Intro to Public-Private Partnerships PDF

Public Private Partnerships Rajeshpal Singh Director, Digital Trust Center of Excellence (APAC), Mastercard Exco, Global Anti Scam Alliance (GASA) What are Public Private Partnerships? Why do they exist? European Investment Bank: PPPs are cooperation agreements between public authorities an...

Public Private Partnerships Rajeshpal Singh Director, Digital Trust Center of Excellence (APAC), Mastercard Exco, Global Anti Scam Alliance (GASA) What are Public Private Partnerships? Why do they exist? European Investment Bank: PPPs are cooperation agreements between public authorities and private businesses for the design, implementation, operation, and financing of infrastructure projects or public services, ensuring both partners share responsibilities, risks, and rewards. World Bank: A Public-Private Partnership (PPP) is a long-term contract between a public sector entity and a private party, where the private party delivers and funds public services or infrastructure in exchange for payments or revenue. Risk is shared between the public and private sectors, based on their respective capacities to manage it. IMF: A PPP is a contractual arrangement where a private entity delivers and funds public services or infrastructure while the government oversees quality and affordability. Why PPP? Efficiency gains through private sector management ©2023 Mastercard. Proprietary and Confidential Access to financing: E.g. Large infrastructure projects Risk Transference: E.g. Transferring risk of delivery to private operator Innovation: E.g. Covid19 vaccine development Sustainability of project History of Public Private Partnerships? PPPs have existed for a long time: 1209: Construction of London Bridge was done with funding from merchants for rights to toll Late 1700s in USA: Building of Roads, Railways and Electric Grids 1800s in Egypt: public works for minimal cost while companies made most of the profits from projects such as railroads and dams Colonial era: Hudson Bay Company and British East India Company Opera Houses and Theaters: Cultural landmarks like the Sydney Opera House were often funded through public-private collaborations, blending government support with private philanthropy. Museums and Libraries: Wealthy patrons, such as Andrew Carnegie, funded libraries ©2023 Mastercard. Proprietary and Confidential in partnership with public entities, demonstrating early forms of PPPs in social development. 3 concepts to better understand Public Private Partnerships 1. Public goods theory Public goods are resources or services that are: Non-Excludable: Everyone can access them, regardless of whether they contribute. Non-Rivalrous: One person’s use doesn’t diminish availability for others. In cybersecurity, many outcomes of PPPs (e.g., a secure digital infrastructure) qualify as public goods, benefiting all citizens and businesses. 2. Game theory Game theory analyzes decision-making among parties with interdependent outcomes. It is particularly relevant to PPPs in cybersecurity, where collaboration and competition coexist. 3. Agency problem ©2023 Mastercard. Proprietary and Confidential The agency problem arises when one party (the principal) delegates authority to another (the agent), but the agent’s interests do not align perfectly with the principal’s. In the context of PPPs, governments (principals) often rely on private entities (agents) to manage critical infrastructure or deliver cybersecurity solutions.  Some examples ©2023 Mastercard. Proprietary and Confidential  role in Partnerships Mastercard’s Public Private ©2024 Mastercard. Proprietary and Confidential ©2024 Mastercard. Proprietary and Confidential  Our track record of working with Government Policymakers and in Public-Private Partnerships MC EU Cyber Resilience Centre drives collaboration between public & private Belgium/EU sectors, regulatory bodies and law enforcement agencies MC has a leadership role in the European Central Bank’s group on Cyber threat & Intelligence sharing United UK States MC co-leads the Cyber Range –MC organized Financial Services and led the 1st private-sector-led Cyber Collaboration tri-sector Cyber Defense Exercise, Center (FSCCC) ASEAN bringing together energy, finance, and Digisec Lab to telecommunications organizations for a Partnering governments in pro-actively test India Indonesia & Malaysia on live-fire exercise designed to assess cyber- threats defense capabilities (2022) digital & financial inclusion through STRIVE MC participates in the annual Cyber Storm University collaborations ©2023 Mastercard. Proprietary and Confidential Cyber Defense Exercise with CISA and the Middle MC is working with the Indian to build Digital Trust US Department of Treasury East Centre of Excellences in Government to strengthen Small Business Cybersecurity Malaysia & Singapore MC works with the National Institute of Israel - opened the FinSec MC Academy seeking to Standards and Technology (NIST) to using our free toolkit through Innovation Lab in partnership with the Global CyberAlliance reach and train 100,000 strengthens workforce development, the Government of Israel. The Lab people as certified education and training. advances innovations in fintech & cyber Cyberseccurity analysts in Indonesia MC has strong relationships with leading colleges and universities across the USA to UAE- MC collaborates with the Dubai International help increase educational access to Finance Center (DIFC) to strengthen the cybersecurity resources for students. cybersecurity of > 3,000 regional FI’s  Establishing Centers of Excellence (COE) around the world to secure the Digital Ecosystem 1 COEs act as focal points for efforts around: Upskilling Research & Innovation Industry Collaboration 2 Mastercard established a Cybersecurity & Digital Trust COE in Singapore which has allowed us to: Introduce a masters level programme in cybersecurity Undertake joint research with universities in emerging areas ©2023 Mastercard. Proprietary and Confidential Foster industry collaboration around areas such as Fraud & Scams and Quantum Computing 3 (new) Indonesia- Launched Cybersecurity & Digital Trust COE in Indonesia in partnership with Indosat 9 Industry Collaboration Against Scams –Global Anti Scam Alliance (GASA) What does the GASA do? Mastercard leading GASA in ASEAN Non-profit with mission to protect consumers worldwide against Helped establish Singapore local chapter and appointed as scams (www.gasa.org) Chair for 2024-2026. o Regional associations/task forces exist; however, this is the only global Chapter will be expanded to Asean in future. non-profit aims to bring together key stakeholders across industries, government/law enforcement, FIs, Tech, Social Media, Telcos to share Led the standing up of chapter exco which now includes 15 knowledge & define joint actions global organisations spanning FIs, global tech companies, universities and large local organisations Activities facilitated include events/summits, meetups, research, Eg, Amazon, Google, Meta, TikTok, Grab, OCBC, directory, local chapters, webinars, Groups Standard Chartered Bank, HSBC etc Asia Summit, 21-22 Oct, Singapore Attended by 350 pax in-person, 1000 online from government, law enforcement, FIs, Tech, Social Media, Telcos across Asia & ANZ ©2024 Mastercard. Proprietary and Confidential Event was organized in partnership with Singapore government: Ministry of Home Affairs, Ministry of Digital Development and Singapore Police Force Mastercard led the programme committee together with Amazon, Google, Meta and Singapore Police Force  2024 Asia Scam Report ©2024 Mastercard. Proprietary and Confidential US$688.42 billion estimated total scam loss across surveyed countries across Asia China 2024 Hong Kong (USD) India 2023 Indonesia (USD) Japan Malaysia Pakistan Philippines Singapore South Korea Taiwan ©2024 Mastercard. Proprietary and Confidential Thailand Vietnam $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 Average loss per scam victim (US$) Singapore & Japan see a drop in scam losses, while South Korea & Taiwan see significant increases. In the last 12 months, in total, how much money did you lose to scams before trying to recover the funds?  Multi-Stakeholder Workshop on Tackling Digital Scams in Cambodia Co-hosted by: ©2024 Mastercard. Proprietary and Confidential Safeguarding the digital future With the support of: 13  What kind of citizen experiences did we observe? Respondents awareness How many people are Which scams are most common? of digital scams? victims digital scams? Romance Investment Impersonatio n 6.67% Blackmail 45% 55% ©2024 Mastercard. Proprietary and Confidential 93.33% Credit card Online (identity) shopping Aware Victim fraud 14 15 toolkit Introducing the Response Architecture ©2024 Mastercard. Proprietary and Confidential 1 The Scam System Map (detail view) VULNERABILITY THREAT VIEW STRATEGIC CONTEXT VIEW HARMS & IMPACTS Strategic Harm Financial Harm Emotional Harm Cybersecurity Misinformation Geopolitical risks Citizen Harm DIGITAL SCAM ENVIRONMENT Victim Harm Organised crime Online trust Cyber bullying Digital pollution Human trafficking Tactics & Local/regional Citizens & Targets Vulnerabilities Tradecraft scamming Crossover with SCAM ACTORS Digital literacy local crime types Financial VICTIMS SCAMS SCAMMERS literacy Global trends Scammer Digital adoption Motivations capabilities Drug trade Scam typologies ©2024 Mastercard. Proprietary and Confidential Reporting Emerging technology ENABLERS & CONTROLS Education & Devices Data security Channels Payments Digital Defences Awareness Enforcement Detection National Digital Agenda Policy Cooperation Deterrence Public-private Intelligence Disruption Regulation partnerships sharing Sanctions 16  2 The Scam Journey PRE-SCAM DURING SCAM POST-SCAM Re-scamming Establishing Payment Targeting Communicate & Money SCAMMER Scheme Victims Convince Laundering Establishing Researching Initial Call-to-action & Hiding Operation Victims Engagement Payment Proceeds SCAM Realisation Online/Digital Online Digital Motivation to Attempts to behaviour Encounter engage recover VICTIM Lack of digital scam Personal Assessing & Clicking, paying Personal & transferring Consequences ©2024 Mastercard. Proprietary and Confidential awareness & vulnerability Information Online Discerning Informed of scam NON-VICTIM Aware & Protected Safe & Secure Realisation Failed Payment Law Enforcement Online Practice 17 3 Intervention Strategy Spectrum IC G PROACTIVE REACTIVE A TE N S T CT I O A Enhance Proactive Strategies ON A CT I NAL ATIO TACTICAL ACTION OPER Detection Recovery & Enforcemen Learning & Preventio Disruptio Restitutio t Intelligence Education Detection SCAM HAPPENS n n n Reporting TIO N (Victims) N AL AC A TIO Victim ©2024 Mastercard. Proprietary and Confidential R OPE Support PRE-SCAM DURING SCAM POST-SCAM N IO A CT G IC Scammer journey A TE Scam ST Victim Journey 18 4 Intervention Capability Domains Detection & Behavioural Enforcement Technology Deterrence Intelligence Education Investigation Detection Analytics Intelligence Sharing Media Campaigns Prosecution Secure ID Rapid & continuous Public advisories Media threat notifications Cross-border Credential checking Sanctions Citizen Education cooperation Rapid intelligence and Biometrics UI Nudges reaction cycles Handset signatures Reporting mechanisms AI fraud/scam prediction and drivers REACTIVE PROACTIVE Protection & Collaboration & Disruption Channel & Platform Regulation & Policy Recovery Coordination Fund Recovery Real-time alerts ID & Content monitoring Alliances and coalitions Legislation ©2024 Mastercard. Proprietary and Confidential Insurance Deplatforming/debanking Deplatforming Co-location – e.g. anti- Policy development & scam centres reform Consumer guarantees Offensive actions against Flagging scam centres Collaborative analytics Mandated reporting Data sharing to facilitate Phone & SMS screening tracing and recovery Data sharing to enable Intelligence networks Imposing costs on digital proactive alerts infrastructure owners Complaints handling Communities of practice 19 THANK YOU!