The aim of the programme is to help businesses in Scotland take greater advantage of ecommerce by giving them access to expert advice on a variety of relevant topics. The focus is on providing practical, robust, independent “How to…” information to enable delegates to take action. At the end of the session we want delegates to have enough information to refine their existing ecommerce practices, so they can increase the value of their business. This was a talk I gave on common sources of fraud and some new opportunities.

1. THE ONLY WAY TO PROVE
YOU ARE WHO YOU SAY YOU ARE
PURELY ONLINE
Common sources of
fraud & how to
prevent
eCommerce Fraud
by James Varga

2. $1 Trillian Globally in 2013
Costs UK retailers over £200m each
year
3% up to 8% or 10% of turnover
GROWING GLOBAL TREND

3. All fraud is increasing
53% now identity related
Loosing battle
it gets smarter, faster & more
organised
Emerging Trends in mobile
Higher the value the higher the risk
CONSISTENT TREND OF GROWTH
both in the UK and abroad

4. Increasingly used:
Device Identification, ID Authentication, Mobile
Geolocation, NFC, Telephone Number
Identification and Text Messaging
Decreasingly used:
AVS use declined, while the use of Complete
Fraud Platforms and Modelling
TRENDS 2014
from the merchant perspecvtive

5. 1. Card Fraud (CNP & Chargebacks)
2. Identity Fraud
3. Return Fraud
4. Man-in-the-middle
5. Hacking & Malicious Code
TOP 5 FRAUD ISSUES
from a merchants perspective

6. 1. Fraudulent website
2. Used cards on-line
3. Counterfeit products
4. Alleged free trials
5. Sales of tickets on-line
TOP 5 FRAUD ISSUES
from a consumers perspective

7. • Layered approach
• Minimise the fraud in the payment system
• Authorisation & Authentication
• Protect vulnerable account data with
encryption/etc
• Security and monitor and manage events that
occur
• Cardholder empowerment
FIGTING FRAUD
in a digital marketplace

8. • Limit addresses / use address
verification
• Ship to vs. bill to address / out of
country
• Require strong passwords
• Layer your security
• Limit big spenders
• Adding security / Avoidance
TOP 5 TIPS : CONSERVATIVE
from the merchant perspective

9. 1. Use fraud scoring systems
maxmind, kount, Retail Decisions
2. Use device trust scores
iovation
3. Social account verification
trulioo
4. Identity Verification
miiCard
TOP 5 TIPS : TRENDING
from the merchant perspective

10. Have a processes / iterate
be agile
be insightful
be ready to adapt/adopt
TOP TIP
above all else

11. THE ONLY WAY TO PROVE
YOU ARE WHO YOU SAY YOU ARE
PURELY ONLINE
MOBILE
COMMERCE
NEW CHANNELS

12. • Convenience
faster checkout/processing of payments
• Opportunity
increase leads & sales generation
• Conversion
upsell opportunities & location-based promos
• Loyalty
increase consumer loyalty
MOBILE CHANNEL ADDING VALUE
as a new commerce channel

13. • Addressing consumer security concerns
with the platform
• Addressing how to manage fraud risk
• Making it easier for consumers to transact
versus just shopping
• Making it possible to take payments more
efficiently
• New payment types (e.g. virtual currencies)
OBSTACLES TO ADOPTION
of mobile eCommerce

14. Requires new tools
• ID Authentication
• Secure Mobile Payments
Methods
• Device ID
• Complete fraud platform
FRAUD RISKS
in the mobile channel

15. THE ONLY WAY TO PROVE
YOU ARE WHO YOU SAY YOU ARE
PURELY ONLINE
Identity Verification
NEW TOOLS

16. Identity Verification vs.
Authentication
Data Checks vs. Identity Proofing
Security vs. Trust
Terminology
understanding the market

17. LEVELS OF ASSURANCE (LOA)
equivalent to photo id checks
Proving
‘you are you’
purely online
and in real time

18. ID PROOFING & 2FA
Escalating levels of assurance and multiple factors of
authentication

19. 1. Online customer conversion
50% to 70% increase
2. Offline execution costs
£1 / user / month
3. Fraud cost and risk
up to 100% reduction
3 KEY BENEFITS
in financial services & other industries

20. TRUST DRIVES VALUE
levels of trust are needs driven depending on context
low trust
low value
HIGH TRUST
HIGH VALUE1.Convenience
2.Control
3.Security

21. PROVIDE BENEFITS & VALUE
in the context to what the consumer is doing
1. Convenience
of quicker checkouts with
more options
2. Control
and manageability of
personal data
3. Security / Privacy
to share nothing or
everything, including
sensitive personal data
Verified Attributes PLUS:
1. Online customer conversion
50% to 70% increase
2. Offline execution costs
£1 / user / month
3. Fraud cost and risk
up to 100% reduction
FOR THE CONSUMER FOR THE BUSINESS

22. THE ONLY WAY TO PROVE
YOU ARE WHO YOU SAY YOU ARE
PURELY ONLINE
CONSUMER
EMPOWERMENT
NEW OPPORTUNITIES

23. Providing payment services isn’t enough – you have to
provide value
Paypal location awareness
Amazon payments
Google wallet
Convergence on the consumer driving
commerce…requiring consumer driven
identities
NEW OPPORTUNITIES
in a changing landscape

24. THE ONLY WAY TO PROVE
YOU ARE WHO YOU SAY YOU ARE
PURELY ONLINE
Customer driven
eCommerce
DISCUSSION GROUP

25. To find out more visit:
www.miiCard.com
e: info@miiCard.com
Twittter.com/miiCard
Facebook.com/miicard
Linkedin.com/company/miicard
Creating Trust Online
Thank you