1. Gift Card Risk Mitigation – Presentation A
Presented by:
Richard Corso
#RGCAForum2017

2. 2017 Confidential – Proprietary Information
Gift Card Risk Mitigation A Quantum Step in Online Fraud Detection & Prevention
2017 Confidential – Proprietary Information

3. Data Breach’s & Online Fraud
Gift Cards Purchases are a Target
Data Breach’s & Online Fraud
Breached Record Data by Year
In ‘000,000
Source:

4. Wolfe, LLC Who We Are Holding Company founded in 1995
Jason Wolfe – Founder & CEO
Current Brands:
Past Companies
Sold to Blackhawk Network in 2016
Sold to Undertone 2012
Sold to Digital River in 2006

5. National Cyber Forensics Training Alliance Partnership
Searchable Database for Fraud Prevention
NCFTA is a 15 year old non-profit working closely with US Federal & International law enforcement, financial institutions, & retailers
One of the most recognized & respected cybercrime research and prevention organizations in the world
Feb 2015: Attorney General & Secretary of Homeland Security issues guidance for Federal Law Enforcement to submit compromised credentials to the NCFTA
Nearly 1 Billion verified records of compromised credentials
Data collected from:
Law Enforcement
The Dark Web
Financial Institutions
Retailers

6. 1. Compromised Credentials Searchable Database
Real-time access to ~1 billion records
1. Compromised Credentials Searchable Database
Query Options:
Possible Return Matches:
Risk Score:
Credit Card
Bank Account
IP Address
Credit Card
SSN
IP Address
Name
Address
DOB
Password Exposure
PII Data is NOT Exposed
Data accessible via API or Manual search
Scores based on:
Data category (i.e. SSN & Password Exposures are higher risk)
Number of records found
Exposure date

7. 2. Universal Risk List Searchable Database
Real-time Shared Access to Known & Suspected Bad Actors
2. Universal Risk List Searchable Database
Shared Risk List
Retailer A
Retailer C
Chargebacks
Excessive Refunds
Duplicate Accounts
High Risk /IP
Flagged International
Retailer B
Retailer D
PII Data NOT Exposed & Contributors are anonymous.
Data accessible via API or Manual search
Scores based on:
Reason
# of times reported
Exposure date

8. 3. Gift Card Incident Report
Info Sharing within the Gift Card Industry
3. Gift Card Incident Report
Retailer or Law Enforcement Submission
Gift card #s purchased w/ stolen ccs
Info requests from Law Enforcement
Card program changes to impact consumers
Gift Card Marketplace
Respond with relevant info
Remove exposed gift cards
Identify & block the seller from future transactions
Outcome
Protecting the consumer & brand experience
Limit exposure of more bad cards entering the market
Identify trends & actors across brands to engage with Law Enforcement

9. Case Studies Data Provided by a Large Retailer
12% Preventable on purchase date
29% total records found since transaction
Most common credential compromised: & Password
Retailer Chargeback Audit
Chargebacks run through the Compromised Credentials Database September 2017
Incident Notification
Notified by retailer of a large batch of gift cards acquired fraudulently

10. Thank You! Mark Romanelli Mark.Romanelli@wolfe.com 866-739-4914 x 9201