1 / 37

Credit Card Fraud The Scale of the Problem

Security & Safety – Middle East 2005. Credit Card Fraud The Scale of the Problem. Michael Moore Regional Security & Fraud Investigation Manager 14 – 17 Nov 2005. The Credit Card System Worldwide Trends CEMEA/Gulf Fraud Performance UAE Fraud Figures. Agenda. Payment Associations do not:.

ingo
Download Presentation

Credit Card Fraud The Scale of the Problem

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. Security & Safety – Middle East 2005 Credit Card Fraud The Scale of the Problem Michael Moore Regional Security & Fraud Investigation Manager 14 – 17 Nov 2005

  2. The Credit Card System Worldwide Trends CEMEA/Gulf Fraud Performance UAE Fraud Figures Agenda

  3. Payment Associations do not: • Issue Cards • Acquire merchants

  4. Issuing banks Acquiring banks Both Member Institutions

  5. Authorisation for card transactions Clearing and Settlement for Member Banks Basic Service Provided

  6. The Credit Card System Merchant Agreement Cardholder Agreement Merchant Cardholder Issuer Acquirer

  7. Card Transaction Flow Merchant Agreement Cardholder Agreement Sales Draft Merchant Cardholder Authorizations Issuer Acquirer

  8. Clearing & Settlement Merchant Agreement Cardholder Agreement Merchant Cardholder Clearing & Settlement Issuer Acquirer

  9. Current Worldwide Fraud Trends Losses during 2004 US$ 1.9 bn Visa Record

  10. Current World wide Fraud Trendsfor MasterCard An average of 8 cents for every $100

  11. Worldwide Issuer Counterfeit Losses Ending 4Q 2004 2004 losses US$630m (Up 17% over 2003)

  12. Financial loses as a result of POS Fraud MasterCard • Worldwide AED 3,385,206,786.44 • Middle East & North Africa AED 66,755,408.64 • UAE AED 4,980,195.14

  13. CEMEA Acquired Fraud (RSV) $6.96m $6.49m $9.1m CEMEA $6.75m $6.50m $6.43m $7.23m $8.3m $8.05m VISA WORLDWIDE

  14. CEMEA Acquired Fraud by Type6 Quarters ending 4Q04 Counterfeit now at US$5m

  15. Lost/Stolen 18% NRI 62% Fraud Apps 31% Counterfeit 21% Miscellaneous 23% Fraud Use 25% Percentage % in GCC CEMEA Acquired Fraud Distribution 2004

  16. Common Types of Credit Card Fraud - Never Received Issue (NRI) Definition: • Card is stolen from the mail system before the cardholder receives it and is subsequently used fraudulently Use of NRI Cards is normally supported by forged identity documents.

  17. Easy to Fake

  18. GCC – Impact of Counterfeit, Lost/Stolen and NRI – 2004 CEMEA – GCC 7% $400k EU - GCC 44% $2.5m CANADA - GCC 5% - $304k AP – GCC 6% - $325k USA - GCC 37% - $2.1m Total Acquired in GCC - $6m LATAM - GCC 1% - $34k

  19. CEMEA Issuer Fraud to CSV VISA WORLDWIDE $5.4m $6.5m $5.1m CEMEA $2.8m $2.3m $3.4m $4.5m

  20. CEMEA Issuer Fraud by Fraud Type Lost / Stolen Card Not Received Fraudulent Applications Fraudulent Use of Account Miscellaneous Counterfeit

  21. Skimming Device

  22. CEMEA/GCC - Cash vs. ATM Fraud $95k GCC $29k $27k $21k $22k $350k $2k $18k

  23. ATM Skimmer

  24. Fake ATM front side with Skimmer

  25. UAE Acquired Fraud to 4Q 2004 CEMEA UAE

  26. UAE Acquired Fraud by MCC - 2004

  27. UAE – X Border Acquired Sales 2004

  28. X Border Acquired Sales vs. Acquired Fraud 2004

  29. UAE Issuer Fraud to 4Q04 CEMEA UAE

  30. UAE Issuer Fraud by MCC 2004

  31. UAE – X Border Spend 4Q 2004

  32. UAE Issuer Fraud by Country of Acquisition during 2004

  33. No transaction monitoring from banks

  34. Migration to Chip Technology Terminals – point of acceptance changing in UAE Cards – incentive plans introduced Chip Liability Shift – 2006 Verified by Visa & SecureCode looking to secure internet transactions Initiatives to improve data security Mandating banks monitor transactions Solutions – Long Term

  35. Thank you Together We Fight Fraud

More Related