Fraud is getting harder for the good guys and easier for the bad guys. As merchants have dozens of rules to follow related to fraud and chargeback management, fraudsters have only two rules; 1) make money and 2) don’t get caught. Don’t be reluctant to pursue criminal charges and take action by sending a message to underground fraud rings. Learn from the experts as they discuss the intricacies of a digital crime scene and how to pursue these anonymous villains. If you would like the webinar recording or have any questions, please do not hesitate to contact us at fraudfighter@kount.com

1. #FraudFighterLive

2. ©Kount Inc All Rights Reserved
Panelists
Moderator
Melayna Gabiou
Marketing Director
Kount
Skip Myers
Director of Loss Prevention
MicroCenter
Don Bush
VP of Marketing
Kount
Chad Evans
Manager, Ecommerce Investigations
PetSmart

3. ©Kount Inc All Rights Reserved
Learning Objectives
Understand why it’s important to prosecute
What makes up a digital crime scene
Steps for investigation and due diligence for building a case
Fraud detection strategies to assist with catching a fraudster
Discuss first-hand success stories for criminal prosecution
Answer questions from the audience

4. Do you currently prosecute people
stealing from you online?
Audience Question

5. Why Prosecute?

6. ©Kount Inc All Rights Reserved
Today’s Fraudster
*https://securityintelligence.com/media/infographic-the-new-face-of-organized-cybercrime/
80% of hackers leverage crime rings*
Underground websites
Global reach
Stolen card and personal data marketplace
Operates with impunity from law enforcement
Used to spoof and mimic legitimate users

7. ©Kount Inc All Rights Reserved
Why Prosecute
Send a message to fraudsters
Take action on those stealing from you
Stop repeat offenders
You’re not the only victim
Recover financial loss

8. A Digital Crime Scene

9. ©Kount Inc All Rights Reserved
Digital Crime Scene Method
“A digital crime is a human crime, committed online.” –Skip Myers
Mindset and process
Virtual evidence
Scenario planning
Reverse engineering
Continuous monitoring
DIGITAL CRIME SCENE - DO NOT CROSS

10. ©Kount Inc All Rights Reserved
Elements of a Digital Crime Scene
Device fingerprint
Email address
Geolocation
Payment type
Ship to address

11. ©Kount Inc All Rights Reserved
Reverse Engineer Fraud Analysis
“A method of determining the likely sequence of events before, during, and
after a fraud event through observation and evaluation of processes and
evidence.” –Skip Myers
Crime scene mindset
Root cause analysis
Internal variables
External variables
Process analysis

12. ©Kount Inc All Rights Reserved
CNP Fraud Link Analysis
Fraudster 1:
Device ID: 431167
Device Type: Tablet
Browser: Bing
Flash Version: 9.2
Brower Language: Russian
Device Location: Kiev
OS: Windows 10
IP Address: Dallas, Texas
Device ID: 431167
Email: kiev4ever@gmail.com
Credit Card: Visa
Device ID: 431167
Email: smirnoff@gmail.com
Credit Card: Visa
Device ID: 431167
Email: thebear@gmail.com
Credit Card: AmEx
Device ID: 431167
Email: smirnoff@gmail.com
Credit Card: MasterCard
Bill To: 123 Main St.
Bill To: 456 Pine Ln.
Bill To: 789 Oak Ave.
Bill To: 101 10th Ave.
Bill To: 987 Delk Rd.
Bill To: 16 Park Place
Ship To: Boris Smirnoff
1313 Mockingbird Ln.
Suite 14
Acme Self Storage
1313 Mockingbird Ln.

13. What data is useful when building
a digital crime scene?
Audience Question

14. How to Build a Case

15. ©Kount Inc All Rights Reserved
Steps to Building a Case
1. Prove there was criminal intent
2. Show you are the victim of a crime
3. Provide the evidence from the digital crime scene
4. Contact police in jurisdiction where goods were shipped
5. Potential misdemeanor or felony charges

16. ©Kount Inc All Rights Reserved
Am I the right merchant to prosecute?
Any size merchant
Repeat offenders
Shippable goods
“Control Delivery”

17. Use Cases

18. ©Kount Inc All Rights Reserved
MicroCenter Use Case
“How can we ruin a bad guy’s day?” –Skip Myers
Fraudster exploiting buy online, pick up in store
Using stolen credit cards to buy high end electronics
Found suspect on OK Dpmt of Corrections website
Found suspect’s Facebook page
Bragging about “ripping off” stores
Suspect arrested when attempting a repeat scam
Vehicle search found stolen items from other retailers

19. ©Kount Inc All Rights Reserved
PetSmart Use Case
Credit card fraud via buy online, pickup in-store in Atlanta
Subject was using alias of “Heisenberg” to submit orders
Compiled case file using data from Kount
Deployed on surveillance and partnered with local law enforcement to conduct
controlled in-store pickup
Upon arrival, suspect was detained and searched
Dozen fraudulent credit cards and over 20 personal identities
Suspect was arrested and charged with four felony counts of identity theft,
forgery, and possession of fraudulent document, and was sentenced to ten
years probation even as a first-time offender.

20. ©Kount Inc All Rights Reserved
National Cybercrime Use Case
“In Fraud We Trust” cybercrime forum bust
13 arrested, 36 charges
Started in October 2010
Attracted 11,000 members globally
Stolen identities, credit card accounts
ATM skimmers, botnet hosting, malicious software
Arrests took place in 7 countries

21. When deciding the jurisdiction to submit a
case, what is the determining factor?
Audience Question

22. ©Kount Inc All Rights Reserved
Summary
Send a message to fraudsters
Pure will power of the merchant
Remember the digital crime scene
Use your data points to tell the story
Know the ground rules and go
Not always easy so be prepared
Provide evidence to motivate law enforcement

23. Q&A
www.ruinabadguysday.com
fraudfighter@kount.com
Skip Myers
Director of Loss Prevention
MicroCenter
emyers@microcenter.com
Don Bush
VP of Marketing
Kount
don.bush@kount.com
Chad Evans
Manager, Ecommerce Investigations
PetSmart
CEvans@PetSmart.com