1. The Future

2. What will Change Fraud will not go away It will become more sophisticated and clever We have to step up to beat it June 16Caribbean Electronic Payments LLC2

3. What will Stay the Same The continuing fight to contain fraud at acceptable levels Reluctance to admit there is a problem by banks etc. The fraudsters search for new areas to hit, Swift being the latest example

4. What will be new Attacks on areas previously not seen as a problem Moving into the poorer areas like India. The level of opportunity may not be much per transaction, but could be billions of transaction. Transaction levels of electronic payments will continue to rise as it has done for many years June 16Caribbean Electronic Payments LLC4

5. What do you think will change There will be more sharing of information and data around the world as shown in the following slides, it’s already started and will expand. We are all faced by the same problem. June 16Caribbean Electronic Payments LLC5

7. Agenda and Learning Objectives Law Enforcement Intelligence Sharing Payment Industry Cooperation Discussion

8. Specialised Law Enforcement Unit Many countries have specialised units dedicated to stamp out organised card and cheque fraud Special police unit, fully sponsored by the banking industry Helps stamp out organised card and cheque fraud Works alongside banking industry fraud investigators.

9. Specialised Law Enforcement Unit Examples The Dedicated Cheque and Plastic Crime Unit (DCPCU) Joint initiative between UK law enforcement and UK retail banks Main objectives : ‘to investigate, target and, where appropriate, arrest and seek the successful prosecution of offenders identified as responsible for organised cheque and payment card crimes.’ The BEFTI (France) Information System intrusions Fight against counterfeiting on digital media Traditional offenses based onnew technologies (computer fraud etc.)

10. Intelligence Sharing Initiatives Shared databases aimed at increasing card fraud prevention cooperation at a national scale Examples UK – Fraud Intelligence Sharing System Enables the banking industry to share information on all confirmed, attempted and suspected fraud in a central, shared database. The system provides the industry with a secure and robust reporting mechanism, supporting the industry’s long-term fraud prevention strategy.

11. Intelligence Sharing Initiatives Shared databases aimed at increasing card fraud prevention cooperation at a national scale Examples

12. UK – Fraud Intelligence Sharing System Enables the banking industry to share information on all confirmed, attempted and suspected fraud in a central, shared database. The system provides the industry with a secure and robust reporting mechanism, supporting the industry’s long-term fraud prevention strategy.

13. National Criminal Intelligence Sharing Plan “The plan is the outcome of an unprecedented effort by law enforcement agencies, with the strong support of the Department of Justice, to strengthen the nation's security through better intelligence analysis and sharing.” The aim is to make sure that information is effectively shared among the nation’s law enforcement community.

14. Industry Hot Card File (IHCF) Database containing information on more than 6 million cards reported lost or stolen When a participating retailer accepts a card payment as part of a normal transaction, it is automatically checked against the file, and the retailer is alerted if the card’s details match any of those on the system. Increasingly being used by retailers that operate in the card-not- present environment Has provided a mechanism for checking card details prior to the goods being dispatched.

15. E.A.S.T (European ATM Security Team) International network : improve public/private sector cross-border cooperation in the fight against organized cross-border crime. EAST members represent countries within (SEPA), Europol and Eurojust. Sharing information and crime statistics. EAST produces: European ATM Crime Three Fraud Updates each year Lists of devices and systems for the benefit of ATM networks and deployers. (periodically updated) In addition, EAST has produced a report on ATM fraud on a European level, which is part of the ATM Fraud Prevention Expert Group (FPEG) report within the European Commission.

16. SABRIC SABRIC was established in 2002 as a wholly owned subsidiary of the Banking Association of South Africa. In September 2003, SABRIC was incorporated as an NPC in terms of the Companies Act. The centre is primarily funded by Banks and other PCI stakeholders Mission “…high quality support services and products, and to contribute to the reduction of bank related crime through effective public private partnerships….” Realtime alerting, anonymous crime statistics, reports, Police Alerts, Investigation Cooperation

17. SABRIC Consumer Education Card Fraud Card Skimming Combating Vehicle Related Crimes Phishing ATM Fraud Cheque Fraud Carrying cash safely Identity/Personal Information Theft Deposit And Refund Scams

18. Cross-Industry Cooperation The banking industry has created a website for identity fraud prevention at www.identitytheft.org.ukwww.identitytheft.org.uk Provides best practice guidelines for businesses that could be targeted by identity fraudsters Provides an interactive e-learning section to improve the understanding of employees who need to check and verify the identity of customers on a day-to-day basis. Advices the public on how to protect themselves from becoming a victim of identity theft and what to do if they have.