Gift Card Risk Mitigation – Presentation A Presented by: Richard Corso #RGCAForum2017

2017 Confidential – Proprietary Information Gift Card Risk Mitigation A Quantum Step in Online Fraud Detection & Prevention 2017 Confidential – Proprietary Information

Data Breach’s & Online Fraud Gift Cards Purchases are a Target Data Breach’s & Online Fraud Breached Record Data by Year In ‘000,000 Source: http://www.informationisbeautiful.net/visualizations/worlds-biggest-data-breaches-hacks/

Wolfe, LLC Who We Are Holding Company founded in 1995 Jason Wolfe – Founder & CEO Current Brands: Past Companies Sold to Blackhawk Network in 2016 Sold to Undertone 2012 Sold to Digital River in 2006

National Cyber Forensics Training Alliance Partnership Searchable Database for Fraud Prevention NCFTA is a 15 year old non-profit working closely with US Federal & International law enforcement, financial institutions, & retailers One of the most recognized & respected cybercrime research and prevention organizations in the world Feb 2015: Attorney General & Secretary of Homeland Security issues guidance for Federal Law Enforcement to submit compromised credentials to the NCFTA Nearly 1 Billion verified records of compromised credentials Data collected from: Law Enforcement The Dark Web Financial Institutions Retailers

1. Compromised Credentials Searchable Database Real-time access to ~1 billion records 1. Compromised Credentials Searchable Database Query Options: Possible Return Matches: Risk Score: Email Credit Card Bank Account IP Address Email Credit Card SSN IP Address Name Address DOB Password Exposure PII Data is NOT Exposed Data accessible via API or Manual search Scores based on: Data category (i.e. SSN & Password Exposures are higher risk) Number of records found Exposure date

2. Universal Risk List Searchable Database Real-time Shared Access to Known & Suspected Bad Actors 2. Universal Risk List Searchable Database Shared Risk List Retailer A Retailer C Chargebacks Excessive Refunds Duplicate Accounts High Risk Email/IP Flagged International Retailer B Retailer D PII Data NOT Exposed & Contributors are anonymous. Data accessible via API or Manual search Scores based on: Reason # of times reported Exposure date

3. Gift Card Incident Report Info Sharing within the Gift Card Industry 3. Gift Card Incident Report Retailer or Law Enforcement Submission Gift card #s purchased w/ stolen ccs Info requests from Law Enforcement Card program changes to impact consumers Gift Card Marketplace Respond with relevant info Remove exposed gift cards Identify & block the seller from future transactions Outcome Protecting the consumer & brand experience Limit exposure of more bad cards entering the market Identify trends & actors across brands to engage with Law Enforcement

Case Studies Data Provided by a Large Retailer 12% Preventable on purchase date 29% total records found since transaction Most common credential compromised: Email & Password Retailer Chargeback Audit Chargebacks run through the Compromised Credentials Database September 2017 Incident Notification Notified by retailer of a large batch of gift cards acquired fraudulently

Thank You! Mark Romanelli Mark.Romanelli@wolfe.com 866-739-4914 x 9201