© 2014 CustomerXPs Software Pvt Ltd | | Confidential 1 Tentacles of Fraud #StarfishBanks CustomerXPs Software Private Limited

© 2014 CustomerXPs Software Pvt Ltd | www.customerxps.com | Confidential1

Tentacles of Fraud#StarfishBanks

CustomerXPs Software Private Limited


Agenda

Fraud Trends in Major Economies : UK

Fraud Trends in Major Economies : USA

Fraud Trends in Major Economies : UAE

Major Developments and Impacts

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Fraud Trends in Major Economies : UK


United Kingdom

2008 was the peak year for fraud Loses due to Card Fraud (2013) - GBP 450.4 Million Losses currently 7.4p for every GBP 100 spent Card-Not-Present Fraud (CNP) (2008) - GBP 326.4 Million

22% increase in 2013 Fraudulent purchases - GBP 301.1 million


United Kingdom

CNP fraud at 67% from 54% in 2008 Fraud techniques evolving with rise in:

ID Theft ‘vishing’ attacks phishing attacks (UK is second to US in this fraud type)

Chip, PIN and other advanced fraud prevention tools have proved to be effective in preventing fraud

Lost & Stolen cards account for USD 58.9 Million of Fraud in 2013


Fraud Trends in Major Economies : USA


United States of America

50% of total global payment card fraud - costing USD 7.1 Billion (2013) Major retailer also took a hit adding USD 500 Million to total US Fraud

costs In 2012, US accounted for 23.5% of the Global Payment Card Volume.

Of which 47.3% was card fraud US has a strong dependence on Magnetic Stripe Tech - makes it prone

to high levels of fraud Visa & Mastercard - pushing for upgrade to ‘chip’


United States of America

Aite Group - end of 2015, 70% cards will have ‘chips’ Decline in US global card fraud & migration to CNP fraud expected Robust, real-time fraud management solutions have already proved

effective By 2015, 50% of transactions will be over mobile Statistics show, USD 42.14 billion was done in 2012 as mobile e-

commerce High potential market in the coming years


Fraud Trends in Major Economies : UAE


United Arab Emirates

Recent surge in card use followed by card fraud In 2014, led the credit card fraud countries list with 44% In 2013, poor fraud management led to 1 in 4 transactions being flagged

as fraud In 2014 Q4, 83% of UAE residents made purchases online. Profitable e-commerce growth:

Consumers to be educated in fraud prevention techniques Quick response by banks & merchants to respond quickly & effectively to

secure transactions Protect customer experience


Development and Impacts


Development and Impacts

Mobile banking is at great risk as Mobile devices store sensitive data. Tools to prevent this data fraud of this nature is still in the development phase.

At the moment, Android OS is the most vulnerable to fraud attacks. 82% of business would leave bank in case of breach 74% choose bank based on security reputation EMV terminals to reduce attacks on retailers’ POS systems, as soon as

deployment stage As data collection by devices, personal information is more freely available

which makes security for data more vulnerable.


Thank you

Documents

© 2014 CustomerXPs Software Pvt Ltd | | Confidential 1 Tentacles of Fraud #StarfishBanks CustomerXPs Software Private Limited