The Digital PIN ROI Operational Savings + Security
November 2009
Agenda
Current Market Situation
Pros and Cons of PIN Issuance Methodologies
Cost and Security Advantages for Moving to Digital
Egg Banking Case Study
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
PIN Issuance Market
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.
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
How Do We Stay Secure?User Authentication
Cardholder verification method (CVM)
Signature
PIN
PIN
Online - verified by issuer
Offline - verified by card
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
…
Issues with Traditional PIN Issuance
Method: Issues:
Paper-based PIN mailers 1) Delay in card usage
2) High cost
3) Highly insecure
Susceptible to angled-light attacks
Mail interception
ATM PIN selection 1) ATM susceptible to manipulation
Interactive voice response 1) Not easy to secure
Impossible to encrypt and travels over a public network
http://business.timesonline.co.uk/tol/business/money/consumer_affairs/article4259009.ece
The Digital PIN Issuance Advantage
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
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
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 competitor’s card.
No worries about the PIN mailer getting lost in the post
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.
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 individual’s 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
BUT HOW?
New Technology: SafeNet ViewPIN+
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.
2008 Best Solution in Finance
2008 Best e-Transaction Solution finalist
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.
What is the Business Case?
Typical ViewPIN+ Deployment
ViewPIN+ Cardholder Experience
ViewPIN+ Cardholder Experience
ViewPIN+ Cardholder Experience
ViewPIN+ Cardholder Experience
Who can benefit?
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
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
Egg Case Study
Egg Bank selects SafeNet
Challenge The world’s 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,” Egg’s Lead Security Architect Stuart Horler
Thank You!