CYBERSOURCE FRAUD
MANAGEMENT
e-Commerce Day
Lima, Peru
Kathy Reeves
Business Development Manager
[email protected]
Rules Orders
Chargeback
Reject DetectorsAutomated Screening
Fraud Management Process
Management
Tuning &
Analytics
Manual Review
Rules Orders Reject Detectors
Automated Screening
50% say
“Fraud is cleaner”
Chargeback
Management
Tuning &
Analytics
Manual Review
# Detection Tools = 7
Fraud Rates in U.S./Canada
(Overall and by Online Segment)
R a te 2 % 2,0% 1,4% 1 3% 1,5%
1 5%
2,0%
2,5%
3,0%
2008
2009
Overall Digital Goods/ Svcs Media & Entertainment Apparel/ Jewelry Health Consumer Electronics Household & General Merchandise Education/ Government In te rn a ti o n a lF ra u d R
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 Type
Exp
% 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
Rules Orders
Chargeback
Management
Reject DetectorsAutomated Screening
Review Rate 15-46%
g
Tuning &
Analytics
# Systems/Data Input Interfaces12
2-6%
Rules OrdersChargeback
Management
Reject DetectorsAutomated Screening
g
Tuning &
Analytics
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)
How Can CyberSource Help?
• Detect increasingly cleaner fraud
(including botnets)
• Scale in-house team and optimize
CyberSource Decision
Manager System
Scale in house team and optimize
operating performance
– In-house team (expertise, capacity)
– Process management/analytics
• Scale operations through outsourcing
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
Rules Orders
Chargeback
Management
Reject DetectorsAutomated Screening
Management
Tuning &
Analytics
Manual Review
Built-in Detectors & Data Sources
DATA QUALITY
Detectors & Rule Console
DATA QUALITY
Order & Data Sources
Correlation Engine & Modeling
1
2
Review
Reject
Accept
Order Data
Your Business Rules
3
4
Individual Test
Order Data
Individual Test
Results
Statistical
Anomalies
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 modeled
Example: Correlation Engine & Multi-Merchant Model
Results
Results
Your Order
Mary Smith
4XXXXXX0453
[email protected]
D-Fingerprint: ABC
Tricia Lim 4XXXXXXXX0453 [email protected] D-Fingerprint: XYZ Emirates Imran Cochin 5XXXXXXXX7395 [email protected] Air Canada Tricia Lim 4XXXXXXXX0123 [email protected] D-Fingerprint: ABC TAM Pablo Jimenez 4XXXXXXXX6329 [email protected] UK RetailerGlobal, Multi-Merchant
Intelligence
Name changes: Multiple
Credit cards: Multiple
Email changes: Multiple
Devices: Multiple
Name changes: Multiple
Credit cards: Multiple
Email changes: Multiple
Devices: Multiple
Adam Jones 4XXXXXXXX0453 [email protected] D-Fingerprint: XYZ US Retailer D-Fingerprint: ABC Tricia Lim 4XXXXXXXX6329 [email protected] D-Fingerprint: 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 SPAMRules Orders
Chargeback
Management
Reject DetectorsAutomated Screening
g
Tuning &
Analytics
Manual Review
Case Management with One-Click Validation
Google Maps:
Validate
shipping or
billing address
Rules Orders
Chargeback
Management
Reject DetectorsAutomated Screening
g
Tuning &
Analytics
Manual Review
Reporting and Analytics
Performance Reports:
• Screening Profiles
• Rules
• Rules
• Review Process
Rules Orders
Fraud
Reject DetectorsAutomated Screening
Performance Monitoring
• Strategy Design • Rule Results/Tuning • Queue Logic/Tuning • Reviewer Performance • Active Monitoring Business Performance Guaranteesaud
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 you
detect increasingly
cleaner fraud?
2. How will you scale operations?
200 Built-in Detectors/Tests and Correlation Engine
– Expertise
– Capacity
– 24x7, global service
3. Do you have
systems/process to
manage and optimize?
Outsource w/SLAs In-House Tools + Expert Backup w/SLAs
Analytics + Expert Analysis
Closed-loop
