IDENTITY THEFT ISSUES AND OPPORTUNITIES American Bankers Insurance Association Annual Conference October 9, 2003 Presented...
WHAT IS IDENTITY THEFT? <ul><li>Someone pretends they are you in order to commit criminal acts: </li></ul><ul><li>Credit c...
WHAT IS IDENTITY THEFT? <ul><li>Identity Theft/Fraud is the fastest growing crime in America </li></ul><ul><li>A recent FT...
WHAT IS IDENTITY THEFT? <ul><li>Identity Theft/Fraud is a costly crime </li></ul><ul><li>Victims, on average, spend 175 ho...
WHAT IS IDENTITY THEFT? <ul><li>Clearing your name is time consuming and frustrating </li></ul><ul><li>Until you can prove...
WHAT TO DO IF YOU  ARE A VICTIM <ul><li>Act promptly </li></ul><ul><li>Document all contact you make with others regarding...
WHAT TO DO IF YOU  ARE A VICTIM <ul><li>File a complaint with the Federal Trade Commission </li></ul><ul><li>Contact the S...
HOW TO PROTECT YOURSELF <ul><li>Never give personal information over the phone, through the mail or over the Internet unle...
IDENTITY THEFT SOLUTIONS <ul><li>Prevention and Detection: </li></ul><ul><li>Identity Theft prevention guide </li></ul><ul...
IDENTITY THEFT SOLUTIONS <ul><li>Fixing the Problem: </li></ul><ul><li>Credit card registration – automatic notification o...
IDENTITY THEFT SOLUTIONS <ul><li>Insurance Coverage: </li></ul><ul><li>Lost wages as a result of time taken off from work ...
MARKETING STRATEGIES <ul><li>ID Theft solutions are a natural product for  a bank to provide their customers : </li></ul><...
MARKETING STRATEGIES <ul><li>Offers and Positioning: </li></ul><ul><li>Straight offer of a complete program with credit re...
MARKETING STRATEGIES <ul><li>Offers and Positioning: </li></ul><ul><li>3. Blanket ID Theft Insurance w/ Voluntary upsell f...
MARKETING STRATEGIES <ul><li>Distribution Channels </li></ul><ul><li>Direct Mail  </li></ul><ul><li>Outbound Telemarketing...
IDENTITY THEFT ISSUES AND OPPORTUNITIES <ul><li>Discussion & Questions </li></ul><ul><li>??????? </li></ul>
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IDENTITY THEFT ISSUES AND OPPORTUNITIES

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IDENTITY THEFT ISSUES AND OPPORTUNITIES

  1. 1. IDENTITY THEFT ISSUES AND OPPORTUNITIES American Bankers Insurance Association Annual Conference October 9, 2003 Presented By: Sherita Cox, Union Bank of California Insurance Services Mike Owens, Coverdell & Company, Inc. Walter Grote, Travelers
  2. 2. WHAT IS IDENTITY THEFT? <ul><li>Someone pretends they are you in order to commit criminal acts: </li></ul><ul><li>Credit card fraud </li></ul><ul><li>Unauthorized phone / utility services </li></ul><ul><li>Unauthorized medical services </li></ul><ul><li>Bank fraud </li></ul><ul><li>Loan fraud </li></ul><ul><li>Obtain employment </li></ul><ul><li>Fraudulent documents (Drivers license, tax returns, government benefits) </li></ul>
  3. 3. WHAT IS IDENTITY THEFT? <ul><li>Identity Theft/Fraud is the fastest growing crime in America </li></ul><ul><li>A recent FTC survey shows that last year alone 9.9 million people were victims of identity theft </li></ul><ul><li>An estimated 27 million victims in the past 5 years </li></ul><ul><li>Previous FTC estimates were at 750,000 victims per year and 30-40% annual growth rates </li></ul><ul><li>Significant under reporting in the past </li></ul><ul><li>A 6 fold increase in ID Theft complaint calls over 6 years </li></ul><ul><li>42% of complaints are credit card fraud; 22% are phone or utility fraud; and 17% are bank fraud </li></ul>
  4. 4. WHAT IS IDENTITY THEFT? <ul><li>Identity Theft/Fraud is a costly crime </li></ul><ul><li>Victims, on average, spend 175 hours and $1,000 out of pocket expenses to clear their names </li></ul><ul><li>It takes victims an average of 2 years to remove an average of $18,000 in fraudulent charges from credit reports </li></ul><ul><li>The FTC estimates the total costs of identity theft and fraud in the BILLIONS OF DOLLARS </li></ul>
  5. 5. WHAT IS IDENTITY THEFT? <ul><li>Clearing your name is time consuming and frustrating </li></ul><ul><li>Until you can prove otherwise, you are responsible for acts committed by a person who has stolen your identity </li></ul><ul><li>It can take over a year before a victim finds out their identity has been stolen </li></ul><ul><li>Creditors are not easily convinced that debts are not yours </li></ul><ul><li>Victims can lose their ability to obtain credit and financial services </li></ul><ul><li>Victims can lose their wages through garnishment by a collection agency or worse, lose their job </li></ul><ul><li>Victims can lose their driver’s licenses </li></ul><ul><li>Clearing your name can take several years </li></ul>
  6. 6. WHAT TO DO IF YOU ARE A VICTIM <ul><li>Act promptly </li></ul><ul><li>Document all contact you make with others regarding your situation </li></ul><ul><li>Call the fraud units of all the credit bureaus to report the crime and add a victim’s statement to your report </li></ul><ul><li>Contact all creditors ASAP by phone and in writing </li></ul><ul><li>Get replacement cards with new account numbers and carefully monitor your mail and bills for evidence of new fraudulent activity </li></ul><ul><li>Report the crime to the police with jurisdiction in your case </li></ul><ul><li>Notify the local Postal Inspector </li></ul>
  7. 7. WHAT TO DO IF YOU ARE A VICTIM <ul><li>File a complaint with the Federal Trade Commission </li></ul><ul><li>Contact the Social Security Administration to report fraudulent use of your Social Security number </li></ul><ul><li>Contact your phone company if your calling card has been stolen or you discover fraudulent charges on your bill </li></ul><ul><li>You may need to change your driver’s license number if someone is using yours as ID on bad checks </li></ul><ul><li>Don’t give up until your credit is restored </li></ul>
  8. 8. HOW TO PROTECT YOURSELF <ul><li>Never give personal information over the phone, through the mail or over the Internet unless you initiate the contact or know who you are dealing with </li></ul><ul><li>Shred all financial receipts before throwing away </li></ul><ul><li>Shred those unused credit card offers before throwing away </li></ul><ul><li>Protect your PINs and passwords for your account </li></ul><ul><li>Carry only what you absolutely need </li></ul><ul><li>Pay attention to your statements and billing cycles </li></ul><ul><li>Protect your mail </li></ul><ul><li>Check your credit report from all 3 reporting agencies regularly </li></ul><ul><li>Install a firewall on your personal computer </li></ul>
  9. 9. IDENTITY THEFT SOLUTIONS <ul><li>Prevention and Detection: </li></ul><ul><li>Identity Theft prevention guide </li></ul><ul><li>Credit reports – to determine if someone has established credit in your name </li></ul><ul><li>Credit monitoring – be alerted to new creditors or changes to your credit report </li></ul><ul><li>DMV reports – to determine if any violations or accidents from someone using your identity </li></ul><ul><li>Social Security Search – to assure no one is working under your identity </li></ul>
  10. 10. IDENTITY THEFT SOLUTIONS <ul><li>Fixing the Problem: </li></ul><ul><li>Credit card registration – automatic notification of all card companies </li></ul><ul><li>Emergency Cash access </li></ul><ul><li>Counseling from ID Theft experts. Step by step instructions on what to do. </li></ul><ul><li>Restoration service to clear up fraudulent information. Assistance or complete service on behalf of the customer </li></ul>
  11. 11. IDENTITY THEFT SOLUTIONS <ul><li>Insurance Coverage: </li></ul><ul><li>Lost wages as a result of time taken off from work to deal with fraud </li></ul><ul><li>Attorney fees – Defending suits, removing civil or criminal judgments, and challenging information in a credit report </li></ul><ul><li>Notary and certified mailing costs </li></ul><ul><li>Fees for reapplying for loans that were declined due to ID theft </li></ul><ul><li>Phone charges for calling merchants, creditors, banks and law enforcement </li></ul><ul><li>Spouse protection – Joint accounts and separate incidents affecting spouse </li></ul>
  12. 12. MARKETING STRATEGIES <ul><li>ID Theft solutions are a natural product for a bank to provide their customers : </li></ul><ul><li>The trusted banker relationship is the most logical source of ID Theft solutions for customers. </li></ul><ul><li>Protecting the customer also helps protect the bank from fraudulent charges, reducing risk and cost </li></ul><ul><li>The ID Theft programs have greater appeal to the middle to upper income customer segments vs. the lower to middle income customers target market for most direct marketing programs </li></ul>
  13. 13. MARKETING STRATEGIES <ul><li>Offers and Positioning: </li></ul><ul><li>Straight offer of a complete program with credit reports, credit monitoring, counseling and restoration, etc. with an amount of ID Theft Insurance included ($10,000 -$20,000). </li></ul><ul><li>Blanket ID Theft Insurance ($500 or $1,000 coverage) for all or selected customer segments (senior, platinum, etc.) provided by the bank. This adds significant value to the bank customer relationship at a very low cost. </li></ul>
  14. 14. MARKETING STRATEGIES <ul><li>Offers and Positioning: </li></ul><ul><li>3. Blanket ID Theft Insurance w/ Voluntary upsell for either additional coverage or a full program. This can offset the cost of the blanket coverage and generate revenue. </li></ul><ul><li>4. Customer Appreciation program ($500 or $1,000 gift ID Theft coverage) with the option to purchase additional coverage or a full program. Activation is required for the gift coverage (similar to Gift AD approach). </li></ul>
  15. 15. MARKETING STRATEGIES <ul><li>Distribution Channels </li></ul><ul><li>Direct Mail </li></ul><ul><li>Outbound Telemarketing Channels </li></ul><ul><li>Customer Call Centers / IVR </li></ul><ul><li>Statement Marketing </li></ul><ul><li>Credit Card or Debit Card Activation VRU applications </li></ul><ul><li>Offer in conjunction with Privacy Notice. Turns a compliance communication piece into a customer relations and marketing device. </li></ul>
  16. 16. IDENTITY THEFT ISSUES AND OPPORTUNITIES <ul><li>Discussion & Questions </li></ul><ul><li>??????? </li></ul>

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