Getting Excited About Fraud

1. Getting Excited About Fraud

2. All financial regulatory agencies and trade groups agree that Consumer Awareness is necessary. "Financial institutions should implement an enhanced customer education to increase awareness of the fraud risk and effective techniques customers can use to mitigate the risk." ~ FFIEC "Consumer education is critical...Publish details of localized scams via online banking websites. Scam alerts can be powerful tools in educating your client base." ~ FICO "FinCEN strongly supports efforts to raise awareness of elder abuse -particularly financial exploitation of the elderly." ~ FinCEN "Develop and distribute fraud prevention resources and conduct outreach." ~ FINRA “One easy way to curb this fraud is through more education and awareness.” ~ Department of Justice "Develop an awareness framework that challenges, educates and empowers your customers and employees to be part of the human firewall." ~ FS-ISAC "Teach your older members: When fraud comes knocking, don't answer.” ~ NCUA "The FDIC encourages financial institutions, government agencies, consumer organizations, educators, the media, and anyone else to help make the tips and information in FDIC Consumer News widely available." ~ FDIC "The banking industry should leverage anti-fraud resources to help customers protect themselves." ~ American Banking Association "Employee and customer education is the key...the problem many institutions face, however, relates to lacking resources and dedicated support for truly integrated educational campaigns and programs." ~ Financial Services Roundtable "Armed with the right knowledge, almost anyone can recognize a fraudulent scheme and make the right decision to stay away." ~ United States Postal Inspector Service "People are often seen as the weakest link when it comes to cyber security, but that must change." ~ UK National Cyber Security Centre

3. Nobody wants to get scammed 96% of Americans surveyed said they want to learn more about keeping safer online Now you can make that happen in a way that is easy and free for everyone. 93% believe they can protect family. 90% feel a responsibility to be safer.

4. Most consumers now believe that only financial institutions can protect them from fraud.

5. People lose information when they get scammed PERSONAL IDENTIFIABLE INFORMTION Email, SSN, name​, DOB​, mother’s maiden name​, driver’s license​, passport, address​, phone​, IP address, company info​, social media, biometric files.​ FINANCIAL INFORMATION Banking information, billing accounts and insurance. New account fraud ACH fraud Identity / synthetic identity Fraudulent tax returns Fraudulent loans Counterfeit cards P2P / APP fraud Email compromise Wire fraud Phone porting IP spoofing for payments Money laundering File fraudulent tax returns Apply for loans Withdraw funds ACH fraud Create counterfeit checks Pay bills Transfer money • Account takeover • Online banking • eCommerce • Email • Mobile carrier Fraudulent purchases Card not present fraud Counterfeit cards CREDENTIALS Email, phone, usernames and passwords for online accounts PAYMENT CARD Credit card and debit card information

6. 2018 Consumer Fraud Statistics • 38%increase in fraud with 2.5 million victims losing nearly $1.5 billion. • Consumers lost $488 million to imposter scams. • Fraud surpassed I.D. Theft for the first time in 15 years. • 6.5 billion consumer fraud attacks. • 69% of consumers are concerned about fraud, an 18% increase from 2017 Source:FTC Consumer Sentinel, LexisNexis and Javelin Research Fraud Report.

7. Failing to recognize compromised ATMs Failing to monitor online accounts Failing to keep identity private Not taking the proper precautions using wi-fi People KEEP MAKING MISTAKES That Could Easily Be Avoided Opening links and attachments. Reusing passwords & not using 2FA or MFA Divulging information to scammers Sharing too much on social media sites

8. Tech support scams Grandkid / relative scams IRS imposter scams Investment scams Phishing Identity theft Online shopping fraud ATM / POS skimming Debt collection scams Counterfeit check scams Online dating scams Real estate/rental scams Auction fraud Advance fee fraud Career opportunity Charity donation fraud Work at home scams Credit repair scams Telephone / mobile fraud Elder fraud

9. Fraud Continues to Harm Banks & Credit Unions

11. 2018 Financial Institution Fraud Statistics • Financial institutions lost over $2.2 billion to fraud. • One dollar of fraud costs Financial institutions approx. $2.92. • 200% increase in fraudsters shifting money from consumers’ existing financial accounts into new accounts. • 1.5 million victims of existing account fraud had an intermediary account opened in their name first. • Account takeover tripled with 1 in 8 new account being fraudulent. • Total account takeover fraud losses reached $5.1 billion in 2017. • New account fraud increased by 70%. • Existing-Card Fraud rose 8%. • Existing-Non-Card Fraud rose 115%. • Existing Account Fraud rose 16%. • CNP fraud is 81% more prevalent than POS fraud. Source:FTC Consumer Sentinel, LexisNexis and Javelin Research Fraud Report.

12. Turning a Problem into an Opportunity

13. EASY TO PRINT • To-do list formatting • No graphics / images • No ads • No wasted content EASY TO FOLLOW EASY TO FIND • Written for the consumer • To-do list style • No introductory paragraphs • Web Site • Blog • Twitter • Facebook • Branches • Mobile Everyone needs to know that you are behind them, and that being a victim of fraud is not the fault of your financial institution. EASY TO UNDERSTAND • Non-technical • To-do list format • Positive & not alarming

14. MARKETING MANAGERS • We maintain an up-to-date Article Library and To-Do List for your outreach and consumer communications. FRAUD INVESTIGATORS We help you manage the day-to-day tasks of writing articles or keeping articles relevant.

15. Community Frontline Operators A Unified Awareness System Always up-to-speed on the latest fraud tactics. Help people make less mistakes. Always current and seamlessly integrated within your existing communications, marketing materials and outreach. Social & Digital Fraud Managers Marketing More content that people will share. 24/7 Victim assistance resources. More content that people will read. Branches Risk & Compliance Human Resources In-person resources. Fraud aptitude testing. More support and education.

17. We create and manage "evergreen content" that is always needed and does not become dated. Most relevant for financial services and especially valuable if you don’t publish new content on a regular basis. Calculators 1 Investing 4 Travel 6 Savings / Retirement 6 Fraud Prevention 365 Average Annual Consumer Usage

18. Consumers have a strong desire to be informed, and to be the first to share new information. Web Site / Mobile 12 Blog Facebook 11 1 Provide useful content on a daily basis throughout all of your digital channels and get it done in just a matter of minutes. This allows marketing managers more time to focus on the quality of content while we help with the quantity. 10 2 9 3 8 4 7 5 6 Twitter Email / Text

20. SMALL BUSINESSES SUPPORT

21. Business Banking • What businesses expect from their financial Institution • Security measures to protect accounts and keep information safe. • Fast support to help in the event of fraud. • Protect against fraudulent wire transfers. • Quickly detect suspicious activity and notify customers immediately. • Increase the value of your banking relationship by exceeding the expectations of your commercial account holders.  • Making life more difficult for fraudsters in the process.

22. Branded Dashboard • Your business accounts will have full access to the complete eFraud Prevention™ dashboard. • KEY BENEFITS • Prevents Fraud. • Branded with your FI's logo. • Increases loyalty for your best accounts. • Offer an additional free service that separates you from your competition. • Includes all integration code, article library, fraud search, online learning and videos.

23. Increase Value • Your business clients can add a branded version of eFraud Prevention™ to their web sites. Offering fraud prevention to their customers while promoting your brand. • Examples include: • Accountants / Tax Preparation • Insurance • Healthcare • Financial / Investment • Consultants • Services for seniors • Non-profits • Higher education / Local schools • Municipalities • Local government / Law enforcement • Lawyers / Legal • IT & Computer • Retail • Real Estate

24. More Facebook Exposure • eFraud Prevention™ can be integrated as a Facebook tab for any of your customers or members with Facebook business pages. This version could include your FI logo for an additional marketing benefit. • Key Benefits: • Offer an additional free service that separates you from your competition. • Increases the social sharing of your financial brand. • Increases your reputation as the trusted advisor and fraud prevention expert. • Viral social media marketing.

25. Small Investment, Big Returns For a small investment in additional fraud prevention awareness, you will improve your Marketing, Support, Reputation, and Revenue. Marketing Revenue Reputation Support

26. Why Now? Channels • Growth of IOT (20.4 billion connected devices by 2020). • Growth of Mobile Pay and eCommerce. • There is a direct correlation between Technology and Cybercrime. • Criminals no longer need to be tech savvy hackers as there is easy access to “out-of-the-box” fraud tools. Tools • Criminal are awash with credentials, health records, PII and bank account information. • Payment fraud, Account Takeover & ID Theft are commonplace. Data Breaches Sophistication • Early days are gone and criminal enterprises have arisen.

27. 2019 Fraud Predictions Scam victims & fraud losses for financial institutions Credential stuffing Social engineering Digital trust Spear phishing becomes even more targeted Poisoned artificial intelligence Application and new account fraud Mobile fraud losses Data breaches Social media brand misinformation Real-time payments Gaming Home Network hacking

28. You already offer fraud prevention tips Fraud awareness needs to continuously be updated in order to accurately address ever-changing fraud tactics. These statistics demonstrate how consumer concerns for fraud safety are constantly shifting. Today, you can’t just maintain the same 5 – 10 articles.

29. Shred days are an important service to prevent identity theft. However, in today’s fraud environment, “dumpster diving” is only oneof the manytacticsused by criminals to steal personal identities. Abuse of position of trust Account takeover Advance fee fraud ATM / POS skimming Computer hacking Data breaches Dumpster diving Impersonation of officials Lottery scams Mail theft Malware / Virus Mobile phone fraud Pharming Phishing Phone porting Pretexting Purse or wallet theft Smishing Social engineering Sweepstake scams Wi-Fi hacking Work from home scams

30. Established in 2004, eFraud Prevention™ has helped hundreds of public and private organizations to deliver fraud prevention awareness. Today, we are proud to be able to reach and protect millions of consumers in communities throughout all of the United States of America. eFraud Prevention™ was the first online service dedicated to offering consumer awareness for fraud prevention. We were an established online service before the existence of any private or government funded consumer awareness initiatives. Today, fraud awareness remains the only service we offer. IAFCI is a global network of law enforcement, card associations, banks and non-banks, private label issuers, to name a few. IAFCI chose eFraud Prevention™ to provide the bulk of consumer awareness information on the IAFCI web site. Helping with IAFCI's effort to safeguard the world's economy through teamwork.

31. Content is managed daily & curated from expert sources. • Trade & Non-profit • International Association of Financial Crime Investigators (IACFI) • (ISC)2 • CIS (Center for Internet Security, Inc) • Government • Federal Trade Commission • Department of Homeland Security • Department of Commerce • U.S. Department of Education • U.S. Department of State • Consumer Financial Protection Bureau • Federal Communications Commission • Federal Deposit Insurance Corporation • Internal Revenue Service • Securities and Exchange Commission • United States Postal Inspection Service • Various Offices of Secretary of State • UK's National Reporting Centre for Fraud • NIST – National Institute of Standards and Technology • Academic & Private • Information Assurance Support Environment • SANS Institute • OWASP

32. Pricing TOTAL ASSETS TOTAL MONTHLY COST $150.00 150 Million – 500 Million 500 Million – 1 Billion $200.00 1 Billion + $300.00