My Phone Stole My Credit Card


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My Phone Stole My Credit Card

  1. 1. My Phone Stole My Bank Card.(But my carrier saved me.)Location in Mobile Payment FraudRip Gerber CEO, LocaidMobile Payments Conference 2012March 9, 2012 San Jose, CA
  2. 2. My phone and my bank card used to be friends
  3. 3. My bank got on my phone
  4. 4. My phone would let me bank
  5. 5. They travelled everywhere together
  6. 6. Then my phone got a new chip.
  7. 7. My phone got greedy.
  8. 8. NFC is coming to a handset on you
  9. 9. Across the world
  10. 10. Death of the bank card
  11. 11. It was never about the plastic
  12. 12. R.I.P.
  13. 13. But what’s not going away?
  14. 14. 610M 3.5 12% #1
  15. 15. $4,607 $10B
  16. 16. Declines hurt Expect greater card abandonment as a result of a decline 3x Cardholders declined in a cross-border POS transaction were three times more likely to stop using their cards 6x Premium (high-limit) cardholders are six times more likely to abandon their cardsSource: High Spenders defined the top 10% of accounts, ranked by dollar spend from September – October 2010Source: Visa White Paper - Effects of Declines on Cardholder Behavior 2010 and Visa Decision Sciences & Analytics 22
  17. 17. $25-$40 Cost of a False Positivewithout Mobile Location
  18. 18. Cost of a False Positive with Mobile Location
  19. 19. no location location
  20. 20. Location and payment fraudLocation Based Services allow issuers to utilize the location of a cardholder’s wirelessdevice as an added layer of authentication. BENEFITS • Optimize approve/ decline decisions • Reduce unnecessary customer contact and intervention • Increase issuer operational efficiency • Improve the customer experience 27
  21. 21. This doesn’t authenticate presence
  22. 22. This does.
  23. 23. How location works in payments. Compare Merchant Location & Phone Provide a Fraud Indication Score Significantly Reduce Fraud Costs Bank Benefits • Reduce false positive Cases • Reduce case management load • Reduce customer service interventions • Work further down the score range • Improve algorithms of other fraud detections/metrics • Enhances bank brand (security, trust) • Reduces cardholder interventions • Improves cardholder experience vs = Location matching results in close proximity
  24. 24. How location stops ATM skims. Compare ATM Location & Phone Provide a Fraud Indication Score Identifies Fraudulent Activity Bank Benefits  Qualifies transactions as fraudulent  Justifies fraud investigation investment  Focuses resources on problem areas  Improves ROI of fraud pursuits  Run away Fraud is mitigated vs = Location matching results not close proximity
  25. 25. How do you get location?
  26. 26. Does location do more than fraud prevention?33
  27. 27. Locaid is Location-as-a-ServiceLocaid Locates Every Device On Every For Any Network Location Need Locaid runs the Locaid reach covers Locaid delivers Locaid finds everylargest LaaS gateway 350M devices. ubiquitous location. device on the network. and carrier reach No app to download. Indoors and out. For any mobile No user action needed. Geofencing, location- application. Any device. based SMS, Global Anywhere. coverage, location analytics. Any location need. The world’s first and largest LaaS company
  28. 28. Credit Card FraudAuthenticating phone locationreduces false positives of $400M/yr.Mobile MarketingProximity marketing without batterydrain, anywhere. DeviceShipment Tracking APIsLocating packages in over 160countries reduces logistics costs.Mobile Gaming Only The world’s largest NavBuildernetwork location permits wagers on LaaS company Insideconsumer mobile phones.Family Safety Ableto find loved ones without appdownload, on any device. 35
  29. 29. Locaid Technologies This is not me. (But we can locate her phone.)Thank you. Rip GerberPresident & CEO