My Phone Stole My Bank Card.(But my carrier saved me.)

Location in Mobile Payment Fraud

Rip Gerber ● CEO, LocaidMobile Payments Conference 2012March 9, 2012 ● San Jose, CA

My phone and my bank card used to be friends

My bank got on my phone

My phone would let me bank

They travelled everywhere together

Then my phone got a new chip.

My phone got greedy.

NFC is coming to a handset on you

Across the world

Death of the bank card

It was never about the plastic

R.I.P.

But what’s not going away?

610M3.5

12%#1

$4,607$10B

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Source: High Spenders defined the top 10% of accounts, ranked by dollar spend from September – October 2010Source: Visa White Paper - Effects of Declines on Cardholder Behavior 2010 and Visa Decision Sciences & Analytics

3x Cardholders declined in a cross-border POS transaction were three times more likely to stop using their cards

6x Premium (high-limit) cardholders are six times more likely to abandon their cards

Expect greater card abandonment as a result of a decline

Declines hurt

$25-$40

Cost of a False Positivewithout Mobile Location

Cost of a False Positivewith Mobile Location

no location location

Location and payment fraudLocation Based Services allow issuers to utilize the location of a cardholder’s wireless device as an added layer of authentication.

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BENEFITS

• Optimize approve/ decline decisions

• Reduce unnecessary customer contact and intervention

• Increase issuer operational efficiency

• Improve the customer experience

This doesn’t authenticate presence

This does.

Compare Merchant Location & Phone Provide a Fraud Indication Score Significantly Reduce Fraud Costs

vs =

Location matching results in close proximity

• Reduce false positive Cases• Reduce case management load • Reduce customer service interventions• Work further down the score range• Improve algorithms of other fraud

detections/metrics• Enhances bank brand (security, trust)• Reduces cardholder interventions• Improves cardholder experience

Bank Benefits

How location works in payments.

Compare ATM Location & Phone Provide a Fraud Indication Score Identifies Fraudulent Activity

vs =

Location matching results not close proximity

Bank Benefits Qualifies transactions as fraudulent Justifies fraud investigation investment Focuses resources on problem areas Improves ROI of fraud pursuits Run away Fraud is mitigated

How location stops ATM skims.

How do you get location?

Does location do more than fraud prevention?

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Locaid is Location-as-a-Service

Locaid runs the largest LaaS gateway

and carrier reach

Locaid reach covers 350M devices.

No app to download.No user action needed.

Any device.Anywhere.

Locaid finds every device on the network.

For any mobile

application.

Locaid delivers ubiquitous location.

Indoors and out.Geofencing, location-

based SMS, Global coverage, location

analytics. Any location need.

The world’s first and largest LaaS company

The world’s first and largest LaaS company

Locaid LocatesLocaid Locates Every DeviceEvery Device On Every NetworkOn Every Network

For Any Location Need

For Any Location Need

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DeviceAPIs

NavBuilderInside

Shipment Tracking Locating packages in over 160 countries reduces logistics costs.

Mobile Gaming Only network location permits wagers on consumer mobile phones.

Family Safety Able to find loved ones without app download, on any device.

Mobile Marketing Proximity marketing without battery drain, anywhere.

The world’s largest LaaS company

The world’s largest LaaS company

Credit Card Fraud Authenticating phone location reduces false positives of $400M/yr.

Locaid Technologies

Thank you.

Rip GerberPresident & CEO

This is not me.(But we can locate her phone.)