1. ONLINE CREDIT
CARD FRAUD
the East African Travel Market
AITEC BANKING AND MOBILE COMESA – SEP/2013
ERAN FEINSTEIN – 3G DIRECT PAY LIMITED

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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. How to Mitigate the Online Fraud?
9/13/2013 | AITEC BANKING AND MOBILE COMESA SEP/2013 | ERAN FEINSTEIN | 3G DIRECT PAY LIMITED |

18. 9/13/2013 | AITEC BANKING AND MOBILE COMESA SEP/2013 | ERAN FEINSTEIN | 3G DIRECT PAY LIMITED |