ONLINE CREDIT CARD FRAUD the East African Travel Market AITEC BANKING AND MOBILE COMESA – SEP/2013 ERAN FEINSTEIN – 3G DIRECT PAY LIMITED3G DIRECT PAY LIMITED

3G Direct Pay – WHY? …because we believe that service providers and end customer should have the FREEDOM to shop and pay online using ANY card type and ANY currency… 6/2/2014| AITEC BANKING AND MOBILE COMESA SEP/2013 | ERAN FEINSTEIN | 3G DIRECT PAY LIMITED |

HOW we doing it? End-to-End solution – filling the gap Designed and maintained for the Africa travel market East Southern Multi layers package Technology / Platform Bank relations Customer care Fraud Prevention and Risk Management Internal industry settlement platform 6/2/2014| AITEC BANKING AND MOBILE COMESA SEP/2013 | ERAN FEINSTEIN | 3G DIRECT PAY LIMITED |

HOW we doing it? The Platform Real-time transactions Online payments processing Online / Offline / Direct / API 6/2/2014| AITEC BANKING AND MOBILE COMESA SEP/2013 | ERAN FEINSTEIN | 3G DIRECT PAY LIMITED | Payment Options Professional bank relations EU, US, KE, TZ.. All cards, mobile, PayPal and more..

HOW we doing it? 6/2/2014| AITEC BANKING AND MOBILE COMESA SEP/2013 | ERAN FEINSTEIN | 3G DIRECT PAY LIMITED | Fraud Prevention Real-time monitoring Advanced scoring Skilled team Customer Care 24/7 for the end customer and the travel provider Its about conversion !

HOW we doing it? Providers settlement platform Based on our own providers network Real-time payment allocation Instant confirmation 6/2/2014| AITEC BANKING AND MOBILE COMESA SEP/2013 | ERAN FEINSTEIN | 3G DIRECT PAY LIMITED |

The Network Airlines (24), Hotels and Lodges (150), Agents and Tour Operators (300), Diving Centers (10) 6/2/2014| AITEC BANKING AND MOBILE COMESA SEP/2013 | ERAN FEINSTEIN | 3G DIRECT PAY LIMITED |

The East African Travel Industry The main players: Airlines Hotels Lodges Tour Operators Travel Agents 2500 to 3000 providers (Kenya, Tanzania, Uganda, Zambia) 6/2/2014| AITEC BANKING AND MOBILE COMESA SEP/2013 | ERAN FEINSTEIN | 3G DIRECT PAY LIMITED |

The East African Travel Industry Kenya and Tanzania – quick figures More than $4,000,000,000 (annually) Online transactions (credit cards and PayPal) $35,000,000 to $50,000,000 Typical Customer 80%- Europe and USA 15% - Eastern Africa (steady increase over the past 2 years) 6/2/2014| AITEC BANKING AND MOBILE COMESA SEP/2013 | ERAN FEINSTEIN | 3G DIRECT PAY LIMITED |

The East African Travel Industry Credit Card Types 80%- Visa and MasterCard 15%- American Express (4% until 2011) 4%- PayPal Average Transaction Airlines$450 Hotel$500 - $1,100 Travel agent$1,200 - $1,500 Tour Operator$1,500 - $2,200 6/2/2014| AITEC BANKING AND MOBILE COMESA SEP/2013 | ERAN FEINSTEIN | 3G DIRECT PAY LIMITED |

The East African Travel Industry 90% of transaction – classic CNP (card not present) 2% of transactions – 3D secure Charge-Back 0.35% to 0.50% (since 2009) Using stolen card and fly to the Safari ?? 90% of C/B from airline transactions 6/2/2014| AITEC BANKING AND MOBILE COMESA SEP/2013 | ERAN FEINSTEIN | 3G DIRECT PAY LIMITED |

Where is the Risk? Classic Fraud (low to med) Stolen credit card Identity theft Consume the service Merchant Fraud (high) Fake agents Professional fraudsters No service, no passengers Friendly Fraud (low) Consume the service Cant avoid…. 6/2/2014| AITEC BANKING AND MOBILE COMESA SEP/2013 | ERAN FEINSTEIN | 3G DIRECT PAY LIMITED |

The Online Fraud – How Does It Works? Individual Fraud General Characteristics Individual fraudster, One-time campaign, access to stolen cards list (low quality), no fine details The Service Flight/s, One way, short term booking Passenger The fraudster, family member/friend 6/2/2014| AITEC BANKING AND MOBILE COMESA SEP/2013 | ERAN FEINSTEIN | 3G DIRECT PAY LIMITED |

The Online Fraud – How Does It Works? Mass Fraud General Characteristics Individual/group, professional fraudster/s, massive stolen cards list (low quality), acting as an agent, no close relationship with the passengers, massive payment attempts, very low conversion rate The Service Flight, one way and return Passenger Not the fraudster, no idea that the service paid using stolen card 6/2/2014| AITEC BANKING AND MOBILE COMESA SEP/2013 | ERAN FEINSTEIN | 3G DIRECT PAY LIMITED |

The Online Fraud – How Does It Works? Professional Fraud and Identity Theft General Characteristics Groups only – organization, stole cards list – high quality, 3D-secure lists, access to the card holder details, using fine details – complete storyboard The Service Flights, accommodation Passenger The passenger is also a professional fraudster 6/2/2014| AITEC BANKING AND MOBILE COMESA SEP/2013 | ERAN FEINSTEIN | 3G DIRECT PAY LIMITED |

The Online Fraud – How Does It Works? Merchant Fraud General Characteristics well organized scam.., mitigating the KYC procedures, designed websites, products and services, real people, working plan, long term operations The service Detailed service, package, accommodation, no-flight ! Passenger Fake but well designed identity, no real passenger 6/2/2014| AITEC BANKING AND MOBILE COMESA SEP/2013 | ERAN FEINSTEIN | 3G DIRECT PAY LIMITED |

How to Mitigate the Online Fraud? 6/2/2014| AITEC BANKING AND MOBILE COMESA SEP/2013 | ERAN FEINSTEIN | 3G DIRECT PAY LIMITED |

6/2/2014| AITEC BANKING AND MOBILE COMESA SEP/2013 | ERAN FEINSTEIN | 3G DIRECT PAY LIMITED |