1. Cyber Security and Consumer Financial Transactions Data Security
November 11, 2018
Cyber Security and Consumer Financial Transactions Data Security
February 2, 2017
Nancy O’Malley, J.D.
Executive Vice President- Payment Security

2. Enabling Opportunities
The Internet of Things is here
Blurring the physical and digital boundaries
Enriching Lives
Revolutionizing digital commerce across industries
Removing Barriers
Powering payments everywhere
Enabling Opportunities
Increasing connectivity and changing lives
Across the Globe
safety and security is more critical than ever

3. Technology is enabling and disrupting the marketplace
November 11, 2018
Mobile NFC
NFC
Card on File Payments
Mail Order
Web Payments
EMV
Mobile Wallets
MagStripe
“Internet of Things”
Physical
Digital

4. This is a big opportunity, but with it comes great risk
CONNECTED DEVICES BY 2020
30bn*
CONNECTED THINGS IN USE IN 2016
4.9bn
$2.1tn**
COST OF BREACHES THROUGH DIGITISATION OF CONSUMERS AND ENTERPRISE
PEOPLE ON THE PLANET
7.0bn
* Gartner **Juniper Research

5. September 7, 2016
Plethora of solutions is overwhelming - slowing adoption of new technology
Too many identities
Too many devices
Too many locations
Too much data
Consumers
Experience & learn about threats
Are confused and disadvantaged in knowledge
Trying out new things
Businesses
Face higher costs
Are reluctant to try & invest
Develop siloed solutions
Governments
Face conflicting expectations
Need to build new capabilities
Preference for cash
Slower adoption …
Bad customer experiences (e.g. tourists)
Lost opportunities if others are faster
Paper-based, inefficient processes
Too many threats
Government
Business
Consumer

6. Consumer trust is essential to enable migration to enhanced technology
CONSUMERS
trust companies that act responsibly
TRUST
COMPANIES
work with partners to maintain reputation
DEVICES
and applications are from
a trusted source

7. September 29, 2015
Payments in the digital world should be as safe and simple as they are in the physical world
The challenge…
Authentication is critical step…
Approval Rate1
Fraud Rate2
Approval Rate1
11%
Transaction approval rates rise by 11% when fully authenticated
Physical
96% 1x
Less than
Fraud Rate3
Issuers that implement dynamic authentication experience the lowest CNP fraud
83% 3x
8BPS
Digital
Approval Rate Source: Mastercard Data Warehouse.
Fraud Rate Source: Javelin Strategy & Research, July 2013
Mastercard SecureCode cardholder verification method (CVM) fraud study, 2013.

8. Securing the Eco-System
June 23, 2015
Securing the Eco-System
Continue to drive the adoption of EMV
Champion the adoption of tokenization for digital payments and card on file
Encourage migration to end-to-end encryption
Foster public private partnership initiatives
Protects acct data in physical channel
Protects number in physical/digital channel
Verifies the cardholder in digital channel
Provides unique token for each device in digital channel
EMV
End-to-end encryption
SecureCode
Tokenization
June 23, 2015

9. Q&A