2014-2015 David Dewey, Director of Research Pindrop Security July - - PowerPoint PPT Presentation

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2014-2015 David Dewey, Director of Research Pindrop Security July - - PowerPoint PPT Presentation

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THE STATE OF RETAIL PHONE FRAUD 2014-2015 David Dewey, Director of Research Pindrop Security July 23, 2015 2015 Pindrop Security . Confidential. METHODOLOGY Phoneprinting TM Phoneypot TM Topic Modeler 100m+ Enterprise Calls 500k+

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2015 Pindrop Security™. Confidential.

THE STATE OF RETAIL PHONE FRAUD

2014-2015

David Dewey, Director of Research Pindrop Security July 23, 2015

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2015 Pindrop Security™. Confidential. 2015 Pindrop Security™. Confidential.

METHODOLOGY

PhoneprintingTM

100m+ Enterprise Calls

Topic Modeler

45m+ Consumer Complaints

PhoneypotTM

500k+ Unlisted Numbers

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2015 Pindrop Security™. Confidential. 2015 Pindrop Security™. Confidential.

Fencible Goods

Electronics, Phones, Toner

Business Accounts

Schools, Hospitals, Enterprise

RISK FACTORS

Customer Service

Phone Orders, Help Line

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2015 Pindrop Security™. Confidential.

RETAIL PHONE FRAUD ATTACKS

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2015 Pindrop Security™. Confidential.

Attacker orders with stolen card Retailer ships order Consumer disputes charges Chargeback is issued

CARD NOT PRESENT FRAUD (CNP)

Lost Merchandise

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2015 Pindrop Security™. Confidential.

CARD NOT PRESENT FRAUD (CNP)

Attacker orders with stolen card Retailer ships order Consumer disputes charges Chargeback is issued

Lost Merchandise Lost Shipping And Handling

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SLIDE 7

2015 Pindrop Security™. Confidential.

CARD NOT PRESENT FRAUD (CNP)

Attacker orders with stolen card Retailer ships order Consumer disputes charges Chargeback is issued

Lost Merchandise Lost Shipping And Handling Lost Reputation

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2015 Pindrop Security™. Confidential.

CARD NOT PRESENT FRAUD (CNP)

Attacker orders with stolen card Retailer ships order Consumer disputes charges Chargeback is issued

Lost Merchandise Lost Shipping And Handling Lost Reputation Lost Chargeback Fees & Penalties

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2015 Pindrop Security™. Confidential.

FRIENDLY FRAUD / CHARGEBACK FRAUD

Consumer places

  • rder

Retailer ships order Consumer disputes charges Chargeback is issued

Lost Merchandise Lost Shipping & Handling Lost Chargeback Fees & Penalties

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2015 Pindrop Security™. Confidential.

BUSINESS ACCOUNT TAKEOVER

Attacker impersonates business to place Purchase Order Retailer ships order Business disputes charge Chargeback is issued

Lost Merchandise Lost Shipping & Handling Lost Chargeback Fees & Penalties Lost Reputation

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2015 Pindrop Security™. Confidential.

Shipment Intercept Reshipping In Store Pickup

ACQUIRING THE SHIPMENT

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2015 Pindrop Security™. Confidential.

DATA BREACHES

  • Reconnaissance over the phone is the first step in a

data breach

  • 4 out of 5 fraud calls are not money transactions

Recon Weapon- ization Delivery Exploit Install C&C Action

Lockheed Martin Cyber Kill Chain

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2015 Pindrop Security™. Confidential.

RETAIL PHONE FRAUD BY THE NUMBERS

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2015 Pindrop Security™. Confidential. 2015 Pindrop Security™. Confidential.

THE THREAT IS GROWING

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2015 Pindrop Security™. Confidential. 2015 Pindrop Security™. Confidential.

1 IN 1,000 CALLS IS FRAUD

.02% .10% .08% .06% .04% .12% Retail

  • Avg. Call Center

Fraud Calls

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2015 Pindrop Security™. Confidential. 2015 Pindrop Security™. Confidential.

FRAUD LOSS

$0.17

  • Average fraud loss per call
  • Does not include:
  • Operational Costs
  • Processing Costs
  • Shipping Costs
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2015 Pindrop Security™. Confidential. 2015 Pindrop Security™. Confidential.

FRAUD ORDERS

  • Average value of fraudulent
  • rders per call
  • Some fraud is caught before

the items are shipped

$0.17 $0.65

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2015 Pindrop Security™. Confidential. 2015 Pindrop Security™. Confidential.

FRAUD EXPOSURE

$0.17 $0.65 $2.40

  • The value of the stolen

account

  • The amount of in-store credit
  • ffered
  • Non-monetary attacks
  • Social Engineering
  • Reconnaissance
  • Privacy Breaches
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2015 Pindrop Security™. Confidential. 2015 Pindrop Security™. Confidential.

BEST PRACTICES

COLLABORATIVE Share info across

  • rganizations

EVERY CALL Function in adverse conditions, on all or most calls ANOMALY DETECTION Detect fraud on the first call TRANSPARENT Fast, behind the scenes MULTIFACTOR Examine multiple aspects of call for accuracy

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2015 Pindrop Security™. Confidential. 2015 Pindrop Security™. Confidential.

LOSS

  • Packet loss
  • Robotization
  • Dropped frames

SPECTRUM

  • Quantization
  • Frequency filters
  • Codec artifacts

NOISE

  • Clarity
  • Correlation
  • Signal-to-noise ratio

147 audio features

Phone Type Geo-Location Other Risk Factors

PHONEPRINTING™

Phoneprint™ Call Audio

Requires 15 seconds

  • f call audio

86

Risk Score

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2015 Pindrop Security™. Confidential.

PINDROP SECURITY

Phone Fraud Stops Here. For more information contact info@pindropsecurity.com