Co-presented with Aite Group, this webinar dives into the evolving banking landscape of Fintech innovations. From faster payments, to customer experience and expectations, these market dynamics are changing fraud prevention requirements. Guardian Analytics showcases its Omni-channel Fraud Prevention solution, which unifies customer behavior and fraud prevention across payments and channels.

1. Julie Conroy
Research Director
Aite Group
Luis Rojas
Head of Products
Guardian Analytics
Present:
New Requirements for Fraud Prevention

2. Housekeeping
• This webinar will be recorded
• Slides and recording will be shared after the
presentation
• Please use the question box to submit questions
• Questions will be answered at the end of the
presentation
2© 2016 Guardian Analytics, Inc. – Confidential & Proprietary

3. ©2016 Aite Group LLC.
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New Requirements for Fraud
Preven5on
May 2016
Julie Conroy
Research Director

4. ©2016 Aite Group LLC.
Page 4
Source:
Informationisbeautiful.net

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The favored a<ack vectors
Hacking: Compromising a
vulnerability to infiltrate a
company’s network
Malware: Malicious
soIware intended to
damage computers and/or
capture data
All of the above: Cross-
channel and cross-product
Social engineering:
ManipulaMng people so
they surrender
confidenMal informaMon
Insider threat: A person
who has infiltrated a
company to steal sensiMve
data

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Innova5on rapidly expanding the a<ack
surface

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Mobile malware s5ll dwarfed by online, but
growing rapidly
3.2 6.2 19 61
178
338
200
350
578
953
1,572
2,594
2013 2014 e2015 e2016 e2017 e2018
Number of Unique Malware Strains, 2013 to e2018
Mobile malware Computer malware
Source: McAfee, Aite Group
(Millions)

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Business email compromise
Average loss
per vicMm:
$100,000
$1 billion in
losses through
end of 2015

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While online has long been a target, the
mobile channel will increase in a<rac5veness…
8,335 8,955
9,417
9,687 10,153 10,771 11,395
4,560
6,000
7,911
11,443
15,278
19,238
23,068
2010 2011 2012 2013 e2014 e2015 e2016
Annual Digital Banking Logins in the UnitedStates,
2010 to e2016 (In millions)
Annual online logins Annual mobile logins
Source: Aite Group, July 2014

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…and the contact center is already there
Up 1 - 10%
28%
Up 11 - 24.9%
33%
Up 25% or more
17%
Flat or don't know
17%
Down
5%
Q. Are contact center losses trending up, down or are they flat? (N = 18)
Source: Aite Group interviews with 25 executives from 18 large U.S. FIs,
August 2015 to February 2016.

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Clear connec5on between the contact
center and ATO
Minor issue
28%
Major issue
55%
Critical issue
17%
Q. Please rate the account takeover fraud trend as you are experiencing it
in the call centers.
(N=18)
Source: Aite Group interviews with 25 executives from 18 large U.S. FIs,
August 2015 to February 2016.

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The U.S. migra5on to EMV will
exacerbate the problem
£23
£34
£23
£53
£60
£47
£35 £40 £41
£61
£101
£19
£20
£23
£37 £28
£33
£19
£25 £28
£20
£24
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Growth in UK ATO Post-EMV (GBP Millions)
Card ATO
Online
banking
Source: Aite Group

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Build your security with the assump5on
that the bad guys will breach the perimeter.

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No silver bullet…

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Analy5cs: Improving detec5on,
reducing fric5on
Source: Aite Group interviews with 19 large North American FIs, February to May 2015.
Pilot/
Implementation
10%
Using 1 solution
42%
Using 2 solutions
37%
No immediate
plans
11%
Respondents' Use of Behavioral Analytics (N=19)

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GeSng ahead of the bad guys
Anomaly
detecMon
Transparent
to end user
Cross-
product and
channel
analyMcs

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Impact: Sharply rising account takeover
$392 $420
$644
$760
$844
$903
$966
$1,091
2013 2014 2015 e2016 e2017 e2018 e2019 e2020
U.S. Account Takeover Losses, 2013 to e2020 (US$ Millions)
Source: Aite Group

19. ©2016 Aite Group LLC.
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Aite Group: Partner, Advisor, Catalyst
Aite Group (pronounced eye-tay) is an independent research and
advisory firm focused on business, technology and regulatory issues
and their impact on the financial services industry.
Julie Conroy
Research Director
jconroy@aitegroup.com
+1.617.398.5045

20. Introducing Omni-Channel Fraud Prevention
Luis Rojas, Head of Products
May 5, 2016

21. 21 © 2016 Guardian Analytics, Inc. – Confidential & Proprietary
Fast Growing, Proudly Protecting

22. 360 Degree Insights and Real-Time Control
22 © 2016 Guardian Analytics, Inc. – Confidential & Proprietary
Unified risk scoring across payments
and channels using advanced
behavioral analyMcs and machine
learning
Consolidated view of customer
acMviMes, risk and fraud
Real-Mme integraMon of customer
banking acMviMes, account data,
and 3rd party fraud alerts
Channels
Payments
ATM
Contact
Center
POS
Branch
Online
Mobile
Bill Pay
Debit
Wire
ACH
P2P
Omni-Channel
Visual AnalyMcs
Omni-Channel
Risk Engine
Enterprise API
Integrated Risk
Database

23. Omni-Channel Visual Analytics
Omni-Channel Visual AnalyMcs
360-degree view of customers and fraud
Integrated data
banking plaaorms, core systems, security and fraud alerts, enterprise case management data
Omni-Channel Risk Engine
Enterprise API
Integrated Risk
Database
© 2016 Guardian Analytics, Inc. – Confidential & Proprietary 23

24. Omni-Channel Visual Analytics Demonstration
24 © 2016 Guardian Analytics, Inc. – Confidential & Proprietary

25. Integrated Risk Database
Omni-Channel Visual AnalyMcs
Omni-Channel Risk Engine
Enterprise
API
Integrated Risk
Database
Customer/
Account data
Case
management
Layered security
alerts
Enhance risk scoring
Call center and
branch acMvity
Centralized view and
increased context
Intelligence
data
© 2016 Guardian Analytics, Inc. – Confidential & Proprietary 25

26. Enterprise API
Omni-Channel Visual AnalyMcs
Omni-Channel Risk Engine
Enterprise API
Integrated Risk
Database
Omni-Channel Mapping
• Channel
• Context
• AcMviMes
• Hold/release
• Stepped up authenMcaMon
• OOB
• Dynamic session control
Risk
Scores
IntervenMon
© 2016 Guardian Analytics, Inc. – Confidential & Proprietary 26

27. Getting Started With Omni-Channel
Early Adopter Program – Now!
• Benefit from the enhanced capabilities first
• Influence near-term features and roadmap
• Limited to 5 Customers
• Larger financial institutions with multiple products or multiple financial institutions
Visual Analytics General Availability – Q4
• Engage with Guardian Analytics account management now to plan timing and
budget
• Start deploying customers into production in Q4
27

28. Fast Growing, Proudly Protecting
© 2016 Guardian Analytics, Inc. – Confidential & Proprietary 28

29. For more information: www.GuardianAnalytics.com/Omni-Channel.html
Or visit the Guardian Analytics YouTube channel.
Thank you!
© 2016 Guardian AnalyMcs, Inc. – ConfidenMal & Proprietary 29