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). EMV Compliance 2011 *: 99% of Europe's 398k ATMs 75% of the 90k ATMs in Russia 56% of the 59k ATMs in Canada Anti-skimming countermeasures needed Source: (*) European ATM Security Team (EAST) Versus USA: 0% of 420k ATMs are EMV compliant* • Until we have a global infrastructure of Chip and PIN (*) 3 major Banks now starting EMV programs

The top four forms of ATM attacks 21,00 ,000 repor ported ed ATM M attac tacks s in in Europe pe in in 2013 • Card Skimming • Card Trapping • Physical Attacks • Logical Attacks Source: ATMIA, EAST, NCR Financial Services 4/26/2016 NCR Confidential 5

Direct cost Impact of ATM attacks: RAM RAID CARD CARD EXPLOSIVE SIVES LOGICA CAL L ATTACK CK SKIM IMMIN ING TRAPPI PING BURGLA LARY Global Ever- Regionall nally y Expand anding ng Charac acteri ristic tics #1 Globally present Opportun unistic tic globally Typical al Loss Pe Per $50,0 ,000 $1,0 ,000 $150,00 ,000 $150,00 ,000 Attack k $2.4 .4B / ye year r $3.2 .2M M annual ual $21M M in Euro rope pe MX - $11.7 .7M M in “Macro” Losses industry y losses losses in Euro rope pe in 2012 2013 (know own) n) Trend nd Potent Po ntial al risk expos osur ure of $1,0 ,000 per ye year ar for r every ATM M deployed *TRF = Transaction Reversal Fraud 4/26/2016 NCR Confidential 6

EMV EM V ATM M Im Implementat lementation ion Pla lanning ing Best st practices actices  Customer/Member Education planning  Confirm ATM Servicer ATM HW/SW readiness  Confirm ATM processor readiness  Implementation Day!

Cust stomer/Membe omer/Member r Ed Education cation Prep ep  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

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

Con onfir irm m ATM M processo rocessor r 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

Im Implementati lementation on Day!  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

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

CONTACTLESS The next generation of Transaction Security!

Four our ge genera nerations tions of of ele lectr ctron onic ic payme ments nts 1 st Generation 2 nd Generation 3 rd Generation 4 th Generation • First plastic credit • Magnetic Stripe card • Chip / EMV • Contactless Cards card 1959 1981 / 1995 card 1992 and Phones 1 4/26/2016 NCR Confidential 5

Con ontactle tactless s an and NFC FC Contac tactless less NFC Near Field Communi unicat ation on (NFC) is a stand ndar ards- based, , shor ort-range ange wireless conne nnectivity technology hnology that enab ables simple and safe fe two-way ay cont ntac actless interac actions ons betwe ween n electron onic devices. (Source: NFC Forum) Phone, Card and Key ‘Fobs’ using NFC technology to support non -cont ontact trans nsac actions ons 1 4/26/2016 NCR Confidential 6

Con ontactle tactless s Oppo portunities tunities at at the ATM • Alignment to contactless programs driven by card schemes, Transaction banks or retailers Initiation or • Valid perception of ‘more secure’ since card or other form Pre-Staged factor cannot be swallowed or be skimmed Transactions • Card activation leveraging the security of the channel • Top up of existing prepaid contactless cards e.g. transportation Contactless Card… e-payment (MiFare Standard) Top-Up • Funds transfer or cash deposit for non banked customers • Enhanced transaction (eg bill payment) authentication EMV Level 1 (using FW ver. 1.2.9 or above) Payment MasterCard Mchip Application Visa VCPS Support …or NFC mobile American Express Expresspay 1 4/26/2016 NCR Confidential 7

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

Why Branch Transformation? • 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 20

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 Teller er at remo mote e work ork locat catio ion interactive environment 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

NCR R Interac activ ive Teller ler Transactions: 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 •

Interactive Services Portfolio INTERACTIVE INTERACTIVE INTERACTIVE TELLER EXPERT BANKER In person Remote Remote Assisted FULL Mobile Service Service Service Extend reach of specialists to Connecting customers with Branch staff gain complete better serve customers, grow a remote teller in a highly visibility and control of revenue, and provide reach personalized, two-way customer transactions, using into the mobile space audio/video interaction tablet software REMOTE VIEW SOFTWARE Window Patching End to End Remote Diagnostics Solution EJ Archiving Management Security Managed Services NCR Confidential 24

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” •