ATM EMV Overview Presented to: Northwest Card Association Presented - - PowerPoint PPT Presentation

ATM EMV Overview

Presented to:

Northwest Card Association

Presented by: Tom Wiese – VP Product Director/Business Development

Outline line

• Drivers for EMV wave
• How to prepare for EMV implementation
• New technologies happening in ATM channel

Drivers for EMV Implementation in US

• Counterfeit card fraud reduction -$8.6 Million in US(Aite Group

estimate)

• Potential to eliminate ~ 1/3 of fraud (card present / counterfeit -

Fiserv estimate)

• Offset by some percentage as fraud migrates to card not present
• Remaining mag stripe card bases could become a target
• Cardholder satisfaction
• International travelers
• Fraud liability shift
• Acquirer take transaction liability risk if an EMV-enabled card is

presented at a non EMV-enabled POS terminal in April 2013 for international Maestro cards

• Acquirer takes transaction liability risk on Mastercard in October

2016

• Acquirer takes transaction liability risk on VISA in October 2017

Skimming still top global ATM crime

Card Skimming still biggest global challenge Global move to EMV – Industry compliance

• 99% ATMs in Europe EMV compliant Skimming

incidents up 3% but losses down 26% (EAST 2011) due to Chip and PIN

• The magnetic stripe still being copied in EMV markets

Fraud migration to non-EMV countries

• US losses approaching $1 billion annually

(Bankrate.com); average loss $50K (ABA).

Anti-skimming countermeasures needed

• Until we have a global infrastructure of Chip and PIN

EMV Compliance 2011 *: 99% of Europe's 398k ATMs 75% of the 90k ATMs in Russia 56% of the 59k ATMs in Canada

Source: (*) European ATM Security Team (EAST)

Versus USA: 0% of 420k ATMs are EMV compliant*

(*) 3 major Banks now starting EMV programs

NCR Confidential 4/26/2016 5

The top four forms of ATM attacks

• Card Skimming
• Card Trapping
• Physical Attacks
• Logical Attacks

Source: ATMIA, EAST, NCR Financial Services

21,00 ,000 repor ported ed ATM M attac tacks s in in Europe pe in in 2013

NCR Confidential 4/26/2016 6

Direct cost Impact of ATM attacks:

RAM RAID EXPLOSIVE SIVES BURGLA LARY

CARD TRAPPI PING CARD SKIM IMMIN ING

Regionall nally y Opportun unistic tic Global Ever- present #1 Globally $150,00 ,000 $1,0 ,000 $50,0 ,000 $21M M in Euro rope pe in 2012 $3.2 .2M M annual ual losses in Euro rope pe $2.4 .4B / ye year r industry y losses LOGICA CAL L ATTACK CK Expand anding ng globally $150,00 ,000 MX - $11.7 .7M M in 2013 (know

• wn)

n) Po Potent ntial al risk expos

• sur

ure of $1,0 ,000 per ye year ar for r every ATM M deployed Charac acteri ristic tics Typical al Loss Pe Per Attack k “Macro” Losses Trend nd *TRF = Transaction Reversal Fraud

• Customer/Member Education planning
• Confirm ATM Servicer ATM HW/SW readiness
• Confirm ATM processor readiness
• Implementation Day!

EM EMV V ATM M Im Implementat lementation ion Pla lanning ing Best st practices actices

• Statement stuffers
• Website update
• Specific letters to customer
• Make sure ATM re-enforces change for dip reader units
• local ATM screens or ATM network screens
• New ATM dip reader decals (can be supplied by CSG)
• New signage around ATM

Cust stomer/Membe

• mer/Member

r Ed Education cation Prep ep

• Make sure that the necessary HW/SW is enabled
• Make sure all ATM SW has up to date SW patches loaded &

“common AID” feature SW patch is loaded

• “Common AID” – recent requirement not known when EMV HW/SW

installed by servicer

• What is Common AID? Allows merchant to route to multiple networks
• Let servicer know when you are doing pilot & roll out – sets

service call expectations

ATM Servicer vicer ATM HW/S /SW W readiness adiness

• Make sure you have work orders in for pilot and final rollout – do it

soon if you have not done it! Beat the procrastinators!!

• Make sure they are providing EMV specific instructional screens
• Make sure that set up “dip card return first” before cash dispense

Con

• nfir

irm m ATM M processo rocessor r readiness adiness

• Make sure that you pilot one site first near you!
• Run at least 2 EMV card transactions
• If transaction not successful….
• Alert ATM processor to see if configuration problem
• If no ATM processor problem place service call with ATM servicer
• Roll out balance of fleet once pilot runs for week without issues

Im Implementati lementation

• n Day!

Qu Ques estions tions on n EMV MV Pla lanni nning ng ?

Tec echnologies hnologies st star arting ing to get get tra raction tion

• Contactless Cards – new level of security!
• Full Managed Service of your ATM Fleet – lets

you focus on your core business!

• Branch Transformation – implementing

strategies to address transactional to consultative focus for Branches

The next generation of Transaction Security!

CONTACTLESS

NCR Confidential 4/26/2016 1 5

Four

• ur ge

genera nerations tions of

• f ele

lectr ctron

• nic

ic payme ments nts

1st Generation

• First plastic credit

card 1959

2nd Generation

• Magnetic Stripe card

1981 / 1995

3rd Generation

• Chip / EMV

card 1992

4th Generation

• Contactless Cards

and Phones

NCR Confidential 4/26/2016 1 6

Con

• ntactle

tactless s an and NFC FC

Contac tactless less NFC

Near Field Communi unicat ation

• n (NFC) is a stand

ndar ards- based, , shor

• rt-range

ange wireless conne nnectivity technology hnology that enab ables simple and safe fe two-way ay cont ntac actless interac actions

• ns betwe

ween n electron

• nic

devices.

(Source: NFC Forum)

Phone, Card and Key ‘Fobs’ using NFC technology to support non-cont

• ntact trans

nsac actions

• ns

NCR Confidential 4/26/2016 1 7

Con

• ntactle

tactless s Oppo portunities tunities at at the ATM

…or NFC mobile Contactless Card…

Payment Application Support

EMV Level 1 (using FW ver. 1.2.9 or above) MasterCard Mchip Visa VCPS American Express Expresspay

Top-Up

• Top up of existing prepaid contactless cards e.g. transportation

e-payment (MiFare Standard)

• Funds transfer or cash deposit for non banked customers
• Enhanced transaction (eg bill payment) authentication

Transaction Initiation or Pre-Staged Transactions

• Alignment to contactless programs driven by card schemes,

banks or retailers

• Valid perception of ‘more secure’ since card or other form

factor cannot be swallowed or be skimmed

• Card activation leveraging the security of the channel

RemoteView Software – Connect Your Operation

SW/Data Disk back up

Protects tects from m Diebold charges es

CS CSG G Remot motevi view w ATM:

 Full Remote ATM Diagnostics Over 65% FLM calls cleared within 20 minutes- uptime Be Compliant for Auditors w/quarterly reports Push Windows updates and Patches remotely Real time custom reports remotely Electronic Journal Storage Anti Virus, Security Protection & white listing Upload marketing screens remotely SW/data back up nightly at ATM Works on all windows based brands (Wincor, NCR, Diebold) Dedicated CSG RemoteView Tech to admin

20

• Branch Transformation Overview
• Improve Teller Efficiency
• Increase Branch Sales and Referrals
• Expand Market Share in a Cost Effective Way
• Create Branches FOR the Future not OF the

Future

Why Branch Transformation?

Interactiv active Service ices s - Video collabor laborat ation ion and tran ansact saction ion processing cessing

Connects consumers and tellers in a remote yet highly personal interactive environment

Teller er at remo mote e work

• rk

locat catio ion

Video Call Center – Office - Home Teller can see and hear customer

Consum umer er at serv rvic ice e locat catio ion

Branch – Retail – Corporate – Drive-up Consumer can see and hear teller

NC NCR Interac activ tive Tell ller

Interactive Teller to assist with all aspects of banking

See & speak with a LIVE teller Transaction types:

• Cash Deposit
• Check Deposit
• Check Cashing
• Cash & Coin Withdrawal
• Account Transfer/Payments
• Customer Service Inquiries
• Account Opening
• Bulk Note and Check Accepter

NCR R Interac activ ive Teller ler

Transactions:

Extend reach of specialists to better serve customers, grow revenue, and provide reach into the mobile space

Remote Mobile Service

24 NCR Confidential

Connecting customers with a remote teller in a highly personalized, two-way audio/video interaction

In person Assisted Service

Branch staff gain complete visibility and control of customer transactions, using tablet software

Remote FULL Service

INTERACTIVE TELLER INTERACTIVE BANKER INTERACTIVE EXPERT

Interactive Services Portfolio

Window Patching Remote Diagnostics EJ Archiving Security Managed Services

End to End Solution Management

REMOTE VIEW SOFTWARE

Cook Security Group History & Facts

• Founded in 2002
• 210+ Passionate Employees
• Multiple Experts in Every Product Line
• Pride in Response Time & Cost Effective Services
• We Service
• 260 Financial Institutions
• 12,000+ Branches
• Motto: “We Make it Happen”

Who is Cook Security Group?

• We are all about Service & Fulfillment
• Using Technology and boots on the

street, We make it happen!

• Business Lines: ATM, TCA, Managed

Services, Electronic & Physical Security

• Coverage in 6 States
• Oregon – Washington - Idaho
• California – Nevada - Montana
• Top 100 Companies in Oregon (#21)
• Top 100 Companies in Washington (#6)