Troy Nyi Nyi- BPC: Building Resilient and Fraud Prevention Strategies

Troy Nyi Nyi, Global Head of Commercial – Fraud at BPC on Building Resilient and Fraud Prevention Strategies at the Digital Finance Africa 2024 conference.

1. Building Resilient and Fraud Prevention Strategies Digital Finance Africa 2024 Troy Nyi Nyi Global Head of Commercial - Fraud

2. Agenda BPC Intro Global Fraud Trends & MOs How To Break The Flow Key Recommendations Future Outlook SmartVista Fraud Management Q&A

3. 1996 Founded 27+ Central Banks and National projects 450+ Clients Switzerland Headquarters 8 Data centers 120+ Countries 21 Offices 50 Nationalities Industry Recognition 1,200 people BPC Overview

4. 450+ Institutions Powered By BPC’s Smartvista In 120+ Countries across 5 Continents Retail Banks Digital Banks Wallets Ecommerce Payment Providers Central Banks Governments UAE Spain Indonesia Panama Greece Algeria Egypt Ivory Coast Ethiopia Philippines Bulgaria Industries We Serve

5. Digital Platforms Fraud Prevention Government Payments Payments, Issuing & Acquiring Smart City Mobility Marketplaces E-Commerce Unlock More Opportunities With Just One Platform SVIP Integration Platform / Open Banking 3 rd party Core Banking

6. Global Fraud Trend in Financial Services Source: Globaldata Report 2023

7. Global Fraud Trend in Financial Services Organizations lost up to 5% of revenue to fraud every year Online payment losses are to exceed $343 billion globally between 2023 and 2027 46% organizations have experienced fraud in past 24 months Source: Association of CFEs 2023 Source: Juniper Research 2022 Source: PWC Global Fraud Survey Gaps in fraud prevention 37% of organizations do not have organizational Enterprise Fraud Management solutions in place, that leads to fragmented datasets Source: Forrester Report – Tues Cost of Fraud The cost of fraud goes far beyond the face value Bad customer experience Brand/Reputation damage Regulatory warnings

8. Global Fraud Trend in Financial Services Phishing / Social Engineering /ATO Payment Fraud (Card, Wire, APMs) Impersonation / APP / GenAI Synthetic ID Fraud / Identity Theft ML & Money Mules / Insider Fraud First or Third Party Application Fraud * GenAI is the double-edged sword

9. Fraud Trends Within South Africa 36% increase in digital banking application fraud in South Africa (2022 vs 2021) Source: Sabric Crime Statistics 2022 24% increase in digital banking fraud in South Africa (2022 vs 2021) Source: Sabric Crime Statistics 2022 76.9% (credit) 61.5% (debit) % of CNP (Card Not Present) fraud compare to total gross losses from card frauds Top Trends Phishing / Scamming Payment Fraud (Card, APMs) ATO Source: Sabric Crime Statistics 2022

10. Compromise data Initiate transaction Spread data among fraudsters and prepare attack Authenticate transaction Fraud management solution Regulations and security controls Industry cooperation Customer authentication and channel security How To Break A Flow

11. Key Recommendations Combine a risk-based and data-drive approach Balance fraud prevention and CX Leveraging emerging technologies Proactive fraud risk assessments/ rule updates via feedback loops Awareness and customer education Collaborative/ Consortium fraud intelligence Regulatory collaboration Organization-wide integration for full insights

12. Enterprise FM Solutions – The Taxonomy Fraud Management Platform Operation mode Decisioning mode Data used Model type Scope of analysis Deployment model Integration options Card issuing Card acquiring E-commerce Digital banking Instant payments Account transfers Channel/touch point Standalone Part of suite, integrated On premise SaaS Enterprise Siloed Constant checks List checks Velocity checks Behavior checks AI/ML models Current trx History External Online Near-online Offline Automated Managed Case management Analytic tools

13. Future Outlook – Predicted Fraud Trends AI-powered scams Fraud-as-a-Service Ecosystem Digital currency scams IoT (Internet Of Things) vulnerabilities Exploitation of mobile payment platforms Synthetic identity fraud Friendly fraud Loyalty & gift cards fraud

14. SmartVista Fraud Management in brief

15. SmartVista Fraud Management (SVFM) Online Omnichannel Flexible All-In-One Global Flexible configuration of data model, interfaces and mapping, analytical models, Machine Learning scoring models and web interface Analytical engine, case management module for per-channel and omni-channel investigation, reporting and visual analytics Presence in all regions of the world gives unique experience and knowledge of global and region-specific trends in risk and fraud area 15 Online real-time monitoring to prevent fraud and mitigate related risks in omni-channel environment Category leader in enterprise fraud management 2023 Category leader in AML transactions monitoring 2023

16. Customers and use cases APAC MEA Europe NALA 1 8 0+ customers, 84 countries, +2 7 new customers in 202 3

17. Online/near-online transactions and events Individuals and corporates Internet and mobile banking Cheques Cards Accounts Wallets Offline transactions and data Back office Payment schemes Sanctions lists Other systems Event driven SMS/push/email notifications Notifications to external systems SmartVista Fraud Management OLTP Operation Check Results Transactions Accounts Customers Cards Merchants Disputes Back Office Fraud Reports Sanction Lists Fraud Management DB ! Event Notification External Systems Web Interface SMS/Push Server Email Server File Event Notification Web Service Calls SMS/Push Notification Configuration and Daily Operations Email Security Check Request 17 Interfaces

18. BANK OF AFRICA End to End payment suite across 17 countries BPC Solution Multi-country CMS Mobile banking – Multi Country Internet banking - Multi Country Merchant Management Interoperable Switch Integration Platform (Business workflow and API engine) QR Code Payments Results Needs Managing multi-country, multi-regulation, multi-currency environments Over 3 900 000 accounts connected Extension of reach and onboarding capabilitites Reduction in time to market – centrally deployed new digital products

19. FBN (Nigeria) Upgrade of Processing functionality Cover bank subsidiaries as well Omni-channel and customer centric view across digital channels Migration from Legacy BPC Solution Single platform for online real-time fraud monitoring across 10+ payment channels Customer involvement into a payment analysis flow with confirmation to prevent fraud losses Results Needs 19 Secure transactions Modern processing and acquiring capabilities

20. DSK Bank (EMEA, Bulgaria) Secure card payments (issuing, acquiring), e-commerce and account-based payments Be compliant with PSD2 regulation No single solution for multiple channels Lack of expertise in configuring scenarios Pain points Enterprise solution for all payment channels PSD2 compliance Lists screening BPC supported scenarios creation and tuning Lowest fraud rate in the country €3 mln . losses prevented in few months after the launch BPC solution Needs 20

21. QNB (Qatar, Egypt) Have flexible tool to configure online and near-online rules for card issuing and acquiring transactions Enable security on digital banking and other payment channels Online monitoring for card transactions Omni-channel and customer centric view across digital channels, online and near-online BPC solution Deployments in Qatar and Egypt Card-based monitoring with rules and neural scoring model (Qatar) Results Needs 21 PSD2 complia nce Highly secure translations and processes Seamless integration with third-party systems and DBs

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