Tài liệu The Modernization of the Hungarian Banking System (1989-2000). Banking Card Market & its Fraud Characteristics. MONEYGUARD – the World Leading Banking Card Protection Messaging Solution. docx

Card fraud in Hungary (case study ) and MON™ fraud prevention system Mr Antal KUTHY Antal.Kuthy@egroup.hu President-CEO, E-GROUP Plc Board Member of Hungarian Assoc Of IT Companies & Chairman, Hungarian-Hong Kong Innovative Business Council SECURE BUSINESS AUTOMATION = Banking Front-Office Technology SECURE BUSINESS AUTOMATION Integrated Product Portfolio SECURE BUSINESS AUTOMATION Card fraud in Hungary ( a case study ) SECURE BUSINESS AUTOMATION OTP Group Merkantil Group (leasing group) OTP Mortgage Bank OTP Building Society Ltd Ltd OTP-Garancia Insurance Ltd OTP Fund Management Ltd Hungarian International Finance Ltd OTP Factoring Ltd OTP Fund Services Ltd OTP Real Estate Ltd OTP Travel Ltd OTP National Health Fund SECURE BUSINESS AUTOMATION Main f indicators of OTP Bank (audited, HUF billion, 1USD=250HUF) 2002 2003 growth % 2741000 28563000 4,1 cards issued connected to retail accounts 3023000 3162000 4,6 1305 11,2 Current accounts number of the Bank’s ATMs 1168 Total number of cards issued in 2003 3599000 FYI: Hu popolution is only 9.5m, so over 60% of card market) SECURE BUSINESS AUTOMATION • The number of transactions executed by the Bank's card owners through the Bank’s ATMs, reached 65.0 million in 2003 (2005: over 100m) • Turnover of these transactions was HUF1,594.2 billion, an increase of 5.6% and 17.8%, resp over 2002 • The number of withdrawal transactions on the Bank’s own POS network was 6.7 million, the turnover was HUF1,084.8 billion (2005 over 10m) • The number of purchases on POS terminals at merchants was 42.8 million (34.1% increase) valuing HUF351.4 billion (34.1% increase) EUR=250 HUF SECURE BUSINESS AUTOMATION OTP Bank as Acquirer Fraud by Type (%) 2003 Basis Points OTP 1998 24,09 1999 5,19 2000 0,45 2001 0,35 2002 0,29 2003 0,25 SECURE BUSINESS AUTOMATION OTP Bank as Issuer Fraud by Type (%) 2003 Increase in 2002: 25% Basis Points OTP 1999 2,19 2000 0,64 2001 0,42 2002 0,29 2003 0,24 SECURE BUSINESS AUTOMATION Nature of counterfeited cards transactions • Counterfeited cards: • 74% on POS • 26% on ATM (2003) ( this rate in 2000 was 100% POS.) • • • • ATM fraud is technical based Where use PIN code (POS) the fraud rate is smaller ATM robbery takes only >> Intelligent Analysis is necessary, special high value add expert systems) 17 SECURE BUSINESS AUTOMATION Monitoring process • • • • Visualization Analysis Alarm message (telephone, fax) Blocking card 18 SECURE BUSINESS AUTOMATION OTP Bank as Acquirer Total Reported Fraud / Sales Ratio Basis Points 19 SECURE BUSINESS AUTOMATION OTP Bank as Issuer Total Reported Fraud / Sales Ratio Basis Points The Hungarian and European ratios are calculated for only Mastercard and Maestro products 20 SECURE BUSINESS AUTOMATION End of 1st Part of Presentation Antal.KUTHY@egroup.hu 21 SECURE BUSINESS AUTOMATION ... of card market) SECURE BUSINESS AUTOMATION • The number of transactions executed by the Bank''s card owners through the Bank’s ATMs, reached 65.0 million in 2003 (2005: over 100m) • Turnover of. .. purchases with cards with the same BIN etc and compares the data to the average parameters characterizing the outlet • High Risk Blocking: The amount of the suspicious purchase is paid to the merchants... single day Purchases where the transaction amount exceeds the daily average transaction value of the merchant In case of new merchants the value is compared to MCC average Bankcards used in different