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The Digital PIN ROI Operational Savings Security

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the most money that moves in the world. 80% of all electronic banking ... business.timesonline.co.uk/tol/business/money/consumer_affairs/article42590 09.ece ... – PowerPoint PPT presentation

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Title: The Digital PIN ROI Operational Savings Security


1
The Digital PIN ROI Operational Savings
Security
  • November 2009

2
Agenda
  • Current Market Situation
  • Pros and Cons of PIN Issuance Methodologies
  • Cost and Security Advantages for Moving to
    Digital
  • Egg Banking Case Study

3
SafeNet Today
protects
  • the most money that moves in the world. 80 of
    all electronic banking transfers -- 1 Trillion a
    day
  • the most digital identities in the world. Most
    PKI identities for governments and F-100
    companies
  • the most high-value software in the world. 80
    Million hardware keys more than any other vendor
  • the most classified information in the world. The
    largest deployment of government communications
    security

4
PIN Issuance Market
5
The Reality
  • Fact The card and payment market is growing at
    approximately 10 a year WW PIN mailers costs
    issuers millions
  • This means your cost is going to continue to
    rise.

6
The Reality
  • Fact Hackers are becoming more sophisticated and
    identity theft makes up 45 billion of crime in
    U.S.
  • The cost per fraud increased 25- 691/incident
  • The need to protect against fraud is more
    critical than ever!
  • source Javelin Group 2008

7
How Do We Stay Secure? User Authentication
  • Cardholder verification method (CVM)
  • Signature
  • PIN
  • PIN
  • Online - verified by issuer
  • Offline - verified by card

8
Who Manages This? Card Issuers
  • 730 Million EMV cards WW
  • Role of the Card Issuer
  • Initialise each card
  • Establish key pairs
  • Personalise each card
  • PIN
  • SDA signature
  • Key Pairs for
  • DDA
  • PIN encryption
  • Keys for
  • Application Cryptograms
  • Secure Messaging

9
Issues with Traditional PIN Issuance
Method Issues
Paper-based PIN mailers Delay in card usage High cost Highly insecure Susceptible to angled-light attacks Mail interception
ATM PIN selection ATM susceptible to manipulation
Interactive voice response Not easy to secure Impossible to encrypt and travels over a public network
http//business.timesonline.co.uk/tol/business/mon
ey/consumer_affairs/article4259009.ece
10
The Digital PIN Issuance Advantage
11
Imagine a World of Secure Digital PIN Issuance
  • Secure PIN delivery endpoint
  • Real time delivery
  • Provide an end-to-end encrypted transaction
  • Separation between the cardholder identity and
    the PIN
  • No risk of internal or external breach

12
Digital PIN Issuance Advantages
Reduces operational costs, increases revenue, and saves resources for banks, credit card companies, and retail program-membership card issuers.
Eliminates paper PIN issuance costs an upwards of 1.50 per mailer
Reduces frequency of PIN requests ultimately reducing overhead expenses
By increasing the security around PIN issuance, they will actually be reducing the cost per incident of 691/incident source Javelin Group 2008
13
Digital PIN Issuance Advantages
Digital format is often easier to use and provides instant issuance of PIN
Cardholders conveniently retrieve a PIN for a newly issued card online
Enables instant PIN retrieval, card will be top of wallet. In contrast, delivery of PINs via mail takes an average of 10 days, which could be 10 purchasing days a cardholder is using a competitors card.
No worries about the PIN mailer getting lost in the post
14
Digital PIN Issuance Advantages
Eliminates PIN-based fraud and far surpasses the security provided by paper-based PIN mailers or voice-based interactive systems
Eliminates PIN based fraud because it bypasses the paper based PIN mailer system and postal delivery systems
Even the most recent online systems, such as interactive voice response (IVR), cannot be secured.
15
Digital PIN Issuance Advantages
An ecologically responsible alternative to sending PINs over the mail
Financial services and payment providers make up over 3 of an individuals carbon footprint.
Besides lowering operational costs, converting mailers from paper to digital will drastically help financial service providers reduce their carbon footprint, as well as promote their green image
16
But How?
17
New Technology SafeNet ViewPIN
2008 Best e-Transaction Solution finalist
2008 Best Solution in Finance
Revolutionizing PIN Issuance the ONLY fully
automated, secure web-based PIN issuance and
management solution on the market that delivers
unprecedented cardholder satisfaction and costs
savings by eliminating expensive, insecure and
time-consuming paper based PIN delivery to
cardholders.
18
What is SafeNet ViewPIN?
  • A secure, web-based solution to
  • Issue PINs to cardholders
  • Remind cardholders of their PIN
  • Have cardholders change their PIN.
  • From any web browser, PC-based or mobile phone
    based.
  • In essence, it is a secure credential delivery
    mechanism.

19
What is the Business Case?
20
Typical ViewPIN Deployment
21
ViewPIN Cardholder Experience
22
ViewPIN Cardholder Experience
23
ViewPIN Cardholder Experience
24
ViewPIN Cardholder Experience
25
Who can benefit?
26
Cost of Paper PIN Issuance
Category Size Description of Cards in Circulation Actual Cost Per Year (US ) Lost Revenue Per Year (US )
Top 10 Card Issuers Worldwide Banks and Retailers 1,000,000 3,560,000 2,394,000
Midsize Card Issuer Regional Banks and Midsize Retailers 100,000-1,000,000 1,780,000 1,197,000
Small Card Issuer Local and Community Banks Under 100,000 178,000 199,000
27
ROI of Digital PIN Issuance
Category Size Description of Cards in Circulation 5 Year Average Net Present Value (US )
Top 10 Card Issuers Worldwide Banks and Retailers 1,000,000 18,700,000
Midsize Card Issuer Regional Banks and Midsize Retailers 100,000-1,000,000 7,100,000
Small Card Issuer Local and Community Banks Under 100,000 571,000
28
Egg Case Study
29
Egg Bank selects SafeNet
  • Challenge
  • The worlds largest online bank.
  • Wanted to send PINs efficiently, securely, and in
    a manner to improve the overall cardholder
    experience
  • Needed a way to allow cardholders to securely
    obtain pins over the Internet
  • Traditional paper-based system was costly and
    posed risk
  • Solution
  • SafeNet ViewPIN for secure PIN issuance, which
    is secured by SafeNet Luna SP Hardware Security
    Module (HSM)
  • Benefits
  • Quick implementation that improved cardholder
    experience and provided Egg with a major
    competitive advantage
  • Improved profitability by reducing postage and
    PIN mailer expenditures, as well as cardholders
    were able to use their cards for purchases
    quicker
  • Secure PIN issuance solutions reduced the
    occurrence of credit card fraud from stolen PIN
    mailers

Roll out of the Chip and PIN project has proven
extremely beneficial to Egg, offering us a secure
alternative to PIN mailers which is both cost
effective and cardholder friendly, Eggs Lead
Security Architect Stuart Horler
30
Thank You!
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