13.jpg)
13
Devices Per Account
Account Velocity
100+Transaction detail fields are searchable
Subscriber transaction detailsDevice attributes
Device associationsDevice history
Device evidence
![Page 14: iovation presents Fighting CNP Fraud - April 2016](https://reader031.fdocuments.net/reader031/viewer/2022022203/5870e30d1a28abcf288b5177/html5/thumbnails/14.jpg)
14
Device Details
130+Device Details Collected
Subscriber transaction detailsGeolocation
Device BrowserDevice hardware
Device OS
![Page 15: iovation presents Fighting CNP Fraud - April 2016](https://reader031.fdocuments.net/reader031/viewer/2022022203/5870e30d1a28abcf288b5177/html5/thumbnails/15.jpg)
15
Device history and device associations are critical.
RULE
3
![Page 16: iovation presents Fighting CNP Fraud - April 2016](https://reader031.fdocuments.net/reader031/viewer/2022022203/5870e30d1a28abcf288b5177/html5/thumbnails/16.jpg)
16
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.
![Page 17: iovation presents Fighting CNP Fraud - April 2016](https://reader031.fdocuments.net/reader031/viewer/2022022203/5870e30d1a28abcf288b5177/html5/thumbnails/17.jpg)
17
![Page 18: iovation presents Fighting CNP Fraud - April 2016](https://reader031.fdocuments.net/reader031/viewer/2022022203/5870e30d1a28abcf288b5177/html5/thumbnails/18.jpg)
18
Separate personal identity from device identity.
RULE
4
![Page 19: iovation presents Fighting CNP Fraud - April 2016](https://reader031.fdocuments.net/reader031/viewer/2022022203/5870e30d1a28abcf288b5177/html5/thumbnails/19.jpg)
19
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?
![Page 20: iovation presents Fighting CNP Fraud - April 2016](https://reader031.fdocuments.net/reader031/viewer/2022022203/5870e30d1a28abcf288b5177/html5/thumbnails/20.jpg)
20
.
The case grew larger and more complex…
It grew from a local case to a federal one
![Page 21: iovation presents Fighting CNP Fraud - April 2016](https://reader031.fdocuments.net/reader031/viewer/2022022203/5870e30d1a28abcf288b5177/html5/thumbnails/21.jpg)
21
• Bank Fraud• Social Security Fraud• Stolen Mail• Stolen Identity• Possession of document
making implementations
![Page 22: iovation presents Fighting CNP Fraud - April 2016](https://reader031.fdocuments.net/reader031/viewer/2022022203/5870e30d1a28abcf288b5177/html5/thumbnails/22.jpg)
22
Fraud evidence was placed
![Page 23: iovation presents Fighting CNP Fraud - April 2016](https://reader031.fdocuments.net/reader031/viewer/2022022203/5870e30d1a28abcf288b5177/html5/thumbnails/23.jpg)
23
Use a device intelligence network that tracks granular
fraud evidence. Everyone benefits.
RULE
5
(Except fraudsters)
![Page 24: iovation presents Fighting CNP Fraud - April 2016](https://reader031.fdocuments.net/reader031/viewer/2022022203/5870e30d1a28abcf288b5177/html5/thumbnails/24.jpg)
24
Evidence shared across entire network
Over 45 Different Evidence Types
500k+Confirmed fraud reports are
placed each month
![Page 25: iovation presents Fighting CNP Fraud - April 2016](https://reader031.fdocuments.net/reader031/viewer/2022022203/5870e30d1a28abcf288b5177/html5/thumbnails/25.jpg)
25
From video surveillance, authorities obtained a face photo.
![Page 26: iovation presents Fighting CNP Fraud - April 2016](https://reader031.fdocuments.net/reader031/viewer/2022022203/5870e30d1a28abcf288b5177/html5/thumbnails/26.jpg)
26
The surveillance photo was matched to a photo on social media.
![Page 27: iovation presents Fighting CNP Fraud - April 2016](https://reader031.fdocuments.net/reader031/viewer/2022022203/5870e30d1a28abcf288b5177/html5/thumbnails/27.jpg)
27
The fraudster was arrested.
If you’re going to commit CNP fraud, don’t use Facebook.
![Page 28: iovation presents Fighting CNP Fraud - April 2016](https://reader031.fdocuments.net/reader031/viewer/2022022203/5870e30d1a28abcf288b5177/html5/thumbnails/28.jpg)
28
How does our CNP fraud story end?
![Page 29: iovation presents Fighting CNP Fraud - April 2016](https://reader031.fdocuments.net/reader031/viewer/2022022203/5870e30d1a28abcf288b5177/html5/thumbnails/29.jpg)
29
15 identity theft victims
20 major retailers targeted with CNP fraud
60 credit apps
$70K restitution
$100K in projected losses1
PersonFraud Ring
![Page 30: iovation presents Fighting CNP Fraud - April 2016](https://reader031.fdocuments.net/reader031/viewer/2022022203/5870e30d1a28abcf288b5177/html5/thumbnails/30.jpg)
30
EMV WON’T MAKE FRAUDSTERS GO AWAY.
They are shifting their focus from POS to CNP because of new standards.
![Page 31: iovation presents Fighting CNP Fraud - April 2016](https://reader031.fdocuments.net/reader031/viewer/2022022203/5870e30d1a28abcf288b5177/html5/thumbnails/31.jpg)
31
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
![Page 32: iovation presents Fighting CNP Fraud - April 2016](https://reader031.fdocuments.net/reader031/viewer/2022022203/5870e30d1a28abcf288b5177/html5/thumbnails/32.jpg)
32
POS FRAUD
CNPFRAUD
$10B
$19B
2014 2018 2014 2018
$6B $5B
SOURCE: JAVELIN, 2015
BASED ON U.S. DATA
![Page 33: iovation presents Fighting CNP Fraud - April 2016](https://reader031.fdocuments.net/reader031/viewer/2022022203/5870e30d1a28abcf288b5177/html5/thumbnails/33.jpg)
33
POS FRAUD
CNPFRAUD
$10B
$19B
2014 2018 2014 2018
$6B $5B
SOURCE: JAVELIN, 2015.
BASED ON U.S. DATA
![Page 34: iovation presents Fighting CNP Fraud - April 2016](https://reader031.fdocuments.net/reader031/viewer/2022022203/5870e30d1a28abcf288b5177/html5/thumbnails/34.jpg)
34
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.
![Page 35: iovation presents Fighting CNP Fraud - April 2016](https://reader031.fdocuments.net/reader031/viewer/2022022203/5870e30d1a28abcf288b5177/html5/thumbnails/35.jpg)
THANK YOU
![Page 36: iovation presents Fighting CNP Fraud - April 2016](https://reader031.fdocuments.net/reader031/viewer/2022022203/5870e30d1a28abcf288b5177/html5/thumbnails/36.jpg)
Q&A
![Page 37: iovation presents Fighting CNP Fraud - April 2016](https://reader031.fdocuments.net/reader031/viewer/2022022203/5870e30d1a28abcf288b5177/html5/thumbnails/37.jpg)
37
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