6. Start with a laugh…
• P.C. Vey, Published by the New Yorker, January 16th, 2006
7. Anti-fraud strategy
• Render the card number useless if compromised
• EMV for face to face
• Remote card authentication (CAP) for CNP
• DDA not SDA
• Unique CVC value on chip
8. EMV - The silver bullet?
• Fraud at its highest level in UK for years
• Expensive
• Is PIN the right CVM?
• Effectiveness limited until total migration
9. 3D Secure - MasterCard SecureCode
and Verified by Visa
• Scheme-driven authentication technology, providing
merchant liability protection from fraud
• Merchants now get global protection
• But merchant adoption slow
• Cardholder registration even slower
• Activation During Shopping add-on
• Maestro mandate
10. Remote Card Authentication
• Alleviates static data vulnerabilities
• Limits opportunity for compromise and collusion
• Multi-channel opportunities
• Provides an enhancement to 3D Secure, possibly
remove ADS
• But… requires chip card technology
11. Giving the customer control
• Allow the customer to parameterise his spend
• Straight through processing
• Prevents not just CNP fraud
• For example block card for overseas ATM spend, CNP
transactions or overseas POS
12. Fraud detection systems
• Optimised
• Up to date models
• Models for high net worth customers
• Up to date contact details
• Work 24x7
13. Authorisation strategies
• Analysis - there is no substitute
• Get the priorities right
• Exclude low value referrals
• Restaurant referrals
• ‘Sticky referrals’