1) QSecure introduces a dynamic data solution for payment transactions to prevent fraud without changing existing infrastructure. Their SmartStripe technology uses dynamic cryptography on magnetic stripes and display cards to generate unique transaction data. 2) Current payment fraud is a large problem, with data breaches like Heartland compromising over 100 million accounts. Fraudsters target multiple industries and attacks grow more sophisticated. 3) QSecure's solution prevents fraud, maintains customer convenience and behavior, and can scale affordably without impacting merchants or other participants. Their products like dynamic CVV2 and magnetic stripe readers are already in production pilots.

1. Introducing Dynamic Data in Payment Transactions without Changing the Existing Infrastructure RSA Conference February 2011 San Francisco Daniel Chatelain, Vice President Operations & Strategic Alliances Website: www.qsecure.com

2. Data Breach Epidemic

4. Heartland Payment Systems

5. Over 100M accounts compromised

7. Fraudsters do not stick to one particular industry in 71% of the cases*

8. Every transaction is relying on static data

9. Fraud attacks are getting more and more sophisticated

10. Fraud not limited to ecommerce but also very real at ATMs and POSs* Ethoca Report on Fraud – Feb 2011

11. True cost of Payment Fraud The negative effects of fraud involve all participants in the card value chain. In general, only the issuer’s fraud losses are widely tracked and shared Note: opportunity costs include lost revenues due to fraud at time of card application and of increasing compliance costs driven by fraud regulations and laws

12. Market Update – Fraud in the UK £ millions Market closest in Europe to the US market Payment cards are now 100% EMV since 2004 UK fraud rate was 9 basis points for 2009 compared to 18 bp in 2001. Counterfeit represents 18% and is down 52% from 2008 At a high level, numbers demonstrate that EMV deployment starts bearing fruit Source: APACS in the UK

13. Market Update – Fraud in the US In the US, decrease of fraud in 2009 due essentially to card reissuance (Heartland data breach) In the US, increase of fraud in the first half of 2010 In the US, hack of merchant payment network to get magstripe data information ATM skimming with camera to capture PIN getting slick with technology improvement (less frequent but high impact) BasisPoints Source: MasterCard Global Risk Conference 2010

15. Broad patent portfolio on the technology and business applications

16. Pilot test programs in development with major issuers

18. Without changing existing infrastructure

19. Without changing customer behavior

20. That can scale

22. Secure On-Line Payment Card

23. Dynamic CVV2

24. Dynamic 3D Secure Code

25. Dynamic Home Banking Code (OTP)

26. Additional Secure Card Code (OTP)

27. Event based or time based

28. The SmartStripe-Only Card

29. Secure Card-Present Payment Card

30. Dynamic MagStripe

31. The Combo Card

33. Dynamic cryptography on the magstripe makes each transaction unique

34. No impact on existing acceptance infrastructure

35. Backend platform authenticates unique number on the magstripe

36. Integrates into existing issuer processes

38. Each card and transaction is unique (no keys stored in card)

39. Card information stored by merchants, acquirers or service bureaus can not be used fraudulently (including PIN data)

40. Quickly identify fraud sources, no need to block and reissue cards

41. Increase market share through greater cardholder trust

43. No change in cardholder behavior

44. Card data is safe

45. It is like getting a new card for each transaction

46. Merchants

47. No need to change existing acceptance infrastructure

48. Fraud stopped in real time before goods or services are lost

49. Limits their financial exposure

50. No negative impact on business

52. QSecure Authorization Server Payment Authorization Server Banking Host MOTO 3D Secure POS Customer Service ATM Online Banking QCS Card Present Transactions Perso Bureau Card Not Present Transactions Other Banking Channels Internet One Secure Card for One Application or Many

54. Unique cryptogram provided each time the button is pressed (CVQ) – data good for only one transaction or a period of time

56. Prevents Card Not Present transactions fraud

57. eCommerce and MOTO with Dynamic CVV2

58. 3D Secure if 3D Secure used by issuer

59. No change to the existing merchant checkout process

60. Dynamic data associated with each transaction

61. Can be used as an OTP Authentication Token as well

62. For Home Banking Interaction (event based or time based)

64. Independent of card manufacturing and personalization bureau for cost effectiveness

65. A full solution compatible with existing issuance systems

66. An expertise to enable card issuers in their implementation

67. We are in PRODUCTION already with our display products

69. QSecure’s SmartStripe technology solves the problem with no change to acceptance infrastructure

70. Solution in production today with display cards and in late stage of development with the SmartStripe

71. QSecure platform offers complete solution from front end card to backend authorization