Tackling Card Fraud Hsbc Derek Wylde
•
3 likes•779 views
Presentation from "The future of Cards and Payments 2008".
Recommended
More Related Content
More from Roberto Grossi
More from Roberto Grossi (20)
Recently uploaded
Recently uploaded (20)
Tackling Card Fraud Hsbc Derek Wylde
- 1. Tackling card fraud: embracing technological and strategic solutions Derek Wylde Head of Group Fraud Risk HSBC
- 2. UK Card Losses £m 600 500 400 300 200 100 0 2002 2003 2004 2005 2006 2007
- 3. UK CNP Losses 1995-2007 £m 300 250 200 £ Millions 290 150 213 100 183 150 122 110 96 50 0 73 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
- 6. Start with a laugh… • P.C. Vey, Published by the New Yorker, January 16th, 2006
- 7. Anti-fraud strategy • Render the card number useless if compromised • EMV for face to face • Remote card authentication (CAP) for CNP • DDA not SDA • Unique CVC value on chip
- 8. EMV - The silver bullet? • Fraud at its highest level in UK for years • Expensive • Is PIN the right CVM? • Effectiveness limited until total migration
- 9. 3D Secure - MasterCard SecureCode and Verified by Visa • Scheme-driven authentication technology, providing merchant liability protection from fraud • Merchants now get global protection • But merchant adoption slow • Cardholder registration even slower • Activation During Shopping add-on • Maestro mandate
- 10. Remote Card Authentication • Alleviates static data vulnerabilities • Limits opportunity for compromise and collusion • Multi-channel opportunities • Provides an enhancement to 3D Secure, possibly remove ADS • But… requires chip card technology
- 11. Giving the customer control • Allow the customer to parameterise his spend • Straight through processing • Prevents not just CNP fraud • For example block card for overseas ATM spend, CNP transactions or overseas POS
- 12. Fraud detection systems • Optimised • Up to date models • Models for high net worth customers • Up to date contact details • Work 24x7
- 13. Authorisation strategies • Analysis - there is no substitute • Get the priorities right • Exclude low value referrals • Restaurant referrals • ‘Sticky referrals’
- 14. And finally……... • Customer education • SMS • Contact centre • Customer complaint handling
- 15. Tackling card fraud: embracing technological and strategic solutions Derek Wylde Head of Group Fraud Risk HSBC