Online fraud is still a big problem and as long as the number of online shoppers continues to grow, so will the number of fraud cases.

According to the European Central Bank there were 7.9 million cases of fraud with a value of 1.16 billion euros in 2011 of which 56%

took place in e-commerce.

European Merchant Services organizes the EMS RISK EVENT annually for retailers who are active in e-commerce and multichannel.

It is an excellent opportunity to increase your knowledge in the field of online fraud, risk management and advanced fraud prevention

and detection tools. We help you to stay ahead of online fraudsters and to protect your online business by sharing the knowledge and

experience of our fraud and risk experts, our customers and our partners.

Do you want to attend next year’s EMS RISK EVENT?

Please contact the EMS Marketing Department at T +31 20 660 3054 or send an email to marketing@emscard.com.

For more information visit www.emscard.com/riskevent

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Fraud Management Optimisation:

a Key to Business Growth• 2013-05-22

Path to Awareness

Keys to Optimized

FraudPrevention

Path to awareness

A few observations

Is fraud a priority elsewhere?

• Fraud rate NL : 0.4%

• Fraud rate FR : 1.4%

• Fraud rate UK : 0.8%

• Fraud rate DE : 0.6%

• Fraud rate BE : 0.6%

Selling abroad means

exposing your business

Think global, Act localiDEAL in NL

ELV strong in DE

BC/Mistercash in BE

Credit Cards in BE, FR, UK

PayPal in UK & DE

3-DS in France

AVS in UK

Chargeback risk?

E-wallets and alternative payment methods

What is your “Cost of Fraud” ?

Sound understanding of

direct & indirect costs

Monitoring evolution

Direct financial

costs

Missedrevenues

Preventioncosts

Keys to optimised fraudprevention

Data is key

Personal data

Billing/Shipping data

Card data

Shopping basket data

Card country

Product category

Average amount

IP country

Time to delivery

…

combination of

all the above

Identify who is a threat to yourbusiness

Affiliate fraud

Social engineering

Friendly fraud

+

Real time Behavior mapping

Rules & Profiling

Device Fingerprinting

Smart authentication (3-D Secure, AVS)

Etc.

Blacklists, greylists, whitelists

Use cross-merchant databases

Exchange with your peers

• Mobile top up provider• Propose recharge of 25 European mobile phone networks• 50 000+ transactions per month• Triple digit yearly growth since 2010

Key Challenges

• Larger volumes & better visibility led to more fraud threats

• International development. First stop: France

More fraud attempts, less conversion

Narrowed margins

Situation before

30% of orders were blocked

Fraud rate above 1%

Solutions• Use of the latest technologies such as Device Fingerprinting and

Smart 3-D Secure

• Implementation of a second layer of protection

• Better profiling of Positive and Negative customers

• Loosen their fraud rules and velocity checks

• Outsource the reviewing of suspicious transactions

After 2 months

• Flag carrier of India• 102 Aircrafts• 49 Domestic destinations• 26 International destinations• Founded in 1932

AirIndia (Airline)

Key Challenges

• Two brands Merger – Air India and Indian Airlines

• Bottleneck in Scalability of Manual Review

• Team Awareness

• Cleaner fraud with IP, Card country and others Matching

• Travel agent VS Fraudster

Situation before

90% of orders were manually

reviewed

Time taken for review was 8hours

After 6 months

0.34%

0.15%

0.20%

0.09%

0.02% 0.01%

-0.05%

0.00%

0.05%

0.10%

0.15%

0.20%

0.25%

0.30%

0.35%

0.40%

Apr/11 May/11 Jun/11 Jul/11 Aug/11 Sep/11

Chargeback rate

Charge back rates fell from 0.34% to 0.01 %

2 hours

Information available on

1 single screen

8 hours

Need to review data from

different sources

Lead time for manual review reduced

After 6 months

Reduced time between booking and flight… For international & domestic flights

Till Last Minute

From 72 hours

REVIEW REVIEW

3-5%90%

Results

• Fraud losses were drastically reduced

• Increase in ecommerce sales

• Order acceptance up to 35%

• Reduced Cost and time taken for manual review

• Profiled Positive and Negative Customers

• New routes were adopted easily

Ogone Payment Servicesa leading payment service provider with global reach

Ogone Payment Services

42,000businesses worldwide trust Ogone to manage, secure and collect their online and mobile payments

137 Motransactions processed in 2012 (worth € 16.6 Bn)

200+acquiring partners and banks

200+resellers, industry partners and shopping carts sofwares

80+international, local and alternative payment methods

1000+new merchants per month

20+white-labels

Part of the Ingenico Group

Expertise in all sectors

HOSPITALITY AND LEISURE

RETAIL

TELECOM/INTERNET /INSURANCE

Expertise in all sectors

AIRLINES / TRANSPORT

UTILITY / GOVERNMENT

TICKETING

www.ogone.com

Thank you