Credit Card fraud on the Internet[在互联网上信用卡诈骗](-41).ppt

Authorisation So, authing doesn’t give the merchant the risk reduction he thought it did But it can lead to higher costs, via referrals Here’s how Authorisation Authorisation eq “Go ahead, bill” Decline eq “No way, Jose” Referral eq “Maybe. Phone us up and we’ll talk about it.” This takes 5 to 10 minutes, and requires two people This is the “Modern Electronic Credit Card System” Referrals One-in-N; banks choose one in three or one in 20 and do a referral If you have a lot of customers, then you’ll get a lot of referrals Each referral is 5-10 minutes, two people Referrals Why wasn’t this a problem before? Because merchants had floor limits Below the floor limit, no need to auth With the “Modern Electronic Credit Card System” all billings must be authed. Even $1.00 Even though authing doesn’t ensure that the card even exists! Referrals When the amount is $10, the bank gets $0.40. Can they hire people for ￡1.50 per hour? The current system for internet commerce in the UK is about to break down Chargebacks Visa is about to introduce penalties for chargebacks If you exceed 5%, you pay $100 per chargeback The current system for internet commerce in the UK is about to break down So where will it go? To wherever the business requirements are met. Probably the US. Bye bye, Tony Credit Card fraud on the Internet Questions ? Dr Alan Solomon Credit Card fraud on the Internet “But we already solved this” The engineer, the physicist and the computer security guru CC Fraud The myth The reality Who gets hurt? The myth Wily hackers stalk cyberspace, sniffing packets and assembling them to get your credit card number so they can steal from your account The customer loses money The reality Inadequate narrative Kids making up numbers Repudiation The merchant loses money The CC system Designed for retail Adapted for Mail Order Adapted for Phone Order Adapted for Net Order A bridge too far Inadequate narrative I bought some stuff from Starship I got a CC bill (no invoice) Two mon