EFunds delivers ID theft and fraud prevention system
14 July 2005 | 1805 views | 0
EFunds Corporation (NYSE:EFD), a leading provider of risk management, electronic payments and global outsourcing solutions, today announced that its subsidiaries, Penley, Inc. and Chex Systems, Inc., are introducing new services designed to help financial institutions and their customers fight identity theft and fraud more effectively.
The enhanced solution includes access to an advanced change of address analysis service and an identity theft protection monitoring service.
To help verify the identity of new customers, Penley's ID Verification compares identity information supplied by account applicants against aggregated data records, including Chex Systems' proprietary DebitBureau database. When address discrepancies arise as part of this verification check, the new change of address service analyzes the asserted address change to assess the likelihood of fraud. The service can also verify existing client address changes to ensure legitimacy and help streamline processes.
Chex Systems' identity theft prevention service, IDefend, offers a financial institution's customers access to a menu of services, including weekly credit monitoring, and later this year, DebitBureau monitoring, an annual credit report, a personalized protection plan, custom fraud alerts, a recovery assessment from a trained Recovery Advocate (if victimized), and up to $20,000 in lost wage and expense reimbursement. In the event of a security breach, the solution can also help financial institutions implement a timely incident response plan, which has recently been mandated by the Federal Reserve Board.
"Each year over a hundred thousand consumers in the US become victims of identity theft," said Ariana-Michele Moore, an analyst with Celent Communications. "Such theft affects not only the consumers, but financial institutions who incur significant costs. Identity theft and fraud solutions, such as the one offered by eFunds, can help financial institutions provide a much needed offering for their customers, prevent identity theft and help recover losses incurred if theft does occur."
According to the Federal Trade Commission, identity theft is one of the fastest growing crimes in the United States, claiming 27.5 million victims since 1997. From April 2002 to April 2003, the FTC states that businesses and financial institutions lost $48 billion, or $4,800 on average, on fraudulently purchased items.
"Case studies have shown that more than 70% of all new account fraud involved a change from the most recently known address," said Rahul Gupta, senior vice president and division executive, eFunds. "Not only will this enhanced change of address analysis tool help financial institutions reduce fraud losses, it may help them comply with FACTA Sections 114 and 315."