View on demand webinar: https://securityintelligence.com/events/recent-ecbeba-regulations-how-they-will-impact-european-banks-in-2016/ The recent European Central Bank’s (ECB) Recommendations for the Security of Internet Payments and European Banking Authority (EBA) regulations have mandated numerous requirements for European banks to enhance online fraud prevention practices. Most European banks are required to include additional capabilities in risk analysis, malware protection, and strong authentication to meet the security requirements. Assaf Regev, Product Marketing Manager, IBM Security Trusteer, will expand on how the new regulations will impact the European financial sector and what your bank will need to do to not only comply but also to be more secure. The key requirements for effective and sustainable online banking security as outlined by the ECB/EBA The need for layered security – why present controls may not be enough How IBM can help meet the ECB/EBA recommendations on time and on budget, while minimizing deployment, management and operational costs

1. Trusteer Positioning
ECB/EBA Recommendations for
Security of Internet Payments:
© 2015 IBM Corporation
Monday, December 07, 2015

2. Agenda
General information and milestones
– Things to note
The Guidelines
The layered security approach
How, why, and which IBM Security Trusteer product(s)?
Responding to the Specific Requirements
Summary / Next steps
2© 2015 IBM Corporation
Summary / Next steps

3. August 2015
Guidelines define
minimum requirements
2017 / 2018
Additional guidelines from
the EBA are expected once
the updated Payment
Services Directive (PSD2) is
published
Milestones and Recommendations
3© 2015 IBM Corporation
December 2014
EBA publishes the Final
Guidelines on Internet
Payments Security, based on
the European Forum on the
Security of Retail Payments
(SecuRe Pay)
minimum requirements
that have to be fulfilled
by PSPs under the PSD
published
Link to the Final Guidelines

4. Things to Note
The recommendations constitute a “living
document”
The recommendations are descriptive (vs.
prescriptive)
The bank may address recommended
solutions by other means
The recommendations constitute minimum
Regulations
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The recommendations constitute minimum
expectations. It’s the responsibility of PSPs to
monitor and assess their particular risks,
develop their own detailed security policies and
implement adequate security measures that
are commensurate with the risks inherent in
the payment services provided.

5. Final guidelines on the Security Of Internet Payments
As per document issued in Dec 2014
R2
• Risk Assessment
R3
• Incident Monitoring and Reporting
R4
• Risk Control and Mitigation
R7
• Strong Customer Authentication
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R7
• Strong Customer Authentication
R8
• Enrolment for, and provision of authentication, tools and/or software
delivered to the customer
R9
• Log-in attempts, session time out, validity of authentication
R10
• Transaction Monitoring
R12
• Customer Education and Communication

6. The Guiding Principles
Fraud prevention layers, listed in order of effectiveness
Device Security
• Ensuring the accessing device is secure and malware free
User Authentication
• Verify the authorized user and device with multifactor (tamper-proof) user
authentication
Transaction Monitoring
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Transaction Monitoring
• Identify anomalous user behaviors and known fraud patterns
Network Analysis
• Correlate known fraud with other potentially fraudulent events
Customer Awareness and Education
• Ongoing customer education through continuous communication

7. Existing security controls
Do they impact your business?
7© 2015 IBM Corporation
Account &Transaction
Restrictions
Intrusive Controls
Increased Authentication
Challenges
IncreasedTransaction
Delays
Increased Investigation
Costs
DisruptiveValidation &
Verification

8. At a glance
ECB Recommendations mapped to Trusteer’s solutions (I)
Recommendation 2: Risk Assessment
KC 2.1 (Risk Assessment) Trusteer Cybercrime Intelligence
Recommendation 3: Incident monitoring and reporting
KC 3.1 (Reporting) Trusteer Cybercrime Intelligence
8© 2015 IBM Corporation
Recommendation 4: Risk Control and Mitigation
KC 4.2 (Phishing) Trusteer Rapport and Trusteer Pinpoint
BP 4.1 (Trojans)
Trusteer Rapport, Trusteer Pinpoint, Trusteer
Mobile Solutions (Mobile SDK, Secure Mobile
Browser)
AQ = Assessment Question
BP = Best Practice
KC = Key Consideration

9. At a glance
ECB Recommendations mapped to Trusteer’s solutions (II)
Recommendation 7: Strong customer authentication
AQ 7.0.1 (Use of 2+ elements for
authentication)
Trusteer Pinpoint and Trusteer Mobile SDK
AQ 7.0.4 (Protection of multi-
purpose devices)
Trusteer Mobile SDK; Trusteer Rapport;
Trusteer Pinpoint
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AQ 7.0.8 (Protection of devices
where secrets are stored)
Trusteer Rapport and Trusteer Mobile SDK
AQ = Assessment Question
BP = Best Practice
KC = Key Consideration

10. At a glance
ECB Recommendations mapped to Trusteer’s solutions (III)
Recommendation 8: Enrolment for and provision of authentication tools and/or
software delivered to the customer
AQ 8.1.1 (Protection of payments
– safe and trusted environment)
Trusteer Rapport, Trusteer Pinpoint, and
Trusteer Mobile SDK
AQ 8.1.1 (Software delivered to
customers not under the bank’s
control)
Trusteer Rapport; Trusteer Pinpoint, and
Trusteer Mobile SDK
10© 2015 IBM Corporation
control)
Trusteer Mobile SDK
Recommendation 9: Log-in attempts, session time out, validity of authentication
KC 9.1, KC 9.2, KC 9.3
(Log-in attempts, session time out,
validity of authentication)
Trusteer Pinpoint
AQ = Assessment Question
BP = Best Practice
KC = Key Consideration

11. At a glance
ECB Recommendations mapped to Trusteer’s solutions (IV)
Recommendation 10: Transaction monitoring
Overview (Trx Monitoring purpose) Trusteer Pinpoint
KC 10.1 (Fraud prevention systems
should detect malware in the
session)
Trusteer Pinpoint
11© 2015 IBM Corporation
KC 10.4 (Trx Monitoring shouldn't
delay transactions)
All Trusteer's solutions work in real time,
providing actionable results while the user is
interacting with the site.
KC 10.5 (Blocks should be
maintained for as short time as
possible)
All Trusteer's solutions operate in real-time and
are highly deterministic, providing per-
transaction results avoiding blanket "blocking"
of users
AQ = Assessment Question
BP = Best Practice
KC = Key Consideration

12. At a glance
ECB Recommendations mapped to Trusteer’s solutions (V)
Recommendation 12: Customer education and communication
Overview (reassure customers of
the authenticity of the messages
received)
Trusteer Rapport and Mobile
12© 2015 IBM Corporation
AQ = Assessment Question
BP = Best Practice
KC = Key Consideration

13. Trusteer’s Solution Overview
© 2015 IBM Corporation

14. Online Banking
Malware attacks
against the website
Account
takeover
Detects malware
targeting OLB website
Trusteer Pinpoint
Malware Detection
Trusteer Pinpoint
Criminal Detection
• Detect fraud risk
• Identify cross
channel attacks
Holistic detection of fraud
based on malware history
and persistent device ID
Trusteer’s multi-layered fraud protections
R4, R7, R10
R4, R10 R4, R7, R9, R10
14© 2015 IBM Corporation
Phishing and
malware fraud
Phishing and
malware fraud
Phishing and
malware
Trusteer
Rapport
• Detects and removes malware
• Prevents future malware infections
• Alert phishing attacks
Trusteer
Mobile SDK / Browser
R2: Risk assessment, R4: Risk control and mitigation, R7: Strong customer authentication, R9: Log-in attempts, session time out, validity of
authentication, R10: Transaction monitoring, R12: Customer education and communication
R4, R7, R10, R12

15. Trusteer Pinpoint Criminal Detection
Product Highlights
Trusteer
Rapport
Trusteer Pinpoint
Malware Detection
Trusteer Pinpoint
Criminal Detection
Trusteer
Mobile
15© 2015 IBM Corporation
Correlates Device and Account Risk Factors to
conclusively detect account takeover attempts
Automated Criminal Device Detection feeds a Global
Criminal Device Database
Automated Fraud Rules Creation based on Real-time
threat and attack intelligence
Transaction Anomaly Detection

16. Trusteer Pinpoint Malware Detection
Product Highlights
Trusteer Pinpoint
Criminal Detection
Trusteer
Rapport
Trusteer Pinpoint
Malware Detection
Trusteer
Mobile
16© 2015 IBM Corporation
Clientless detection of live Man-in-the-Browser (MitB)
Malware
Real-time alerts of high risk devices
Updates automatically deployed without customer
interaction and no business interruption
Integrate data into existing systems and workflows

17. Trusteer Mobile Solutions
Product Highlights
Trusteer Pinpoint
Criminal Detection
Trusteer Pinpoint
Malware Detection
Trusteer
Rapport
Trusteer
Mobile
17© 2015 IBM Corporation
Captures Persistent Device ID and Device, User and
Session Risk Factors
Comprehensive Fraud Protection Across Bank Mobile
Apps and Mobile Web Access
Correlates Mobile-specific risk, Online Risk (malware and
phishing) and Global Criminal Devices DB to prevent
Cross-Channel Attacks

18. Trusteer Rapport
Product Highlights
Pinpoint Criminal
Detection
Pinpoint Malware
Detection
Trusteer
Mobile
Trusteer
Rapport
18© 2015 IBM Corporation
Compact Software Agent for PC and Mac – minimal
impact on the end-user’s machine
Transparently protects user credentials & website
interaction
Removes existing infections upon installation and alerts
user & security team of potential phishing sites &
credentials loss

19. Trusteer Solutions
And how they match the requirements
ECB/EBA Guidance How can IBM Security Trusteer help?
Risk Assessment
Risk Control and mitigation
Incident monitoring and reporting
Strong customer authentication
19© 2015 IBM Corporation
Enrolment for, and provision of,
authentication tools and/or software
delivered to the customer
Log-in attempts, session time out, validity
of authentication
Transaction monitoring
Customer education and communication

20. Summary
© 2015 IBM Corporation

21. Summary
Why IBM Security Trusteer
• 475+ leading global organizations put their TRUST in us
• Threat Intelligence gathered from more than 270 million endpoints
Helps prevent the ““““Root
Cause”””” of Fraud
Helps prevent the ““““Root
Cause”””” of Fraud 7/10
Top U.S.
Banks
9/10
Top U.K.
Banks
4/5
Top Canadian
Banks
21© 2015 IBM Corporation
Reduce
Operational Impact
Reduce
Operational Impact
Utilize Global
Malware Intelligence Service
Utilize Global
Malware Intelligence Service
Improve Your
Customer Experience
Improve Your
Customer Experience
Banks Banks Banks
Major
European
Banks
2/4
Top Japanese
Banks
Major
Latin American
Banks

22. Q&A
© 2015 IBM Corporation

23. Statement of Good Security Practices: IT system security involves protecting systems and information through prevention, detection and response to improper access from within and outside
your enterprise. Improper access can result in information being altered, destroyed, misappropriated or misused or can result in damage to or misuse of your systems, including for use in attacks
on others. No IT system or product should be considered completely secure and no single product, service or security measure can be completely effective in preventing improper use or access.
IBM systems, products and services are designed to be part of a lawful, comprehensive security approach, which will necessarily involve additional operational procedures, and may require other
systems, products or services to be most effective. IBM DOES NOT WARRANT THAT ANY SYSTEMS, PRODUCTS OR SERVICES ARE IMMUNE FROM, OR WILL MAKE YOUR ENTERPRISE
IMMUNE FROM, THE MALICIOUS OR ILLEGAL CONDUCT OF ANY PARTY.
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