ONLINE FRAUD - THE EAST AFRICAN TRAVEL MARKET (Aitec banking, sep/2013)

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ONLINE FRAUD - THE EAST AFRICAN TRAVEL MARKET (Aitec banking, sep/2013)

  1. 1. ONLINE CREDIT CARD FRAUD the East African Travel Market AITEC BANKING AND MOBILE COMESA – SEP/2013 ERAN FEINSTEIN – 3G DIRECT PAY LIMITED
  2. 2. 3G Direct Pay – WHY? …because we believe that service providers and end customer should have the FREEDOM to shop and pay online using ANY card type and ANY currency… 9/13/2013 | AITEC BANKING AND MOBILE COMESA SEP/2013 | ERAN FEINSTEIN | 3G DIRECT PAY LIMITED |
  3. 3. HOW we doing it?  End-to-End solution – filling the gap Designed and maintained for the Africa travel market East Southern Multi layers package Technology / Platform Bank relations Customer care Fraud Prevention and Risk Management Internal industry settlement platform 9/13/2013 | AITEC BANKING AND MOBILE COMESA SEP/2013 | ERAN FEINSTEIN | 3G DIRECT PAY LIMITED |
  4. 4. HOW we doing it? The Platform  Real-time transactions  Online payments processing  Online / Offline / Direct / API 9/13/2013 | AITEC BANKING AND MOBILE COMESA SEP/2013 | ERAN FEINSTEIN | 3G DIRECT PAY LIMITED | Payment Options  Professional bank relations EU, US, KE, TZ..  All cards, mobile, PayPal and more..
  5. 5. HOW we doing it? 9/13/2013 | AITEC BANKING AND MOBILE COMESA SEP/2013 | ERAN FEINSTEIN | 3G DIRECT PAY LIMITED | Fraud Prevention  Real-time monitoring  Advanced scoring  Skilled team Customer Care  24/7 for the end customer and the travel provider  It’s about conversion !
  6. 6. HOW we doing it? Providers settlement platform Based on our own providers network Real-time payment allocation Instant confirmation 9/13/2013 | AITEC BANKING AND MOBILE COMESA SEP/2013 | ERAN FEINSTEIN | 3G DIRECT PAY LIMITED |
  7. 7. The Network Airlines (24) , Hotels and Lodges (150) , Agents and Tour Operators (300) , Diving Centers (10) 9/13/2013 | AITEC BANKING AND MOBILE COMESA SEP/2013 | ERAN FEINSTEIN | 3G DIRECT PAY LIMITED |
  8. 8. The East African Travel Industry The main players: Airlines Hotels Lodges Tour Operators Travel Agents 2500 to 3000 providers (Kenya, Tanzania, Uganda, Zambia) 9/13/2013 | AITEC BANKING AND MOBILE COMESA SEP/2013 | ERAN FEINSTEIN | 3G DIRECT PAY LIMITED |
  9. 9. The East African Travel Industry Kenya and Tanzania – quick figures More than $4,000,000,000 (annually) Online transactions (credit cards and PayPal) $35,000,000 to $50,000,000 Typical Customer 80% - Europe and USA 15% - Eastern Africa (steady increase over the past 2 years) 9/13/2013 | AITEC BANKING AND MOBILE COMESA SEP/2013 | ERAN FEINSTEIN | 3G DIRECT PAY LIMITED |
  10. 10. The East African Travel Industry Credit Card Types 80% - Visa and MasterCard 15% - American Express (4% until 2011) 4% - PayPal Average Transaction Airlines $450 Hotel $500 - $1,100 Travel agent $1,200 - $1,500 Tour Operator $1,500 - $2,200 9/13/2013 | AITEC BANKING AND MOBILE COMESA SEP/2013 | ERAN FEINSTEIN | 3G DIRECT PAY LIMITED |
  11. 11. The East African Travel Industry 90% of transaction – classic CNP (card not present) 2% of transactions – 3D secure Charge-Back 0.35% to 0.50% (since 2009) Using stolen card and fly to the Safari ?? 90% of C/B from airline transactions 9/13/2013 | AITEC BANKING AND MOBILE COMESA SEP/2013 | ERAN FEINSTEIN | 3G DIRECT PAY LIMITED |
  12. 12. Where is the Risk? Classic Fraud (low to med) Stolen credit card Identity theft Consume the service Merchant Fraud (high) Fake agents Professional fraudsters No service, no passengers Friendly Fraud (low) Consume the service Can’t avoid…. 9/13/2013 | AITEC BANKING AND MOBILE COMESA SEP/2013 | ERAN FEINSTEIN | 3G DIRECT PAY LIMITED |
  13. 13. The Online Fraud – How Does It Works? Individual Fraud General Characteristics Individual fraudster, One-time campaign, access to stolen cards list (low quality), no ‘fine’ details The Service Flight/s, One way, short term booking Passenger The fraudster, family member/friend 9/13/2013 | AITEC BANKING AND MOBILE COMESA SEP/2013 | ERAN FEINSTEIN | 3G DIRECT PAY LIMITED |
  14. 14. The Online Fraud – How Does It Works? Mass Fraud General Characteristics Individual/group, professional fraudster/s, massive stolen cards list (low quality), acting as an agent, no close relationship with the passengers, massive payment attempts, very low conversion rate The Service Flight, one way and return Passenger Not the fraudster, no idea that the service paid using stolen card 9/13/2013 | AITEC BANKING AND MOBILE COMESA SEP/2013 | ERAN FEINSTEIN | 3G DIRECT PAY LIMITED |
  15. 15. The Online Fraud – How Does It Works? Professional Fraud and Identity Theft General Characteristics Groups only – organization, stole cards list – high quality, 3D-secure lists, access to the card holder details, using ‘fine’ details – complete ‘storyboard’ The Service Flights, accommodation Passenger The passenger is also a professional fraudster 9/13/2013 | AITEC BANKING AND MOBILE COMESA SEP/2013 | ERAN FEINSTEIN | 3G DIRECT PAY LIMITED |
  16. 16. The Online Fraud – How Does It Works? Merchant Fraud General Characteristics ‘well organized scam..’, mitigating the KYC procedures, designed websites, products and services, real people, working plan, long term operations The service Detailed service, package, accommodation, no-flight ! Passenger Fake but well designed identity, no real passenger 9/13/2013 | AITEC BANKING AND MOBILE COMESA SEP/2013 | ERAN FEINSTEIN | 3G DIRECT PAY LIMITED |
  17. 17. How to Mitigate the Online Fraud? 9/13/2013 | AITEC BANKING AND MOBILE COMESA SEP/2013 | ERAN FEINSTEIN | 3G DIRECT PAY LIMITED |
  18. 18. 9/13/2013 | AITEC BANKING AND MOBILE COMESA SEP/2013 | ERAN FEINSTEIN | 3G DIRECT PAY LIMITED |

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