1. Bank Card Protector Policy Frates Insurance & Risk Management By Thomas P Mulligan 405-290-5609 Tom.mulligan@fratesinsurance.com

2. THE PROBLEM Identity theft and fraud is becoming so potentially profitable; it is increasing almost as fast as card use.

3. Recent Large Data Breaches: Heartland Payment BJ’s Warehouse Hancock Fabrics A major research firm, is estimating that Bank Card fraud may hit $3 billion in 2011. Over 3 Million Americans were victims of Bank Card fraud over the last year. Facts

4. 42% of bank customers have had their identity stolen in the last ten years. According to Visa, 87% of merchants are not computer compliant with the Anti-Fraud Technology. Card Skimmers are using Restaurants, Pay at the pump gas stations and ATMs.

5. As more banks have losses they will improve their security systems. They always have and they will again. However, it is not possible to prevent every security breach or fraud.

6. Implement new procedures and systems to prevent/mitigate fraud And buy the Bank Card Protector Policy. THE SOLUTION

7. The Policy has 3 Insuring Agreements 1.FRAUD AT AN ELECTRONIC TERMINAL 2.FRAUD INVOLVING TELEPHONE, MAIL ORDER AND INTERNET 3. COMPROMISED CARDS EXTRA EXPENSE The Bank Card Protector Policy

8. Coverage includes 1.Lost, stolen or counterfeit card including unauthorized use of card number 2.Fraud on the Internet using Verified by Visa/Master Secure Code 3.Costs to reissue compromised cards Policy Features

9. Potential Loss Situations “White Card” or Internet Transactions Off-Line Transactions Overdraft Regulation E Verified by Visa Or MasterSecure International Transactions Bank Card Application Phishing

10. All of these situations would be covered by the Bank Card Protector Policy. In addition the deductible is a per card deductible of $1,500 vs. most competitors $5,000 or higher.

11. When a Bank Card has been compromised, the extra expense to reissue a new card is covered. However, the bank must cancel the compromised card upon receipt of notification. Extra Expenses

12. Benefits to Lenders 1.Worldwide Coverage 2.Extra expense to reissue compromised cards is covered 3.Maximum loss per card is $10,000 4.Low deductible- $1,500 per card 5.Skimming Fraud (White Card) covered 6.Insurer is A+ rated Summary of the Bank Card Policy

13. This is a stand alone policy and will not be effected by losses in the Financial Institution Bond. Limits and Deductibles structured for the Bankcard industry. An easy to complete Application. Program Structure

14. A $1,500 Per Card Deductible Maximum per occurrence deductible $10,000. Higher deductibles are available for reduced premium. Program Deductibles

15. Normal Policy Limits $10,000 per card limit $100,000 per occurrence limit $250,000 Annual Aggregate Other Limits can be negotiated. Normal Policy Limits

16. Questions?