1. Can you spot the honest customer… …from the fraudster? Presentation by: Alex Bowes, Corporate Sales Manager, 192.com Business Services

2. Agenda Strategic Objectives Trend Analysis Key Aspects Offline vs Online Who are the fraudsters? Online Verification Online Options Compliance Best Practice

3. Strategic Objectives Identify and protect your customers Deter and detect fraudsters Increase transaction levels with legitimate customers Increase profits – reduce risk

4. Trend Analysis Source: APACS UK Fraud Losses in £ Millions 2004 vs. 2005 -9% -45% -22% -25% +21% £0M £20M £40M £60M £80M £100M £120M £140M £160M £180M £200M CNP Counterfeit Stolen/Lost Mail Non- Receipt ID Theft

5. Deterrence Investigation Fraudsters Customers Profits & Risk Systems PeopleProcesses Key Aspects…

6. Offline vs Online OfflineOnline Physical e.g.’s Vigilence Detectives e.g.’s Encryption Firewalls Identity e.g. photo IDse.g.’s Name + address D.O.B I.P. Validation Neural Networks

7. Who are the fraudsters? Organised across borders –Use a computer in Africa, –With a European IP address –And US credit card Sophisticated –With timing and source of fraud times Persistent –1 in 100 transactions is still worth it

8. Online Verification… Data Characteristics –Name, Address (Bill to / Ship to) –DOB, Mortality Document Details –Passports, Drivers License Personal Characteristics –Voice Recording –Biometric

9. Compliance… Regulators already impacting online gaming When will attention be re-focused on age- restricted products sold online –Alcohol sales –18+ DVD sales & rentals –Weapons & knives

10. Best Practice… Are larger retailers more prone to fraud? If the fraudsters are organised, then we need to be too. To shut them down completely rather than allow them to migrate. Communication and organisation between retailers and partners is the key.

11. To beat the fraudster… Ensure your systems are up to speed –But future proof for tougher checks, DOB checks, etc Be better organised than the criminals –Sharing information with peer group

12. Questions? Alex Bowes Corporate Sales Manager 192.com Business Services Email: alex.bowes@192.comalex.bowes@192.com Mobile: +44 (0)7725 203 386