|
|
 |
|
Viewing report
|
|
|
|
Fighting New Account Fraud: Providing Credit Monitoring Services For Consumer Protection and Loyalty
Javelin Strategy & Research, Oct 2005, Pages: 7
Consumers can effectively detect costly fraudulent new accounts through fee-based credit monitoring services. Javelin data indicates that 87% of consumers monitor their credit reports only once a year or less. Financial institutions (FIs) offer these services in order to increase customer confidence, safety, and loyalty. Although new account fraud represents only 30% of the $52.6B in US annual identity fraud, it remains a primary concern since it is more difficult for consumers to detect and results in higher average per case losses. There is an outstanding opportunity for FIs to enhance loyalty and gain revenue by offering reasonably priced credit monitoring services to this vast majority of inactive consumers.
Primary Questions
- How frequently are consumers monitoring their credit standing and activity?
- How much does credit monitoring mitigate new account fraud?
- How can banks offer credit monitoring services that enhance customer loyalty, generate revenue, and protect against new account fraud?
Major Findings:
Few consumers monitor their credit reports on a regular basis. Javelin Strategy & Research Identity Fraud Quiz data1 shows that 87% of consumers monitor their credit reports one time per year or less, with more than one–third indicating they do not do so at all. Further Javelin research indicates that periodic monitoring of credit reports by consumers can reduce losses suffered by FIs as a result of new account fraud by almost 90% which could take a typical new account identity fraud loss from $12,646 to just $1,386. FIs must integrate, launch and promote
credit monitoring services to protect consumers against new account fraud, enhance loyalty, and create revenue. However, these services require careful planning.
Customers who bought this item also bought
Credit Monitoring and Identity Fraud Insurance: What Do Consumers Need, and How Should It Be Offered?
2008 Card Issuers’ Identity Safety Scorecard: Customizing Account Controls to Fight Fraud and Strengthen Customer Loyalty
2007 Identity Fraud Survey Report: Identity Fraud Is Dropping, Continued Vigilance Necessary
The Identity Fraud Economic Divide: Reduce Consumer Losses by Customizing Protection Efforts to Income Levels
2009 Identity Fraud Survey Report: Identity Fraud on the Rise But Consumer Costs Plummet as Protections Increase
2008 Identity Fraud Survey Report: Identity Fraud Continues to Decline, But Criminals More Effective at Using all Channels
Fraud in Accounts Payable: How to Prevent It
Credit Monitoring Services:Generating Revenue, Mitigating Losses, and Inspiring Customer Loyalty
Identity Fraud Protection Services: Double Digit Growth to Continue, Yet Confusion and Usability Issues Threaten Market Share
2008 Identity Fraud Forecast: Fraud Techniques will Evolve in Tandem with Industry Defenses
2006 Identity Fraud Survey Report
Profiling “Severely Injured” Identity Fraud Victims: Using Triage to Ease the Pain of Customers “At Risk”
|
|
|
|
