1. © 2014 CustomerXPs Software Pvt Ltd | www.customerxps.com | Confidential 1 Tentacles of Fraud #StarfishBanks CustomerXPs Software Private Limited

2. © 2014 CustomerXPs Software Pvt Ltd | www.customerxps.com | Confidential 2 Agenda Fraud Trends in Major Economies : UK Fraud Trends in Major Economies : USA Fraud Trends in Major Economies : UAE Major Developments and Impacts 1 2 3 4

3. © 2014 CustomerXPs Software Pvt Ltd | www.customerxps.com | Confidential 3 Fraud Trends in Major Economies : UK

4. © 2014 CustomerXPs Software Pvt Ltd | www.customerxps.com | Confidential 4 United Kingdom  2008 was the peak year for fraud  Loses due to Card Fraud (2013) - GBP 450.4 Million  Losses currently 7.4p for every GBP 100 spent  Card-Not-Present Fraud (CNP) (2008) - GBP 326.4 Million  22% increase in 2013  Fraudulent purchases - GBP 301.1 million

5. © 2014 CustomerXPs Software Pvt Ltd | www.customerxps.com | Confidential 5 United Kingdom  CNP fraud at 67% from 54% in 2008  Fraud techniques evolving with rise in:  ID Theft  ‘vishing’ attacks  phishing attacks (UK is second to US in this fraud type)  Chip, PIN and other advanced fraud prevention tools have proved to be effective in preventing fraud  Lost & Stolen cards account for USD 58.9 Million of Fraud in 2013

6. © 2014 CustomerXPs Software Pvt Ltd | www.customerxps.com | Confidential 6 Fraud Trends in Major Economies : USA

7. © 2014 CustomerXPs Software Pvt Ltd | www.customerxps.com | Confidential 7 United States of America  50% of total global payment card fraud - costing USD 7.1 Billion (2013)  Major retailer also took a hit adding USD 500 Million to total US Fraud costs  In 2012, US accounted for 23.5% of the Global Payment Card Volume.  Of which 47.3% was card fraud  US has a strong dependence on Magnetic Stripe Tech - makes it prone to high levels of fraud  Visa & Mastercard - pushing for upgrade to ‘chip’

8. © 2014 CustomerXPs Software Pvt Ltd | www.customerxps.com | Confidential 8 United States of America  Aite Group - end of 2015, 70% cards will have ‘chips’  Decline in US global card fraud & migration to CNP fraud expected  Robust, real-time fraud management solutions have already proved effective  By 2015, 50% of transactions will be over mobile  Statistics show, USD 42.14 billion was done in 2012 as mobile e- commerce  High potential market in the coming years

9. © 2014 CustomerXPs Software Pvt Ltd | www.customerxps.com | Confidential 9 Fraud Trends in Major Economies : UAE

10. © 2014 CustomerXPs Software Pvt Ltd | www.customerxps.com | Confidential 10 United Arab Emirates  Recent surge in card use followed by card fraud  In 2014, led the credit card fraud countries list with 44%  In 2013, poor fraud management led to 1 in 4 transactions being flagged as fraud  In 2014 Q4, 83% of UAE residents made purchases online.  Profitable e-commerce growth:  Consumers to be educated in fraud prevention techniques  Quick response by banks & merchants to respond quickly & effectively to secure transactions  Protect customer experience

11. © 2014 CustomerXPs Software Pvt Ltd | www.customerxps.com | Confidential 11 Development and Impacts

12. © 2014 CustomerXPs Software Pvt Ltd | www.customerxps.com | Confidential 12 Development and Impacts  Mobile banking is at great risk as Mobile devices store sensitive data. Tools to prevent this data fraud of this nature is still in the development phase.  At the moment, Android OS is the most vulnerable to fraud attacks.  82% of business would leave bank in case of breach  74% choose bank based on security reputation  EMV terminals to reduce attacks on retailers’ POS systems, as soon as deployment stage  As data collection by devices, personal information is more freely available which makes security for data more vulnerable.

13. © 2014 CustomerXPs Software Pvt Ltd | www.customerxps.com | Confidential 13 Thank you