El evento mas importante sobre ecommerce y negocios por internet. Material de apoyo utilizado por el expositor presente en el eCommerce Latam, el cual es el evento más importantes de América Latina sobre: eCommerce -mCommerce – banca online y emprendedorismo y negocios por internet. Para mas informacion sobre el evento ingresar en www.colombia.ecommercelatam.com. Toda la informacion disponible sobre el eLabTour 2010 que se compuso por los 5 eCommerce Day culminando con el eCommerce Latam en www.ecommerceday.org

1. CYBERSOURCE FRAUD
MANAGEMENT
e-Commerce Day
Bogota, Colombia
g
December 1, 2010
Daryl Williams
Manager, Sales Engineer
dwilliams@Cybersource.com
Kathy Reeves
Business Development Manager
kreeves@cybersource.com

2. Total market size based on JP Morgan forecast; country growth rates based on CyberSource analysis

3. International Order Acceptance in 2009
% of Merchants Accepting International Orders From…
Over half of merchants accept online orders from
outside the U.S. and/or Canada**
In 2009 these orders represented on average 21%
100%
of total orders up from 17% in 2008
90%
81%
80% Average # of
72% 71% Countries per Merchant
68%
70% 64% 64% 63% 9
62%
hants
60% 53% 52% 51% 51% 48% 48% 47%
% of Merch
50%
40%
30%
20%
10%
0%
United Australia Germany France Italy Mexico Spain Japan Hong Singapore Brazil China South Taiwan India
Kingdom Kong Korea
n=191 Base: Merchants accepting international orders
Note: A list of countries was provided, but merchants were also allowed to add any country Results < 25% not shown
that was missing from the list. (The list of countries provided changed in 2008.)
Q4b. From which of the following countries, outside the U.S. and Canada,
do you accept online orders? Please select all that apply. **Note: 54% in 2009; 52% in 2008, 59% in 2007
3

4. Fraud Management Process
Automated Screening
Orders Detectors Rules
Reject
Chargeback
Management
Manual Review
Tuning &
Analytics

5. Fraud Rates in U.S./Canada
(Overall and by Online Segment)
International Fraud Rate 2%
R
Overall Digital Goods/ Media & Apparel/ Health Consumer Household & Education/
Svcs Entertainment Jewelry Electronics General Government
Merchandise
Source: 2010 CyberSource Fraud Report

6. Top Priority Strategy / Area of Focus 2010
16%
Manual Review
(tasks / workflow)
20%
60% Process
Automated Analytics
Detection
2% Outsourcing
2% Other Source: 2010 CyberSource Fraud Report

7. Automated Screening
# Detection Tools = 7
Orders Detectors Rules
Reject
Chargeback
Management
g
Manual Review
50% say
Tuning & “Fraud is cleaner”
Analytics

8. Automated Fraud Detection Tool Use
Fraud Detection Tool Usage
2009
Merchants $25M+ Online Revenue
Validation Services
CVN (Card Verification Number) 80% 9%
Address Verification Service 86% 3% % Currently Using
Postal address validation services 35% 14%
Verified by Visa/MasterCard SecureCode 16% 12% % Planning to Implement
Telephone # verification/reverse lookup 33% 12%
Paid for public records services 24% 17%
Credit history check 4% 5%
Out-of-wallet or in-wallet challenge/response 10% 5%
Your Proprietary Data/Customer History
Customer order history 61% 10%
Negative lists (in-house lists) 75% 5%
Order velocity monitoring 66% 12%
Fraud scoring model-company specific 53% 17%
Positive lists 41% 14%
Customer website behavior analysis 19% 19%
Purchase Device Tracing
IP geolocation information 52% 26%
Device "fingerprinting" 18% 45%
Multi-Merchant Data/Purchase History
Shared negative lists-shared hotlists 23% 19%
Multi-merchant purchase velocity 19% 12%
Other 6%9%

9. No Silver Bullet
% Merchants Using Tool that Selected it as
One Of Their “Top Three” Most Effective
2009
Validation Services
Paid for public records services 32%
Contact customer to verify order 26%
Credit history check 20%
Verified by Visa/MasterCard SecureCode 19%
Address Verification Service 16%
CVN (Card Verification Number) 16%
Telephone # verification/reverse lookup 15%
Out-of-wallet or in-wallet challenge/response 10%
Postal address validation services 9%
Contact card issuer/Amex CVP 2%
Your Proprietary Data/Customer History
Fraud scoring model-company specific 37%
Negative lists (in-house lists) 31%
Customer website behavior analysis 22%
Customer order history 16%
Order velocity monitoring 14%
Positive lists 7%
Purchase Device Tracing
IP geolocation information 36%
Device "fingerprinting" 22%
Multi-Merchant Data/Purchase History
Multi-merchant purchase velocity 21%
Shared negative lists-shared hotlists 11%
Base: Merchants with annual online sales ³$25M who use tool : automated or manual (excludes None)
*Caution: small base
Q10c. Of the tools your company currently uses to help detect online payment fraud or assess
fraud risk for online orders, please select the most effective. Please select up to three.

10. Simplifying Payment Management
Business Protect
• Keep more revenue
• Keep brand safe
Improvements
Optimize
• Operate with less complexity/cost
• Access better analytics to manage
Grow
• Reach more customers, faster
• Change/add without disruption
10

11. Risk Analysis
Screening Rules UI
Case Management UI
Reporting & Analytics UI

12. Automated Screening
Orders Detectors Rules
Reject
Chargeback
Management
Manual Review
Tuning &
Analytics

13. Payment Types Sales Channels
Credit & Debit Cards Website
Gift & Pre-Paid Cards Call Center / IVR
eChecks & Direct Debits Batch
PayPal & BML Point Of Sale
Technology Partners:
DATA QUALITY

14. Data Correlation Provides Fraud Intelligence
• 15 years experience
• Billions of transactions modelled
• Over 200 tests applied to every transaction
Output Example
Score 0-99
Increasingg
Factor Codes
F t C d F (F d Li t)
(Fraud List)
(> 20) G (Geolocation inconsistency) insight
N (Nonsensical input)
Info Codes MM-BIN (BIN mismatch) No ‘black box’
(>125) UNV-ADDR (unverifiable address)
VEL-NAME (multiple names with card)
• Merchants marking suspicious transactions
• Reviewer decisions
• Chargeback automarking by banks
• Partnership with Visa

15. Identity Morphing Detection
Home Depot TAM
Tricia Lim Tricia Lim
Your Order 4XXXXXXXX0453 4XXXXXXXX0123
spirit@yahoo.co.uk woti@aol.com
D-Fingerprint: XYZ D-Fingerprint: ABC
Mary Smith
4XXXXXX0453 Air Canada Timberland
mary@gmail com
mary@gmail.com
Imran Cochin Pablo Jimenez
D-Fingerprint: ABC 5XXXXXXXX7395 4XXXXXXXX6329
saab@hotmail.in pablo@yahoo.com
D-Fingerprint: ABC D-Fingerprint: XYZ
Global,
Results
Nike
multi-merchant
Pacific Sunwear
Name changes: Multiple
Adam Jones
intelligence Lim
4XXXXXXXX0453
Tricia
4XXXXXXXX6329
Credit cards: Multiple saab@hotmail.in devil@gmail.com
Email changes: Multiple D-Fingerprint: XYZ D-Fingerprint: QRS
Devices: Multiple

16. Automated Screening
Orders Detectors Rules
Reject
Chargeback
Management
g
Manual Review
Tuning &
Analytics

17. Case Management with One-Click Validation
+

18. Automated Screening
Orders Detectors Rules
Reject
Chargeback
Management
g
Manual Review
Tuning &
Analytics

19. Reporting and Analytics
Performance Reports on:
• Screening Profile
• Rules
• Review Process

20. Fraud Screen Flow – Using CyberSource
Business
Rules
Passive
Active
Order - Accept/Reject Decision
Flexible
User
4D Validation Console
Review
Performance Management
• Strategy Design
• Process Optimization
• Rule Tuning Case
• Reviewer Performance Management
Reporting Analytics Insight

21. The Most
Widely Used
Online Fraud
Management
Solution,
Worldwide

22. Airline Partners

23. Fraud Management Expertise
Thousands of • Since 1995
merchants • Global, multi-merchant view of fraud trends
• Secure, reliable, trusted public company
globally
• Board Member: Merchant Risk Council - USA
Active industry • Board Member: Merchant Risk Council - EU
leadership • Member: PCI Security Standards Council
• Trainer (US): NSA, CIA, FBI
• Advisor (UK): Shadow Home Affairs Minister
Trusted advisor • Annual fraud report + airline fraud report
• Long-standing Visa partnership on fraud

24. Global Presence
Asia: 2000
• CyberSource K.K. established 2000
• JV with Trans-Cosmos, Inc.
• Sales, Marketing, Support, Operations
• Datacenter: Tokyo
Europe: 1997
• HQ: UK
• Sales, Marketing, Support, Operations
• Datacenter: London
• Engineering: Belfast, Northern Ireland
USA: 1997
• HQ: Mountain View, CA
• Offices throughout US
• Engineering, Operations, Sales, Marketing, Admin Acquired by Visa: July 2010
• Datacenters: Arizona, California, Colorado, Washington

25. Gracias!
Daryl Williams Kathy Reeves
Dwilliams@CyberSource.com Kreeves@CyberSource.com
+1.770.917.1193 +1.817.291.4499