1) QSecure introduces a dynamic data solution for payment transactions to prevent fraud without changing existing infrastructure. Their SmartStripe technology uses dynamic cryptography on magnetic stripes and display cards to generate unique transaction data.
2) Current payment fraud is a large problem, with data breaches like Heartland compromising over 100 million accounts. Fraudsters target multiple industries and attacks grow more sophisticated.
3) QSecure's solution prevents fraud, maintains customer convenience and behavior, and can scale affordably without impacting merchants or other participants. Their products like dynamic CVV2 and magnetic stripe readers are already in production pilots.
1. Introducing Dynamic Data in Payment Transactions without Changing the Existing Infrastructure RSA Conference February 2011 San Francisco Daniel Chatelain, Vice President Operations & Strategic Alliances Website: www.qsecure.com
10. Fraud not limited to ecommerce but also very real at ATMs and POSs* Ethoca Report on Fraud – Feb 2011
11. True cost of Payment Fraud The negative effects of fraud involve all participants in the card value chain. In general, only the issuer’s fraud losses are widely tracked and shared Note: opportunity costs include lost revenues due to fraud at time of card application and of increasing compliance costs driven by fraud regulations and laws
12. Market Update – Fraud in the UK £ millions Market closest in Europe to the US market Payment cards are now 100% EMV since 2004 UK fraud rate was 9 basis points for 2009 compared to 18 bp in 2001. Counterfeit represents 18% and is down 52% from 2008 At a high level, numbers demonstrate that EMV deployment starts bearing fruit Source: APACS in the UK
13. Market Update – Fraud in the US In the US, decrease of fraud in 2009 due essentially to card reissuance (Heartland data breach) In the US, increase of fraud in the first half of 2010 In the US, hack of merchant payment network to get magstripe data information ATM skimming with camera to capture PIN getting slick with technology improvement (less frequent but high impact) BasisPoints Source: MasterCard Global Risk Conference 2010
52. QSecure Authorization Server Payment Authorization Server Banking Host MOTO 3D Secure POS Customer Service ATM Online Banking QCS Card Present Transactions Perso Bureau Card Not Present Transactions Other Banking Channels Internet One Secure Card for One Application or Many
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54. Unique cryptogram provided each time the button is pressed (CVQ) – data good for only one transaction or a period of time