Introducing Secure PumpPAY A Payment Security solution for your existing fuel dispensers from VeriFone

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Introducing Secure PumpPAYA Payment Security
solution for your existing fuel dispensers from
VeriFone
Customer Logo Here

• Your Company Name Here

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Discussion Topics

• Why Secure PumpPAY ? Why now
• What our customers are telling us
• Overview of Secure PumpPAY features
• Dispenser retrofit kit options available
• Understanding your fuel dispenser PCI options
• Common Misconceptions Information you need to
  Know
• What to expect during installation
• Other PCI-related solutions you should consider
• Questions

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Why Secure PumpPAY, Why Now?

• Convergence of three key attributes
• Card usage sharply increased at the pump
• PCI standards and dates have been cemented
• Improved security at retail stores and
  restaurants has exposed our industries
  vulnerability
• Over 1 million fueling positions are prime
  targets

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Significant rise in card use at petroleum retail
sites

• Pay at the pump availability has grown steadily
• Approx. 90 of sites offer pay at the pump
• Approx. 60 of sites also accept Debit at the
  pump
• North America has over 700K dispensers (over 1.4M
  fueling points)
• Cards have surpassed cash as dominant payment
  form at convenience stores
• Recent rise in fuel costs have driven additional
  card transactions

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PCI standards and dates have been cemented

• January 2009
• New fuel dispensers must support Triple DES
  (TDES) by January 1, 2009.
• All newly deployed unattended POS PIN acceptance
  devices must contain an EPP that has passed
  testing by a PCI recognized laboratory and is
  approved by Visa for new deployments.
• Impact TDES-capable PCI certified keypads
  required on new dispensers accepting PIN debit
  transactions.

Visa Security Mandates

• July 2010
• Existing fuel dispensers must support Triple DES
  (TDES) by July 1, 2010.
• All transactions originating at POS PEDs must be
  encrypting PINs using TDES from the point of
  transaction to the Issuer (end-to-end)
• Impact TDES-capable PCI certified keypads
  required on all dispensers accepting PIN debit
  transactions.

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Key PCI dates you need to be aware of
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Improved Security in other industries has exposed
our vulnerability
Thieves Increasing Targeting Fuel Dispensers
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Degree of Security
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Retail
Restaurants
Gas Stations
Organized Crime Focus
Using a credit card at a gas station poses more
of a risk for data theft than shopping online, as
point-of-sale terminals at the pump have emerged
as a weak link in the security chain ?
Gartner Group
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Fuel dispenser skimming is becoming epidemic
7/29/08 Calgary Police estimate 2 or 3 new
"Skim" sites are set up every day in Calgary.
The lead investigator, Constable Darren Hafner
guesses there's up to 50 different stores in
Calgary on any given day with skimmers and
cameras operating.
7/29/08 Under the pretense of needing a nicotine
fix, a man walked into an Edmonton gas station
last week and ran out with a debit-card machine.
7/23/08 OPP investigators believe they've broken
up a fraud operation that involved the use of
"skimming" devices in fuel pumps to collect the
credit card and debit card information of Windsor
and Essex County residents.
7/23/08 Devices used to steal your credit card
number are showing up in the Austin area. Just
last week, Texas Department of Public Safety
troopers say they found one in a man's car.
They're afraid he's part of a much bigger
operation.
7/22/08 In Las Vegas, just in the last month,
we have recovered 4-5 skimmers and a gas station
skimmer that was actually in a pump.
7/9/08 That's what Pennsylvania State Police
said about the thieves who cracked into numerous
Lower Bucks bank accounts by planting a card
skimmer inside gas pumps, including one at a
Bristol Township Wawa.
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What our Customers are telling us

• Most customers dont understand what they have to
  do to meet PCI mandates
• Think the dates will be pushed out again
• Dont believe these PCI mandates apply to them
• Are angry with the Card Associations because of
  Interchange Fee Ransoms they are paying
• There is much confusion about the various options
  available
• Other companies are misrepresenting their
  capabilities and leading customers to believe
  there are inexpensive, stop-gap solutions that
  are also Secure and will protect them from fraud

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Overview of Secure PumpPAY
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Overview of Secure PumpPAY and its Features
32 bit processor Secure embedded Linux OS
Color LCD screen 5.7 ¼ VGA
24MB memory 8MB Flash, 16MB DRAM 512K Secure SRAM
8 screenaddressable keys
Contactless Card Reader Integrated into unit
Tamper responsive housing PCI PED certified
Built-in privacy shield Recessed keypad easier to
use
Large key polymer keypad IP65 rated sealed PIN pad
Dip Style Magnetic Stripe Card Reader
Connectivity2 serial ports 1 Ethernet
port Optional PSTN/ISDN port
Software Development Kit APIs and XML/HTML
GUI development tools
Remote key loading
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Increases fuel dispenser security

• Extended bezel around unit eliminates or reduces
  ability of cameras being used for capturing PIN
  entries
• Tactile keypad prevents keyboard overlay skimmers
  from being installed
• OP4100 housing conceals all cables making
  installation of skimmers more difficult
• PCI EPP 1.3 certified

• New keys for doors will make access to Secure
  PumpPAY units more difficult as keys are not
  widely available
• Canadian version features Secure Card Reader (EMV
  certified) which encrypts message from MSR to EPP
  and door switch
• VeriShield Protect will further improve security
  by encrypting track data as soon as it is read by
  the MSR

Impact Criminals will target pumps with known
vulnerable DCRs
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Secure PumpPAY Security Benefits

• Meets the latest Payment Card Industry (PCI)
  requirements to provide the most secure on-line
  PIN entry as well as Triple DES method of
  encryption at the fuel dispenser
• Secure PumpPAY housing conceals all cables making
  installation of skimmers more difficult
• New keys for doors will make Secure PumpPAY units
  more difficult to access as keys are not widely
  available

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Secure PumpPAY Enhanced Security Benefits

• Extended bezel around unit reduces or eliminates
  ability of cameras being used for capturing PIN
  entries
• Polymer tactile keypad prevents keyboard overlay
  skimmers from being installed
• Remote key load feature allows debit keys to be
  loaded in the field and helps ease the process
  when changing networks

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Additional Secure PumpPAY Benefits

• Integrated, all-in-one design simplifies
  installation into existing pumps Retrofit Kits
  available for all major dispenser manufacturers
  and models, and can be done in as little as 30
  minutes.
• Large color display provides bright
  attention-getting messages that help drive
  customers into the store for high margin sales.
• Integrated high resolution printer included and
  can prominently highlight graphics such as
  company logos and bar-coded receipts for in-store
  promotions.

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Additional Secure PumpPAY Benefits

• Built in Contactless Reader is included which
  future proofs your investment
• Simplify management and customer interface by
  having the same system at all pumps.

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Secure PumpPAY vs. other PCI options
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What are all of my options for pump security?

Replace Dispenser with new product that features
PCI EPP
Very costly

Replace only the Keypad with PCI EPP

Replace the Keypad and Card Reader with PCI EPP
and Secure Card Reader


Replace Keypad, Card Reader and Display with PCI
approved integrated payment terminal
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Understanding the Risks Current Scenario
Current Payment System Vulnerabilities
Bug on MSR Cable Capture Track Data
Bug in MSR Capture Track Data
Debit Encryption
PIN Pad Tampering Capture Track Data and PIN
Encryption Module (GSM, etc.)
To Point of Sale
Tap on Line Capture PINs and Track Data
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Understanding the Risks TDES-Only Scenario
TDES-only vulnerabilities Move encryption to the
dispenser
Bug on MSR Cable Capture Track Data
TDES Keypad Debit encryption
Bug in MSR Capture Track Data
PIN Pad Tampering Capture Track Data and PIN
Dummy GSM or Replaced
To Point of Sale
PINs Can NO longer Be captured here
Tap on Line Capture Track Data
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Understanding the Risks EPP Scenario
Encrypting PIN pad-only solution vulnerabilities
Bug on MSR Cable Capture Track Data
Bug in MSR Capture Track Data
Tamper Resistance Detection
Dummy GSM or Replaced
To Point of Sale
PINs and Track Data Hard to capture
Can STILL Capture Track Data
Tap on Line Capture Track Data
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Understanding Risks EPP Secure Card Reader
Scenario
EPP and Secure Card Reader Solution
Vulnerabilities
Can NOT Capture Track Data on cable
Bug on MSR Cable Capture Track Data
Bug in MSR Capture Track Data
Tamper Resistance Detection
Dummy GSM or Replaced
To Point of Sale
PINs and Track Data Hard to capture
Can STILL Capture Track Data
Tap on Line Capture Track Data
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Common Customer Misconceptions
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Is fuel pump fraud really a problem? (Am I really
at risk?)
Petroleum retailers should be aware that the
number of fuel pump breaches is increasing
dramatically.

• In the last 2 years, there have been 24 fuel pump
  breaches reported
• At least 70 stations have reported their pumps
  were breached
• At least 800 consumers had their cards
  fraudulently used
• Estimates of the fraud amounts are over 1.5M, or
  2,000 per card average

• In the past three months, skimming at the pump
  has been reported in

• Arizona
• California
• Delaware
• Florida
• Georgia
• Indiana

• Ontario
• Saskatchewan
• Africa
• India
• Australia
• United Kingdom

• Illinois
• Massachusetts
• Michigan
• Nevada
• New Jersey
• North Carolina

• Pennsylvania
• Texas
• Washington
• Wisconsin
• British Columbia
• Alberta

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Is fuel pump fraud really a problem? (Am I really
at risk?)
Petroleum retailers should be aware that the
number of fuel pump breaches is increasing
dramatically.

• Data breaches more than doubled in 2008 first
  quarter
• Data breaches disclosed by Hannaford Bros
  Supermarket chain, GE Money, and Georgetown
  University are just some of the 167 breaches
  reported during the first quarter of 2008,
  according to the non-profit Identity Theft
  Resource Center.

• "Using a credit card at a gas station could pose
  more of a risk for data theft than shopping
  online...petroleum and convenience retailers must
  react quickly to avert unnecessary exposure to
  fraud and the mitigation expense they will
  undoubtedly incur if left unchecked." Gartner
  Inc. Analyst

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Is fuel pump fraud really a problem? (Am I really
at risk?)
Petroleum retailers should be aware that the
number of fuel pump breaches is increasing
dramatically.

• Most retailer breaches are NOT disclosed, Gartner
  says
• While nearly half of U.S. retailers have been hit
  with some kind of information security attack,
  only a small percentage of them have actually
  reported breaches to their customers, research
  company Gartner reports.
• In a new study based on interviews with 50 U.S.
  retailers, Gartner found that 21 of them were
  certain they had a data breach. However, just
  three of the retailers had disclosed the incident
  to the public. (Only 14 of breaches.)

• If this is true, then the ACTUAL number of fuel
  pump breaches may be
• 500 fuel dispensers breached
• Almost 6,000 consumers with fraudulent
  transactions
• Over 10M in fraudulent transactions

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Is there a difference between PCI vs. TDES
Other companies are saying all I need to do to
meet PCI mandates is install a TDES keypad, is
that true?
The only current requirement is TDES encryption
at the fuel dispenser beginning on July 1, 2010.
That only encrypts PINs and does nothing to
protect your customers card data and your
business from data thieves.
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One option I will just stop taking Debit at the
pump
Cant I just stop accepting PIN Debit at the
pump?
Yes, but turning off debit has two key risks

1. Most Card Association Merchant Services
   Agreements require merchants to accept debit
   along with all other forms of card payments.
2. Debit usage by consumers is high at fuel stations
   and the trends are that debit usage will continue
   to grow. You will likely lose customers in
   addition to lost sales.

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Its too expensive. How can I pay for Secure
PumpPAY?

FINANCE
No. Pumps 2 4 6 8 Monthly Finance 220
440 660 880 Price

LEASE
No. Pumps 2 4 6 8 Monthly Lease 210 420
630 840 Price

RENT
No. Pumps 2 4 6 8 Monthly Rental 1,500
3,000 4,500 6,000 Down payment Monthly
Rental 168 336 504 672
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What about new Standards?
What about new standards that may be coming out?
What else do I need to do to protect my business?
Secure PumpPAY was designed for the European
market it already includes the advanced security
features that are being added to the next set of
PCI requirements.
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Will I also need software upgrades
Will I have to upgrade my other software to work
with Secure PumpPAY?
Probably not, most customer locations are already
on a POS application software release that is
compatible with Secure PumpPAY
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Creating Display Content

• How can I take advantage of the new display?
  Will I need to hire a marketing company to create
  ads and promotions for me?
• No, Secure PumpPAY includes a tool to load
  graphical content to the display that anyone can
  use. It is windows-based and features drop and
  drag functionality.

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Creating Display Content

• Do some graphics come with the unit?
• Yes, your Secure PumpPAY unit will come with a
  graphics library that includes instructional
  messaging and some promotional messages

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What do I get when I buy Secure PumpPAY

• Secure PumpPAY consists of TWO components
• Payment terminal and accessories
• OP4100 Payment terminal
• VeriFone Interface Board (VIB)
• Power Supply
• Thermal Printer
• Cable assembly kit
• Dispenser door assembly kit
• Door frame
• Hinges, locks, mounting brackets
• Dispenser-specific connectorized cable harness
• Help Desk included for the first year
• On-Site Maintenance service provides extended
  warranty coverage

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Dispenser Models Supported

• Secure PumpPAY options are currently available
  for
• Gilbarco Advantage series
• Dresser-Wayne Vista series
• Tokheim Premier
• B- series
• C- series
• MMD series
• Bennett Pacific series
• Additional options are planned for 2009
  including
• Gilbarco Encore series
• Dresser-Wayne Ovation series
• Others based on customer need
• Schlumberger 4000 and Centurion

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What you can expect during Installation
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The Installation Process

• Most work will be done at the Installers service
  location
• Pre-installation or staging activities include
• Loading the OpenPAY application
• Loading of the Debit keys
• Loading of any graphic content you would like and
  have provided
• Assembly of the Payment terminal and printer into
  the door frame assembly
• During the day the equipment is being installed
• The installer will only turn down half of the
  dispensers at a time
• You will still be pumping fuel from the remaining
  dispensers
• The old equipment is removed
• Pre-assembled devices will be installed
• The new door frame assembly will be installed
• Technician tests the POS to new equipment
  connection
• New equipment is activated and now processing
  payments
• The above process is repeated for the other half
  of the dispensers

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Gilbarco Advantage Fuel Dispenser after
Installation
Before
After
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Tokheim Premier B Fuel Dispenser after
Installation
Model 333B with MMD pictured
Before
After
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Tokheim Premier C Fuel Dispenser after
Installation
Before
After
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Wayne Vista Fuel Dispenser after Installation
Before
After
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Bennett Pacific Fuel Dispenser after Installation
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Installation Complete
Secure PumpPAY processing transactions
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Servicing Secure PumpPAY

• Secure PumpPAY includes an initial 1 year parts
  warranty and also includes a one year Help Desk
  support agreement
• Extended warranties up to five years can be added
  to include On-Site Maintenance
• Servicing of the Secure PumpPAY units will be
  done by the same VASC technicians who currently
  provide service to your location

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Removing old DCRs return Maintenance savings

• Costly to maintain components are removed
• All of the items below are removed when
  installing Secure PumpPAY eliminating the need to
  service or maintain these costly parts
• CRIND Logic, printer and display boards and power
  supplies
• Debit Security modules (GSMs, TEDs, DSMs, etc)
• Card Reader firmware
• Improved graphics downloading
• With Secure PumpPAY, you also improve the
  graphics download time ?5 minutes with SPP vs.
  as much as 45 minutes in a typical VeriFone to
  CRIND scenario.
• Results in less time your dispensers are offline!

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Rebranding? No Problem!

• Servicers can request new encryptions keys for a
  nominal processing fee (12 per key request)
• The new encryption keys can be loaded in the
  field without having to remove the hardware
• A significantly less costly proposition
• Simplifies the process in changing card
  processing networks

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Secure PumpPAY the only Secure payment solution
Questions?
For the latest information, check out
http//www.securepumppay.com