1 / 18

ONLINE CREDIT CARD FRAUD the East African Travel Market

ONLINE CREDIT CARD FRAUD the East African Travel Market. Aitec banking and mobile comesa – sep /2013 Eran Feinstein – 3g direct pay limited. 3G Direct Pay – WHY?.

holly
Download Presentation

ONLINE CREDIT CARD FRAUD the East African Travel Market

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. ONLINE CREDIT CARD FRAUDthe East African Travel Market Aitec banking and mobile comesa – sep/2013 Eran Feinstein – 3g direct pay limited

  2. 3G Direct Pay – WHY? • …because we believe that service providers and end customer should have the FREEDOM to shop and pay online using ANY card type and ANY currency… | AITEC BANKING AND MOBILE COMESA SEP/2013 | ERAN FEINSTEIN | 3G DIRECT PAY LIMITED |

  3. HOW we doing it? • End-to-End solution – filling the gap • Designed and maintained for the Africa travel market • East • Southern • Multi layers package • Technology / Platform • Bank relations • Customer care • Fraud Prevention and Risk Management • Internal industry settlement platform | AITEC BANKING AND MOBILE COMESA SEP/2013 | ERAN FEINSTEIN | 3G DIRECT PAY LIMITED |

  4. HOW we doing it? • The Platform • Real-time transactions • Online payments processing • Online / Offline / Direct / API • Payment Options • Professional bank relationsEU, US, KE, TZ.. • All cards, mobile, PayPal and more.. | AITEC BANKING AND MOBILE COMESA SEP/2013 | ERAN FEINSTEIN | 3G DIRECT PAY LIMITED |

  5. HOW we doing it? • Customer Care • 24/7 for the end customer and the travel provider • It’s about conversion ! • Fraud Prevention • Real-time monitoring • Advanced scoring • Skilled team | AITEC BANKING AND MOBILE COMESA SEP/2013 | ERAN FEINSTEIN | 3G DIRECT PAY LIMITED |

  6. HOW we doing it? • Providers settlement platform • Based on our own providers network • Real-time payment allocation • Instant confirmation | AITEC BANKING AND MOBILE COMESA SEP/2013 | ERAN FEINSTEIN | 3G DIRECT PAY LIMITED |

  7. The Network • Airlines (24) , Hotels and Lodges (150) , Agents and Tour Operators (300) , Diving Centers (10) | AITEC BANKING AND MOBILE COMESA SEP/2013 | ERAN FEINSTEIN | 3G DIRECT PAY LIMITED |

  8. The East African Travel Industry • The main players: • Airlines • Hotels • Lodges • Tour Operators • Travel Agents • 2500 to 3000 providers (Kenya, Tanzania, Uganda, Zambia) | AITEC BANKING AND MOBILE COMESA SEP/2013 | ERAN FEINSTEIN | 3G DIRECT PAY LIMITED |

  9. The East African Travel Industry • Kenya and Tanzania – quick figures • More than $4,000,000,000 (annually) • Online transactions (credit cards and PayPal) $35,000,000 to $50,000,000 • Typical Customer • 80% - Europe and USA • 15% - Eastern Africa (steady increase over the past 2 years) | AITEC BANKING AND MOBILE COMESA SEP/2013 | ERAN FEINSTEIN | 3G DIRECT PAY LIMITED |

  10. The East African Travel Industry • Credit Card Types • 80% - Visa and MasterCard • 15% - American Express (4% until 2011) • 4% - PayPal • Average Transaction • Airlines $450 • Hotel $500 - $1,100 • Travel agent $1,200 - $1,500 • Tour Operator $1,500 - $2,200 | AITEC BANKING AND MOBILE COMESA SEP/2013 | ERAN FEINSTEIN | 3G DIRECT PAY LIMITED |

  11. The East African Travel Industry • 90% of transaction – classic CNP (card not present) • 2% of transactions – 3D secure • Charge-Back • 0.35% to 0.50% (since 2009) • Using stolen card and fly to the Safari ?? • 90% of C/B from airline transactions | AITEC BANKING AND MOBILE COMESA SEP/2013 | ERAN FEINSTEIN | 3G DIRECT PAY LIMITED |

  12. Where is the Risk? • Classic Fraud (low to med) • Stolen credit card • Identity theft • Consume the service • Merchant Fraud (high) • Fake agents • Professional fraudsters • No service, no passengers • Friendly Fraud (low) • Consume the service • Can’t avoid…. | AITEC BANKING AND MOBILE COMESA SEP/2013 | ERAN FEINSTEIN | 3G DIRECT PAY LIMITED |

  13. The Online Fraud – How Does It Works? • Individual Fraud • General Characteristics • Individual fraudster, One-time campaign, access to stolen cards list (low quality), no ‘fine’ details • The Service • Flight/s, One way, short term booking • Passenger • The fraudster, family member/friend | AITEC BANKING AND MOBILE COMESA SEP/2013 | ERAN FEINSTEIN | 3G DIRECT PAY LIMITED |

  14. The Online Fraud – How Does It Works? • Mass Fraud • General Characteristics • Individual/group, professional fraudster/s, massive stolen cards list (low quality), acting as an agent, no close relationship with the passengers, massive payment attempts, very low conversion rate • The Service • Flight, one way and return • Passenger • Not the fraudster, no idea that the service paid using stolen card | AITEC BANKING AND MOBILE COMESA SEP/2013 | ERAN FEINSTEIN | 3G DIRECT PAY LIMITED |

  15. The Online Fraud – How Does It Works? • Professional Fraud and Identity Theft • General Characteristics • Groups only – organization, stole cards list – high quality, 3D-secure lists, access to the card holder details, using ‘fine’ details – complete ‘storyboard’ • The Service • Flights, accommodation • Passenger • The passenger is also a professional fraudster | AITEC BANKING AND MOBILE COMESA SEP/2013 | ERAN FEINSTEIN | 3G DIRECT PAY LIMITED |

  16. The Online Fraud – How Does It Works? • Merchant Fraud • General Characteristics • ‘well organized scam..’, mitigating the KYC procedures, designed websites, products and services, real people, working plan, long term operations • The service • Detailed service, package, accommodation, no-flight ! • Passenger • Fake but well designed identity, no real passenger | AITEC BANKING AND MOBILE COMESA SEP/2013 | ERAN FEINSTEIN | 3G DIRECT PAY LIMITED |

  17. How to Mitigate the Online Fraud? | AITEC BANKING AND MOBILE COMESA SEP/2013 | ERAN FEINSTEIN | 3G DIRECT PAY LIMITED |

  18. | AITEC BANKING AND MOBILE COMESA SEP/2013 | ERAN FEINSTEIN | 3G DIRECT PAY LIMITED |

More Related