1. PCI DSS Education & Compliance Seminar Many card accepting businesses have felt the pain associated with a network penetration and data breach. It can happen to you! Learn how the bad guys are doing their dirty work and how you can protect your business! David Frick, Phil Kluge and Jesse Snyder are Co-Founders of Transaction, Resources, Inc. (TRI) TRI offers innovative payment processing solutions to merchants by combining the latest technologies with a passion for customer service and competitive rates. Transaction Resources, Inc., doing business as TRI, is a registered ISO/MSP of Wells Fargo Bank, N.A., Walnut Creek, CA.

8. Fraud Loss Example SCENARIO: Merchant A is storing track data in its server. Fraudster hacks into the system and steals cardholder track data. Fraudster creates counterfeit plastics from stolen cardholder data and these plastics are subsequently used at Merchant A, B, C, and D QUESTIONS: Is Merchant A liable for losses that result from use of the counterfeit cards at Merchant A?

9. Fraud Loss Example SCENARIO: Merchant A is storing track data in its server. Fraudster hacks into the system and steals cardholder track data. Fraudster creates counterfeit plastics from stolen cardholder data and these plastics are subsequently used at Merchant A, B, C, and D QUESTIONS: Is Merchant A liable for losses that result from use of the counterfeit cards at Merchant A? Yes

10. Fraud Loss Example Is Merchant A liable for losses that result from use of the counterfeit cards at Merchant B, C, or D?

11. Fraud Loss Example Is Merchant A liable for losses that result from use of the counterfeit cards at Merchant B, C, or D? Merchant A may become liable for the fraud losses which occurred from the compromised cards at Merchants B, C, and D through the compliance case process Yes

12. Fraud Loss Example EXAMPLE: 500,000 cards stolen. 10,000 cards used fraudulently at each of Merchant B, C, and D = 10,000 x 3 Merchants = 30,000 cards COMPLIANCE CASE PROCESS: 30,000 cards x $500 average ticket = $15,000,000 In addition, Merchant A will be responsible for fines and monitoring expenses

19. What is a Compromise? Incidents involving an electronic or physical breach of cardholder information and/or card data

29. QUESTIONS?