ONLINE CREDIT CARD FRAUD the East African Travel Market AITEC BANKING AND MOBILE COMESA – SEP/2013 ERAN FEINSTEIN – 3G DIRECT PAY LIMITED3G DIRECT PAY.

ONLINE CREDIT CARD FRAUD

the East African Travel Market

AITEC BANKING AND MOBILE COMESA – SEP/2013

ERAN FEINSTEIN – 3G DIRECT PAY LIMITED

3G Direct Pay – WHY? …because we believe that service providers and end customer should have the FREEDOM to shop and pay online using ANY card type and ANY currency…

04/10/23 | AITEC BANKING AND MOBILE COMESA SEP/2013 | ERAN FEINSTEIN | 3G DIRECT PAY LIMITED |

HOW we doing it? End-to-End solution – filling the gap

Designed and maintained for the Africa travel marketEastSouthern

Multi layers packageTechnology / PlatformBank relationsCustomer careFraud Prevention and Risk Management Internal industry settlement platform

04/10/23 | AITEC BANKING AND MOBILE COMESA SEP/2013 | ERAN FEINSTEIN | 3G DIRECT PAY LIMITED |

HOW we doing it?

The Platform Real-time transactions Online payments processing Online / Offline / Direct / API

04/10/23 | AITEC BANKING AND MOBILE COMESA SEP/2013 | ERAN FEINSTEIN | 3G DIRECT PAY LIMITED |

Payment Options Professional bank relations

EU, US, KE, TZ.. All cards, mobile, PayPal and

more..

HOW we doing it?

04/10/23 | AITEC BANKING AND MOBILE COMESA SEP/2013 | ERAN FEINSTEIN | 3G DIRECT PAY LIMITED |

Fraud Prevention Real-time monitoring Advanced scoring Skilled team

Customer Care 24/7 for the end customer

and the travel provider It’s about conversion !

HOW we doing it?

Providers settlement platformBased on our own providers networkReal-time payment allocation Instant confirmation

04/10/23 | AITEC BANKING AND MOBILE COMESA SEP/2013 | ERAN FEINSTEIN | 3G DIRECT PAY LIMITED |

The Network Airlines (24) , Hotels and Lodges (150) , Agents and Tour Operators (300) , Diving Centers (10)

04/10/23 | AITEC BANKING AND MOBILE COMESA SEP/2013 | ERAN FEINSTEIN | 3G DIRECT PAY LIMITED |

The East African Travel Industry The main players:

Airlines

Hotels

Lodges

Tour Operators

Travel Agents

2500 to 3000 providers (Kenya, Tanzania, Uganda, Zambia)

04/10/23 | AITEC BANKING AND MOBILE COMESA SEP/2013 | ERAN FEINSTEIN | 3G DIRECT PAY LIMITED |

The East African Travel IndustryKenya and Tanzania – quick figures

More than $4,000,000,000 (annually)Online transactions (credit cards and PayPal) $35,000,000 to $50,000,000

Typical Customer80% - Europe and USA15% - Eastern Africa (steady increase over the past 2 years)

04/10/23 | AITEC BANKING AND MOBILE COMESA SEP/2013 | ERAN FEINSTEIN | 3G DIRECT PAY LIMITED |

The East African Travel IndustryCredit Card Types

80% - Visa and MasterCard15% - American Express (4% until 2011)4% - PayPal

Average TransactionAirlines $450Hotel $500 - $1,100Travel agent $1,200 - $1,500Tour Operator $1,500 - $2,200

04/10/23 | AITEC BANKING AND MOBILE COMESA SEP/2013 | ERAN FEINSTEIN | 3G DIRECT PAY LIMITED |

The East African Travel Industry90% of transaction – classic CNP (card not present)

2% of transactions – 3D secure

Charge-Back0.35% to 0.50% (since 2009)Using stolen card and fly to the Safari ??90% of C/B from airline transactions

04/10/23 | AITEC BANKING AND MOBILE COMESA SEP/2013 | ERAN FEINSTEIN | 3G DIRECT PAY LIMITED |

Where is the Risk?Classic Fraud (low to med)

Stolen credit card Identity theft Consume the service

Merchant Fraud (high)Fake agentsProfessional fraudstersNo service, no passengers

Friendly Fraud (low)Consume the serviceCan’t avoid….

04/10/23 | AITEC BANKING AND MOBILE COMESA SEP/2013 | ERAN FEINSTEIN | 3G DIRECT PAY LIMITED |

The Online Fraud – How Does It Works?

Individual Fraud

General Characteristics Individual fraudster, One-time campaign, access to stolen cards list (low quality), no ‘fine’ details

The ServiceFlight/s, One way, short term booking

PassengerThe fraudster, family member/friend

04/10/23 | AITEC BANKING AND MOBILE COMESA SEP/2013 | ERAN FEINSTEIN | 3G DIRECT PAY LIMITED |

The Online Fraud – How Does It Works?

Mass Fraud

General Characteristics Individual/group, professional fraudster/s, massive stolen cards list (low quality), acting as an agent, no close relationship with the

passengers, massive payment attempts, very low conversion rate

The ServiceFlight, one way and return

PassengerNot the fraudster, no idea that the service paid using stolen card

04/10/23 | AITEC BANKING AND MOBILE COMESA SEP/2013 | ERAN FEINSTEIN | 3G DIRECT PAY LIMITED |

The Online Fraud – How Does It Works?

Professional Fraud and Identity Theft

General CharacteristicsGroups only – organization, stole cards list – high quality, 3D-secure lists, access to the card holder details, using ‘fine’ details –

complete ‘storyboard’

The ServiceFlights, accommodation

Passenger The passenger is also a professional fraudster

04/10/23 | AITEC BANKING AND MOBILE COMESA SEP/2013 | ERAN FEINSTEIN | 3G DIRECT PAY LIMITED |

The Online Fraud – How Does It Works?

Merchant Fraud

General Characteristics ‘well organized scam..’, mitigating the KYC procedures, designed websites, products and services, real people, working plan, long

term operations

The serviceDetailed service, package, accommodation, no-flight !

PassengerFake but well designed identity, no real passenger

04/10/23 | AITEC BANKING AND MOBILE COMESA SEP/2013 | ERAN FEINSTEIN | 3G DIRECT PAY LIMITED |

How to Mitigate the Online Fraud?

04/10/23 | AITEC BANKING AND MOBILE COMESA SEP/2013 | ERAN FEINSTEIN | 3G DIRECT PAY LIMITED |

04/10/23 | AITEC BANKING AND MOBILE COMESA SEP/2013 | ERAN FEINSTEIN | 3G DIRECT PAY LIMITED |