Treasury Services Future of Consumer Payments North Central

Treasury Services - Future of Consumer Payments North Central FGFOA Chapter | October 2018

Chase, J. P. Morgan, and JPMorgan Chase are marketing names for certain businesses of JPMorgan Chase & Co. and its subsidiaries worldwide (collectively, “We”, “Our” or “Us”, as the context may require). We prepared this document and associated presentation materials for your sole and exclusive benefit. These materials must be used for discussion purposes only, and are incomplete without a related briefing provided by our representatives. While we are providing the materials and briefing, we are not making a commitment to provide any product or service at this point. This information is confidential and proprietary to our firm and may only be used by you to evaluate the products and services described here. You may not copy, publish, disclose or use this information, in whole or in part, for any other purpose unless you receive our express authorization. In preparing the information, we have relied upon, without independently verifying, the accuracy and completeness of publicly available information or information that you have provided to us. Our opinions, analyses and estimates included here reflect prevailing conditions and our views as of this date. These factors could change, and you should consider this information to be indicative, preliminary and for illustrative purposes only. The information is not intended and shall not be deemed to contain advice on legal, tax, investment, accounting, regulatory, technology or other matters. You should always consult your own financial, legal, tax, accounting, compliance, treasury, technology, information system or similar advisors before entering into any agreement for our products or services. This Information is provided as general market and/or economic commentary. The information is not J. P. Morgan research and should not be treated as such. In addition, the information does not constitute advice or a recommendation regarding the issuance of municipal securities or the use of any municipal financial products or, the advisability of acquiring, holding disposing of, exchanging or otherwise taking action regarding, or as to the management of, securities or other investment property. We are not providing any such advice. We are not acting as your agent, fiduciary or advisor, including, without limitation, as a Municipal Advisor under Section 15 B of the Securities and Exchange Act of 1934, as amended or under, or with respect to assets subject to, the Employee Retirement Income Security Act of 1974, as amended. The information does not include all applicable terms or issues and is not intended as an offer or solicitation for the purchase or sale of any product or service. Our products and services are subject to applicable laws and regulations, as well as our service terms and policies. Not all products and services are available in all geographic areas or to all customers. In addition, eligibility for particular products and services is subject to satisfaction of applicable legal, tax, risk, credit and other due diligence, JPMC’s “know your customer, ” anti-money laundering, anti -terrorism and other policies and procedures. Products and services may be provided by Commercial Banking affiliates, securities affiliates or other JPMC affiliates or entities. In particular, securities brokerage services other than those that can be provided by Commercial Banking affiliates will be provided by appropriate registered broker/dealer affiliates, including J. P. Morgan Securities LLC and J. P. Morgan Institutional Investments Inc. Any securities provided or otherwise administered by such brokerage services are not deposits or other obligations of, and are not guaranteed by, any Commercial Banking affiliate and are not insured by the Federal Deposit Insurance Corporation. All trademarks, trade names and service marks appearing in the information are the property of their respective registered owners. © 2018 JPMorgan Chase & Co. All rights reserved.

Government Banking Team Our long-term client relationships, many spanning more than 100 years, are a testament to our relationship management philosophy. We provide relationship-based consultation, industry expertise and high-quality commercial banking solutions serving the comprehensive needs of government organizations including industry leading treasury services solutions. Government Banking Dominic D’Amato Commercial Investment Relationship Manager Banking dominic. damato@jpmorgan. com 407 -236 -5440 Equity Capital Markets Treasury Services Joseph Scharf Treasury Management Officer Joseph. h. scharf@jpmorgan. com 813 -483 -8248 Debt Capital Markets Leif G Chase Industry Manager leif. g. chase@jpmorgan. com 407 -236 -5464 Katherine Maxey Treasury Sales Associate Katherine. maxey@jpmorgan. com 404 -926 -2560 1

Committed to helping state and local governments thrive The J. P. Morgan Government Banking team is committed to providing the industry with innovative financial solutions and personalized client service. Our team’s emphasis is on key cities, counties, school districts, and special districts as well as all 50 states and the District of Columbia. We leverage thoughtful strategies and best practices to empower your organization with the practical, workable tools and resources you need to meet your evolving banking and cash management needs. Government-first focus Government expertise Our first-hand knowledge and understanding of today's challenges comes from having supported government agencies and authorities dealing with issues ranging from planning and development to tax processing, utilities, finance, procurement, public safety and disaster relief. 90+ dedicated bankers and DEDICATED TO UNDERSTANDING YOUR NEEDS We serve 2, 281 state and local governments in 40 out of the 50 states, and we help them n Support financing needs by offering credit and liquidity solutions at competitive rates and terms n Bridge collection gaps by providing tax anticipation notes and bond anticipation notes n Offer customized equipment financing solutions n Simplify receivables and payables through electronification n Address resource constraints by automating manual, paper-based activities n Streamline procurement with innovative purchasing card solutions serving 2, 200+ clients in 40 treasury management officers out of 50 states Investing in the economy* IN 2017 $192. 1 billion in outstanding commercial banking loans $100. 7 billion in financing for local governments and nonprofits Expanding Economic Opportunity We are putting our capital and expertise to work by investing $20 billion over the next five years to support our employees and local communities. We are increasing our lending to the small businesses, expanding our branch network to serve more communities and employ more people, and simplifying lending for affordable housing. . $1. 5 billion in state and local taxes paid (2016) $201. 4 million to support nonprofits across the country ¹*Numbers represent the entire firm 1

Investing in clients and communities At JPMorgan Chase, corporate responsibility is about what we do every day in our businesses and how we do it. We are dedicated to managing our businesses to create value for our consumer and corporate clients as well as our shareholders, communities and employees and to being a responsible corporate citizen. Growing the Economy • In 2014, we provided $19 billion in new credit to American small businesses. • We provided $9 million in grants over three years to help 44 small businesses make it big • Ranked as the U. S. Small Business Administration’s #1 lender by units to women-and minority owned businesses for the third consecutive year. • Launched Small Business Forward, a $30 million, five year commitment to support small business clusters that support entrepreneurs. • We are half way into a five-year, $10 million effort to bolster economic growth by strengthening trade and investment ties between U. S. and global cities through the Brookings. JPMorgan Chase Global Cities Initiative. Added 8 new cities in 2014 for a total of 28. Strengthening Communities Honoring Veterans • Provided 2. 6 billion to low- and • Working with nonprofit partners, we’ve moderate- income communities through our community development lending and equity investments • Committed $100 million over five years to accelerate Detroit’s economic recovery pledged to award 1, 000 mortgagefree homes to veterans and their families by 2016. As of July 2015, the program has provided more than 800 mortgage-free homes. • As of November 2014, we have • Implemented the first year of the firm’s $250 million five-year initiative to strengthen local workforce systems globally committed $45 MM to military and veteran programs and initiatives. • We are a founding member of the • $60 Million committed to impact investments across 9 funds supporting a range of sectors including housing, education, healthcare, technology and transportation • Launched the Financial Solutions Lab, a $30 million initiative to identify promising innovations to help Americans increase savings, improve credit & build assets. • We have trained over 10, 000 bankers to serve small business owners 8 100, 000 Jobs Mission, a coalition of private-sector companies aiming to hire at least that number of veterans by 2020. • With our support, Syracuse University’s School of Information Studies offers a tuition-free Technology Program, for post 9/11 veterans aspiring to careers in information technology in global corporations. Giving and Volunteering • Made more than $200 million in philanthropic giving to nonprofits in 44 countries. • More than 40, 000 of our people provided 560, 000 hours of volunteer service in local communities around the globe. • Provided $3. 3 million of technical assistance through Technology for Social Good, where employees develop technical solutions for nonprofits.

Agenda Page 1 Banking for Public Sector Clients 1 2 Receivables 4 3 Payables 15 4 Cybersecurity Issues Facing Electronic Platforms 25

Treasury trends outlook: government Opportunities for Innovation What Matters n Governments continue to look for efficient, low-cost channels to collect taxes, licenses and fees n Governments are moving from paper to electronic—for both payables and receivables n Constituents are looking for convenience when paying obligations and receiving refunds n The constituent experience can be enhanced through mobile applications for payment initiation and the disbursements of payments n Implement easy-to-use payment channels that constituents will not perceive as difficult n It’s crucial to be able to receive collections no matter how the constituent wants to initiate the payment n Governments have high concern over security and are focused on minimizing both electronic and paper fraud n Reporting capabilities can be enhanced to support transparency initiatives n Governments can take advantage of e. Payables virtual purchase card programs to better manage vendor spend, increase security around payments and create rebates n Employee workloads are increasing exponentially faster than staffing levels n Assessing risk factors (data security, cyber attacks, privacy risks, etc. ) when considering system upgrades/enhancements 1

Treasury trends outlook: government Receivables and Payables n Analyze opportunities to outsource non-core payment functions to reduce processing costs n Implement solutions that increase the level of straight through processing n Efficient integration with ERP/TWS platforms Working Capital and Cash Management n Interest rate environment is impacting funding decisions n Review processing flows to establish the most costeffective and efficient cash management practices n Increase working capital by developing strategy to accelerate collections and manage payables Risk Mitigation n Governments are focusing on data security and risk mitigation against cyber crime attacks n Governments are creating and following market, credit and operational risk management procedures n PCI compliance to mitigate liability of credit card number storage n Increased need for staff allocation to compliance/audit positions 2

The Millennial Impact Millennials Gen. Xers Boomers Used a bank’s mobile app 67% 55% 33% Used a bank’s website or online portal 78% 75% 67% Used the mobile app to transfer money 26% 19% 8% Used the mobile app to pay a friend or family 21% 12% 5% Source: 2015 Chase Digital Adoption Survey Chase’s Digital Adoption Survey shows a high percentage of millennials using mobile apps and websites for banking and to transfer money Statistics 75% of the workforce will be made up of Millennials by 20301 >50% of Millennials are using non-traditional payment companies like Pay. Pal and Venmo 2 Insight Millennials are highly tech savvy and grew up with internet and mobile devices, and as more and more become decision makers in businesses, the shift to electronic B 2 B payments could increase User friendliness and customer experience is driving Millennials toward non-traditional banking options, so organizations must be willing to adapt 1 Source: US Bureau of Labor Statistics 2 Source: FICO Millennial Insight Report 3

Agenda Page 1 Banking for Public Sector Clients 1 2 Receivables 4 3 Payables 15 4 Cybersecurity Issues Facing Electronic Platforms 25

Receivables: range of benefits continue to drive down check collections Check collection volumes continue to fall but organizations continue to see major customers paying them via check The decrease in overall check collection volumes largely stems from the wider appeal of electronic channels: cost, timeliness, and quality of information Benefits Gained by Sending or Receiving Electronic Payments 0% Cost savings Speed of settlement Improved cash forecasting More efficient reconciliation Fraud control Better supplier/customer relations Straight- through processing to A/P or A/R Working capital improvement Ability to take early payment discounts Reduction in days sales outstanding (DSO) Other Client retention 10% 3% 3% 20% 14% 30% 21% Source: Association for Financial Professional, 2016 Electronic Payment Survey, Oct 2016 4 24% 40% 36% 35% 33% 50% 48% 46% 60% 51%

Addressing your receivables needs Consolidate receivables, increase cash application rates Online & Mobile Solutions Card n Data Management & Remittance Association ACH & Wire n Consolidated Reporting of Lockbox, ACH, Wires and Returns Image Capture Cash Lockbox Maximize electronic payment methods & channels Check Cash & Checks Image Capture Lockbox ACH & Wires Card Branch Deposits Virtual Remit Wholesale & Scannable e. Lockbox Merchant Services Data Capture Pay. Connexion for Receivables (Online) Payment Portal ATM Deposits Vault Processing Smart Safe n n Image Capture Remittance Capture Desktop Mobile n OCR & ICR Data Transmission n BAI, EDI, Proprietary Receivables Edge 5 Corporate Quick Collect (Mobile) n Online n Phone

Reduce Collection Costs and improve efficiency through remote deposit capture Remote deposit capture provides desktop and mobile scanning capabilities including the ability to capture checks, full page documents, coupons, remittance items and envelopes Desktop and mobile scanning Key features n Desktop - enables you to scan checks, remittance documents and envelopes to submit for deposit n Capture and deposit U. S. denominated checks, documents and envelopes via compatible desktop or mobile scanning devices n Mobile - enables you to take pictures of checks, remittance documents and envelopes from select mobile devices and submit for deposit n Improve reconciliation with reference data capture, batch numbers and ULIDs (Account Groups) n Maintain control of deposit decisions with options such as consolidated deposits, batch and / or ULID (Account Groups) deposits Capture type and remittance data n Available capture types: n Checks – capture and deposit standard-sized personal and business checks n Checks & Documents – capture checks and full page remittance documents for reference purposes n Flexible deposit times as late as 10: 00 PM EST Key benefits n Both capture types support the ability to enter up to 10 reference data fields such as invoice or reference number ü Streamline deposit processes and reduce costs including courier fees and time spent preparing deposit packages Batching and deposits ü Reduce the risks associated with physical check transport n Identify or segregate activity by location or business unit using ULIDs (Account Groups) ü View check images captured via smartphone online n Use your own batch number sequence or have one assigned automatically with each deposit 8 ü Strengthen security and control while improving business resiliency

Fast, reliable and hassle-free same-day service – ACH e. Lockbox BREAKING DOWN THE BENEFITS n Notify payment processors: to send the payment files directly to your ACH e. Lockbox and we’ll work to complete the payment redirection n Receive payments electronically from your customers: e. g. , online banking, credit cards, bank-by-phone, government remitters n We’ll consolidate payments received automatically: after validating that the billing account numbers and data match each transaction n Single credit posts on same business day: for payments received by opening of business Same Business Day Process Financial Institution Customers initiate bill payments electronically Multiple financial providers send remittance information to Financial Institution We consolidate and reconcile payments for you 9 You receive a single credit in your account and post the remittances to your receivables system

Easily and securely accept card payments Optimize collections and manage costs with Merchant Services “I need to manage my expenses. ” “Show me a way to increase revenues. ” Cost associated with payment acceptance Need to reach new customers or add value to existing customers n Interchange optimization n Global expansion n Client advocacy n Expanded methods of payment n Fraud mitigation n Mobile payment acceptance “Doing business with me has to be easy. ” “Keep me out of the headlines. ” Preventing lag and downtime at point of payment and providing a positive client experience Working to ensure anti-money laundering (AML) compliance, avoiding security breaches, etc. n Risk and compliance management n Designed for interchange optimization n Proprietary platform n Fault tolerant n Redundant systems n Avoids fines associated with KYC, AML n Reliable funding n Tokenization n Easy reconciliation n Data security solutions n Fast authorizations n Hosted Pay Page, PCI and encrypted solutions 11 SL 2018. 02

Alternative collection options for constituents Mobile transaction origination provides a new electronic collection solution. This web-based platform offers flexible collections using a consumer’s email address. Accepted payment requests are processed as quickly as next business day via ACH debit from a consumer’s bank account at any U. S. financial institution. Create new experiences 80 % Reduce total cost n U. S. usage of smartphones (and growing)¹ n Total cost to process a single check averages 2 n CQC is an innovative solution built for mobile and online interactions n CQP provides a low-cost solution for requesting low-value, low-frequency payments Corporate Quick Collect Improve payment security n Co-branded email notifications with customizable remittance details allow your customer to recognize and trust the payment invitation, improving acceptance n Online and mobile portals are secure, using strong password requirements and multi-factor authentication ¹ Source: Com. Score, February 2016 U. S. Smartphone Subscriber Market Share ² Source: 2015 AFP Payments Cost Benchmarking Survey 12 $ 2. 43

Agenda Page 1 Banking for Public Sector Clients 1 2 Receivables 4 3 Payables 15 4 Cybersecurity Issues Facing Electronic Platforms 25

Payments: continued focus on electrification with limited results Check payment volumes remain flat after a period of sustained decline and continue to be a primary instrument for paying vendors (Mean distribution) Although check payment volumes continue to be quite significant, treasurers are confident that the majority of supplier payments can be migrated to electronic alternatives over the next three years Source: Association for Financial Professional, 2016 Electronic Payment Survey, Oct 2016 15

Payables management: reducing payment costs and increasing efficiencies Reduce transaction cost, increase operational efficiencies Online & Mobile Solutions Single-Use Accounts Card ACH Wire Check Print Outsourcing Maximize electronic payment methods & channels Checks Check Print Account Reconciliation Print & distribution Online Check Image Storage & Inquiry Payment types ACH & Wires Card & SUA Online & Mobile Same-day and conventional ACH Purchasing card ACCESS Mobile Single Use Accounts Enrollment Portals (Pay. Connexion for Payables) n A/P Checks Payroll Direct Deposit n Rebates Controlled Disbursement n Claims Fed. Wire/CHIPS Positive Pay n Payroll n Bank Led Vendor Campaigns n Quick checks Official Checks 16 Corporate Quick Pay

Benefits of card solutions Purchasing Card (P-Card) Virtual Card Solutions Plastic, cardless and ghost/ supplier payment solution Virtual, electronic, virtual card account payables solution Eliminate costly manual processing on low value/high frequency spend Automate higher value spend requiring A/P control or “one-off” transactions Employee convenience with robust spend controls and added visibility Benefits of P-Card with the added controls of a check (date, exact amount) Processing cost savings plus rebate revenue and working capital opportunity Efficiencies of ACH, plus rebate revenue and working capital opportunity 17

Transition your payments to ACH Originator Originating Depositary Financial Institution (ODFI) Corporation, Business Banking Partner ACH Operator Receiving Depositary Financial Institution (RDFI) Receiver FED, EPN Other financial institutions Business, Consumer 1 2 3 4 Payment Initiation Payment Transmission Payment Clearing Payment Receipt Originator sends payment instruction electronically to originating bank ODFI transmits ACH entry to ACH Operator and posts offset to originator’s account Receiving bank accepts entry from ACH Operator and posts payment to receiver’s account 18

Same-day ACH NACHA Same-Day ACH Rule Summary Greater Payment Flexibility With 70 different Consumer and Business options, Same Day ACH will greatly enhance payment processing options for our clients. n All receiving financial institutions are mandated to receive Same-Day ACH transactions. Same Day ACH is optional for originators. Originating Financial Institutions will be able to submit Same-Day ACH transactions in two new processing windows. Consumer to Government n Participating banks will be assessed a Network transaction fee for Same-Day ACH items actions sent to the Network. n Transactions above $25, 000 and IAT transactions are not eligible Consumer to Consumer n Bill Pay n Person to Person n e. Commerce n Account to Account n POS check conversion Government to Vendor n Trading partner payments Government to Consumer n Payroll n Refunds n Due-date and invoice payments n Merchant debit n Collections NACHA Implementation Timeline September 2016 September 2017 March 2018 ACH Credits and Debits Morning and Afternoon Processing Windows End of Day Receiver Funds Availability 5: 00 p. m. Receiver Funds Availability Phase 1 Phase 2 Phase 3 19

New payment option for municipalities Mobile transaction origination can help electronify your payments, providing a new way to pay constituents, staff and other individuals, while reducing the costs associated with traditional forms of payment. This is especially applicable for non-recurring payments under $50, 000. Key Features and Benefits Public Sector Applications Send consumers a variety of payments via email, including detailed remittance data n Tax Refunds: Eliminate the need for sensitive banking information to disburse refunds n Restitution Payments: Repayment of assets to individuals Reduces payment distribution and reconciliation costs and risks associated with checks n Reimbursement of Deposits: Reimburse individuals for utility deposits Eliminate the burden, expense and risk of maintaining customer remittance information by allowing payer to enter payment information into Banking Provider hosted page n Jury Payments/Expert Witnesses: Reduce fraud susceptible checks when making small dollar disbursements n Staff Payments & Petty Cash: Provide nonrecurring payments and reimbursements for staff members Improve customer experience with faster receipt of electronic payments 20

Real Time Payments J. P. Morgan is an original founding member of U. S. Real Time Payments Driven by The Clearing House, the interbank rules are: Speed Amount Availability Messaging Security Money available to payee within Credit Transfers in USD up to maximum Instant payments available Sender initiates the transaction from own funded DDA 10 seconds $25, 000* 24 x 7 x 365 Extensible messaging to support more sophisticated applications (e. g. , bilateral messaging) ISO 20022 *25, 000 limit expected to rise over time Can send to a token identifier (e. g. , e-mail or phone number) rather than an account number Timeline JPM is working with other banks through The Clearing House (TCH) and Early Warning (EWS) to implement a bank-led Faster Payments infrastructure Aug 2016 Oct 2016 P 2 P live now Q 1 2018 Q 4 2017 Limited B 2 B Pilots TCH build and development Full launch rollout to participants Use Cases & Benefits Key Use Cases Business Benefits n B 2 B - Just-in-time supplier payments, emergency bill payments n Gain cash control – payment finality & speed enables continuous real-time view of cash positions n B 2 C High-Value – Large or emergency payments n B 2 C Low-Value – Temporary employee wages, emergency payroll, consumer refunds n Increase payment visibility – immediate payment confirmation n Improve process efficiency – facilitate automatic payment reconciliation & use ISO 20022 to include remittance details 21

Feature comparison Feature Delivery and Acceptance Remittance Details Payment Details Network Info Functionality ACH Same Day ACH Email or Text Notification Yes Yes Supports multiple bank accounts tied to email/text # Yes Yes Provides straight-through processing Yes Yes Supports click-through acceptance (optional) Yes Yes No Supports customized text Yes Yes No Customizable Remittance Fields 25 fields 50 char 1 field < 200 char Supports PDF Yes Yes No Dollar Limit $50 K $25 K $50 K Recipient Availability 1 -3 Days 5 pm Immediate Funding ACH Settlement Good Funds ACH Settlement Payment Revocability Yes No No Bank Network Established Emerging Consumer Network Emerging Established 22 Real-Time Payment Zelle®

Check print outsourcing Challenges How the Check Print Solution Can Help 23

Agenda Page 1 Banking for Public Sector Clients 1 2 Receivables 4 3 Payables 15 4 Cybersecurity Issues Facing Electronic Platforms 25

Overview of current fraud landscape Wholesale fraud landscape primarily driven by 3 different methods which fraudsters utilize in attempt to gain access to funds Email Criminals hack email accounts or create similar accounts that appear to be authentic from CEO, CFO, vendors or third parties the victim conducts business with. The email address is often missing just one letter or character and may use urgent language to trick you into clicking a link that leads to a phony website. Malware is used to infiltrate, monitor, control and damage a computer. Fraudsters will re-direct victims to fake login pages that look very similar to their internet banking sites and ultimately capture valuable information. 25 Social Engineering Social Engineers often pose as new employees, help desk workers or vendors and may offer credentials to appear legitimate. Through simple questions, they can piece together information via phone calls, email and casual conversation. Threats can come from anywhere, even former employees.

Despite decline in U. S. check payments, check fraud results in the greatest losses Payment method responsible for the greatest loss Check features most effective in protecting against fraud 27% Corporate/ Commercial Card 20% 45% Wire Transfers Checks 7% ACH Debits 1% ACH Credits Source: 2015 AFP Payments Fraud and Control Survey Payment trends Why checks? Checks paid volume 24. 5 Billion 18. 3 Billion Average $ per check $1, 291 $1, 410 -9. 2% CAGR* Attraction of Better quality and paper-based crimes availability of technology n Easier to commit than electronic fraud methods n Increase in organized, professional fraud ring activity n Access to scanners, printers, desktop publishing software, and other tools used to print and alter checks *Compound Annual Growth Rate Source: Federal Reserve Payments Study (2013) n Weaknesses in the modern image exchange environment 28

Can you spot what’s suspicious with this email? From: Smith, Joe [mailto: Smith. Joe@yourconnpany. com] Sent: Wednesday, February 03, 2016 1: 01 PM To: Smith, Jane Subject: Pending Payment Hi Jane, I’m in China traveling for business. I just met with our client, ABC Company, and they did not receive our last payment. ABC Company SWIFT Code: 945 ddd 02 e Account #: 543 a 987 b 2 c It is imperative they get paid please resend our payment to them and ensure you follow up with our Bank to have the payment settled by tomorrow. Also, modify our payment instructions to reflect the new information for this client so that there are no issues going forward. Thank you! Regards, Joe Smith CEO Your Company Sent from my mobile device 29

Can you spot what’s suspicious with this email? From: Smith, Joe [mailto: Smith. Joe@yourconnpany. com] The email address should be ‘@yourcompany’. Sent: Wednesday, February 03, 2016 1: 01 PM The email address is incorrect (the word company is To: Smith, Jane spelled with two ‘Ns’ instead of an ‘M’). Subject: Pending Payment Very familiar greeting Hi Jane, I’m in China traveling for business. I just met with our client, ABC Company, and they did not receive our last payment. ABC Company SWIFT Code: 945 ddd 02 e Account #: 543 a 987 b 2 c Stating “traveling” or “away from the office” could be a red flag It is imperative they get paid please resend our payment to them and ensure you follow up with our Bank to have the payment settled by tomorrow. Also, modify our payment instructions to reflect the new information for this client so that there are no issues going forward. Thank you! Regards, Joe Smith CEO Your Company Urgent request to send payment again and modify payment instructions is highly suspicious Sent from my mobile device 30

Can you spot what’s suspicious with this email? From: Smith, Amy [mailto: asmith@globallsuppliers. com] Sent: Wednesday, October 11, 2016 8: 21 PM To: Smith, Bob Subject: New Payment Instructions Hi Bob, Urgent! As your vendor, I wanted to make you aware that Global Suppliers have chnaged banks. I’ve provided the new Bank, routing instructions, and account details below. Please update your records immediately for all payments going forward as our previous account is no longer active. Global Suppliers SWIFT Code: AAAA 11 Account #: 123456789 Please note that our office will be on holiday the next 2 weeks so if you are not able to reach anyone, that is why. Regards, Amy Smith Global Suppliers 31

Can you spot what’s suspicious with this email? From: Smith, Amy [mailto: asmith@globallsuppliers. com] The email address should be ‘@globalsuppliers’. Sent: Wednesday, October 11, 2016 8: 21 PM The email address is incorrect (the word global has two “Ls”). To: Smith, Bob Subject: New Payment Instructions Asking to update vendor routing instructions urgently Hi Bob, Urgent! As your vendor, I wanted to make you aware that Global Suppliers have chnaged banks. I’ve provided the new Bank, routing instructions, and account details below. Please update your records immediately for all payments going forward as our previous account is no longer active. Incorrect spelling or grammar Global Suppliers SWIFT Code: AAAA 11 Account #: 123456789 Please note that our office will be on holiday the next 2 weeks so if you are not able to reach anyone, that is why. Regards, Amy Smith Global Suppliers Noting they will be on holiday and providing rationale as to why someone may not be able to be reached when a call back is performed to verify the updated instructions 32

Can you spot what’s suspicious with this ACCESS webpage? Recognizing a Fake ACCESS Portal 33

Can you spot what’s suspicious with this ACCESS webpage? 34