The document discusses online retail payment fraud and risk management. It notes that online credit card fraud costs the industry $8.53 billion annually, with 4% of revenue lost to fraud. Common fraud prevention tools like CVC numbers and IP addresses can be inaccurate or easily spoofed. The document recommends preventive measures for merchants like velocity checks, positive and negative customer lists, and new technologies for device identification to help stop fraud and reduce chargebacks. It promotes a risk management solution that uses device identification, rules, and customizable reports to help identify fraudulent transactions.

1. Internet Retail Expo 2012 “ Online Retail Payment Fraud & Risk Management” Dipti Rajpal www.ebsrms.com Risk Management Solution

2. Fraud Affects all Merchants Online credit card fraud is $8.53 billion Industry. 4% of Revenue lost due to frauds Percentage of accepted orders which are later determined to be fraudulent is approximately 2.5% for domestic & 4.7% for intl. orders Less than 5% of the Merchants have effective Fraud prevention in place Merchants rejected intl. orders nearly three times higher than domestic orders Internet Retail Expo 2012

3. How do fraudsters obtain consumer Information? Unsecured servers & databases Unknown log files Unsecured websites & shopping carts Employee misconduct Phishing Emails Internet Retail Expo 2012

4. Common Online Fraud Prevention Tools Can Fall Short CVC/CVV – Card Verification Value/Code AVS – Not accurate and N/A in India 3D Secure(VBV/MCSC) offers limited coverage IP address – can be spoofed easily Internet Retail Expo 2012

5. Chargeback Types No cardholder authorization Goods not shipped/service not rendered Goods not as described/defective Duplicate processing chargebacks Internet Retail Expo 2012

6. Threats for Online Retail Merchants Loss of Merchandise Potential termination of merchant a/c due to Excessive Chargeback Brand damage/Reputation Fines from Visa/ MasterCard / Acquiring banks Currency conversion risks Other Operation/ Review costs Internet Retail Expo 2012

7. Preventive Measures for Stopping Fraud Bulk orders from same customer High value transaction Velocity checks Multiple retries Negative/positive customer list New technologies: Device Identification, Nexus, Proxy detector etc. Internet Retail Expo 2012

8. Guidelines for winning more Chargebacks Strong refund policy Crisp & clear Terms of service Delivery schedule and terms Email confirmation – After transaction & during Delivery confirmation Shipment Tracking/Reference by email (must retain copy in server) Internet Retail Expo 2012

9. Overview- What We Do Forensic Client Device Identification 1000+ Rules and Algorithms User-defined Risk Models Velocity Checks Negative & Positive Database - IP Ranges, Chargebacks, Carders, Hackers, Bots Nexus - Maps fraudulent Patterns in transactions Customizable Reports Internet Retail Expo 2012

10. abuse X Name: Mary Poppins Email:pop25@gmail.com 123 Las vegas blvd Las Vegas, NV 702-534-7698 IP:206.45.95.01 Geoloc: Nevada cc: 4563296511117777 X abuse Name: Abraham Zakaria email: az@chase.com 615 E. 35th St New york, ny 212-365-7878 IP:94.115.85.10 Geoloc: New york Cc: 5125189074381930 abuse X Name: Aaron Wall email: [email_address] 8 Hollyoke Ave Minneapolis, MN 320-698-8354 IP:72.138.11.9 Geoloc: Minnesota Cc: 4123234534568759 suspect suspect ? ? Fraud Management with Device Identification

11. Screen Shots – Device ID

12. AVS Blocklist Velocity Checks Device Information How EBS Fraud Prevention works? Fraud Filters Internet Retail Expo 2012 GOOD SUSPECT FRAUD TRANSACTIONS Nexus

13. Nexus Internet Retail Expo 2012

14. Risk Management Solution Visit us @ EBS Counter Free Chargeback Guide! [email_address] “ Fraudsters know you, Now you will know them Better” Thank you Internet Retail Expo 2012

15. Risk Management Solution Visit us @ EBS Counter Free Chargeback Guide! [email_address] “ Fraudsters know you, Now you will know them Better” Thank you Internet Retail Expo 2012