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CYBERSOURCE FRAUDMANAGEMENT
e-Commerce DayLima, Peru
Kathy ReevesBusiness Development Manager
August 31, 2010
RulesOrders
Chargeback
Reject
Detectors
Automated Screening
Fraud Management Process
Management
Tuning &Analytics
Manual Review
RulesOrders
Reject
Detectors
Automated Screening
50% say“Fraud is cleaner”
ChargebackManagementTuning &
Analytics
Manual Review
# Detection Tools = 7
Fraud Rates in U.S./Canada(Overall and by Online Segment)
Rat
e2%
2,0%
1,4%1 3%
1,5%1 5%
2,0%
2,5%
3,0%
20082009
Overall Digital Goods/Svcs
Media &Entertainment
Apparel/Jewelry
Health ConsumerElectronics
Household &General
Merchandise
Education/Government
Inte
rnat
iona
lFra
udR
Source: 2010 CyberSource Fraud Report
1,1%1,0% 1,0%
0,9% 0,9%
,
0,6%
0,9% 0,9%1,0%
1,3%1,1%
0,6%0,7%
0,0%
0,5%
1,0%
1,5%
Region Airline TypeExp
% of Revenue Lost to Payment Fraud(2009 Airline Online Fraud Report)
3,8%
2,6%
1,3%1,1%
0,6%
1,1% 1,2%
0,6%
1,9%1,6%
1,2% 1,1%
n=61
*Caution: small base
** Online Revenues $100 + Million
RulesOrders
ChargebackManagement
Reject
Detectors
Automated Screening
Review Rate 15-46%
g
Tuning &Analytics
# Systems/DataInput Interfaces
12
Source: 2010 CyberSource Fraud Report
2-6%RulesOrders
ChargebackManagement
Reject
Detectors
Automated Screening
g
Tuning &Analytics
Source: 2010 CyberSource Fraud Report
3 Questions to Ask…1. How will I detect increasingly cleaner fraud?
2. How will I scale operations?[facing static budget, increasing order volume and demand for higher levels of service]
– Expertise– Capacity– Service Delivery (24x7, global)
3. Do I have systems/process to manage and optimize?
How Can CyberSource Help?
• Detect increasingly cleaner fraud(including botnets)
• Scale in-house team and optimize
CyberSource DecisionManager System
Scale in house team and optimizeoperating performance– In-house team (expertise, capacity)– Process management/analytics
• Scale operations through outsourcing
Managed Services
Screening Rule Builder
Risk Analysis/Detectors
Case Management System
Reporting & Analytics UI
• Website• Call Center / IVR• Batch• Point Of Sale
• Credit & Debit Cards• Gift & Pre-Paid Cards• eChecks & Direct Debits• PayPal & BML
Payment Types Sales Channels
RulesOrders
ChargebackManagement
Reject
Detectors
Automated Screening
Management
Tuning &Analytics
Manual Review
Built-in Detectors & Data Sources
DATA QUALITY
Detectors & Rule Console
DATA QUALITY
And works with…
Order & Data Sources
Correlation Engine & Modeling
1
2
Review RejectAccept
Order Data
Your Business Rules3
4
Individual TestResults
StatisticalAnomalies
Order Data Individual TestResults
StatisticalAnomalies
Correlates 200+ tests and relationships for every transaction• 4D tests/data
Built-in Data Correlation Provides Fraud Intelligence…
Correlation Engine & Modeling
• Your marking of suspicious transactions• Your reviewer decisions• Chargeback automarking by banks
• Utilizes15 years online fraud modeling experience• Billions of transactions modeledIncludes Visa online and offline data modeling
Example: Correlation Engine & Multi-Merchant Model
ResultsResults
Your Order
Mary [email protected]: ABC
Tricia [email protected]: XYZ
Emirates
Imran [email protected]
Air Canada
Tricia [email protected]: ABC
TAM
Pablo [email protected]
UK Retailer
Global, Multi-MerchantIntelligence
Name changes: MultipleCredit cards: MultipleEmail changes: MultipleDevices: Multiple
Name changes: MultipleCredit cards: MultipleEmail changes: MultipleDevices: Multiple
Adam [email protected]: XYZ
US Retailer
D-Fingerprint: ABC
Tricia [email protected]: QRS
Air France
D-Fingerprint: XYZ
Output Example
Score 0-99
Factor Codes(> 20)
F (Fraud List)G (Geolocation inconsistency)N (Nonsensical input)
Info Codes(>125)
MM-BIN (BIN mismatch)UNV-ADDR (unverifiable address)VEL-NAME (multiple names with card)
Device Fingerprinting with Packet Signature Inspection
IP_Attributes IP Activities
STATIC,BOTNET_ZOMBIE
TCP_SCAN_FLAG,CONNECTING_TO_BOTNET,SPAM
STATIC,BOTNET_ZOMBIE
TCP_SCAN_FLAG,SPAM
STATIC,BOTNET_ZOMBIE
TCP_SCAN_FLAG,OTHER,SPAM
DYNAMIC,BOTNET_ZOMBIE
OTHER,SPAM
STATIC SPAM
RulesOrders
ChargebackManagement
Reject
Detectors
Automated Screening
g
Tuning &Analytics
Manual Review
Case Management with One-Click Validation
+
Google Maps:Validate
shipping orbilling address
RulesOrders
ChargebackManagement
Reject
Detectors
Automated Screening
g
Tuning &Analytics
Manual Review
Reporting and Analytics
Performance Reports:• Screening Profiles• Rules• Rules• Review Process
RulesOrders
Fraud
Reject
DetectorsAutomated Screening
Performance Monitoring• Strategy Design• Rule Results/Tuning• Queue Logic/Tuning• Reviewer Performance• Active Monitoring
BusinessPerformanceGuarantees aud
Claims
Tuning &Analytics
Manual Review
Screening Management• Performance Monitoring plus…• Manual Review Services• Branded Customer/Bank Verifications• Toll-Free Phone Line for Contacts• External Validation Services
CyberSource Solves Your 3 Challenges
1. How will youdetect increasinglycleaner fraud?
2. How will you scale operations?
200 Built-in Detectors/Tests and Correlation Engine
– Expertise– Capacity– 24x7, global service
3. Do you havesystems/process tomanage and optimize?
Outsource w/SLAsIn-House Tools + Expert Backup w/SLAs
Analytics +Expert Analysis
Closed-loopProcess/Reporting Management
The MostWidely UsedOnline FraudM tManagement
Solution,Worldwide
Expertise You Can Trust
• Since 1995• Global, multi-merchant view of fraud trends• Secure, reliable, trusted public company
Thousands ofMerchantsGlobally
• Board Member: Merchant Risk Council - USA• Board Member: Merchant Risk Council - EU• Member: PCI Security Standards Council
Active IndustryLeadership
• Trainer (US): NSA, CIA, FBI• Advisor (UK): Shadow Home Affairs Minister• Annual fraud report + airline fraud report• Long-standing Visa partnership on fraud
Trusted Advisor
CYBERSOURCE FRAUDMANAGEMENT
e-Commerce DayLima, Peru
Thank you!!
Kathy ReevesBusiness Development Manager
Lima, PeruAugust 31, 2010