Can you spot the honest customer… …from the fraudster? Presentation by: Alex Bowes, Corporate Sales Manager, 192.com Business Services

Agenda Strategic Objectives Trend Analysis Key Aspects Offline vs Online Who are the fraudsters? Online Verification Online Options Compliance Best Practice

Strategic Objectives Identify and protect your customers Deter and detect fraudsters Increase transaction levels with legitimate customers Increase profits – reduce risk

Trend Analysis Source: APACS UK Fraud Losses in £ Millions 2004 vs % -45% -22% -25% +21% £0M £20M £40M £60M £80M £100M £120M £140M £160M £180M £200M CNP Counterfeit Stolen/Lost Mail Non- Receipt ID Theft

Deterrence Investigation Fraudsters Customers Profits & Risk Systems PeopleProcesses Key Aspects…

Offline vs Online OfflineOnline Physical e.g.’s Vigilence Detectives e.g.’s Encryption Firewalls Identity e.g. photo IDse.g.’s Name + address D.O.B I.P. Validation Neural Networks

Who are the fraudsters? Organised across borders –Use a computer in Africa, –With a European IP address –And US credit card Sophisticated –With timing and source of fraud times Persistent –1 in 100 transactions is still worth it

Online Verification… Data Characteristics –Name, Address (Bill to / Ship to) –DOB, Mortality Document Details –Passports, Drivers License Personal Characteristics –Voice Recording –Biometric

Compliance… Regulators already impacting online gaming When will attention be re-focused on age- restricted products sold online –Alcohol sales –18+ DVD sales & rentals –Weapons & knives

Best Practice… Are larger retailers more prone to fraud? If the fraudsters are organised, then we need to be too. To shut them down completely rather than allow them to migrate. Communication and organisation between retailers and partners is the key.

To beat the fraudster… Ensure your systems are up to speed –But future proof for tougher checks, DOB checks, etc Be better organised than the criminals –Sharing information with peer group

Questions? Alex Bowes Corporate Sales Manager 192.com Business Services Mobile: +44 (0)