The document discusses an annual event organized by European Merchant Services called the EMS RISK EVENT for retailers active in e-commerce and multichannel sales. The event provides an excellent opportunity to increase knowledge about online fraud, risk management, and advanced fraud prevention and detection tools. Attendees can learn from EMS experts, customers, and partners to help protect their online businesses from fraudsters. Interested readers are invited to contact the EMS Marketing Department or visit the company website for more information.

2. Online fraud is still a big problem and as long as the number of online shoppers continues to grow, so will the number of fraud cases.
According to the European Central Bank there were 7.9 million cases of fraud with a value of 1.16 billion euros in 2011 of which 56%
took place in e-commerce.
European Merchant Services organizes the EMS RISK EVENT annually for retailers who are active in e-commerce and multichannel.
It is an excellent opportunity to increase your knowledge in the field of online fraud, risk management and advanced fraud prevention
and detection tools. We help you to stay ahead of online fraudsters and to protect your online business by sharing the knowledge and
experience of our fraud and risk experts, our customers and our partners.
Do you want to attend next year’s EMS RISK EVENT?
Please contact the EMS Marketing Department at T +31 20 660 3054 or send an email to marketing@emscard.com.
For more information visit www.emscard.com/riskevent
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3. Fraud Management
Optimisation:
a Key to Business Growth
• 2013-05-22

4. Path to
Awareness
Keys to
Optimized
Fraud
Prevention

5. Path to awareness

6. A few observations

7. Is fraud a priority elsewhere?
• Fraud rate NL : 0.4%
• Fraud rate FR : 1.4%
• Fraud rate UK : 0.8%
• Fraud rate DE : 0.6%
• Fraud rate BE : 0.6%
Selling abroad means
exposing your business

8. Think global, Act local
iDEAL in NL
ELV strong in DE
BC/Mistercash in BE
Credit Cards in BE, FR, UK
PayPal in UK & DE
3-DS in France
AVS in UK
 Chargeback risk?
E-wallets and
alternative
payment
methods

9. What is your “Cost of Fraud” ?
Sound understanding of
direct & indirect costs
Monitoring evolution
Direct
financial
costs
Missed
revenues
Prevention
costs

10. Keys to optimised fraud
prevention

11. Data is key
Personal data
Billing/Shipping data
Card data
Shopping basket data

12. Card country
Product category
Average amount
IP country
Time to delivery
…
combination of
all the above
Identify who is a threat to your
business
Affiliate fraud
Social engineering
Friendly fraud
+

13. Real time Behavior mapping
Rules & Profiling
Device Fingerprinting
Smart authentication (3-D Secure, AVS)
Etc.
Blacklists, greylists, whitelists
Use cross-merchant databases

14. Exchange with your peers

15. • Mobile top up provider
• Propose recharge of 25 European mobile phone networks
• 50 000+ transactions per month
• Triple digit yearly growth since 2010

16. Key Challenges
• Larger volumes & better visibility led to more fraud threats
• International development. First stop: France
 More fraud attempts, less conversion
 Narrowed margins

17. Situation before
30% of orders were blocked
Fraud rate above 1%

18. Solutions
• Use of the latest technologies such as Device Fingerprinting and
Smart 3-D Secure
• Implementation of a second layer of protection
• Better profiling of Positive and Negative customers
• Loosen their fraud rules and velocity checks
• Outsource the reviewing of suspicious transactions

19. After 2 months

20. • Flag carrier of India
• 102 Aircrafts
• 49 Domestic destinations
• 26 International destinations
• Founded in 1932
AirIndia (Airline)

21. Key Challenges
• Two brands Merger – Air India and Indian Airlines
• Bottleneck in Scalability of Manual Review
• Team Awareness
• Cleaner fraud with IP, Card country and others Matching
• Travel agent VS Fraudster

22. Situation before
90% of orders were manually
reviewed
Time taken for review was 8hours

23. After 6 months
0.34%
0.15%
0.20%
0.09%
0.02% 0.01%
-0.05%
0.00%
0.05%
0.10%
0.15%
0.20%
0.25%
0.30%
0.35%
0.40%
Apr/11 May/11 Jun/11 Jul/11 Aug/11 Sep/11
Chargebackrate
Charge back rates fell from 0.34% to 0.01 %
2 hours
Information available on
1 single screen
8 hours
Need to review data from
different sources
Lead time for manual review reduced

24. After 6 months
Reduced time between booking and flight… For international & domestic flights
Till Last
Minute
From 72 hours
REVIEW REVIEW
3-5%90%

25. Results
• Fraud losses were drastically reduced
• Increase in ecommerce sales
• Order acceptance up to 35%
• Reduced Cost and time taken for manual review
• Profiled Positive and Negative Customers
• New routes were adopted easily

26. Ogone Payment Services
a leading payment service provider with global reach

27. Ogone Payment Services
42,000
businesses worldwide trust Ogone to
manage, secure and collect their online
and mobile payments
137 Mo
transactions processed in
2012 (worth € 16.6 Bn)
200+
acquiring partners and
banks
200+
resellers, industry partners
and shopping carts
sofwares
80+
international, local and
alternative payment methods
1000+
new merchants per month
20+
white-labels

28. Part of the Ingenico Group

29. Expertise in all sectors
HOSPITALITY
AND LEISURE
RETAIL
TELECOM/INTERN
ET /INSURANCE

30. Expertise in all sectors
AIRLINES /
TRANSPORT
UTILITY /
GOVERNMENT
TICKETING

31. www.ogone.com
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