real-time intelligence that matters 1. © 2015, brighterion inc. (all rights reserved) keeping an...

Real-time Intelligence that Matters

1

© 2015, Brighterion Inc. (all rights reserved) Keeping an eye on your business

53% of consumers who experienced an account or identity compromise changed their banking relationship

Yes47%

No53%

Q. Did this identity theft experience cause you to change banks or credit unions for your financial needs? (n=32)

Source: Aite Group survey of Identity Theft Resource Center clients, March 2013 to January 2014


Beware back of wallet

28%

8%

2%

Yes, but only in some situations

Yes, in all situations

Used cash instead of my debit card, but not instead of

my credit card

Q. When you experienced fraud, did you choose to use cash or an alternative payment method over a credit or debit card following the card

fraud incident? (n=127)

Source: Aite Group, ACI Worldwide survey of consumers in 20 countries, Q1 2014

557 Data breaches reported to the California Attorney General since January 2012

27 new data breaches reported to the California Attorney General in April 2015

90% of data breaches effect small merchants

$7.99 is the average cost to issuers for each compromised card

Data Breaches: Facts and Lessons

6


Case Study – 2014 Large Retailer

April 1

Commenced

Sept 2

Announced

Sept 12

Closed

7


Case Study – 2014 Retailer Data Breach

April 1 Sept 2 Sept 12

Commenced Announced

Closed

154 Days Open

• 56 Million Cards Compromised• $447 Million Estimated Issuer Losses• $33 Million Q4 Retailer Losses

8


Stages of a Merchant Data Breach

9


iDetect Components

Real-Time Merchant Profiling Engine

Real-Time Card Risk

Scoring Engine


Real-Time Card Risk Scoring Engine: Model Building and Training

UnsupervisedLearning

Real-time Profiling

Long-term Profiling

Peer Profiling

GeoProfiling

Cross-card Profiling

Issuer/Processor Data• Merchant information• Global transaction history• Global fraud database• Card transaction history

Computer AgentTime

Profile

Computer AgentCard

Profile

Computer Agent Merchant

Profile

Computer AgentGeographic

Profile



Issuer/Processor Data• Merchant information• Global transaction history• Global fraud database• Card transaction history

Computer AgentTime

Profile

Computer AgentCard

Profile


Profile


Profile

NeuralNetworks

Data Mining

Case based Reasoning

GeneticAlgorithms

FuzzyLogic



Computer AgentTime

Profile

Computer AgentCard

Profile


Profile


Profile

NeuralNetworks

Data Mining


GeneticAlgorithms

FuzzyLogic

Real-Time Card Risk

Scoring Engine

13


How iDetect Works


Real-Time Card Risk

Scoring Engine

14


How iDetect Works

Computer AgentTime

Profile

Computer AgentCard

Profile


Profile


Profile

NeuralNetworks

Data Mining


GeneticAlgorithms

FuzzyLogic

Computer AgentTime

Profile

Computer AgentCard

Profile


Profile


Profile

Real-Time Card Risk

Scoring Engine

15


How iDetect Works


Real-Time Card Risk

Scoring Engine

16


How iDetect Works


Real-Time Card Risk

Scoring Engine

17


How iDetect Works


Real-Time Card Risk

Scoring Engine

18


How iDetect Works


Real-Time Card Risk

Scoring Engine

19


iDetect Simulation Study

Commenced

Avg. 150 Days Open

Closed

20



Commenced Closed

Closed

Avg. 5 Days Open

21



Commenced Closed

Closed

Avg. 5 Days Open

22



• 97% Reduction in Cards Compromised• 53.2 Million cards SAVED

• 97% Reduction in Estimated Issuer Losses• $438 Million issuer dollars SAVED

• 97% Reduction in Mechant Losses• $29.4 Million Q4 Home Depot dollars SAVED

Commenced Closed

Closed

Avg. 5 Days Open

23



• 97% Reduction in Cards Compromised• 54 Million cards SAVED

• 97% Reduction in Estimated Issuer Losses• $434 Million issuer dollars SAVED

Commenced Closed

Closed

Avg. 5 Days Open

Provides real-time results based on proven AI models

Uses Brighterion’s patented Smart Agent technology to identify anomalous card-holder behavior and traces those results back to a Common Point of Purchase

Detects data breaches within 5 days of the first transactions being executed by the criminals

Discovers data breaches over 6 times faster than the closest competitive solution

Saves Issuers, Merchants and Insurers over 90% of their total losses from data breaches

Prevents brand damage that results from data breach media attention

Generates increased revenues for Acquirers who resell iDetect to their Merchants

Benefits

real-time intelligence that matters 1. © 2015, brighterion inc. (all rights reserved) keeping an...

Documents

business stages

business case study

realtime intelligence

merchant data breach

new data breaches

retailer data breach

model building

compromised carddata