© 2014 Fair Isaac Corporation. Confidential. This presentation is provided for the recipient only and cannot be reproduced or shared without Fair Isaac Corporation’s express consent. The EMV Shift Is Here Introducing a Frictionless Defense Against CNP Fraud Mr. James Packer, Esq. Chief Operating Office and General Counsel SecureBuy LLC

© 2014 Fair Isaac Corporation. Confidential. The EMV Shift Is Here: Introducing a Frictionless Defense Against CNP Fraud ► Extreme evidence is showing the increasing threat of e-commerce/card-not- present (CNP) fraud. This session will introduce the new concept of frictionless analytic authentication, which GREATLY reduces the margin of error and reduces exposure to risk, which all increase bottom-line profit. 2

Agenda © 2014 Fair Isaac Corporation. Confidential. ► Increase of E-commerce/CNP Fraud ► Current Answer to E-commerce/CNP Fraud ► Frictionless Analytic Authentication— The New Solution ► Frictionless—Differentiators and Advantages ► Client Endorsements ► Questions 3

© 2014 Fair Isaac Corporation. Confidential. Increase of E-commerce/CNP Fraud ► Shift of EMV CP to CNP fraud ► Increase in e-commerce/CNP transactional volume 4

© 2014 Fair Isaac Corporation. Confidential. Shift of fraud from CP to CNP fraud due to EMV ► EMV shift will lessen CP fraud, but CNP fraud will increase ► CNP fraud in the US is expected to be almost 4 times > than POS card fraud in 2018 ► Europe and Canada experienced a 40–60% increase in online fraud when EMV was implemented Increase in e-commerce/CNP transactional volume ► Continued globalization of e-commerce ► Ever increasing commerce “on the web” Increase of E-commerce/CNP Fraud 5

© 2014 Fair Isaac Corporation. Confidential. Current Answer to E-commerce/CNP Fraud ► Rules Based Analytics 6

© 2014 Fair Isaac Corporation. Confidential. Rules Based Analytics—not enough! ► Antiquated, not predictive ► Driven by rules based analytics ► Manually intensive customer behavioral profiling ► Physical attributes Current Answer to E-commerce/CNP fraud 7

© 2014 Fair Isaac Corporation. Confidential. Frictionless Analytic Authentication— The New Solution ► Defining Frictionless ► Profiling ► Self-Learning Outlier Detection Model ► Streaming Analytics 8

© 2014 Fair Isaac Corporation. Confidential. Frictionless Analytic Authentication Decision Engine Rules Device Reputation and / or Other Data Streaming CNP Transactions FICO Scoring Module ModelProfiles Card-Not-Present Fraud Management Score 1—999 Reason Codes Decision Criteria Detection Rules Transaction Decision 9

© 2014 Fair Isaac Corporation. Confidential. New Technologies Improve Customer Experience ► Profiling ► Identifies behaviors and patterns for each entity ► Complete picture of fraud by looking across multiple entities such as merchants, devices or countries ► Better identify fraud via predictive variables and account information ► Self-Learning Outlier Detection Model ► Patented analytic technology provides the most accurate predictive models available ► Streaming Analytics ► Incorporates data real time from millions of transactions ► FICO Big Data—leverages FICO ® Falcon ® technology, proven for over 20+ years 10

© 2014 Fair Isaac Corporation. Confidential. Frictionless—Differentiators and Advantages ► Differentiators and Advantages ► Attribute/Benefit 11

© 2014 Fair Isaac Corporation. Confidential. ► Transaction-Based Scoring—Analyzes each transaction to assess risk of fraudulent activity. Provides an accurate fraud score, indicating the likelihood that the transaction is fraudulent ► Self-Learning Outlier Detection—Uses advance analytics to sharpen detection by creating a more precise separation between frauds and non-frauds. Provides a performance lift in real-time value detection ► Real-Time Decisioning—Provides users with a 100% real-time solution ► Entity Profiles—Improves detection of entities showing potentially high risk behaviors Frictionless—Differentiators and Advantages 12

© 2014 Fair Isaac Corporation. Confidential. Frictionless—Differentiators and Advantages (Cont’d.) AttributeBenefit Robust self-learning outlier detection with entity profiling and monitoring Detects more fraud with lower false positives to provide minimal impact on customers Seamless integration with the authorization system for real-time scoring Identifies fraud sooner to give you more opportunity to reduce losses Operates in real time with throughputs in milliseconds Streaming analytics improves the speed and precision of fraud detection Includes patented profiling technology that “learns” entity behavior patterns Most accurate and comprehensive solution for detecting CNP fraud and reducing losses Self-learning analytics have been shown to deliver a lift in detection Minimizes consumer impact and merchant operational costs 13

© 2014 Fair Isaac Corporation. Confidential. Client Endorsements ► Gateway ► Mobile Wallet 14

© 2014 Fair Isaac Corporation. Confidential. Client Endorsements “SecureBuy’s Phoenix Fraud Manager, Powered with FICO™, solution protects merchants and consumers alike, and it’s easy to implement.” Magid Mina CEO, InvisiCorp, Inc. “As a Gateway, SecureBuy’s Phoenix Fraud Manager, Powered with FICO™, is a solution that actually provides us with real value by properly protecting each transaction.” Mike Ackerman President/CEO, DigiPay Integrated Technology Solutions 15

© 2014 Fair Isaac Corporation. Confidential. Questions 16

© 2014 Fair Isaac Corporation. Confidential. This presentation is provided for the recipient only and cannot be reproduced or shared without Fair Isaac Corporation’s express consent. Mr. James Packer, Esq. Thank You! 17

© 2014 Fair Isaac Corporation. Confidential. Please rate the session online! Mr. James Packer, Esq. 18