Real-Time Intelligence That Matters

© 2015, Brighterion Inc. (all rights reserved) Keeping an eye on your business The Last G-20 Country To Embrace The EMV Standard

© 2015, Brighterion Inc. (all rights reserved) Keeping an eye on your business Percentage Of U.S. Credit Cards With EMV Capabilities Source: Aite Group interviews with payment networks and 18 large U.S. issuers, April to May 2014

© 2015, Brighterion Inc. (all rights reserved) Keeping an eye on your business Preferred Credit Cardholder Verification Method Source: Aite Group interviews with payment networks and 18 large U.S. issuers, April to May 2014

© 2015, Brighterion Inc. (all rights reserved) Keeping an eye on your business Portfolio Prioritization For EMV Migration Source: Aite Group interviews with payment networks and 18 large U.S. issuers, April to May 2014

© 2015, Brighterion Inc. (all rights reserved) Keeping an eye on your business EMV’s Impact In Other Countries - Changes In Canadian Credit Card Fraud Losses, 2008 To 2013 (In Millions Of CAD) Source: Canadian Bankers Association

© 2015, Brighterion Inc. (all rights reserved) Keeping an eye on your business Cross-Border Fraud Will Displace To CNP - U.K. POS Card Fraud, 2004 To 2013 (In GBP Millions) Source: Financial Fraud Action UK

© 2015, Brighterion Inc. (all rights reserved) Keeping an eye on your business The U.S. Will Not Be An Exception - U.S. CNP Credit Card Fraud Losses, 2011 To e2018 (In U.S. $ Billions) Source: Aite Group interviews with payment networks and 18 large U.S. issuers, April to May 2014

© 2015, Brighterion Inc. (all rights reserved) Keeping an eye on your business CNP: Not Your Parent’s Fraud Rapid introduction of novel payment methods & mechanisms Complex, organized, continuously evolving fraud schemes

© 2015, Brighterion Inc. (all rights reserved) Keeping an eye on your business Reducing CNP Fraud Tokenization Make stolen data useless 3-D Secure Add extra layer of security Behavioral Analytics Making/assisting authorization decisions

© 2015, Brighterion Inc. (all rights reserved) Keeping an eye on your business Reducing CNP Fraud Q: Please indicate the effectiveness of each of these technologies at reducing card fraud and data security issues.

© 2015, Brighterion Inc. (all rights reserved) Keeping an eye on your business 62% High/Very High Q: Please indicate the effectiveness of each of these technologies at reducing card fraud and data security issues. Tokenization 3-D Secure Behavioral Analytics Reducing CNP Fraud Q: Please indicate the effectiveness of each of these technologies at reducing card fraud and data security issues.

© 2015, Brighterion Inc. (all rights reserved) Keeping an eye on your business 62% High/Very High Q: Please indicate the effectiveness of each of these technologies at reducing card fraud and data security issues. Tokenization 3-D Secure Behavioral Analytics 50% High/Very High 28% High/Very High 62% High/Very High Reducing CNP Fraud Q: Please indicate the effectiveness of each of these technologies at reducing card fraud and data security issues.

© 2015, Brighterion Inc. (all rights reserved) Keeping an eye on your business NEURAL NETWORKS DATA MINING BUSINESS RULES Apply same logic to all cards, merchants and devices Only capable of identifying past fraud behavior Often require expensive databases and hardware to implement month implementation time STATISTICS Poor results: Avg. 18% CNP decline rate vs. Avg. 5% CP decline rate CNP fraud still growing rapidly EXISTING APPROACHES ALONE ARE NOT ENOUGH Behavioral Analytics Legacy Approaches

© 2015, Brighterion Inc. (all rights reserved) Keeping an eye on your business SMARTAGENTSSMARTAGENTS UNSUPERVISED LEARNING ADAPTIVE LEARNING NEURAL NETWORKS DATA MINING REAL-TIME, LONG-TERM, GEO, RS, MULTI-DIMENSIONAL PROFILING CASE-BASED REASONING GENETIC ALGORITHMS FUZZY LOGIC BRMS / BUSINESS RULES BEHAVIORAL DEVICE ID Brighterion Solutions

© 2015, Brighterion Inc. (all rights reserved) Keeping an eye on your business UNSUPERVISED LEARNING Automatic data enrichment / feature identification ADAPTIVE LEARNING Adaptive learning stops previously unknown schemes as they occur Longest model lifespan on the market OPTIMIZED, MULTI-DIMENSIONAL PROFILING ENGINE Specific behavioral analysis (1-to-1 Profiling) Real-time transaction scoring (< 10ms) Off-the-shelf hardware, no databases or data-warehouse needed Solutions go live in 6 – 8 WEEKS Brighterion Solution Advantages BEHAVIORAL DEVICE ID Monitor/profile mobile devices and computers over time

© 2015, Brighterion Inc. (all rights reserved) Keeping an eye on your business UNSUPERVISED LEARNING Automatic data enrichment / feature identification ADAPTIVE LEARNING Adaptive learning stops previously unknown schemes as they occur Longest model lifespan on the market OPTIMIZED, MULTI-DIMENSIONAL PROFILING ENGINE Specific behavioral analysis (1-to-1 Profiling) Real-time transaction scoring (< 10ms) Off-the-shelf hardware, no databases or data-warehouse needed Solutions go live in 6 – 8 WEEKS Brighterion Solution Advantages BEHAVIORAL DEVICE ID Monitor/profile mobile devices and computers over time

© 2015, Brighterion Inc. (all rights reserved) Keeping an eye on your business UNSUPERVISED LEARNING Automatic data enrichment / feature identification ADAPTIVE LEARNING Adaptive learning stops previously unknown schemes as they occur Longest model lifespan on the market OPTIMIZED, MULTI-DIMENSIONAL PROFILING ENGINE Specific behavioral analysis (1-to-1 Profiling) Real-time transaction scoring (< 10ms) Off-the-shelf hardware, no databases or data-warehouse needed Solutions go live in 6 – 8 WEEKS Brighterion Solution Advantages BEHAVIORAL DEVICE ID Monitor/profile mobile devices and computers over time

© 2015, Brighterion Inc. (all rights reserved) Keeping an eye on your business UNSUPERVISED LEARNING Automatic data enrichment / feature identification ADAPTIVE LEARNING Adaptive learning stops previously unknown schemes as they occur Longest model lifespan on the market OPTIMIZED, MULTI-DIMENSIONAL PROFILING ENGINE Specific behavioral analysis (1-to-1 Profiling) Real-time transaction scoring (< 10ms) Off-the-shelf hardware, no databases or data-warehouse needed Solutions go live in 6 – 8 WEEKS Brighterion Solution Advantages BEHAVIORAL DEVICE ID Monitor/profile mobile devices and computers over time

© 2015, Brighterion Inc. (all rights reserved) Keeping an eye on your business UNSUPERVISED LEARNING Automatic data enrichment / feature identification ADAPTIVE LEARNING Adaptive learning stops previously unknown schemes as they occur Longest model lifespan on the market OPTIMIZED, MULTI-DIMENSIONAL PROFILING ENGINE Specific behavioral analysis (1-to-1 Profiling) Real-time transaction scoring (< 10ms) Off-the-shelf hardware, no databases or data-warehouse needed Solutions go live in 6 – 8 WEEKS Brighterion Solution Advantages BEHAVIORAL DEVICE ID Monitor/profile mobile devices and computers over time

© 2015, Brighterion Inc. (all rights reserved) Keeping an eye on your business UNSUPERVISED LEARNING Automatic data enrichment / feature identification ADAPTIVE LEARNING Adaptive learning stops previously unknown schemes as they occur Longest model lifespan on the market OPTIMIZED, MULTI-DIMENSIONAL PROFILING ENGINE Specific behavioral analysis (1-to-1 Profiling) Real-time transaction scoring (< 10ms) Off-the-shelf hardware, no databases or data-warehouse needed Solutions go live in 6 – 8 WEEKS Brighterion Solution Advantages BEHAVIORAL DEVICE ID Monitor/profile mobile devices and computers over time

© 2015, Brighterion Inc. (all rights reserved) Keeping an eye on your business UNSUPERVISED LEARNING Automatic data enrichment / feature identification ADAPTIVE LEARNING Adaptive learning stops previously unknown schemes as they occur Longest model lifespan on the market OPTIMIZED, MULTI-DIMENSIONAL PROFILING ENGINE Specific behavioral analysis (1-to-1 Profiling) Real-time transaction scoring (< 10ms) Off-the-shelf hardware, no databases or data-warehouse needed Solutions go live in 6 – 8 WEEKS Brighterion Solution Advantages BEHAVIORAL DEVICE ID Monitor/profile mobile devices and computers over time

© 2015, Brighterion Inc. (all rights reserved) Keeping an eye on your business UNSUPERVISED LEARNING Automatic data enrichment / feature identification ADAPTIVE LEARNING Adaptive learning stops previously unknown schemes as they occur Longest model lifespan on the market OPTIMIZED, MULTI-DIMENSIONAL PROFILING ENGINE Specific behavioral analysis (1-to-1 Profiling) Real-time transaction scoring (< 10ms) Off-the-shelf hardware, no databases or data-warehouse needed Solutions go live in 6 – 8 WEEKS Brighterion Solution Advantages BEHAVIORAL DEVICE ID Monitor/profile mobile devices and computers over time

© 2015, Brighterion Inc. (all rights reserved) Keeping an eye on your business UNSUPERVISED LEARNING Automatic data enrichment / feature identification ADAPTIVE LEARNING Adaptive learning stops previously unknown schemes as they occur Longest model lifespan on the market OPTIMIZED, MULTI-DIMENSIONAL PROFILING ENGINE Specific behavioral analysis (1-to-1 Profiling) Real-time transaction scoring (< 10ms) Off-the-shelf hardware, no databases or data-warehouse needed Solutions go live in 6 – 8 WEEKS Brighterion Solution Advantages REAL-TIME BEHAVIORAL DEVICE ID Monitor/profile mobile devices and computers over time

© 2015, Brighterion Inc. (all rights reserved) Keeping an eye on your business Brighterion Solution: Model Building & Training Unsupervised Learning Data Enrichment Profile Creation Issuer/Processor Data Merchant information Global CNP transaction history Global fraud database Card transaction history Unsupervised Learning Data Enrichment Profile Creation Merchant Data Personal information Technical information Merchant transaction history Merchant fraud database Computer Agent Geography Profile Computer Agent Time Profile Computer Agent Card Profile Computer Agent Merchant Profile Computer Agent Device Profile Computer Agent Address Profile

© 2015, Brighterion Inc. (all rights reserved) Keeping an eye on your business Brighterion Solution: Model Building & Training Issuer/Processor Data Merchant information Global CNP transaction history Global fraud database Card transaction history Merchant Data Personal information Technical information Merchant transaction history Merchant fraud database Computer Agent Geography Profile Computer Agent Time Profile Computer Agent Card Profile Computer Agent Merchant Profile Computer Agent Device Profile Computer Agent Address Profile Neural Networks Data Mining Case based Reasoning Behavioral Device ID Neural Networks Data Mining Case based Reasoning Behavioral Device ID

© 2015, Brighterion Inc. (all rights reserved) Keeping an eye on your business Brighterion Solution: Model Building & Training Unsupervised Learning Data Enrichment Profile/Agent Creation Issuer/Processor Data Merchant information Global CNP transaction history Global fraud database Card transaction history Unsupervised Learning Data Enrichment Profile/Agent Creation Merchant Data Personal information Technical information Merchant transaction history Merchant fraud database Computer Agent Geography Profile Computer Agent Time Profile Computer Agent Card Profile Computer Agent Merchant Profile Computer Agent Device Profile Computer Agent Address Profile Neural Networks Data Mining Case based Reasoning Behavioral Device ID Neural Networks Data Mining Case based Reasoning Behavioral Device ID Issuer, Processor, Acquirer Models & Profiles Merchant Models & Profiles

© 2015, Brighterion Inc. (all rights reserved) Keeping an eye on your business Transaction Computer Agent Time Agent Computer Agent Card Agent Computer Agent Merchant Agent Computer Agent Geography Agent Computer Agent Device Agent Computer Agent Address Agent Brighterion Solution: Production Environment Computer Agent Geography Profile Computer Agent Time Profile Computer Agent Card Profile Computer Agent Merchant Profile Computer Agent Device Profile Computer Agent Address Profile Neural Networks Data Mining Case based Reasoning Behavioral Device ID Neural Networks Data Mining Case based Reasoning Behavioral Device ID Score Reasons Action Score Reasons Action

© 2015, Brighterion Inc. (all rights reserved) Keeping an eye on your business Transaction Computer Agent Time Agent Computer Agent Card Agent Computer Agent Merchant Agent Computer Agent Geography Agent Computer Agent Device Agent Computer Agent Address Agent Brighterion Solution: Production Environment Neural Networks Data Mining Case based Reasoning Behavioral Device ID Neural Networks Data Mining Case based Reasoning Behavioral Device ID Score Reasons Accept Score Reasons Accept

© 2015, Brighterion Inc. (all rights reserved) Keeping an eye on your business Transaction Computer Agent Time Agent Computer Agent Card Agent Computer Agent Merchant Agent Computer Agent Geography Agent Computer Agent Device Agent Computer Agent Address Agent Brighterion Solution: Production Environment Neural Networks Data Mining Case based Reasoning Behavioral Device ID Neural Networks Data Mining Case based Reasoning Behavioral Device ID Score Reasons Deny Score Reasons Deny

© 2015, Brighterion Inc. (all rights reserved) Keeping an eye on your business Transaction Computer Agent Time Agent Computer Agent Card Agent Computer Agent Merchant Agent Computer Agent Geography Agent Computer Agent Device Agent Computer Agent Address Agent Brighterion Solution: Production Environment Neural Networks Data Mining Case based Reasoning Behavioral Device ID Neural Networks Data Mining Case based Reasoning Behavioral Device ID Score Reasons Review Review Score Reasons Review Review

© 2015, Brighterion Inc. (all rights reserved) Keeping an eye on your business Transaction Computer Agent Time Agent Computer Agent Card Agent Computer Agent Merchant Agent Computer Agent Geography Agent Computer Agent Device Agent Computer Agent Address Agent Brighterion Solution: Production Environment Neural Networks Data Mining Case based Reasoning Behavioral Device ID Neural Networks Data Mining Case based Reasoning Behavioral Device ID Score Reasons Review Review Score Reasons Review Review Case Mgmt. Case Mgmt.

© 2015, Brighterion Inc. (all rights reserved) Keeping an eye on your business Transaction Computer Agent Time Agent Computer Agent Card Agent Computer Agent Merchant Agent Brighterion Solution: Production Environment Computer Agent Geography Agent Computer Agent Device Agent Computer Agent Address Agent Neural Networks Data Mining Case based Reasoning Behavioral Device ID Neural Networks Data Mining Case based Reasoning Behavioral Device ID Score Reasons Action Transaction Score Reasons Action Score Reasons Action Case Management

© 2015, Brighterion Inc. (all rights reserved) Keeping an eye on your business Brighterion CNP Solution In Action We have supported clients in Germany, Brazil, and Canada while those markets adopted and rolled out EMV. Currently score billions of transactions in real time for 100s millions of cardholders worldwide Successfully applied to merchants, acquirers, issuers and homeland/cyber security Solutions go live in 6 – 8 WEEKS 75% - 95% CNP fraud detection improvements.