Recent ECB/ EBA regulations how they will impact European banks in 2016

Trusteer Positioning

ECB/EBA Recommendations for Security of Internet Payments:

© 2015 IBM Corporation

Monday, December 07, 2015

Agenda

� General information and milestones– Things to note

� The Guidelines� The layered security approach� How, why, and which IBM Security Trusteer product(s)?� Responding to the Specific Requirements� Summary / Next steps

2© 2015 IBM Corporation

� Summary / Next steps

August 2015 Guidelines define minimum requirements

2017 / 2018Additional guidelines from the EBA are expected once the updated Payment Services Directive (PSD2) is published

Milestones and Recommendations


December 2014EBA publishes the Final Guidelines on Internet Payments Security, based on the European Forum on the Security of Retail Payments (SecuRe Pay)

minimum requirementsthat have to be fulfilled by PSPs under the PSD

published

Link to the Final Guidelines

Things to Note

� The recommendations constitute a “living document”

� The recommendations are descriptive (vs. prescriptive)

� The bank may address recommended solutions by other means

� The recommendations constitute minimum

Regulations


� The recommendations constitute minimum expectations . It’s the responsibility of PSPs to monitor and assess their particular risks, develop their own detailed security policies and implement adequate security measures that are commensurate with the risks inherent in the payment services provided.

Final guidelines on the Security Of Internet PaymentsAs per document issued in Dec 2014

R2• Risk Assessment

R3• Incident Monitoring and Reporting

R4• Risk Control and Mitigation

R7• Strong Customer Authentication


R7• Strong Customer Authentication

R8• Enrolment for, and provision of authentication, tools and/or software

delivered to the customer

R9• Log-in attempts, session time out, validity of authentication

R10• Transaction Monitoring

R12• Customer Education and Communication

The Guiding PrinciplesFraud prevention layers, listed in order of effectiveness

Device Security

• Ensuring the accessing device is secure and malware free

User Authentication

• Verify the authorized user and device with multifactor (tamper-proof) user authentication

Transaction Monitoring


Transaction Monitoring

• Identify anomalous user behaviors and known fraud patterns

Network Analysis

• Correlate known fraud with other potentially fraudulent events

Customer Awareness and Education

• Ongoing customer education through continuous communication

Existing security controlsDo they impact your business?


Account & Transaction

Restrictions

Intrusive Controls

Increased Authentication

Challenges

Increased Transaction

Delays

Increased Investigation

Costs

Disruptive Validation &

Verification

At a glanceECB Recommendations mapped to Trusteer’s solutions (I)

Recommendation 2: Risk Assessment

KC 2.1 (Risk Assessment) Trusteer Cybercrime Intelligence

Recommendation 3: Incident monitoring and reporting

KC 3.1 (Reporting) Trusteer Cybercrime Intelligence


Recommendation 4: Risk Control and Mitigation

KC 4.2 (Phishing) Trusteer Rapport and Trusteer Pinpoint

BP 4.1 (Trojans)Trusteer Rapport, Trusteer Pinpoint, Trusteer Mobile Solutions (Mobile SDK, Secure Mobile Browser)

AQ = Assessment QuestionBP = Best Practice KC = Key Consideration

At a glanceECB Recommendations mapped to Trusteer’s solutions (II)

Recommendation 7: Strong customer authentication

AQ 7.0.1 (Use of 2+ elements for authentication)

Trusteer Pinpoint and Trusteer Mobile SDK

AQ 7.0.4 (Protection of multi-purpose devices)

Trusteer Mobile SDK; Trusteer Rapport; Trusteer Pinpoint


AQ 7.0.8 (Protection of devices where secrets are stored)

Trusteer Rapport and Trusteer Mobile SDK


At a glanceECB Recommendations mapped to Trusteer’s solutions (III)

Recommendation 8: Enrolment for and provision of au thentication tools and/or software delivered to the customer

AQ 8.1.1 (Protection of payments – safe and trusted environment)

Trusteer Rapport, Trusteer Pinpoint, and Trusteer Mobile SDK

AQ 8.1.1 (Software delivered to customers not under the bank’s control)

Trusteer Rapport; Trusteer Pinpoint, and Trusteer Mobile SDK


control)Trusteer Mobile SDK

Recommendation 9: Log-in attempts, session time out , validity of authentication

KC 9.1, KC 9.2, KC 9.3(Log-in attempts, session time out, validity of authentication)

Trusteer Pinpoint


At a glanceECB Recommendations mapped to Trusteer’s solutions (IV)

Recommendation 10: Transaction monitoring

Overview (Trx Monitoring purpose) Trusteer Pinpoint

KC 10.1 (Fraud prevention systems should detect malware in the session)

Trusteer Pinpoint


KC 10.4 (Trx Monitoring shouldn't delay transactions)

All Trusteer's solutions work in real time, providing actionable results while the user is interacting with the site.

KC 10.5 (Blocks should be maintained for as short time as possible)

All Trusteer's solutions operate in real-time and are highly deterministic, providing per-transaction results avoiding blanket "blocking" of users


At a glanceECB Recommendations mapped to Trusteer’s solutions (V)

Recommendation 12: Customer education and communica tion

Overview (reassure customers of the authenticity of the messages received)

Trusteer Rapport and Mobile



Trusteer’s Solution Overview


Online Banking

Malware attacks against the website

Account takeover

Detects malware targeting OLB website

Trusteer PinpointMalware Detection

Trusteer PinpointCriminal Detection

• Detect fraud risk• Identify cross

channel attacks

Holistic detection of fraud based on malware history and persistent device ID

Trusteer’s multi-layered fraud protections

R4, R7, R10

R4, R10 R4, R7, R9, R10


Phishing and malware fraud

Phishing and malware fraud

Phishing and malware

TrusteerRapport

• Detects and removes malware • Prevents future malware infections• Alert phishing attacks

TrusteerMobile SDK / Browser

R2: Risk assessment, R4: Risk control and mitigation, R7: Strong customer authentication, R9: Log-in attempts, session time out, validity of authentication, R10: Transaction monitoring, R12: Customer education and communication

R4, R7, R10, R12

Trusteer Pinpoint Criminal DetectionProduct Highlights

TrusteerRapport

Trusteer Pinpoint Malware Detection

Trusteer Pinpoint Criminal Detection

TrusteerMobile


� Correlates Device and Account Risk Factors to conclusively detect account takeover attempts

� Automated Criminal Device Detection feeds a Global Criminal Device Database

� Automated Fraud Rules Creation based on Real-time threat and attack intelligence

� Transaction Anomaly Detection

Trusteer Pinpoint Malware DetectionProduct Highlights

Trusteer Pinpoint Criminal Detection

TrusteerRapport


TrusteerMobile


� Clientless detection of live Man-in-the-Browser (MitB) Malware

� Real-time alerts of high risk devices � Updates automatically deployed without customer

interaction and no business interruption� Integrate data into existing systems and workflows

Trusteer Mobile SolutionsProduct Highlights

Trusteer PinpointCriminal Detection


TrusteerRapport

TrusteerMobile


� Captures Persistent Device ID and Device, User and Session Risk Factors

� Comprehensive Fraud Protection Across Bank Mobile Apps and Mobile Web Access

� Correlates Mobile-specific risk, Online Risk (malware and phishing) and Global Criminal Devices DB to prevent Cross-Channel Attacks

Trusteer RapportProduct Highlights

Pinpoint CriminalDetection

Pinpoint MalwareDetection

TrusteerMobile

TrusteerRapport


� Compact Software Agent for PC and Mac – minimal impact on the end-user’s machine

� Transparently protects user credentials & website interaction

� Removes existing infections upon installation and alerts user & security team of potential phishing sites & credentials loss

Trusteer SolutionsAnd how they match the requirements

ECB/EBA Guidance How can IBM Security Trusteer help?

Risk Assessment

Risk Control and mitigation

Incident monitoring and reporting

Strong customer authentication


Enrolment for, and provision of, authentication tools and/or software delivered to the customer

Log-in attempts, session time out, validity of authentication

Transaction monitoring

Customer education and communication

Summary


SummaryWhy IBM Security Trusteer

• 475+ leading global organizations put their TRUST in us• Threat Intelligence gathered from more than 270 mil lion endpoints

Helps prevent the ““““Root Cause”””” of Fraud

Helps prevent the ““““Root Cause”””” of Fraud 7/10

Top U.S. Banks

9/10Top U.K. Banks

4/5Top Canadian

Banks


ReduceOperational Impact

ReduceOperational Impact

Utilize GlobalMalware Intelligence Service

Utilize GlobalMalware Intelligence Service

Improve Your Customer Experience

Improve Your Customer Experience

Banks Banks Banks

MajorEuropean

Banks

2/4Top Japanese

Banks

MajorLatin American

Banks

Q&A


Statement of Good Security Practices: IT system security involves protecting systems and information through prevention, detection and response to improper access from within and outside your enterprise. Improper access can result in information being altered, destroyed, misappropriated or misused or can result in damage to or misuse of your systems, including for use in attacks on others. No IT system or product should be considered completely secure and no single product, service or security measure can be completely effective in preventing improper use or access. IBM systems, products and services are designed to be part of a lawful, comprehensive security approach, which will necessarily involve additional operational procedures, and may require other systems, products or services to be most effective. IBM DOES NOT WARRANT THAT ANY SYSTEMS, PRODUCTS OR SERVICES ARE IMMUNE FROM, OR WILL MAKE YOUR ENTERPRISE IMMUNE FROM, THE MALICIOUS OR ILLEGAL CONDUCT OF ANY PARTY.

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Recent ECB/ EBA regulations how they will impact European banks in 2016

Technology

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