Credit Card Fraud & Ways to Mitigate Risk

February 27, 2012.

Shaun East, CTE,CCTE,CPCP Sr. Manager Commercial Card

Overview / Agenda
The Credit Card Transaction Process & its Participants The Canadian Fraud Experience Security Measures in Place Protecting yourself against leading fraud methods How have criminals developed? Significant moments in history Circumstances around a compromise USA to join Canada and move to CHIP & PIN technology Hows the Phishing or Smishing? A quick self assessment / travel tips Questions / Discussions / Confessions

Credit Card Fraud & Ways to Mitigate Risk

February 27, 2012.

The Credit Card Transaction Process

Credit Card Fraud & Ways to Mitigate Risk

February 27, 2012.

The Transaction Process

A credit card is a convenient method of payment providing many benefits to merchants and consumers alike Merchants pay a fee to access the system and to offer their customers the convenience of paying by card Cards are widely accepted around the world in both C2B, B2B Card use may be as easy as swiping mag stripe, or entering a PIN after your CHIP has been read There are a number of different cards available in the world, with various features, programs, and insurance coverage

Credit Card Fraud & Ways to Mitigate Risk

February 27, 2012.

Who are the stakeholders?

Credit Card Fraud & Ways to Mitigate Risk

February 27, 2012.

Canadian Fraud Losses by Method

The launch of CHIP & PIN technology has had the desired effect in Canada. Liability shift was delayed until March 2011 so above is understated. There is approx 55% of CAD POS systems CHIP enabled. The USA is slated to follow in 2015. Counterfeit Cards, and Card-not-Present fraud remain areas worthy of our attention.
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Several Layers of Fraud Protection

1. Zero Liability 2. Verified by Visa (Retail) 3. Neural Networks 4. CHIP & PIN 5. Address Verification 6. CVV Value

Credit Card Fraud & Ways to Mitigate Risk

February 27, 2012.

Card-Not-Present Fraud

This fraud is committed by criminals online, by phone, or by mail using information obtained fraudulently. How to protect yourself: register for Verified by Visa (Retail Only) protect passwords / usernames and use encrypted browser only give card details when you initiate a purchase keep transaction records & review all statements note merchants web site for returns / exchange policies never send payment information via email as is insecure report lost or stolen cards immediately to your Bank (Program Administrator)

Credit Card Fraud & Ways to Mitigate Risk

February 27, 2012.

Counterfeit Fraud

Despite a number of security measures used in the production of Visa Cards, criminals have developed sophisticated ways to make copies of cards that they can then use for fraudulent activity. The counterfeits can contain actual information on real account holder. promptly check your statement every month. Transactions may be disputed within allowable parameters treat your card like it is cash, and always keep it in sight ask questions why did the clerk swipe your card more than once? get card back immediately after use check your card when it is returned to you sign new cards immediately upon receipt

Credit Card Fraud & Ways to Mitigate Risk

February 27, 2012.

CBC Marketplace Report

http://www.cbc.ca/marketplace/2010/whos_minding_the_store/main.html
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Some Events of Significant Scope & Scale

http://www.cnn.com/video/#/video/crime/2009/10/08/rowlands.fbi.phishing.bust.cnn
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The Compromise Environment

Credit Card Fraud & Ways to Mitigate Risk

February 27, 2012.

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Regulations Help to Ensure Compliance

Credit Card Fraud & Ways to Mitigate Risk

February 27, 2012.

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USA to implement CHIP Technology

Credit Card Fraud & Ways to Mitigate Risk

February 27, 2012.

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No License Required for phishing (or smishing)

http://money.cnn.com/video/technology/2011/07/25/t-tt-hacking-phishing.cnnmoney/ http://www.cnn.com/video/#/video/bestoftv/2011/10/19/mxp-westhoven-smishing.hln
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What is Scotiabank doing?

First Financial Institution in Canada to deploy CHIP & PIN Technology for Commercial Card & Small Business Programs Leveraging Visa Advanced Authorization Technology In House Fraud Detection Systems containing neural networks Devised special process for mass compromise events wherein actual fraud has not yet occurred Notification to clients re compromised cards 24/7/365 Call Centre availability to report lost & stolen cards Developed strong working relationship with other FIs to share market observations Continually revisiting existing processes phishing@scotiabank.com

Credit Card Fraud & Ways to Mitigate Risk

February 27, 2012.

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A Self Assessment

Do you keep an eye on your credit cards at all times to protect them from skimming? Do you respond to Internet scams such as Phishing, and hang up on telephone solicitors? Do you ever ask how your information is going to be safeguarded when an unknown party is asking for it? Do you use firewall and/or anti-virus software to protect your PC? Do you shred unused charge cheques mailed to you by credit card companies?

Credit Card Fraud & Ways to Mitigate Risk

February 27, 2012.

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Travel Tips Whether You are On Business or Not

Leave cheques & chequebooks at home in secure location ATM Debit Cards restrict use to secure machine locations and recognize credit cards as a better form of payment Leave bills at home (security of hotel room) Use hotel safes when available a suitcase is not a secure site Use inside pockets to protect against pickpockets and always secure electronic devices Thin your wallet/purse contents & carry only what you need Protect against shoulder surfers in public places Back up material carry copies of travel documents in separate location

Credit Card Fraud & Ways to Mitigate Risk

February 27, 2012.

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Travel Security Tips Continued

Did you put a vacation hold on your mail, or arrange for pick up? Did you stop/suspend newspaper delivery while away? Does someone know you are away and the details of your itinerary? Do not hang purses on hooks at back of washroom doors Ladies carry a flashlight and a rubber doorstop -- ask to be escorted to your vehicle by hotel staff Be aware of your surroundings at all times

Credit Card Fraud & Ways to Mitigate Risk

February 27, 2012.

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Questions / Discussion

Now that we have examined this topic more closely, do you have any personal experiences to share?

Thank you for this opportunity to speak with you today

Credit Card Fraud & Ways to Mitigate Risk

February 27, 2012.

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