Fraud & Risk Reports
June 2009
Understanding How PCI-Compliant Companies Can Be Breached: Security in a Post-Heartland World
The Payment Card Industry Data Security Standard (PCI DSS) raises the high water mark for data security. But there's a persistent myth that PCI compliance equals security. The reality is that PCI is only a baseline, and one that needs to be monitored constantly as the threat landscape changes. In the months following what may be the largest the data breach in U.S. history at Heartland Payment Systems®, many people are wondering if PCI is effective. In response, the PCI Security Standards Council has released new guidance around risk-based compliance and Qualified Security Assessor (QSA) reviews and remediation. But will these be enough to calm the concerns that merchants have with PCI? This report includes an update of PCI, an overview of emerging technologies, and lessons learned from the Heartland breach. Hashing, tokenization, end-to-end encryption, and Chip and PIN are covered in depth.
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June 2009
The Customer-Driven Architecture: Interactive Financial Services Technology in the iPhone Era
Over the past seven years, Javelin research indicates that consumers and business owners want more control of their finances. With the advent of the iPhone, consumers can easily manage their music collection, contact lists and endless other facets of their life. Consumers should now be able to easily navigate their financial information in a similar manner, but the technology belies a historic focus on putting providers’ need first. The customer-driven architecture seeks to differentiate financial providers by putting customers’ financial needs first. It is a way for customers to simply and safely know and control every important aspect of their finances.
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May 2009
2009 Consumer Identity Protection Services Scorecard: Competition Intensifies as Vendors Aggressively Expand Offerings
In December 2007, Javelin released a comprehensive industry research report introducing the identity fraud protection services space, which had just begun to see tremendous expansion, development and curiosity from other institutions with a vested interest in consumer security. This year’s report provides an update to this rapidly growing market, covering the latest trends in identity protection services, new accounts fraud, and consumer perceptions regarding the wide variety of protection products available. Aside from highlighting consumer satisfaction levels and effectiveness ratings of the primary categories of services (credit monitoring, fraud alerts, personal information monitoring and credit freezes), the report also provides detailed coverage of vendor-specific solutions, as well as a scorecard that examines the features and benefits of the wide variety of products currently available. The vendor analysis of over 20 service offerings includes several returning players, as well as some newer companies and firms that had not been addressed previously. Companies evaluated include Affinion Security Center, Debix, Experian, EZShield, FraudStop, Identity Force, Identity Guard, Identity Secure, Identity Sweep, IdentityTruth, IDWatchDog, Intelius, Intersections, LifeLock, TrustedID, Truston, and financial institutions with their own branded ID theft protection products, among several others. Actionable recommendations are directed toward vendors, financial institutions and consumers.
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April 2009
Gen Y Security Backlash: How Gen Y Wants to Participate in Securing Their Information and How They React to Identity Fraud
A security dilemma – and a caution. Despite their reputation for dropping their guards online and on mobile networks, Gen Y consumers want to help in the fight against fraud. Almost nine out of ten say they share responsibility with their banks and credit unions for protecting their accounts from fraud. They use financial alerts more than any other generation, yet are less satisfied with them. Younger adults are more likely to adopt high tech, yet less likely to use basic precautions when shopping online. Nonetheless, merchants and financial institutions should take note: Younger customers react strongly when victimized by identity fraud.
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April 2009
New Federal Personal Health Information Breach Notification Law: HITECH Act— A Tsunami of Opportunity
New federal legislation designed to improve the nation’s quality and coordination of medical care has created a perfect storm at the intersection of the health care and financial industries. Physicians and hospitals will be rushing to go online to take advantage of temporary monetary incentives. Handled well, prospects for enhanced medical care are considerable. But if the online transfers aren’t handled properly, the opportunities generated will benefit data thieves, rather than health care. And with a new national data breach notification requirement in place for personal health information, the impact of the Health Information Technology for Economic and Clinical Health Act (HITECH) could be staggering. This report explains the new federal requirements extending HIPAA security and privacy and addresses the impact of this bill to the financial and health care industry.
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March 2009
Profiling “Severely Injured” Identity Fraud Victims: Using Triage to Ease the Pain of Customers “At Risk”
Faced with a 22% rise in the numbers of identity fraud victims in 2008, financial institutions and identity protection service vendors are presented with the challenge of better assisting customers to prevent, detect and resolve fraud. In this report, Javelin identifies the key differences between those victims whose fraud experience was resolved to their satisfaction versus those who describe their financial lives as severely injured. The report provides insight into the behaviors of the severely injured and how to identify these victims, as well as recommendations on what financial institutions and identity protection services vendors can do to better shield consumers from becoming severely injured victims in the future.
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February 2009
2009 Identity Fraud Survey Report (FULL VERSION): Identity Fraud on the Rise But Consumer Costs Plummet as Protections Increase
For the first time in the past five years, identity fraud rates increased over the prior year. Yet during the same period, average consumer costs decreased sharply. The Javelin 2009 Identity Fraud Survey Report provides a detailed, comprehensive analysis of identity fraud in the United States in order to help consumers and businesses better understand the effectiveness of methods used for its prevention, detection and resolution. A nationally representative sample of almost 4,800 U.S. adults, including 487 fraud victims, was surveyed via a 50-question phone interview to gain insight into this crime and the effects on its victims. This report, supported by the Better Business Bureau, is issued as a longitudinal update to the Javelin 2005, 2006, 2007 and 2008 Identity Fraud Survey reports.
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February 2009
2009 Identity Fraud Survey Report (CONSUMER VERSION): Prevent – Detect – Resolve
The Javelin 2009 Identity Fraud Survey Report: Consumer Version provides guidelines for consumers to help prevent, detect and resolve identity fraud. Over the past five years, Javelin has surveyed nearly 25,000 adults to find out the actual ways consumers are being affected by identity fraud in the United States. The results of the study are used to help educate consumers to lower their risk of identity fraud. This year’s phone survey of almost 4,800 adults is the largest, most up-to-date study of identity fraud in the U.S.
Author: Rachel Kim
22 pages; 8 charts/graphs
Price: $0
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December 2008
10 Trends That Will Shape Financial Services in 2009
Javelin’s senior analysts weigh in on the top 10 banking trends for 2009. It promises to be a year of challenges for the financial industry: an ongoing recession, rising delinquencies and charge-offs, losses, mounting security fears and heavier regulations. But difficult times will give farsighted companies the opportunity to emerge as winners in the battle for profits and market share.
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December 2008
2008 Mobile Banking Security Standards: Three-Part Strategy Will Increase Consumer Adoption While Protecting Banks’ Assets
Security concerns are the single biggest factor inhibiting consumer acceptance of mobile banking. These concerns are as much a matter of consumer perception as they are of reality – so getting both right will be key. The volume of attacks on mobile banking systems is negligible in the still-nascent and fragmented market that exists today, but will rise as adoption builds, and in particular, as operating system consolidation and platform standardization increases. With a well-designed security program in place, mobile has inherent safety advantages that make it one of the most protected channels for remote banking. It can be used to improve overall (cross-channel) security via the inherent speed-and-notification advantages of always-on, always-present mobile access. For now, build on the diversity of platforms to maintain confidence that malware isn’t likely to infect consumer devices, but be aware that emergence of standard platforms will erase today’s advantage in the future. Included in this report is a review of the security of mobile banking vendors: ClairMail, CPNI, Firethorn, Fronde, Harland, Jack Henry, mFoundry, M-Com (marketed by Fiserv in the US), Mobile Money Ventures (MMV), Monitise Americas (marketed by Metavante in the U.S.), MShift, Tyfone, and Yodlee.
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November 2008
2008 Banking Identity Safety Scorecard: Authentication and Alerts are Keys to Acquiring, Retaining and Empowering Customers
Javelin’s 2008 Banking Identity Safety Scorecard ranks banks and credit unions on their customer-facing identity fraud Prevention, Detection and Resolution™ capabilities. Leveraging the nation’s most comprehensive study on identity fraud, Javelin updates the Prevention, Detection and Resolution™ criteria each year to show specific ways that individual financial institutions (FIs) can increase customer safety and loyalty by partnering with account holders to fight identity fraud criminals. Using a combination of mystery-shopper (averaging 5.8 calls per institution) and Web site research to score 25 leading U.S. providers against relevant Prevention, Detection, and Resolution™ criteria, collectively this study represents 50% of the U.S. market in 2008 by dollar value of deposits, according to the FDIC.
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October 2008
Data Breaches: What Should Banks, Payments Firms and Merchants do to Protect Brand Equity and Customer Loyalty?
With more than one in ten consumers notified of a data breach in the last year, concern over personal data security and identity fraud is also on the rise. Breaches are about more than identity theft or fraud, placing brand equity and customer loyalty at serious risk. A patchwork of state-by-state notification laws imposes stringent requirements from a consumer-protection standpoint, mandating breached organizations to notify all affected individuals. This report examines the consumer-facing implications of data breaches, and how public perceptions impact reputations and business relationships, particularly those of financial institutions. Using robust consumer data from actual data breach victims as well as data from the 2008 Identity Fraud Survey, Javelin analyzes consumer reactions to breach notification, perceptions of who is at fault, the sensitivity of the data being exposed, and the impact of breaches on consumer financial behavior, such as payment card usage. In addition, Javelin provides strategic recommendations for breach response and notification, as well as an overview of third-party vendors providing breach resolution services.
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August 2008
Consumer Authentication for Retail Banking: Compliance Does Not Equal Security
With the majority of financial institutions in compliance after the frenzied rush to meet the authentication requirements of the 2005 FFIEC Guidance, a number of financial institutions have relaxed into a satisfied mode. Compliance is not security, however, and complacency increases risk. Weaknesses have already been proven for widely adopted methods such as mutual authentication and device recognition. In this report, Javelin takes a hard look at how two-factor authentication has impacted consumers’ attitudes toward online banking, as well as some of the obstacles that banks continue to face despite the stronger verification controls that are now required to authenticate online bankers. Included is a projection of the number of consumers that would bank online if institutions could provide the necessary assurance and education to prevent them from worrying about security.
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May 2008
2008 Identity Fraud Forecast: Fraud Techniques will Evolve in Tandem with Industry Defenses
Right on the heels of the recently released 2008 Identity Fraud Survey Report, the 2008 Javelin Identity Fraud Forecast predicts how identity fraud trends will change over the next five years, projecting overall measures of impact, fraud types, and targeted channels of misuse through 2013. Leveraging longitudinal consumer data, based on a combined total of over 19,000 respondents surveyed over the past four years, the forecast builds upon the nation’s most comprehensive, nationally representative study of identity fraud.
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April 2008
2008 Card Issuers' Identity Safety Scorecard: Customizing Account Controls to Fight Fraud and Strengthen Customer Loyalty
The Javelin Card Issuers' Identity Safety Scorecard benchmarks 25 of the nation's top credit card issuers on their identity fraud protection features that involve customers. Each year, Javelin incorporates the latest results of its annual surveys on identity fraud and consumer preferences, so that the Prevention, Detection and Resolution� criteria reflect card features that address the most recent trends on how to most effectively battle identity fraud in the card portfolio. The objective of the scorecard is to assess how well issuers are doing the following: 1) addressing consumer perceptions and knowledge of identity fraud through effective education and outreach; 2) creating strong partnerships with customers to mitigate fraud and reduce losses; and 3) providing flexible and comprehensive fraud prevention and detection features to their customers.
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March 2008
2008 Identity Fraud Survey Report -- Excerpts for Card Issuers: Identity Fraud Continues to Decline, But Criminals More Effective at Using All Channels
The Javelin 2008 Identity Fraud Survey Report: Card Issuer Version provides a detailed, comprehensive analysis of credit card and debit card identity fraud in the United States in order to help card issuers better understand the effectiveness of methods used for its prevention, detection and resolution. A nationally representative sample of over 5,000 US adults, including 445 fraud victims, was surveyed via a 49-question phone interview to gain insight into this crime and the effects on its victims. This report is a condensed issue of the full 2008 Identity Fraud Survey Report, specifically for card issuers. The full report is issued as a longitudinal update to the Javelin 2005, 2006, and 2007 Identity Fraud Survey reports.
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February 2008
2008 Identity Fraud Survey Report (CONSUMER VERSION): How Consumers Can Protect Themselves
The Javelin 2008 Identity Fraud Survey Report: Consumer Version provides guidelines for consumers to help prevent, detect and resolve identity fraud. Over the last four years, Javelin has surveyed nearly 20,000 adults in order to find out the actual ways consumers are being affected by identity fraud in the United States. This year’s phone survey of over 5,000 adults is the largest, most up-to-date study of identity fraud in the US.
Author: Rachel Kim
23 pages; 9 charts/graphs
Price: $0
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February 2008
2008 Identity Fraud Survey Report (FULL VERSION): Identity Fraud Continues to Decline, But Criminals More Effective at Using All Channels
The Javelin 2008 Identity Fraud Survey Report provides a detailed, comprehensive analysis of identity fraud in the United States in order to help consumers and businesses better understand the effectiveness of methods used for its prevention, detection and resolution. A nationally representative sample of over 5,000 US adults, including 445 fraud victims, was surveyed via a 49-question phone interview to gain insight into this crime and the effects on its victims. This report is issued as a longitudinal update to the Javelin 2005, 2006, and 2007 Identity Fraud Survey reports.
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December 2007
Identity Fraud Protection Services: Double Digit Growth to Continue, Yet Confusion and Usability Issues Threaten Market Share
Due to the confusion and fear of consumers, identity fraud protection services are a marketer's dream: three out of four consumers believe that identity fraud is on the rise, despite steady declines in the crime over the past three years. The industry has responded to this growing awareness and concern with an array of direct-to-consumer services, such as credit monitoring, fraud alerts, data mining and most recently, credit freezes. This report provides a comprehensive assessment of the primary identity safety services, building upon robust consumer survey data on preferences, behaviors and attitudes. Leveraging qualitative data from in-depth vendor interviews, an analysis of the leading identity protection service providers is also featured, including, among others, Equifax, Experian, TransUnion, Fair Isaac, LifeLock, Debix, FraudStop (Identity Safeguards), Identity Guard (Intersections) and TrustedID.
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December 2007
The Future of Federated Identity: Consumer Markets, such as Healthcare, Deserve Bank Focus
Interest in federated identity, which allows for portability of a user's authentication across multiple domains, has declined over the past five years, as the promise of creating efficiencies and revenue streams has not come to fruition. While many large financial institutions (FIs) showed an initial interest in driving federated identity solutions as a line of business, only one--Wells Fargo--remains committed to doing so. Is this a missed opportunity for FIs? Extracting from executive interviews with banks, vendors and industry organizations, and presenting a case study of Wells Fargo's WellsSecure, this report explores the involvement among financial industry players in federated identity initiatives, and identifies potential opportunities, the need for FI involvement, and impending changes to the landscape moving forward.
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November 2007
PCI Compliance: Finding Value beyond Fine Avoidance
Safeguarding customer data is a necessary component of good business practice, yet the numbers of data breached accounts are at an all time high. Data security has not been given front line priority, and as a consequence an environment of mistrust of the card eco-system has developed among consumers, merchants, acquirers, and issuing banks. To stem this tide, the payment networks have responded with a renewed emphasis, harsher penalties, and more specific deadlines for Payment Card Industry Data Security Standards (PCI DDS) compliance. Merchants are spending untold amounts to come into compliance, and many are confused as to the value of PCI compliance above and beyond fine avoidance. This report explores the challenges and issues presented by PCI compliance from the merchant perspective--including the five biggest compliance problems causing data breaches for merchants--extracting from qualitative executive interviews conducted with the PCI council, payment networks, PCI vendors, Qualified Security Assessors (QSAs), and merchants themselves.
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November 2007
2007 Banking Identity Safety Scorecard: The Wave of the Future is Multi-Channel Security
Javelin’s 2007 Banking Identity Safety Scorecard ranks banks and credit unions on their customer-facing identity fraud Prevention, Detection and Resolution™ capabilities. Leveraging the nation’s most comprehensive study on identity fraud, Javelin updates the Prevention, Detection and Resolution™ criteria to measure banks and credit unions on their customer-facing security features to show specific ways that individual financial institutions (FIs) can increase customer safety and loyalty by partnering with account holders to fight identity fraud criminals. Using a combination of mystery-shopper and Web site research to score leading U.S. providers against relevant Prevention, Detection, and Resolution™ criteria, 25 institutions are included in this study, collectively representing 50% of the U.S. market in 2007 by dollar value of deposits, according to the FDIC.
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October 2007
The Identity Fraud Economic Divide: Reduce Consumer Losses by Customizing Protection Efforts to Income Levels
Income levels significantly predict the pattern of consumers' individual fraud cases. This report shows how companies can improve the effectiveness of fraud-fighting efforts by customizing them to the individual's income levels, protecting their bottom lines and that of their customers. This report analyzes nationally-representative income-related fraud data, using identity fraud incidence rates, consumer costs, fraud amounts, and consumer behaviors for different income groups-namely the lower, middle, and higher income segments to give specific recommendations. Javelin has uncovered what is, in effect, an identity fraud economic divide, based on quantitative data from the most nationally representative, up-to-date study of identity fraud in the US of over 5,000 US adults, including 458 fraud victims.
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September 2007
Securing the Enterprise: Leveraging Authentication for Effective Identity and Access Management
What are the future forms of authentication systems that have been implemented primarily for compliance reasons? How can financial institutions (FIs) fully utilize these solutions efficiently and effectively? As financial institutions move toward a more enterprise-wide approach to fraud management, they are calling upon authentication solutions providers to help them extend the use of existing fraud detection capabilities to strengthen identity and access management systems across the organization. Building upon in-depth interviews conducted with leading authentication vendors and top U.S. financial institutions, this report examines the growth in demand for leveraging authentication solutions for external and internal access controls; identifies motivations for engaging in this undertaking; and relates the steps that current FIs are taking, not only to utilize existing fraud detection solutions across multiple areas, but also to connect potentially isolated risk/fraud departments throughout the institution.
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August 2007
Card Issuers' Identity Safety Scorecard: Teaming Issuers and Cardholders Against One Enemy, to Strengthen Relationships and Security
Javelin's Card Issuers' Identity Safety Scorecard ranks issuers on their cardholder-facing identity fraud Prevention, Detection and ResolutionTM capabilities. Leveraging the nation's most comprehensive study on identity fraud, Javelin annually updates the Prevention, Detection and ResolutionTM criteria to measure issuers on their consumer-facing security features. The scorecard is based on these particular capabilities for the following key reasons: 1) consumer perceptions of identity fraud profoundly impact an issuer's brand image and reputation; 2) effective partnerships with customers mitigate fraud and reduce losses; and 3) successful results create enhanced customer loyalty and retention. The nation's top 25 credit card issuers were ranked on the services and measures they have implemented in partnership with customers to protect against identity fraud.
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April 2007
Mobile Banking Security: The Call for Technology Standards and Proactive Security Messaging
With the introduction of any new channel or technology such as the use of mobile devices for banking activity, financial institutions (FIs) must ensure that the perceptions and the realities surrounding security are successfully managed, both to ensure adoption and protect customers and the institution from emerging threats. The key emphasis of this study focuses on the ap-proach that FIs should take toward consumer security education, as well as the need for strong collaboration among vendors, banks and carriers for effective implementation. This report pro-vides a comprehensive analysis of the key security aspects surrounding mobile banking: the security perceptions, preferences and behaviors of consumers; actions that financial institutions are taking to secure the mobile channel; and an assessment of potential threats. Javelin also delves into the mobile security issues of FIs and insights of vendors, extracting valuable insight from in depth interviews with leading US banks and platform suppliers.
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March 2007
Data Breaches and Buyer Behavior: Moving PCI Compliance from Costly Burden to Competitive Advantage
In light of the TJX saga, issuers will no longer passively accept the costs incurred from lost cardholder data that is no fault of their own. Merchants, on the other hand, view PCI compliance as costly and burdensome, and of little value beyond “compliance”. Rather than point fingers and assess blame, all industry participants must understand the necessary steps to secure cardholder data efficiently and cost effectively. Furthermore, it is imperative to recognize how consumer behavior is affected by data breaches. This report provides an in depth analysis of consumers’ attitudes and perceptions regarding data breaches paired with a case study of the TJX data breach. This detailed analysis of extensive consumer research delineates specific action plans for merchants’ and issuers’ communication and security policies.
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March 2007
Telephone Banking Authentication: Practical Approaches to Securing a Popular yet Vulnerable Channel
Financial institutions (FIs) must implement effective authentication solutions that address specific, often mutually exclusive threats from different channels, while remaining in compliance with FFIEC guidelines which pertain to both telephone and online channels. With phone usage increasing over historical levels, this report provides comprehensive coverage and analysis of consumer preferences toward telephone banking, and evaluates the authentication methods currently being used by FIs for the phone channel. Building upon robust consumer data generated from a survey of 3,215 respondents, Javelin also interviewed several top FIs and authentication solutions providers to obtain qualitative input on current phone security efforts and market trends. Finally, Javelin investigates several well-known phone authentication products.
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February 2007
2007 Identity Fraud Survey Report FULL VERSION — Identity Fraud Is Dropping, Continued Vigilance Necessary
The Javelin 2007 Identity Fraud Survey Report provides a detailed, comprehensive analysis of identity fraud in the United States, in order to help consumers and businesses better understand the effectiveness of methods used for its prevention, detection and resolution. A nationally representative sample of over 5,000 US adults, including 458 fraud victims, is surveyed via a 44-question phone interview to gain insight into this crime and its effects upon its victims. This report is issued as a longitudinal update to the Javelin 2006 Identity Fraud Survey Report, the Javelin 2005 Identity Fraud Survey Report and the Federal Trade Commission’s (FTC) 2003 Identity Theft Survey Report.
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February 2007
2007 Identity Fraud Survey Report CONSUMER VERSION — How Consumers Can Protect Themselves
The Javelin 2007 Identity Fraud Survey Report: Consumer Version provides guidelines for consumers to help prevent, detect and resolve identity fraud. Over the last three years, Javelin has surveyed over 25,000 adults in order to find out the actual ways consumers are being affected by identity fraud in the United States. This year’s phone survey of over 5,000 adults is the largest, most up-to-date study of identity fraud in the US. Our recommendations for consumers are solidly based upon the results of this thorough research and are backed by accurate and careful analysis of the data.
For institutions desiring to view the complete version of this research study, the 2007 Identity Fraud Survey Report (66 pages) is available for purchase.
Author: Rachel Kim, Research Associate
21 pages, 8 charts/graphs
Price: $0
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December 2006
Authentication for Online Brokerages: Balancing the Demands of Consumers and Regulators
This report provides in-depth coverage of consumer attitudes regarding the security and overall performance of online brokerages, as well as the general outlook that online brokerages have toward online security and regulatory compliance. With the outbreak of several recent brokerage fraud scandals, online brokerages must reconsider their approach to security and actively address the rapidly growing problem of identity fraud. Javelin built upon its robust analysis of authentication and online banking consumer preference data and interviewed major online brokerages in the U.S., obtaining qualitative data on current online security efforts in the industry.
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December 2006
Consumer Information and Financial Safety Products: Maturing Markets Require Diverse Distribution Strategies
Consumers’ desire to feel safe online coupled with the need to better understand the relevant value of safety products presents a growth opportunity for all potential partners in information and financial safety products such as credit monitoring, anti-virus software and ID theft insur-ance. Vendors, banks, retailers and others can achieve enhanced sales through innovative partnering, distribution and marketing strategies. Javelin consumer data is combined with in-depth vendor interviews in this report to deliver insight into where opportunities for fulfilling im-mediate demand and creating long-term demand lie.
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November 2006
Interactive Financial Messaging: Alerts, Prohibitions, and Review & Release Functions for Evolving Customer Control
This research provides an in depth analysis of the strategic use of email alerts, account prohibi-tions, and other methods to mitigate fraud, enhance consumer control, and deepen relationships with account holders. FIs must develop an evolving strategy for informing consumers of account activity, and allowing the consumer to easily manage the type, frequency and delivery method for such information. Javelin interviewed financial institutions and vendors in the U.S., Canada, and Europe, compiling the qualitative data surrounding their opinions and actual implementations of Interactive Financial MessagingTM (IFM)—consumer-controlled alerts, account prohibitions, and “review and release? capabilities. The report builds on earlier Javelin quantitative research specific to consumer preferences and adoption patterns.
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October 2006
Mitigating New Account Fraud: Reduce Risk and Expand Customer Base with Evolving Authentication Solutions
This report provides both a three year longitudinal assessment of new account fraud statistics, as well as the solutions—authentication and otherwise—that best address new account fraud risks. Due in large part to regulatory pressures, much of financial institutions’ security enhancement strategy is focused on the authentication of existing account-holders. New account fraud (both “true name? and “synthetic?), however, represents a large percentage of identity fraud and new solutions are needed now.
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October 2006
Beyond FFIEC Compliance: Creating an Evolving Authentication Platform for Higher Lifetime Consumer Value
This comprehensive assessment of online financial institution (FI) authentication solutions and vendors contains detailed recommendations for selecting the best solutions and providers or adapting current authentication systems to be more robust, FFIEC compliant, cost effective and customer focused. This report pairs consumer preference research, vendor and financial institution (FI) analysis and previous Javelin research in risk and fraud to create the Evolving Authentication Platform surrounding multi-factor authentication. FIs must constantly evaluate their security position with respect to evolving threats, new security solutions and consumer attitudes; however, no FI has implemented solutions that meet the optimal security requirements recommended by the Evolving Authentication Platform. This failure to adopt exposes FIs to risks that have ramifications beyond FFIEC compliance.
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October 2006
Banking Identity Safety Scorecard - U.S. Financial Institutions Raise the Bar in Self-Detection—Prevention Efforts Are the Next Target
U.S. financial institutions (FIs) have made great strides in customer-facing identity fraud detection and overall behind-the-scenes fraud mitigation, yet still need to capitalize on opportunities to partner with customers for fraud prevention. Javelin’s third annual Banking Identity Safety Scorecard is updated to reflect the latest criminal methods and opportunities, and shows specific ways that individual financial institutions (FIs) can increase customer safety and loyalty by partnering with account holders to fight a common enemy: the identity fraud criminal. The twenty-four institutions included in the study collectively represent over 60% of the U.S. market in 2006 by dollar value of deposits, according to the FDIC.
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September 2006
Credit Monitoring Services: Generating Revenue, Mitigating Losses, and Inspiring Customer Loyalty
Credit monitoring services address identity fraud perpetrated through fraudulent new accounts and reassure customers who fear victimization. Robust and effectively-priced services give fi-nancial institutions marketing advantages, increased revenues and decreased operating costs.
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Author: Rubina Johannes
10 pages, 3 charts, 4 tables, 2,217 words
Price: $1500
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August 2006
Data Breaches and Identity Fraud: Misunderstanding Could Fail Consumers and Burden Businesses
Misunderstanding data breaches and their effect on identity fraud may lead to incorrect guidance to consumers, mistakes regarding protective measures companies employ, and overly burdensome legislation. Armed with facts, industry leaders must ensure that the data breach “cure? is not worse than the affliction. This report is the first ever to show the actual impact that data breaches have on known cause cases of identity fraud.
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Author: Mary T. Monahan
6 pages, 4 charts, 1,346 words
Price: $950
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July 2006
Consumer Security Preferences: Increase Online Adoption by Meeting Targeted Needs
Financial institutions can increase adoption of online banking services by using segmented consumer security preferences to cater to certain subsections of their account holder base. By offering flexible authentication solutions that allow for consumer choice, financial institutions can entice non-online banking customers to adopt and utilize the online channel. Consumers seek a combination of more proactive means—both detection and prevention—and resolution capabilities from their financial institutions. Solution flexibility is becoming more readily available to institutions through single vendor relationships.
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Author: Bruce Cundiff
5 pages; 1,072 words; 2 graphs/charts
Price: $950
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June 2006
Consumer Adoption of Alerts Doubles: What Do Consumers Want Now?
Due to their adoption growth and their interactive impact on the customer relationship, alerts must rank among the most important features for online banking product managers. Javelin research data holds the keys to effective planning: pinpointing appropriate competitive bench-marks, desired features and unique customer segments, and describing how today’s basic alerts will usher in significantly expanded “customer account controls.?
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Author: James Van Dyke
7 Pages; 1,306 Words; 5 Charts, Figures and Graphs
Price: $1200
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May 2006
President Bush’s Comments Portend Changes with “Credit Companies?
When the President of the United States issues a statement calling for a change in how the credit and financial services industry deals with our nation’s $56.6B annual identity fraud issue, you know that changes are afoot. After Bush met with identity theft victims a few days ago, the announcement from the White House made it clear that there will be increased coordination “…among the 13 governmental agencies involved with identity theft, to help the victims and put those who commit the theft in jail…?
Author: James Van Dyke
This report is only available to syndicated research subscribers
Price: $0
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May 2006
Card Issuers' Identity Safety Scorecard - The Next Competitive Differentiator: Empowering the Customer
By deploying cardholder-facing prevention and detection capabilities and giving cardholders the tools to better protect themselves against identity fraud, card issuers can differentiate themselves from competitive offerings, strengthen customer retention, and reduce operating costs.
Javelin ranks the nation's top 23 credit card issuers on their cardholder-facing identity fraud Prevention, Detection and Resolution capabilities and the services and measures they have implemented in partnership with customers to protect against identity fraud.
Author: Rubina Johannes
25 pages, 5,554 words, 21 graphs, figures and charts
Price: $2000
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April 2006
The Demographics of Identity Fraud: Through education and vigilance, banks can prepare and protect those most vulnerable
Hispanics and African Americans aged 25-34 have a 56% higher chance of becoming victims of identity fraud compared to other consumers. Together the fraud cases of these two ethnicities represent 35%, or $20 billion, of total annual identity fraud losses.
By contrast, even though households earning over $150,000 are 50% more likely to be victimized than the average household, their losses are among the lowest, at $4,376 per victim or 6% ($3.6 billion) of total annual losses. Measures taken to protect the assets of the highest earning households, whether by consumers themselves, their surrogates, or the institutions that house their assets, are effectively reducing fraud losses for this demographic by at least 31% compared to the average loss for all victims.
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Author: Rubina Johannes
35 Pages; 7,025 Words; 24 Charts, Figures & Graphs
Price: $1500
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March 2006
The New Data Security Paradigm: To Reduce Payments and Banking Fraud, Starve Criminals and Feed Customers
Financial institutions can make great strides in reducing fraud by treating good information flow with the same importance as information flow that may expose them to fraud losses. Fraud and risk specialists must have a dual focus - simultaneously increasing information flow to consumers, while decreasing flow to fraudsters.
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Author: James Van Dyke
8 Pages; 3 Graphics; 1,442 Words
Price: $750
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January 2006
2006 Identity Fraud Survey Report Complete Version
Can we stop identity fraud? How does identity fraud affect business relationships? These and other questions are addressed in the Javelin 2006 Identity Fraud Survey Report, the largest and most comprehensive survey ever conducted on this crime. The results of the 44-question interviews carried out with consumers, including identity fraud victims, offer statistical data for industry professionals and an in-depth understanding of the most effective methods for the prevention, detection and resolution of this crime. Presenting 3 year longitudinal trends and parallels, the report benefits risk management groups, business decision makers, retail merchants, financial institutions and many others attempting to assess the effectiveness of their fraud prevention measures and how they can be redirected or improved to address new threats and to meet customer needs.
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Author: Rubina Johannes
57 Pages; 12,007 Words; 34 Charts, Graphics and Figures
Price: $2500
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January 2006
2006 Identity Fraud Survey Report Consumer Only Version
This complementary report provides consumers with factual and practical information to help protect themselves against identity fraud, based on the most comprehensive annual study in the U.S. (Business employees and industry leaders should purchase the complete version, listed above). For a quiz and easy-to-read tips based on this report, visit www.idsafety.net.
January 2006
Online Banking Safety Scorecard: Banks Must Add Prevention and Detections Mechanisms to Reduce Identity Fraud
Financial institutions employ various methods of protecting consumers who access their accounts online from identity fraud, ranging from prevention, to detection, to post-event resolution. Javelin has for the second consecutive year deployed its online banking safety scorecard, which assesses the protective measures that banks are taking, and ranks the industry based on Javelin’s proprietary Prevention, Detection, and Resolution model for combating online identity fraud.
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October 2005
Fighting New Account Fraud: Providing Credit Monitoring Services for Consumer Protection and Loyalty
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 financial institutions to enhance loyalty and gain revenue by offering reasonably priced credit monitoring services to this vast majority of inactive consumers.
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Author: Bruce Cundiff
7 Pages; 3 Charts, Figures, and Graphs; 1,648 Words
Price: $750
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September 2005
Bill and Statement Delivery: Consumer Sentiments Reveal the Path to Profiting from Paper Turnoff
Less than one-third of consumers who have embraced online banking have actually turned off their paper statements for their primary checking accounts, and paperless adoption is even lower for all other types of bills and statements. Consumers are reluctant to turn off paper media for fear of giving up what they perceive as permanent, convenient, and safe records.
Until banks and billers present electronic media as a superior alternative to paper, their customers will not relinquish their costly habits surrounding paper bills and statements. Understanding consumers’ attitudes will help billers and financial institutions formulate strategy around driving consumers to turn off paper.
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Author: Bruce Cundiff
5 Pages; 3 Charts, Figures, and Graphs; 1297 Words
Price: $750
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August, 2005
Online Account Security: Consumer Preference for Authentication
What security solutions do consumers want?
Financial institutions in the midst of strategy and investment decisions for security and enhanced authentication solutions must understand consumer preferences in order to ensure adoption and ROI.
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Author: Bruce Cundiff
4 Pages; 4 Charts, Figures, and Graphs; 782 Words
Price: $500
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January 2005
2005 Identity Fraud Survey Report
This report provides a detailed, comprehensive analysis of identity fraud in the United States, in order to better understand methods for prevention, detection and resolution. Co-released by Javelin Strategy & Research and the Better Business Bureau, this report is issued as a longitudinal update to the Federal Trade Commission’s (FTC) 2003 Identity Theft Survey Report. The phone-based survey methods used as the basis for the 2003 and 2005 reports were nearly identical, while additional research areas were made realizable through the addition of a control group.
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June 2005
Phishing: Consumer Behavior and Awareness
A recent Javelin research study indicates that there are 9.3 million identity fraud victims in the US annually, 1.7% of which are a result of phishing attempts. At an average loss of $2,320 per incident, annual losses attributable to phishing therefore total nearly $367 million. Financial institutions must not only contend with the losses, but also the accompanying erosion of consumer trust, and the limitations it brings to the online channel – now an established, efficient, and lucrative conduit to the consumer.
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Author: Bruce Cundiff
four pages; 1 Chart, 1,257 Words
Price: $500
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June, 2004
2003-04 Online Finance Household Update: Image is Everything (Particularly for Checks, Statements, and Security)
A few years ago, online finance was all about access. These days, it’s becoming more about control and safety. During the past 12 months, online households have gravitated to increased mobility of funds; easy, central access to imaged checks and consolidated statements; and have placed increased importance in security factors. Among an online populace now 75% comprised of tenured (veteran) Internet users, fear rather than lack of interest is keeping the vast majority from banking online.
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November, 2004
Identity Fraud Safety Scorecard: Banks' Identity Fraud Safety Scorecard Reveals Measured Success and Bountiful Opportunities for Improvement
_Contributors: Larry May, Field Research Associate
James Van Dyke, Founder and Principal Analyst_
Amidst areas of progress, the banking industry has the opportunity to add many online identity fraud mitigation capabilities, within the three categories that Javelin has created as a model for increasing safety: prevention, detection and resolution. The absence of these safety capabilities places customers at risk, and causes unnecessary and escalating costs for banks and the banking industry. This report is designed to highlight industry-wide and bank specific areas for improvement that would help contain the estimated $47 billion per year costs associated with identity theft and fraud.
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August 2005
Online Banking in the Face of Fraud: Consumers Continue to Expand Activity
Has online banking activity slowed due to phishing and other identity fraud?
Financial institutions have been faced with the potential for consumers’ decreased usage of the online channel due to concern over identity fraud and the perception that online banking is unsafe. Banks must understand the actions that consumers are taking and evolve their online strategies to deal with heightened awareness and fear of identity fraud.
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Author: Bruce Cundiff
4 Pages; 3 Charts, Figures, and Graphs; 990 Words
Price: $500
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June 2005
Credit Card Issuer Safety Scorecard: Ranking Top 39 Issuers On Fraud Safety Concerns
Javelin Strategy & Research announces new research that measures the cardholder-facing identity fraud Prevention, Detection and Resolution™ capabilities of major credit card issuers. Fraud containment is critical to industry profitability; 2004 credit card identity fraud crimes topped $19.8 billion, not counting operational and relationship-oriented costs. Using a rigorous, multi-level methodology, this research evaluates the top 39 U.S. issuers based on multiple safety criteria.
The report uncovers opportunities and highlights areas for improvement for credit card issuer programs to control the overwhelming costs associated with identity theft and fraud and to increase customer preference. Specific recommendations are provided for issuers to help prevent and detect identity fraud and to improve resolution capabilities for victims.
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