Green Team

November 15, 2006

Product: Customizable Credit Card Protection (C3P)

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Organization Chart

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Presentation Outline

• Problem/Solution Introduction• Process Description• Solution Characteristics• Market Analysis• Milestones, Deliverables, Budgets• Risk Assessment• Return On Investment• Conclusion

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Inspiration - Scenario

• You own a business, for example, a construction business– Large employee base– Employees need to make

purchases• Company credit account• Manual receipt tracking to

validate purchases

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Problem Statement

Organizations and private businesses have inadequate protection and controls over

unauthorized use by authorized cardholders, which results in a loss of

funds.

Current methods of addressing unauthorized use are expensive and

subjective.

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Inspiration – Limiting by Vendor

• Since your employees should only need to shop for building supplies and maybe other general supplies

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Inspiration – Limiting by Vendor

• They should not be using this card in stores other than those that sell these types of merchandise

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Inspiration – Limiting by Vendor

• By differentiating the types of stores the card is used in we can limit card purchases to only certain vendors

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• Hardware stores and construction supply stores have a wide selection of products for sale

Inspiration – Limiting by Product

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• Some of these items you do not want your employees to purchase on the company credit card

Inspiration – Limiting by Product

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• To guard against these unauthorized purchases, our solution will allow business leaders to customize specific items that each employee is allowed to buy from certain stores

Inspiration – Limiting by Product

11/15/2006 Green Team 12

Inspiration – Setting spending limits

news.bbc.co.uk/1/hi/uk/3476815.htm

• Your company’s budget is limited and fraudulent purchases can prohibit you from making necessary purchases

11/15/2006 Green Team 13

Inspiration – Setting spending limits

news.bbc.co.uk/1/hi/uk/3476815.htm

• Per diem spending limits prohibits overspending with the company credit card by entrusted employees

11/15/2006 Green Team 14

Inspiration – Data Mining

news.bbc.co.uk/1/hi/uk/3476815.htm

• A building site may need a certain amount of wood on a daily basis and many purchases are spur of the moment or outside of the original plan

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Inspiration – Data Mining

news.bbc.co.uk/1/hi/uk/3476815.htm

• The receipt tracking system is subjective and receipts can be misplaced

11/15/2006 Green Team 16

Inspiration – Data Mining

news.bbc.co.uk/1/hi/uk/3476815.htm

• Online data mining makes tracking employee spending habits easier

11/15/2006 Green Team 17

Inspiration - Web Interface

news.bbc.co.uk/1/hi/uk/3476815.htm

• And all of these settings are easily customizable through a web interface on our webpage.

11/15/2006 Green Team 18

Solution - C3 Protection Card

•So what is C3P? – Customizable Credit Card Protection

11/15/2006 Green Team 19

Credit Card Misuse

• Visa Business Card Spending– $190 Billion in 2006 *

• EPA research – Government Credit Card Holders

• 11% cannot produce receipts of purchases *• 9% of those that could be produced purchased

prohibited items *

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

11/15/2006 Green Team 20

Examples of Credit Card Misuse

• 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/

11/15/2006 Green Team 21

Examples of Misuse

• Surveyed Company– Misuse Prevention

• $250,000 spent per year• $100 per employee

• Corporate credit cards– Responsibility of corporation

• Not card holder

– Company loses money on misuse

* Admiral Julius Caesar

** James Brunelle

11/15/2006 Green Team 22

Problem Characteristics•Tracking physical receipts

–Labor Intensive–Inaccurate

–Difficult to identify and filter misuse–Unreliable–Easy to lose

•Employees produced 20% of all transaction receipts*

•Organization loses money–Companies are reimbursing employees for unauthorized and personal purchases

* http://www.dallasnews.com

11/15/2006 Green Team 23

Solution Concepts

• Regulate Types of Purchases – Reduce Receipt checking– Improve Accuracy

• Automatic prevention of prohibited purchases

– Improve reliability

• Organization saves money– Keeps control of money in hands of employer

11/15/2006 Green Team 24

Solution Characteristics

• Customizable database– Restrict Purchases by

• Universal Product Code (UPC)– Only at participating locations in USA

• Merchant Commercial Code (MCC)– Everywhere, including overseas

• Use Contact RFID Smart Cards– Fast & Secure– Programmable for transaction routing

• Modifiable sending of UPCs and MCCs

• Software– Web-based GUI

• User access for modification of card holder account• Reporting and Analysis tools• Drives Database

11/15/2006 Green Team 25

Software - Features

• Package includes– GUI– Database– Checking software

• Customizable database to hold approved purchases

• 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

11/15/2006 Green Team 26

Software - Reporting and Analysis

• Employee purchases – Tracked and listed by employee

• Online Receipt Tracking – List accepted and rejected purchases– Grouped by purchaser, date, and MCC

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Major Functional Component Diagram

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Getting C3P Cards

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Modification of Database

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Old Process of Making a Purchase

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New Process of Making a Purchase

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Purchase Verification

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Vendor – C3P Communication

Graphical User Interface - MCC

Graphical User Interface - UPC

11/15/2006 Green Team 36

Return on Investment

• Reduces fraud

• Corporate money is spent according to company policy– Reduces loss of money due to unscrupulous

purchases

• Saves time that would otherwise be used to perform manual audits

• Reduces the number of investigations required and their corresponding court costs

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Management Plan

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Management Plan - Communications

• Group Meetings– Sun. 8:00 PM, Wed. 8:00 AM, Fri. 9:00 AM– Minutes & Assignments sent via e-mail

• Team web page– Discussion– Minutes– Research

• Frequent Communications– E-mail– Phone

11/15/2006 Green Team 39

Management Plan - Tools

• Old Dominion University– Labs– Meeting Rooms

• Microsoft Project 2003 – Used to manage

project

11/15/2006 Green Team 40

Development Plan - Software Solution

An approximately 4,450 LOC solution including:– Networking package

• Accepts incoming connections• Sends out data

– Database code • Data lookup

– Web interface• Users and administrators to view and edit

information

11/15/2006 Green Team 41

Networking Package

• Networking program suite– Uses an established networking library

• Allow incoming data from the modem

• Queuing logic & mutual exclusivity– Ensure no data loss or corruption

• Credit Card Data– Format credit card data– Forward it to the credit card company

11/15/2006 Green Team 42

Database Package

• Convert incoming transaction data– MCC– Place of purchase– Purchase amount– UPC

• Analysis engine– Compare the pieces of incoming data with the allowed

settings that are stored on the C3P MySQL server

• Database engine– Stored and arrange data for formatting in reports

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Database Fields

• Shall include the following:– Card ID number– Card user name– Company name of card user– Approved list of MCCs– Approved list of UPCs– Company credit card number

11/15/2006 Green Team 44

Web Interface

• Written in PHP

• Easy-to-use interface– Customers and administrators

• Update user information and products

• Provide access to spending reports– Individuals & groups– Reports of misuse

11/15/2006 Green Team 45

Credit Card DataSecurity Standard

• Build and maintain a secure network

• Protect cardholder data

• Maintain a vulnerability management plan

• Implement strong access control measures

• Regularly monitor and test networks

• Maintain an information security policy

11/15/2006 Green Team 46

Evaluation Plan

• Financial• Technical• Schedule• Personnel• Weekly Progress Reports• Unit and Acceptance Test

– Required to complete milestones

• Risks directly related to factors focused on

11/15/2006 Green Team 47

Marketing Plan

• Primary target market: Businesses

• Advanced target market: Concerned parents

• Corporate buy-in

• Benefits to the customer

• Initial businesses for beta testing

• Advertising & Marketing strategy

11/15/2006 Green Team 48

Primary Target Market

• Users of Credit Cards– Businesses– Corporations– Concerned Parents

• Initial phase: Businesses– Small businesses report billions of dollars in

losses through embezzlement each year*

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

11/15/2006 Green Team 49

Primary Target Market

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

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

• Advanced Phases: Concerned Parents• Parents are concerned with giving children control

of a credit card yet are even more concerned about giving a child real cash*

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

11/15/2006 Green Team 50

Benefits to the customer

• Secure and efficient control of company funds• Reduced costs to prevent and lessen the

effects of fraud• Parental control of children's spending

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Corporate buy-in

• Benefits to the corporation– Targeted stores receive

business from C3P

cardholders

– Advanced Phase: Can request precedence in the GUI lookup

11/15/2006 Green Team 52

• Initiate beta testing on local business

• E.D.O. & S.A.I.C.– Expressed interest and acknowledged

innovativeness– These companies alone reflect a loss due to

credit card misuse

Initial businesses for beta test

11/15/2006 Green Team 53

Overall Marketing Strategy

• Travel to the individual businesses• Prove successful with single beta project• Pursue a greater region of businesses• Begin advertising campaign• Receive corporate buy-in

- Companies such as Target, Wal-Mart, Home Depot, etc.

• Take on full scale nationwide implementation• Hit advertising mediums

11/15/2006 Green Team 54

Advertising Strategy

• Distribution– Initial Roll-Out: Get one credit company on

board

• Advertising Mediums (Once onboard)– National Newspapers

• Technology and business sections

– MarketPro Technology Shows– TV/Internet

11/15/2006 Green Team 55

Ways to Use C3P

• Leasing– Rent Server and Database– Buy Software Package– C3P Controlled and Maintained– No initial costs

• Only service fee and leasing fee

• Buying– Buy Server and Database– Buy Software Package– Controlled within corporation– Initial fee

• Maintainence fee– Eliminates Privacy concerns if sensitive data is stored in

Database

11/15/2006 Green Team 56

Competition Matrix

Cards Uses existing card

readers

Tracks purchases and pattern

s

Customizable database of M

CC

Customizable purchase re

strictio

ns

Can set Spending Lim

its

Blacks-out MCC codes

Blacks out UPC codes

Prevents Duplic

ation

For Govern

ment Use

For Personal U

se

For Business U

se

MTU puchasing X     X X         X X

Government Credit X             X     X

Food Stamps X X   X   X X X      

Worldwide Purchasing X     X X     X   X X

Lecarte Purchase X   X X X         X  

NASA SmartPay X             X     X

PayPal                 X    

Mastercard X X X X X   X     X X

C3P X X X X X X X X X X X

Milestones and Deliverables

Phase 0 (CS410)

Feasibility Presentation

Team website

Presentation

Milestone Presentation

Presentation

Final Presentation

Product Website

Presentation

SBIR document

NSF SBIR Proposal Phase 1

Phase 1 (CS411)

SoftwareRequirements Document

Design DocumentApplication CodeData Mining CodeFormatting Code

Demonstration Prototype

Completed Prototype

TestingTest Plan Document

SBIR documentNSF SBIR Proposal Phase 2

11/15/2006 Green Team 58

Milestones and Deliverables

Phase 2: Critical Design

HardwareHardware Requirements Document

Database Setup

SoftwareRequirements Document

Design DocumentDatabase Application Code

POS Application CodeData Mining Code

Test Plan

Phase 3: Production Out Years

ProductionCard Company Contract

Vendor Contract

FinancingVenture Capital/Investment

DistributionDistribution Contract

MarketingAdvertising Campaign Launch

11/15/2006 Green Team 59

Schedule Overview

• Phase 0– 4 months – September 2006 to December 2006

• Phase 1– 4 months – January 2007 to May 2007

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• Phase 2– 17 months – June 2007 to November 2008

• Phase 3 (Production & Out Years)– December 2008 and Beyond

Schedule Overview

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ID Phase Start Finish Length 2006 2007 2008

1 Phase 0 8-30-06 12-18-06 109 days

2 Phase 1 12-19-06 4-17-07 120 days

3 Phase 2 4-17-07 4-27-08 375 days

4 Phase 3 4-27-08 8-1-08 70 days

Project Flow - Outline

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Phase 0: Organization Chart

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Project Flow – Phase 0Phase Start Finish Length 9/06 10/06 11/06 12/06Conception 8-30-06 9-19-06 20 days

Planning 9-18-06 10-3-06 15 days

Initial Research

9-20-06 10-6-06 13 days

Feasibility

Presentation10-9-06 10-18-06 8 days

Milestone

Presentation11-3-06 11-15-06 9 days

Approval Presentation

11-16-06 12-18-06 23 days

SBIR

Creation10-31-06 12-13-06 44 days

Website Creation

9-18-06 12-1-06 74 days

Postmortem 12-14-06 12-18-06 4 days

11/15/2006 Green Team 64

Phase 1: Organization Chart

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Project Flow – Phase 1Phase Start Finish Length 12/06 1/07 2/07 3/07 4/07

Prototype Planning

12-19-06 1-1-07 13 days

Research Tech.

1-2-07 1-7-07 5 days

Setup 1-8-07 1-19-07 11 days

Design 1-19-07 2-20-07 32 days

Development 2-20-07 3-10-07 18 days

Testing 3-10-07 4-1-07 21 days

Implement 4-1-07 4-5-07 5 days

SBIR

Phase 23-13-07 4-17-07 34 days

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Phase 2: Organization Chart

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Project Flow – Phase 2Phase Start Finish Length Spring

07Summer

07Fall

07Winter 07/08

Spring 08

Develop Team

4-17-07 5-30-07 43 days

Planning 5-30-07 7-22-07 52 days

Require-ments

7-22-07 8-27-07 36 days

Setup 8-27-07 10-3-07 36 days

Design 10-3-07 11-26-07 54 days

Develop-ment

11-26-07 1-18-08 52 days

Testing 1-18-08 4-10-08 82 days

Documen-tation

3-10-08 4-27-08 48 days

11/15/2006 Green Team 68

Phase 3: Organization Chart

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Project Flow – Phase 3Phase Start Finish Length 4/08 5/08 6/08 7/08 8/08

Develop Team

4-28-08 5-20-08 22 days

Hire

Personnel

4-28-08 5-2-08 5 days

Office Setup

4-27-08 4-30-08 3 days

Obtain Loan

4-28-08 5-9-08 11 days

Initial Rollout

4-28-08 7-21-08 82 days

Nationwide Rollout

7-21-08 8-1-08 10 days

11/15/2006 Green Team 70

Funding By Phase

Phase 1Hard Resources $0Personnel Resources $120,314Total $120,314Phase 2Hard Resources $65,697Personnel Resources $409,112Total $474,809Phase 3Hard Resources $15Personnel Resources $51,351Total $51,366TOTAL Funding $646,489

Funding By Phase Funding By Phase

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

Phase 1 Phase 2 Phase 3

Phase

Bu

dg

et C

ost

Hard Resources

Personnel Resources

11/15/2006 Green Team 71

Phase 1 Budget

Product # Units Cost/Unit TotalTOTAL $0

Resource # Salary* Overhead Hourly Hours TotalProject Manager 1 $75,616 $105,862 $55 562 $30,987Database Maintenance Team

Database Administrator 2 $73,252 $102,553 $53 579 $61,799Technical Director 1 $56,926 $79,696 $42 10390 $431,274POS Terminal Programmers

Programmer III 2 $57,397 $80,356 $42 0 $0Software Development Team

Web Developer 2 $52,920 $74,088 $39 108 $8,335GUI Programmer 1 $46,282 $64,795 $34 944 $31,857Programmer II 3 $45,368 $63,515 $33 0 $0

Risk Management Director 1 $68,141 $95,397 $50 0 $0Documentation Specialist 1 $35,751 $50,051 $26 696 $18,144Finance Director 1 $108,901 $152,461 $79 0 $0TOTAL $582,395

TOTAL Resources $582,395*Salary.com

Hard Resources

Personnel Resources

11/15/2006 Green Team 72

Phase 2 Budget

Product # Units Cost/Unit TotalDELL PowerEdge 6800 Advanced 3 $17,605 $52,815Windows Server 2003, Enterprise Ed. 3 $3,295 $9,885Microsoft Project Server 3 $999 $2,997RFID Cards 500 $0.16 $80Card Programmer 1 $90 $90Card Printer 1 $3,000 $3,000Domain Name Registrations 1 $15 $15TOTAL $65,697

Resource # Salary* Overhead Hourly Hours TotalProject Manager 1 75,616 105,862 55 1,008 55,578Database Maintenance Team

Database Administrator 3 $73,252 $102,553 $53 0 $0Technical Director 1 $56,926 $79,696 $42 4288 $177,989POS Terminal Programmers

Programmer III 3 $57,397 $80,356 $42 77 $9,710Software Maintenance & Installation Team

Web Developer 3 $52,920 $74,088 $39 713 $82,500GUI Programmer 2 $46,282 $64,795 $34 921 $62,163Programmer II 7 $45,368 $63,515 $33 266 $61,663

Risk Management Director 1 $68,141 $95,397 $50 0 $0Documentation Specialist 1 $35,751 $50,051 $26 391 $10,193Finance Director 1 $108,901 $152,461 $79 0 $0TOTAL $459,794

TOTAL Resources $525,491

*Salary.com

Hard Resources

Dell.comInternetSolutions.com

Personnel Resources

11/15/2006 Green Team 73

Phase 3 Budget

Product # Units Cost/Unit TotalDomain Name Registrations 1 $15 $15TOTAL $15

Personnel Resources # Salary* Overhead Hourly Hours TotalProject Manager 1 $75,616 $105,862 $55 1139 $62,645Database Maintenance Team

Database Administrator 3 $73,252 $102,553 $53 0 $0Technical Director 1 $56,926 $79,696 $41 10 $820POS Terminal Programmers

Programmer III 2 $57,397 $80,356 $41 705 $57,810Software Maintenance & Installation Team

Web Developer 1 $52,920 $74,088 $38 0 $0Programmer II 2 $45,368 $63,515 $33 1147 $75,669

Risk Management Director 1 $68,141 $95,397 $49 0 $0Documentation Specialist 1 $35,751 $50,051 $26 0 $0Finance Director 1 $108,901 $152,461 $79 80 $6,320Marketing Director 1 $95,703 $133,984 $69 280 $19,320Bookkeeper 1 $36,325 $50,855 $26 0 $0C3P Rep (Vendors) 1 $25,944 $36,322 $18 280 $5,040C3P Rep (Businesses) 1 $25,944 $36,322 $18 280 $5,040Customer Support Team

Web Customer Support Specialist 3 $41,014 $57,420 $29 0 $0Attorney II 1 $76,844 $107,582 $56 158 $8,848TOTAL $241,512

TOTAL Resources $241,527*Salary.com

Hard Resources

Personnel Resources

11/15/2006 Green Team 74

Cost Per Customer

• Phase 3 Total Budget: $– Charge each business this amount– Make a profit

• Total Cost (Licensing per Year): $– Authentication code– User manual– Access to customizable database– Programmed RFID cards– POS Terminal Software for Vendors

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Funding Plan

• National Science Foundation (NSF)– Phase 1: Funding award up to $100k

• Proposal Deadline: December 4, 2006• Topic: Information Technology• Phase 1 Total Budget: $

– Phase 2: Funding award up to $750k or two years (whichever is reached first)

• Phase 2 Total Budget: $

• CIT Commercial Giving Program Commercial Finance Group– Additional funds needed above the $100k and $750k

• No deadline

11/15/2006 Green Team 76

Funding Plan

• Phase 3 funding obtained through venture capital from outside investors– Phase 3 Total Budget: $

• Total Budget (All phases): $

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Risk Management Plan

• Identify Risk

• Categorize risk based on severity and probability

• Reduce risks

• Evaluate risk level

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Risk Reduction Methods

• Avoidance

• Acceptance

• Transference

• Mitigation

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Risk Probability/Impact Matrix

P81-100%          

r

o61 - 80%          

b

a41 - 60%    5      1

b

i21-40%   4 2, 3

l

i1-20%      6  

t

y  1 2 3 4 5

Impact: 1(Low) - 5(high)

1 No corporate buy-in

2Access to credit card

info

3Hardware

malfunction

4 Software malfunction

5

Retailers won’t provide database or update POSTs

6 Insulting to employee

11/15/2006 Green Team 80

Risks

Risk# Risk Description Mitigation Actions

1 No corporate buy-in Marketing plan and innovativeness of product

2 Access to Personal Info from Credit Card Companies

Encryption, policy of not reading the information

3 Hardware Malfunction or Viruses Use proven hardware

4 Software Malfunction Thorough testing and 24/7 support

5 Retailers won’t give up UPC database or update POS terminals

Create an independent UPC database

6 Insults Employee (can not be trusted)

Marketing plan and training to avoid insulting employees

11/15/2006 Green Team 81

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

11/15/2006 Green Team 82

Pros

• Saves money• Customizable

– Spending limits– Tracks Items Bought– Tracks Vendors Bought From

• More Efficient– Saves Time Spent On Accounting

• Keeps better records– Automatic record of exact item bought and vendor shopped at– Better information for routine audits

• Smart Card Technology– Quick

11/15/2006 Green Team 83

Cons

• 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• POS Terminals need updates

* mastercard.com

11/15/2006 Green Team 84

Conclusion

• Regulates how funds are spent

–Saves money and time

• Vendors and credit customers will benefit

–Vendors will get higher quantity and more efficient business

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

–Vendors will gain revenue from businesses that use UPC blocking

• C3P will revolutionize the credit system world wide

11/15/2006 Green Team 85

Questions

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

11/15/2006 Green Team 86

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?itemID=1596

11/15/2006 Green Team 87

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.htmlhttp://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

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Appendix A

Expert Testimony from Admiral Julius Caesar from SAIC

11/15/2006 Green Team 89

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

11/15/2006 Green Team 92

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

11/15/2006 Green Team 93

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

11/15/2006 Green Team 94

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

11/15/2006 Green Team 95

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) – example MCC: 5598 – Snowmobile Dealership

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) – Sample UPC: 02248604 Orbit Gum

11/15/2006 Green Team 96

Security - RFID

• 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