The World Leader in Display Card Manufacturing...The World Leader in Display Card Manufacturing An...
Transcript of The World Leader in Display Card Manufacturing...The World Leader in Display Card Manufacturing An...
The World Leader in Display Card Manufacturing
Digital Dynamic CVV/CVC Codes on EMV Cards
Francine Dubois – NID Security
NIDSecurity–AnOTcompany
NID Security
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Migration to EMV: The impact on CNP Fraud
TheWorldLeaderinDisplayCardManufacturing
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ABOUTEMV
Reduc<onincard-presentfraud
Enhancedcardauthen<ca<onEnhancedcardholderverifica<on(PIN)Dynamicdataauthen.ca.on/authen.ccardrequired
PaymentinfostoredonsecurechipCounterfei.ngvirtuallyimpossible
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FRAUDTRENDS&DRIVERS
CNPfraudlossesrepresentmorethan60%oftotalfraudinEuropetoday
Globaladop<onofEMVcausesfraudtomigratetopathsoflowerresistance
GrowthofUSonlinecommerceandtransac<onsaLractsfraudsters
9% CAGR 2012-2017
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RISEOFCARDNOTPRESENTFRAUD
EMVenablesstrongdecreaseofcounterfeit/CPfraud,butfraudismigraLngtoCNP
1. Source: Canadian Bankers Association
US:CardNotPresent(CNP)fraudlossestoreach$6.4Bbyend2018
Europe: • CNP fraud accounts for 60% of the total value of card fraud in 2012
• CNP fraud increased by 21% to €794M
“DatafromtheU.K.,FranceandAustraliashowthatCNPfraudbecamealargerpor.onofoverallfraudduringandaDertheirEMVchipconversions,asEMVchipdrama.callyreducedthecard-presentfraudissuesbutdidnotaddressthecard-not-presentfraudproblem.“(WhitePaper,EMVMigra.onForum)
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CNPFRAUD,AREALITYINDIFFERENTREGIONS
AustraliaTotalCardFraudValue$AUS300M
2014(+16%vs.2012)
23%
77%
CanadaCreditCardFraudValue$CAD465M
2013(+6%vs.2012)
36%
64%
17%
23% 60%
ATMsPOSterminalsCard-not-present
40%
28%
32%
OtherCard-not-present+11%
OtherCard-not-present Card-not-present
OtherCounterfeit
UKTotalCardFraudValue£479M
2014(+6%vs.2013)
69%
31%
OtherCard-not-present+10%
Sources:ECB,UFFAUK,,CanadianBankersassocia.on,APCA,CyberSource,USFederalReserve,AITE
EuropeTotalFraudValue€1.33B
2012(+15%vs.2011)
USATotalGPCardFraud
Value$4B2012
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FIGHTINGCNPFRAUD–ADIFFICULTBALANCE
April11,2016
Security
OperaLngcosts
Useracceptanceandexperience
Easeofdeployment
TheidealsoluLon …butinpracLce
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SAMPLEOFAUTHENTICATIONSOLUTIONS
3D Secure Tokenization Secret question
SMS
Keyfob/calculator Biometrics Virtual cards
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CNPFRAUDIMPACTONISSUERS
Issuers and end-users eventually get refunded but… Ø Cost of treatment of fraud cases and card replacement on
issuers Ø Lost revenue while card is replaced and loss of recurring
revenue if switched to other card Ø Cardholders : “I’m not well protected” – “maybe I should limit my
online activity?” Management of recurring billing on card, …
TheWorldLeaderinDisplayCardManufacturing
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In this instance, not the PAN, but the “security code”
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THETREND–TOKENIZATIONOFCARDDATA
Stolen data used within 10-30 days
following theft
Dynamic code valid for less than 1h
Security code is the easiest data
to turn dynamic
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COMPLEMENTSTOKENIZATION
End User Merchant Processor
Card info + DCVX2 9876 0123 4567 8901 + 976
Surrogate card info(tokenized data) 1000 6661 3334 8901+ 456
§ HelpspreventfraudulentuseofstolencardinfoforCNPtransac<ons
§ Addsalayerofprotec<onatendpointsagainst:§ The]ofentered/swipeddatabymalware,keyloggers,trojans,
eavesdropping,shouldersurfing(i.e.duringenrollment)§ The]ofstoredplaindatainlegacysystems§ The]ofcardinforma<ontransmigedoverclearchannels(phone,fax,
mail...)
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DYNAMIC CVV/CVC CODES ON EMV CARDS
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WHATISADYNAMICCVV/CVCCODECARD
§ Automa<crefreshofdynamiccode(customizablefrequency)
§ SmallDisplay§ InternalbaLerythatlastupto5yrs
§ Standardcreditcardformat(ISO7810)
§ Accommodatesallstandardcardfeatures:contact-contactlesschip,embossing,magne<cstripe,…
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HIGHLEVELVIEWOFIMPLEMENTATIONSCENARIOS
A.TokenServiceProvider B.Hostedbyprocessor
Merchant Merchant
NetworkNetwork
Processor
dCVx2VerificaLonServer
Processor
SaaSTSP
C.Hostedbyprocessingbank/issuer/agent
Merchant
Network
dCVx2VerificaLonServer
Bank/Issuer/Agent
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SAFER,FRICTIONLESSCNPTRANSACTIONS
§ Safertransac<onsoveranychannel(ie:website,app,voice…)
§ Simpleandelegantsolu<onthatworksonanydevice
§ Fric<onless,nocomplexenrollmentprocess
§ Noaddi<onalso]wareorpluginrequired
§ Cardinfolessvulnerableif
device/computerislostorstolen
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PERFECTSOLUTIONTOSECURECNPTRANSACTIONS
Simultaneouslyaddressestheneedsofissuers,merchants,andend-users
Controlled,predictableTCO,
virtuallyanewcardateveryrefresh
Topofwallet,100%cardholderadop<on,FricLonless,zerolearningcurve.
Moresecure.TokenizestheCVC/V2,protectsatthesource
Lowimpactoninfrastructure.
Anissueronlysolu<on
Transparent,fricLonlesstoeMerchants,increasedconversionrates
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ABOUT NID Security
TheWorldLeaderinDisplayCardManufacturing
AnOTcompany
NIDSecurity AboutNagraIDSecurity
TheWorldLeaderinDisplayCardManufacturing
Dual Interface DCVV, ePaper Display Cards
Before NIDS commercialized the 1st ISO Display Card with bi-stable display
2005
Introduced 1st alpha-numeric card with 12-button keypad
2008 2012
3rd Gen Display Card with ultra-fast LCD
Introduced EMV payment card with information display & new capacitive 12-button keypad
Introduced the VISA Codesure with dot matrix display
4-in-1 Display Card Debit/Credit Paypass/SecureCode
2006 2009 2010 2011
Production ramp-up, delivery of 1M card in 6 months timeframe
2014 20152014
Introduced the 1st dCVV payment card
www.nidsecurity.com