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
Profitability
Customer
Satisfaction
Security
Environmentally
Responsible
Reduces operational costs, increases revenue, and saves
resources for banks, credit card companies, and retail programmembership 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
Profitability
Customer
Satisfaction
Security
Environmentally
Responsible
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
Profitability
Customer
Satisfaction
Security
Environmentally
Responsible
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
Profitability
Customer
Satisfaction
Security
Environmentally
Responsible
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+
2008 Best
Solution in
Finance
Profitability
Customer
Satisfaction
Security
Environmentally
Responsible
2008 Best eTransaction
Solution
finalist
Proven
Revolutionizing PIN Issuance the ONLY fully automated, secure webbased 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.
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?
Cost
Reduction
Fraud
Reduction
Cardholder
Experience
Brand
Evolution
Typical ViewPIN+ Deployment
ViewPIN+ Cardholder Experience
#1
• Cardholder enters the
bank web portal
#2
• Cardholder logs into bank
account
#3
#4
• Cardholder quests PIN
• Cardholder retrieves PIN
ViewPIN+ Cardholder Experience
#1
• Cardholder enters the
bank web portal
#2
• Cardholder logs into
bank account
#3
#4
• Cardholder quests PIN
• Cardholder retrieves PIN
ViewPIN+ Cardholder Experience
#1
• Cardholder enters the
bank web portal
#2
• Cardholder logs into bank
account
#3
#4
• Cardholder quests PIN
• Cardholder retrieves PIN
ViewPIN+ Cardholder Experience
#1
• Cardholder enters the
bank web portal
#2
• Cardholder logs into bank
account
#3
#4
• Cardholder quests PIN
• Cardholder retrieves
PIN
Who can benefit?
Retail &
Commercial
Banking
Mobile
Payments &
GSM
Wealth
Management
Any
Organization
Issuing
Credentials!
Large
Retailers
Card Issuers
Cost of Paper PIN Issuance
Category
Size
Description # of Cards
in
Circulation
Actual Cost
Lost Revenue
Per Year (US $) 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
100,0001,000,000
$ 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
100,0001,000,000
$ 7,100,000
Small Card Issuer
Local and
Under 100,000
Community Banks
$ 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!