This document summarizes the results of a 2012 survey on consumer payment fraud conducted across 17 countries. Some key findings include: 1) Overall, 1 in 4 cardholders experienced fraud in the past 5 years, with fraud rates varying significantly by country. Mexico, the U.S., and India had the highest rates. 2) Consumers expressed dissatisfaction with financial institutions that were slow to resolve fraud issues, replace cards, or reimburse losses. Over a quarter changed providers after experiencing fraud. 3) Fear of identity theft is rising, now consumers' top fraud concern. Risky online and mobile behaviors persist despite education efforts. 4) Consumers strongly prefer fraud alerts from their bank that

1. How Your Customers
Think about Payment Fraud
March 12, 2013

2. Agenda
• About the Speakers
• Research Approach
• Overview of 2012 Research Results
• Key Takeaways
• Recommendations
• Questions & Answers
2

3. Agenda
• About the Speakers
• Research Approach
• Overview of 2012 Research Results
• Key Takeaways
• Recommendations
• Questions & Answers
3

4. Today’s Speakers
Mike Braatz Shirley Inscoe
SVP & Product Line Manager Senior Analyst
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5. Agenda
• About the Speakers
• Research Approach
• Overview of 2012 Research Results
• Key Takeaways
• Recommendations
• Questions & Answers
5

6. Research Methodology
• Q3 2012 survey of 5,223 consumers (over 300 per country)
• The study was conducted in a total of 17 countries across the following
regions:
– The Americas (North and South America): Brazil, Canada, Mexico, and the
United States
– EMEA (Europe, the Middle East, and Africa): France, Germany, Italy, the
Netherlands, South Africa, Sweden, the United Arab Emirates, and the United
Kingdom
– Asia-Pacific: Australia, China, India, Indonesia, and Singapore
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7. Agenda
• About the Speakers
• Research Approach
• Overview of 2012 Research Results
• Key Takeaways
• Recommendations
• Questions & Answers
7

8. Global fraud rates by country
Percentage of Respondents Who Have Experienced Card Fraud
(N=5,114)
Mexico 44%
United States 42%
India 37%
The U.A.E. 36%
China 36%
United Kingdom 34%
Brazil 33%
Australia 31%
Singapore 26%
South Africa 25%
Canada 25%
Italy 24%
France 20%
Indonesia 18%
Germany 13%
The Netherlands 12%
Sweden 12%
Source: Aite Group, ACI Worldwide study of 5,223 consumers in 17 countries, Q3 2012
1 in 4 cardholders (27%) experienced fraud in the past five
years.
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9. Credit card fraud rates by country
Q. Have you experienced fraud on your credit card in the past 5 years?
(N=5,114)
United States 37%
Mexico 37%
The U.A.E. 33%
United Kingdom 31%
Brazil 30%
Australia 30%
China 27%
India 27%
Singapore 23%
Italy 22%
South Africa 20%
Canada 19%
France 18%
Indonesia 14%
Sweden 11%
Germany 10%
The Netherlands 8%
Source: Aite Group, ACI Worldwide study of 5,223 consumers in 17 countries, Q3 2012
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10. Debit card fraud rates by country
Q. Have you experienced fraud on your debit card in the past 5 years?
(N=5,114)
Mexico 25%
China 24%
India 21%
United States 20%
United Kingdom 17%
Brazil 17%
Canada 13%
France 12%
South Africa 12%
Singapore 11%
The U.A.E. 11%
Sweden 11%
Italy 10%
Australia 9%
The Netherlands 9%
Indonesia 8%
Germany 6%
Source: Aite Group, ACI Worldwide study of 5,223 consumers in 17 countries, Q3 2012
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11. Prepaid card fraud rates by country
Country (N=5,114) Experienced fraud during past 5 years
India 19%
China 16%
Mexico 10%
Italy 9%
Brazil 7%
Singapore 6%
The U.A.E. 6%
United States 5%
Indonesia 4%
South Africa 4%
Germany 3%
Sweden 3%
France 3%
Australia 2%
Canada 2%
United Kingdom 1%
The Netherlands 1%
Source: Aite Group, ACI Worldwide study of 5,223 consumers in 17 countries, Q3 2012
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12. Multiple incidents of card fraud
globally
Source: Aite Group, ACI Worldwide study of 5,223 consumers in 17 countries, Q3 2012
The increase in the percentage of cardholders who experienced
fraud more than one time is statistically significant.
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13. Agenda
• About the Speakers
• Research Approach
• Overview of 2012 Research Results
• Key Takeaways
• Recommendations
• Questions & Answers
13

14. KEY TAKEAWAYS BASED ON
2012 RESEARCH RESULTS
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15. Research Key Takeaways
1. Financial institutions risk losing customers who
experience fraud
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16. Satisfaction levels and attrition
Q. How happy were you with the treatment from your card provider after
experiencing fraud, and did you change providers?
(n=431)
56%
37%
27%
15% 12% 15%
10% 7%
United States Canada Mexico Brazil
Unhappy with treatment from card provider
Changed card providers after experiencing fraud
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17. Satisfaction level factors - the
Americas
Q. What is I was
the main How easy happy
Speed with
factor that it was to with all
which FI I was not at
influenced Speed with Speed with notify my aspects of
identified all happy
how happy which FI which FI FI of the treatment
the fraud with the
you were replaced my reimbursed issue and from my
and brought treatment
with your card my money get FI
it to my from my FI
financial reimbursed
attention
institution?
(n=431)
Brazil 23% 7% 29% 19% 8% 14%
Canada 43% 14% 10% 10% 20% 3%
Mexico 17% 6% 12% 24% 17% 24%
United 37% 9% 14% 12% 26% 2%
States
Source: Aite Group, ACI Worldwide study of 5,223 consumers in 17 countries, Q3 2012
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18. Back of wallet behavior – the
Americas
Q. After you
experienced
fraud, did you use
Used cash instead
cash or an
Yes, in all Yes, but only in of my debit card,
alternate payment No
situations some situations but not instead of
method rather
my credit card
than your card?
(n=431)
Brazil 15% 42% 4% 39%
Canada 3% 31% 5% 61%
Mexico 12% 56% 3% 29%
United States 7% 37% 2% 54%
Source: Aite Group, ACI Worldwide study of 5,223 consumers in 17 countries, Q3 2012
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19. Replacement cards – the Americas
Q. As a result of the data breach or fraud, did you use the
Yes No
replacement card less than the original card? (n=277)
Brazil 56% 44%
Canada 24% 76%
Mexico 63% 37%
United States 33% 67%
Source: Aite Group, ACI Worldwide study of 5,223 consumers in 17 countries, Q3 2012
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20. Research Key Takeaways
1. Financial institutions risk losing customers who
experience fraud
2. Consumers fear of identity theft is increasing
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21. Global comparisons to prior year…
• Fear from identity theft is increasing – 26% of 2011
respondents stated that their biggest fear related to fraud
was reclaiming their financial identity if they became
victims of identity theft; in 2012, 49% of respondents state
they are “very concerned” about this issue
• Identity fraud was the top worry in 2012 followed by
online banking fraud and card fraud – identity fraud did
not appear in the top 2 in 2011
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22. Greatest fraud risks in the Americas
Q. Which of the following do you believe represents the greatest fraud
risk? (n=1,224)
37%
Theft by computer hacker 17%
30%
33%
14%
Paper forms with card or acct 21%
numbers 19%
19%
United States
7%
Using card for telephone 20%
purchases 10%
18%
Mexico
12%
Shopping online 20%
15%
12%
Canada
5%
Using phone or tablet to shop, pay 5%
bills 4%
3%
Brazil
4%
Shopping in a store 5%
6%
3%
7%
Using credit card traveling on 5%
vacation 9%
2%
Source: Aite Group, ACI Worldwide study of 5,223 consumers in 17 countries, Q3 2012
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23. Research Key Takeaways
1. Financial institutions risk losing customers who
experience fraud
2. Consumers fear of identity theft is increasing
3. Some consumers continue to exhibit risky behaviors
which could lead to fraud
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24. Risky consumer behavior - Americas
Q. Which of these actions have you taken in the past 5 years? United
Brazil Canada Mexico
(n=1,224) States
Made a note of PIN and carried it with me or kept it with my
16% 4% 9% 7%
card
Thrown bank statements or ATM receipt in the trash 45% 25% 36% 23%
Used online banking or Internet shopping without security
22% 6% 20% 13%
software or on a public computer
Responded to emails or calls asking for bank details 8% 3% 7% 6%
Not used the auto lock feature on my mobile phone 21% 11% 17% 18%
Source: Aite Group, ACI Worldwide study of 5,223 consumers in 17 countries, Q3 2012
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25. Global comparisons to prior year…
• No improvements in risky behavior:
– 12% indicated making a note of their PIN and carrying it with them
or with their card in 2012 maintaining the same 12% rate who did
so in 2011
– 16% shopped on the Internet or used online banking without
security software or on a public computer in 2012, the same rate
in 2011
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26. Research Key Takeaways
1. Financial institutions risk losing customers who
experience fraud
2. Consumers fear of identity theft is increasing
3. Some consumers continue to exhibit risky behaviors
which could lead to fraud
4. Consumers have a strong desire to partner with
financial institutions for fraud prevention
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27. Consumer preference concerning alerts
Q. If you were to receive an alert or notification about fraud
United
activity from your financial institution, which action would you Brazil Canada Mexico
States
prefer (n=1,224)
Bank does not allow any transactions until I respond to alert 85% 75% 89% 63%
Bank continues to allow transactions consistent with my past 11% 22% 8% 32%
history
Bank allows all activity unless I notify them otherwise 4% 3% 3% 5%
Source: Aite Group, ACI Worldwide study of 5,223 consumers in 17 countries, Q3 2012
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28. Preferred contact method - Americas
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29. Fraud education – the Americas
Q. Has your financial institution provided any guidance or United
Brazil Canada Mexico
tips for anti-fraud? (n=1,224) States
Yes, I've received emails from them with anti-fraud
15% 15% 14% 19%
information
Yes, I've received mail from them with anti-fraud
15% 13% 5% 22%
information
Yes, I've seen this on my financial institution's website 25% 17% 14% 13%
Don't recall receiving any anti-fraud information from my
42% 52% 65% 43%
financial institution
Not applicable 3% 3% 2% 3%
Source: Aite Group, ACI Worldwide study of 5,223 consumers in 17 countries, Q3 2012
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30. Agenda
• About the Speakers
• Research Approach
• Overview of 2012 Research Results
• Key Takeaways
• Recommendations
• Questions & Answers
30

31. Recommendations for financial
institutions
• Provide fast, easy recovery processes. Simplify and make fraud
resolution process simple and easy - it may curtail fraud-related
attrition.
• Share your fraud policy. Make consumers aware of how you work
with them after a fraud incident - consumers care about fraud
resolution.
• Reassure your customers. Instilling confidence in your process will
minimize risk of non-use of replacement cards or using cash
alternatives.
• Educate consumers about fraud. The messages are still not being
heard. In most countries, a large % of consumers do not recall ever
having their institution providing information related to fraud.
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32. Recommendations for financial
institutions
• Telephone and text. By a large majority, customers indicate they
prefer to be contacted about a fraud alert via their mobile phone by a
call or text message or via their home phone.
• Regularly update customer data. Institutions should update their
records of consumers’ email addresses and mobile numbers to
facilitate communication. A simple process will encourage customers
to participate.
• Enlist consumers in combating fraud. There is a willingness for
active participation when fraud is detected . Engage them in the fight.
• Proactively prevent fraud. Consumers know fraud schemes are
pervasive. Customer satisfaction rates with FI’s are highest when the
company detects fraud and notifies the consumer of it.
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33. Agenda
• About the Speakers
• Research Approach
• Overview of 2012 Research Results
• Key Takeaways
• Recommendations
• Questions & Answers
33

34. QUESTIONS
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35. APPENDIX
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36. Satisfaction levels and attrition -
EMEA
Q. How happy were you with the treatment from your card provider after
experiencing fraud, and did you change providers?
(n=519)
57%
45%
37%
27% 26% 28% 26%
21% 20%
15% 13% 12% 13%
9% 10% 9%
Italy The U.A.E. Germany S. Africa The U.K. France Sweden
Netherlands
Were unhappy with treatment from card provider
Changed fraud providers after experiencing fraud
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37. Satisfaction level factors - EMEA
Q. What is the
main factor that Speed with
How easy it I was happy I was not at
influenced how which FI Speed with Speed with
was to notify with all all happy
happy you were identified the which FI which FI
my FI of the aspects of with the
with your fraud and reimbursed replaced
issue and get treatment treatment
financial brought it to my money my card
reimbursed from my FI from my FI
institution? my attention
(n=533)
France 32% 18% 13% 17% 13% 7%
Germany 24% 13% 29% 10% 16% 8%
Italy 32% 23% 11% 9% 3% 22%
The Netherlands 31%t 26% 9% 11% 14% 9%
South Africa 19% 20% 8% 17% 27% 9%
Sweden 30% 22% 11% 16% 16% 5%
The U.A.E. 27% 21% 17% 11% 8% 16%
United Kingdom 37% 30% 9% 10% 13% 1%
Source: Aite Group, ACI Worldwide study of 5,223 consumers in 17 countries, Q3 2012
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38. Back of wallet behavior - EMEA
Q. After you experienced fraud, did you Used cash instead
Yes, in all Yes, in some
use cash or an alternate payment method No of debit card, but
situations situations
rather than your card? (n=533) not credit card
France 13% 25% 60% 2%
Germany 18% 32% 45% 5%
Italy 15% 35% 44% 6%
The Netherlands 3% 14% 83% 0%
South Africa 15% 36% 45% 4%
Sweden 5% 33% 62%. 0%
The U.A.E. 12% 45% 41% 2%
United Kingdom 9% 30% 58% 3%
Source: Aite Group, ACI Worldwide study of 5,223 consumers in 17 countries, Q3 2012
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39. Replacement cards - EMEA
Q. As a result of the data breach or fraud, did you use the replacement
Yes No
card less than the original card? (n=322)
France 25% 75%
Germany 36% 64%
Italy 34% 66%
The Netherlands 33% 67%
South Africa 51% 49%
Sweden 26% 74%
The U.A.E. 40% 60%
United Kingdom 38% 62%
Source: Aite Group, ACI Worldwide study of 5,223 consumers in 17 countries, Q3 2012
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40. Risky consumer behaviors – EMEA
Q. Which of the following have The
South Swe- The
you done in the past 5 years? France Germany Italy Nether U.K.
Africa den U.A.E.
(n=2,442) -lands
Made a note of PIN and
carried it with you or kept it 3% 10% 17% 2% 12% 9% 14% 12%
with your card
Thrown bank statements or
33% 15% 32% 14% 58% 43% 41% 16%
ATM receipt in the trash
Used online banking or
Internet shopping without
10% 14% 19% 3% 17% 14% 24% 8%
security software or on a
public computer
Responded to emails or calls
4% 5% 4% 3% 5% 4% 12% 3%
asking for bank details
Not used the auto lock feature
13% 16% 19% 16% 27% 25% 24% 23%
on my mobile phone.
Source: Aite Group, ACI Worldwide study of 5,223 consumers in 17 countries, Q3 2012
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41. Preferred contact methods - EMEA
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42. Fraud education - EMEA
Q. Has your financial
The
institution provided any South Swe- The
France Germany Italy Nether- U.K.
guidance or tips for anti- Africa den U.A.E.
lands
fraud? (n=2,442)
Yes, I've received email from
them with anti-fraud 11% 11% 14% 17% 43% 6% 47% 18%
information
Yes, I've received mail from
them with anti-fraud 12% 20% 13% 14% 7% 6% 10% 20%
information
Yes, I've seen this on my
financial institution's 19% 19% 16% 30% 30% 40% 19% 21%
website
Don't recall receiving any
anti-fraud information from 53% 39% 54% 31% 19% 43% 22% 38%
my financial institution
Not applicable 5% 11% 3% 8% 1% 5% 2% 3%
Source: Aite Group, ACI Worldwide study of 5,223 consumers in 17 countries, Q3 2012
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43. Satisfaction levels and attrition -
APAC
Q. How happy were you with the treatment from your card provider after
experiencing fraud, and did you change providers?
(n=445)
63% 60%
55%
50%
45% 45%
41% 40%
14%
3%
Indonesia India Singapore China Australia
Unhappy with treatment from card provider Changed card providers after experiencing fraud
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44. Satisfaction level factors - APAC
Q. What is
the main
Speed with
factor that I was not
which FI Speed How easy it I was happy
influenced Speed with at all
identified with was to notify with all
how happy which FI happy
the fraud which FI my FI of the aspects of
you were reimbursed with the
and brought replaced issue and get treatment
with your my money treatment
it to my my card reimbursed from my FI
financial from my FI
attention
institution?
(n=445)
Australia 29% 19% 9% 15% 25% 3%
China 25% 17% 12% 27% 8% 11%
India 31% 19% 26% 3% 8% 13%
Indonesia 34% 12% 12% 26% 14% 2%
Singapore 29% 35% 8% 9% 9% 10%
Source: Aite Group, ACI Worldwide study of 5,223 consumers in 17 countries, Q3 2012
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45. Back of wallet behavior - APAC
Used cash
Q. After you experienced fraud, did you use
Yes, in all Yes, in some instead of debit
cash or an alternate payment method rather No
situations situations card, but not
than your card? (n=445)
credit card
Australia 6% 34% 58% 2%
China 16% 50% 27% 7%
India 25% 52% 17% 6%
Indonesia 12% 68% 14% 6%
Singapore 8% 45% 45% 2%
Source: Aite Group, ACI Worldwide study of 5,223 consumers in 17 countries, Q3 2012
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46. Replacement cards - APAC
Q. As a result of the data breach or fraud, did you use the
Yes No
replacement card less than the original card? (n=259)
Australia 37% 63%
China 73% 27%
India 73% 27%
Indonesia 78% 22%
Singapore 51% 49%
Source: Aite Group, ACI Worldwide study of 5,223 consumers in 17 countries, Q3 2012
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47. Risky consumer behaviors - APAC
Q. Which of the following have you done in the
Australia China India Indonesia Singapore
past 5 years? (n=1,557)
Made a note of PIN and carried it with me or
6% 21% 26% 17% 11%
kept it with my card
Thrown bank statements or ATM receipt in the
28% 51% 45% 39% 50%
trash
Used online banking or Internet shopping
without security software or on a public 10% 30% 32% 20% 22%
computer
Responded to emails or calls asking for bank
4% 13% 23% 16% 13%
details
Not used the auto lock feature on my mobile
19% 26% 24% 23% 23%
phone
Source: Aite Group, ACI Worldwide study of 5,223 consumers in 17 countries, Q3 2012
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48. Preferred contact method - APAC
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49. Fraud education - APAC
Q. Has your financial institution provided any
Australia China India Indonesia Singapore
guidance or tips for anti-fraud? (n=1,557)
Yes, via email 14% 17% 51% 22% 23%
Yes, via mail 29% 10% 11% 16% 18%
Yes, via their website 17% 26% 13% 19% 16%
Don't recall receiving any anti-fraud
39% 39% 18% 36% 38%
information from my financial institution.
Not applicable 1% 8% 7% 7% 5%
Source: Aite Group, ACI Worldwide study of 5,223 consumers in 17 countries, Q3 2012
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