CNP, Malware & Physical Attacks; The Future of Fraud in an EMV World

How Will EMV Affect Fraud In the U.S.?

Fraud After EMV  Continued Skimming of Chip card for mag stripe data Chip Card will still contain Mag stripe data for foreseeable future  International Cash-outs of stolen Mag Stripe Data Mag stripe data will have to be used at non chip location  ATM Shimming Device Designed to Capture Chip Data and then is converted to mag stripe data  Eventual & Significant Decrease in card present fraud (5+yrs)

The EMV “Ripple Effect” on Fraud  Significant Increases in Card Not Present Fraud Online & telephonic purchases No more pictures of our suspects!!  Significant Increases in ID Theft to Obtain a New Chip Card with Victim’s Info Network Intrusions to obtain PII and password information  Increase in Physical Attacks Card Trapping / Cash Trapping / Gas Attacks & Malware Attacks  Revert to Traditional Financial Institutional Fraud  Counterfeit checks/Account Takeover/Wire Fraud/Cracking Cards/Loan Fraud/Synthetic ID Fraud

How Much as EMV Affected Skimming (ATM Attack Statistics - EAST)  ATM Skimming makes up 36% of all ATM Fraud but accounts for 90% of all ATM fraud loss.  Card Trapping – 3.2 Million in losses  Logical (Malware) attacks – 11.7 Million in losses  Gas Attacks – 21 Million in losses  Skimming – 2.4 Billion in losses

State of ATM Attacks Current (U.S.)   1 st Generation Skimmers (Digital Skimming)   2 nd Generation Skimming (Analogue)   Cash Forking/Trapping   Shoulder Surfing/Chaining Attacks   POS Skimming Current (Europe)   2 nd Generation (Analogue Skimming   3 rd Generation (Stereo Skimming)   Virtual Skimming   Malware Attacks   Cash Forking/Trapping   Gas Attacks   EMV Pos Skimming   ATM Shimming

Current U.S. Trends in Skimming

Card Reader Tapping/Eavesdropping

Tapping

Insert (Throat) Skimmers Photos provided by NCR

Deep Insert Skimmers Captures Mag-Stripe No Storage on Device – wireless Transmitter

Deployment of POS Skimming Evolving Fraud Trends In the U.S.

Walmart Skimmers

Ingenico i3070 tampered and legitimate device EMV POS Skimming (For Mag Stripe Data) | 57

Compromised Chip Terminal

Inserted Shimming Device