SECURE BUSINESS AUTOMATION Card fraud Card fraud in Hungary (case study ) and MON™ fraud prevention system Mr. Antal KUTHY [email protected]President-CEO, E-GROUP Plc President-CEO, E-GROUP Plc Board Member of Hungarian Assoc. Of IT Board Member of Hungarian Assoc. Of IT Companies Companies & Chairman, Hungarian-Hong Kong Innovative & Chairman, Hungarian-Hong Kong Innovative Business Council Business Council
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Card fraud in Hungary (case study ) and MON™ fraud prevention system
Card fraud in Hungary (case study ) and MON™ fraud prevention system. Mr. Antal KUTHY [email protected] President-CEO, E-GROUP Plc Board Member of Hungarian Assoc. Of IT Companies & Chairman, Hungarian-Hong Kong Innovative Business Council. - PowerPoint PPT Presentation
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• Counterfeited cards:• 74% on POS• 26% on ATM (2003)
( this rate in 2000 was 100% POS.)
• ATM fraud is technical based• Where use PIN code (POS) the fraud rate is smaller• ATM robbery takes only <5 minutes • Team size: 10 specialists enough
Nature of counterfeited cards transactions
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SECURE BUSINESS AUTOMATION
OTP’s acquiring-network monitoring systems
1. On-line Monitoring for detecting suspicious purchases and ATM transactions
The following POS transaction are monitored:• Multiple use of Bankcards at the same merchant outlet on a single
day• Bankcards used at more than 2 different merchant outlets in our
network on a single day• Purchases where the transaction amount exceeds the daily
average transaction value of the merchant. Remark: In case of new merchants the value is compared to MCC average (successful transactions)
• Rejected purchases where transaction amount exceeds the predefined amounts set by rejected codes
1.
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SECURE BUSINESS AUTOMATION
• All Internet, MOTO and other key-entered transactions• Transactions made by cards having been used previously at a
merchant during the counterfeiting period (possible counterfeited transactions in need of extra attention).
• Cash withdrawals made in our post offices or in our branches, if either the transaction amount exceeds pre-defined limit or more transactions were initiated with the same card
• Bankcards with more transactions initiated with at Filling stations – Gas Stations- (MCC 5541) on a single day
• All refunds made by merchants
2.
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SECURE BUSINESS AUTOMATION
The following ATM transactions are monitored:
• Too many cash disbursement trials with a card on a single day considering cardholders’ average spending habit
• Banckards used both before and after midnight • Captured bankcards• Bankcards that have been used multiple days, „ongoing”
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SECURE BUSINESS AUTOMATION
OTP’s acquiring network monitoring systems
Off-line Monitoring programs for filtering out merchants with suspicious activity has been developed …
Analyis of daily card acceptance activity of a merchant outlet such as total number and amount of succesful and declined transaction requests, number of key entered transactions to magnetic stripe read transactions, purchases with cards with the same BIN etc. and compares the data to the average parameters characterizing the outlet.
• High Risk Blocking:The amount of the suspicious purchase is paid to the merchants after the issuer bank has confirmed the genuineness of the transaction in question.
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SECURE BUSINESS AUTOMATION
On-line Monitoring for detecting suspicious POS and ATM transactions
The following POS transactions are monitored:• Bankcards used several times at the same merchant
outlet on a single day• Bankcards used at more than 3 different merchant
outlets on a single day• Purchases where the transaction amount exceeds the
daily average transaction value of the merchant. In case of new merchants the value is compared to MCC average.
• Bankcards used in different countries on a single day.• Transactions made by cards that has been used
previously at a CPP merchant during the counterfeiting period (possible counterfeited transactions need extra attention).
Issuer side monitoring systems1.
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SECURE BUSINESS AUTOMATION
• Transactions made in risky countries • All Internet, MOTO and other key-entered transactions • Suspicious Internet or MOTO terminals, where possibly fraudulent
transactions occurs with generated account numbers • Cash withdrawals made in branches and in post offices where
transaction amount exceeds the predefined limits.• Bankcards which more than the set prepaid mobile phone
transactions via Hungarian ATMs (MCC 4816) are initiated with on a single day
The following ATM transactions are monitored:• Too many cash disbursement trials with a card on a single day
considering cardholders’ average spending habit• Banckards used both before and after midnight • Bankcards used at ATMs located at high risk areas• Captured bankcards• Bankcards that have been used more days running abroad
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SECURE BUSINESS AUTOMATION
• Off-line Monitoring and other instruments to minimize fraud Issuer Referral Call Service – Off-line Monitoring Program:
Transactions under floor limit are monitored.– Collusive Cardholder Monitoring
• Blocked and Expired Card Monitoring: In case of transactions under floor limit with non-existing cards, cards are inserted into the international stop-list. If continuous fraudulent usage arises. Acquirer banks are also advised of the phenomenon.
• SMS Control Service („MONEYGUARD” : most succesful innovation implemented 6 years ago)
• Transactions number which appear in the monitoring system: 3-10,000 / day (>>> Intelligent Analysis is necessary, special high value add expert systems)