Green team october 16 2006 product customizable credit card protection c 3 p
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Feasibility Presentation. Green Team October 16, 2006 Product: Customizable Credit Card Protection (C 3 P). Organization Chart. This family received food stamps. www.co.kern.ca.us/dhs/images/0987.jpg. This family received money from FEMA. www.katrinapictures.blogspot.com/.

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Green team october 16 2006 product customizable credit card protection c 3 p

Feasibility Presentation

Green Team

October 16, 2006

Product: Customizable Credit Card Protection (C3 P)


Organization chart
Organization Chart

Green Team


This family received food stamps

www.co.kern.ca.us/dhs/images/0987.jpg

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This family received money from fema
This family received money from FEMA

www.katrinapictures.blogspot.com/

Green Team


This family received both
This family received both

http://www.spasearch.org/admin/images/fld_main_photo/fld_main_photo_38.jpg

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What do these families have in common
What do these families have in common?

  • All these families received Government money

  • The first two used the money as intended

  • The third is guilty of spending government money on things other than the intended purpose

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Fema fraud
FEMA Fraud

  • Hurricane Katrina victims

    • 900,000 of 2.5 Million aid applicants were fraudulent*

* http://www.msnbc.msn.com/id/11326973/

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Problem statement
Problem Statement

Government organizations and private businesses have inadequate protection against unauthorized purchases by authorized cardholders, which results in a loss of funds.

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Problem analysis
Problem Analysis

  • Out of a $2.5 trillion government budget**

    • $14 billion was spent on private purchases by employees

    • $2 billion was spent on unauthorized purchases by employees*

* Foiling credit card fraud by Jenny C. McCune • Bankrate.com

** http://www.gpoaccess.gov/usbudget/

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Problem characteristics
Problem Characteristics

  • Tracking physical receipts

    • Archaic

    • Inaccurate

    • Unreliable

    • Easy to lose

      • Employees produced 20% of all transaction receipts*

  • Cards can be stolen

  • Organization loses money

    • Money spent unwisely by an authorized user of the card is not covered under fraud protection

* http://www.dallasnews.com

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Solution characteristics
Solution Characteristics

  • Prevention of lost corporate funds

    • Reduces personal, unwarranted spending

  • Biometrics

    • Prevents unauthorized use

  • Uses customizable database

    • Allows different business to have different options

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C 3 protection card
C3 Protection Card

  • So what is C3P? – Customizable Credit Card Protection

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Objectives
Objectives

  • Develop a customizable credit card system to prevent unauthorized purchases by employees

    • Customizable database to hold prohibited purchases

      • GUI to allow customization of database

        • Uses Merchant Commercial Codes (MCCs)

        • Use Universal Product Codes (UPCs)

  • Implement latest security technology for card protection

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Features
Features

  • Secure Credit card

    • 128-bit DES encryption

    • Biometrics

      • Fingerprint

      • Photo ID

    • Allows customizable control over card’s use

    • Controlled by a user interface to each business’ personal database

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Customers
Customers

  • Hard Customers

    • Visa

    • MasterCard

    • Discover

    • American Express

  • Soft Customers

    • Every business that holds a business credit card

    • Caring and concerned parents who issue credit cards to their children

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Customer characteristics
Customer Characteristics

  • Credit Card Companies

    • Spend millions each year on securing their credit cards*

    • Minors are Credit Card Company’s new target consumer**

  • Credit Card Company’s Consumers

    • Small businesses report billions of dollars in losses through embezzlement each year***

    • Parents are concerned with giving children control of a credit card yet are even more concerned about giving a child real cash**

  • * http://news.com.com/Retailers+feel+security+heat/2100-7349_3-5680788.html

  • ** http://www.bankrate.com/fox/news/cc/20000508.asp

  • *** http://www.fbi.gov/publications/financial/fcs_report052005/fcs_report052005.htm

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Why does the customer need this?

  • Soft customer

    • Secure and efficient control of company funds

    • Reduced costs to prevent and lesson the effects of fraud

    • Parental control of children's spending

  • Hard Customer

    • Offer safer card services to credit users

    • Larger customer base

      • Increase of large, reliable customers

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Rfid card specifications
RFID Card Specifications

  • An embedded antenna that is attached to the chip is used to transfer information stored in the chip's memory

  • The range of operation is 2.5" to 3.9“

  • Information can be written to the card the same way it is read.

  • The fingerprint scanner can be added

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Software features
Software Features

  • Intuitive web-based GUI Interface

    • Able to customize MCCs and/or UPCs by creating an ‘acceptance’ list

    • Able to analyze and graph employee spending habits

  • Incoming UPCs and MCCS are compared with an ‘acceptable’ database of allowed codes

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Receipt tracking
Receipt Tracking

  • For each business, all employee purchases are tracked and listed by employee

  • Receipts will list accepted and rejected purchases

  • Receipts can be grouped by purchaser, date, and/or MCC

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Smart card setup
Smart Card Setup

  • User account access information added to smart card memory by C3P

  • 1st user finger scan saves a three-dimensional electrical image of the fingerprint's unique pattern using small variations in finger surface capacitance.

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Authentication process
Authentication Process

Current Process

NEW Process

Vendor must

take the credit

card and ID

from customer

Hold your thumb

over the fingerprint

scanner to prove

your identity.

Then vendor must

authenticate the

customer by

judgment alone.

If your fingerprint

matches, the Smart

Card & RFID chip

will be activated

Touch the card

to the card

reader and the

transaction will

be processed.

If the customer

matches the

identification, the

transaction is made.

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Payment process
Payment Process

Current Process

NEW Process

You swipe your card at

the point-of-sale register.

Vendor swipes

your card at

the point-of-sale

register.

Your data is sent to our

servers for verification.

The data is sent

to a computer

to verify your

credit.

Your data is then sent to

the credit servers to verify.

If you have

the funds, your

purchase is

allowed.

If your card is accepted

and your purchases are

valid, sale is complete.

Green Team


What s in the box

Credit card customer information

What’s in the Box?

What’s Not In The Box

Loading Station

What’s In The Box

What’s In The Box

Businesses

IF REQUESTED:

Computer with Internet connection

Credit Card Companies

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Flow of information hardware

c. Send notification of request

d. Sell camera (opt.) & authentication code

Business

C3P makes RFID smart cards w/ biometrics

g. Sell cards with C3P (RFID chip/C3P logo/biometrics

Flow of Information/Hardware

a. Request CC w/C3P

b1. Camera? How many cards?

b2. Reply

e. Send camera (opt.) & authentication code

Business accesses C3P database online

f. Send photos

h. Send cards with CC logo & photo ID

Green Team


What this product does not do

  • Provide point-of-sale RFID readers

  • Protect against blocking of authorized purchases

    • Will mostly be a result of human error

    • Will decrease in occurrence as more businesses use product

  • Provide credit for businesses

Green Team


Competition matrix
Competition Matrix

Uses existing card readers

Tracks purchases and patterns

Uses existing card readers

Customizable purchase restrictions

Blacks-out MCC codes

Blacks out UPC codes

Biometric ID (photo and fingerprint)

Prevents Duplication

For Government Use

For Personal Use

For Business Use

Can set Spending Limits

Cards

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Cost soft customer
Cost (Soft Customer)

* http://www.processor.com/editorial/article.asp?article=articles/P2716/30p16.asp&guid=

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Cost hard customer
Cost (Hard Customer)

* http://configure.us.dell.com/dellstore/config.aspx?c=us&cs=04&kc=6W300&l=en&oc=pe1950-max&s=bsd

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Pros

  • Smart Card Technology

    • Quick

    • Uses Biometrics

      • Safe and Secure

  • Customizable

    • Spending limits

    • Tracks Items Bought

    • Tracks Vendors Bought From

  • More Efficient

    • Saves Time Spent On Accounting

  • Saves money

  • Keeps better records

    • Automatic record of exact item bought and vendor shopped at

    • Better information for routine audits

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Cons

  • Uses fingerprints

    • People are afraid of giving up such information

      • Solved with encryption and marketing

  • Vendors need RFID readers

    • Requires New Technology

      • Many vendors are getting scanners

        • 7-11 is adding 5,600 RFID scanners this year*

  • Accidental blocking of necessary purchases

    • Solved with training and research

  • 24/7 Server/Website Maintenance

* mastercard.com

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Risks
Risks

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Risks1
Risks

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Return on investment
Return on Investment

  • Improves reputation of credit card company

  • Reduces loss of money due to unscrupulous purchases

  • Saves time used to perform manual audits

  • Reduces fraud

  • Reduces the number of investigations required

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Conclusion
Conclusion

  • Regulates how funds are spent

  • Uses biometrics

    • Prevents the use or selling of stolen cards

  • Vendors, credit customers, and card companies will benefit

    • Vendors will get higher quantity and more efficient business

    • Credit customers are protected and have less wait-time in line

    • Card companies get to sell cards and RFID sensors to vendors while increasing their number of users

  • C3P will revolutionize the credit system world wide

Green Team


Questions
Questions

At this time, we welcome any questions you may have.

Green Team


References
References

  • DISD credit card oversight lax:

  • http://www.dallasnews.com

  • Picture 1:

  • www.co.kern.ca.us/dhs/images/0987.jpg

  • Picture 2:

  • www.katrinapictures.blogspot.com/

  • Picture 3:

  • http://www.spasearch.org/admin/images/fld_main_photo/fld_main_photo_38.jpg

  • FEMA Fraud, http://www.msnbc.msn.com/id/11326973/

  • IEEE Feasibility Study on biometric credit cards: http://www.ee.ucla.edu/faculty/papers/ingridv_TransCE_nov04.pdf#search=%2 2Portable%20Biometrics%22

  • Smart Card technology with localized, portable biometrics:

    http://www.biometricassociates.com/smartcard.php

  • Open source smart card technology, both software and hardware:

  • http://www.smartcardalliance.org/industry_news/industry_news_item.cfm?ite mID=1596

Green Team


References

  • Food stamp fraud: http://www.frac.org/html/federal_food_programs/programs/fsp_faq.html#4

  • Food stamp info: http://www.fns.usda.gov/fsp/faqs.htm#9

  • Data on food stamp fraud:

    • (http://www.eweek.com/article2/0,1895,1972079,00.asp)

    • (http://www.foodstampfraud.org/)

    • (http://www.cioinsight.com/article2/0,1540,1850300,00.asp)

    • FEMA Fraud data:

    • http://www.cnn.com/2006/US/09/13/katrina.fraud/index.html?section=cnn_topstories)

    • (http://www.msnbc.msn.com/id/11326973/)

    • Lockout codes

    • http://www.admin.mtu.edu/acct/dept/pur/purchcard/lockout.htm

  • Info on why this is a problem:

    • http://www.dallasnews.com/sharedcontent/dws/news/localnews/stories/070206dnmetpcards.192c71f.html

    • http://financialplan.about.com/od/studentsandmoney/a/TeenCreditCards.htm

  • Info on current program in place:

    • http://arc.publicdebt.treas.gov/DWP/fs/fscredcard.htm#1

  • Data and why this is needed – EPA’s complaint paper on current system!!!

    • http://www.epa.gov/oig/reports/1995/bankrep.htm#CHAPTER%204

  • How credit cards work: http://money.howstuffworks.com/credit-card2.htm

Green Team


Appendix a
Appendix A

Expert Testimony from Admiral Julius Caesar from SAIC

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Expert Testimony – Current Problems

  • Navy sailors are given credit cards for travel because they do not have enough personal cash

    • Spending money in “Girly Bars”

    • Tabs in excess of $15,000

  • Private Business

    • Employee used company credit card to put $14,000 down payment on a house

    • Employee bought several $1,500 airline tickets, and canceled the flight to collect the cash refund, which he used to finance his private company

    • Employee bought $1,500 in thongs at Victoria Secret

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Expert Testimony - Current Solutions

  • Only activating the credit card for the duration of the travel

  • Background credit checks on employees to be entrusted with company funds

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Expert Testimony – Loose ends left by current solution

  • Can’t regulate purchases

  • Company liable for purchases

    • Employees can’t pay the company back

      • Must be taken to court

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Expert testimony – Time and Money spent on problem

  • ~$25,000 per division per year

  • 20 Divisions

  • ~$250,000 per year for this company

  • Credit card companies dropped the Navy as a customer because of fraud problems

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Expert Testimony - Data

  • 2002: 1.4 million Government Travel Cards in use

    • $ 3.4 billion spent on purchases with these cards

  • One man made $262,800 in charges on 13 Government Credit Cards

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Expert Testimony – On C3P

  • Target “high risk” employees

    • In the 18-25 year-old bracket

      • Don’t know how to use credit

    • Employees with bad credit

Green Team


Authentication
Authentication

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Fingerprints
Fingerprints

Advantages:

  • Relatively Mature Technology

  • Low Cost

  • Highly Portable Technology

Green Team


Biometric fingerprints

Finger Print Characteristics

Genetic and environmental factors

Never the same

Biometric image cannot be reproduced

Biometric Fingerprints

  • Finger Print Scanner

    • Capacitive Scanner

    • Electric Current

Green Team


Appendix b
Appendix B

Merchant Commercial Code (MCC) – A specialized code that categorizes a store based on what it sells (e.g. Target and Wal-Mart have the same MCC)

Universal Product Code (UPC) – A code that designates a specific product, different for every brand and variation of a product (Lay’s and Pringle’s potato chips still have different UPCs)

Green Team


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