Comments on: Why banks are not doing enough to stop identity fraud http://venturebeat.com/2007/02/13/why-banks-aren%e2%80%99t-doing-enough-to-stop-identity-fraud/ News About Tech, Money and Innovation Mon, 23 Nov 2009 07:11:08 +0000 http://wordpress.org/?v=2.8.5 hourly 1 By: David Thompson http://venturebeat.com/2007/02/13/why-banks-aren%e2%80%99t-doing-enough-to-stop-identity-fraud/comment-page-1/#comment-17440 David Thompson Thu, 15 Feb 2007 22:27:44 +0000 http://www.venturebeat.com/contributors/2007/02/13/why-banks-aren%e2%80%99t-doing-enough-to-stop-identity-fraud/#comment-17440 Fraud mitigation is the result of putting up defenses on multiple fronts; directly involving the consumer is a critical one. There is a lot of market evidence supporting the idea that the only way consumers will get effectively involved is to have an intelligent and frictionless process that is easy and unobtrusive for them. Just because a customer wants to get involved does not mean they will adopt any technology. It needs to be something familiar, easy to use, convenient and always connected. My company, ClairMail, has focused on the mobile channel and using the current functionalities that already reside on cell phones as an efficient medium to support these requirements. Both consumers and banks have incentives to protect their respective assets. Financial institutions should focus more on easily integrating customers into the right process. David Thompson VP of Marketing ClairMail Fraud mitigation is the result of putting up defenses on multiple fronts; directly involving the consumer is a critical one. There is a lot of market evidence supporting the idea that the only way consumers will get effectively involved is to have an intelligent and frictionless process that is easy and unobtrusive for them. Just because a customer wants to get involved does not mean they will adopt any technology. It needs to be something familiar, easy to use, convenient and always connected. My company, ClairMail, has focused on the mobile channel and using the current functionalities that already reside on cell phones as an efficient medium to support these requirements.

Both consumers and banks have incentives to protect their respective assets. Financial institutions should focus more on easily integrating customers into the right process.

David Thompson
VP of Marketing
ClairMail

]]> By: Paul Sweeney http://venturebeat.com/2007/02/13/why-banks-aren%e2%80%99t-doing-enough-to-stop-identity-fraud/comment-page-1/#comment-17434 Paul Sweeney Wed, 14 Feb 2007 16:55:18 +0000 http://www.venturebeat.com/contributors/2007/02/13/why-banks-aren%e2%80%99t-doing-enough-to-stop-identity-fraud/#comment-17434 Well there are several interesting points there. Absolutely, the problem cannot be addressed until it is surfaced. Will customers want to engage in processes that protect their money? Absolutely. With nearly 100% of people carrying mobile phones, surely there is a way to validate on-line and off-line purchases? I think the Gomez watchfire report tracks these issues? http://www.watchfire.com/news/whitepapers.aspx But perhaps more fundamentally, there are ways to think of "credit worthiness" and "fraud" in social terms, and to adopt social networking models to combat these. Perhaps thinking might shift from considering this as an "institutional issue" and to start thinking of it as an "interaction issue", and a social cost? Again, I don't know, I am not an expert. Well there are several interesting points there. Absolutely, the problem cannot be addressed until it is surfaced. Will customers want to engage in processes that protect their money? Absolutely. With nearly 100% of people carrying mobile phones, surely there is a way to validate on-line and off-line purchases? I think the Gomez watchfire report tracks these issues? http://www.watchfire.com/news/whitepapers.aspx But perhaps more fundamentally, there are ways to think of “credit worthiness” and “fraud” in social terms, and to adopt social networking models to combat these. Perhaps thinking might shift from considering this as an “institutional issue” and to start thinking of it as an “interaction issue”, and a social cost? Again, I don’t know, I am not an expert.

]]> By: Mashhood http://venturebeat.com/2007/02/13/why-banks-aren%e2%80%99t-doing-enough-to-stop-identity-fraud/comment-page-1/#comment-17433 Mashhood Wed, 14 Feb 2007 16:10:46 +0000 http://www.venturebeat.com/contributors/2007/02/13/why-banks-aren%e2%80%99t-doing-enough-to-stop-identity-fraud/#comment-17433 well, they also sell you insurance against id theft, why they would do anything to stop it, when they can get money out of your pocket. well, they also sell you insurance against id theft, why they would do anything to stop it, when they can get money out of your pocket.

]]> By: Matt http://venturebeat.com/2007/02/13/why-banks-aren%e2%80%99t-doing-enough-to-stop-identity-fraud/comment-page-1/#comment-17432 Matt Wed, 14 Feb 2007 15:52:37 +0000 http://www.venturebeat.com/contributors/2007/02/13/why-banks-aren%e2%80%99t-doing-enough-to-stop-identity-fraud/#comment-17432 Agreed! Seems like there's an incredibly simple solution. Why can't I "lock-down" my credit history? I'm willing to take the hit of a delay next time I need credit in order to curb this fraud. Actually, I believe you CAN actually lock down your credit report from the bureaus . . . however, they charge you for this! Insane! Agreed! Seems like there’s an incredibly simple solution.

Why can’t I “lock-down” my credit history? I’m willing to take the hit of a delay next time I need credit in order to curb this fraud.

Actually, I believe you CAN actually lock down your credit report from the bureaus . . . however, they charge you for this!

Insane!

]]> By: Tom Fragala http://venturebeat.com/2007/02/13/why-banks-aren%e2%80%99t-doing-enough-to-stop-identity-fraud/comment-page-1/#comment-17429 Tom Fragala Tue, 13 Feb 2007 23:04:04 +0000 http://www.venturebeat.com/contributors/2007/02/13/why-banks-aren%e2%80%99t-doing-enough-to-stop-identity-fraud/#comment-17429 Ken, I agree that there is no lack of anti-fraud solutions for financial institutions. If one does a little research, the number of companies is overwhelming. But Javelin, in their 2006 Identity Fraud Survey Report (consumer version), page 5 highlighted an overlooked but critical trend: "Javelin research reveals that contrary to popular opinion, consumers see themselves as the primary persons responsible for the security of their financial assets and want to take more active roles in this process. They only need direction on the most appropriate actions to take. Vigilant institutions in partnership with empowered and educated consumers are the best defense against the ever-shifting identity criminals." Most reasonable anti-fraud and recovery solutions sell into the FI enterprise for internal use as you clearly state. Consumers are eager to take control, but there's no safe, easy and effective solutions for them. The only services that exist today require the consumer to provide personal sensitive data like SSN and even power of attorney to a third-party. This is a non-scalable concept that most consumers reject (for good reason). As an ID theft victim and trained counselor, with 15 years IT experience, I am about to announce the release of an easy and effective self-help service for consumers, called myTruston. It aids with both ID theft detection and recovery. www.mytruston.com. Because the problem is so large and the alternatives are so poor, the mindset of consumers has CHANGED. People want and need a way to deal with the identity theft problem in a self-service way. It’s almost counter to what you might think, but people’s IDENTITY and financial well-being are so important to them, they feel a need and a responsibility to do something about it themselves. That’s where we come in. Ken,

I agree that there is no lack of anti-fraud solutions for financial institutions. If one does a little research, the number of companies is overwhelming.

But Javelin, in their 2006 Identity Fraud Survey Report (consumer version), page 5 highlighted an overlooked but critical trend:

“Javelin research reveals that contrary to popular opinion, consumers see themselves as the primary persons responsible for the security of their financial assets and want to take more active roles in this process. They only need direction on the most appropriate actions to take. Vigilant institutions in partnership with empowered and educated consumers are the best defense against the ever-shifting identity criminals.”

Most reasonable anti-fraud and recovery solutions sell into the FI enterprise for internal use as you clearly state. Consumers are eager to take control, but there’s no safe, easy and effective solutions for them. The only services that exist today require the consumer to provide personal sensitive data like SSN and even power of attorney to a third-party. This is a non-scalable concept that most consumers reject (for good reason).

As an ID theft victim and trained counselor, with 15 years IT experience, I am about to announce the release of an easy and effective self-help service for consumers, called myTruston. It aids with both ID theft detection and recovery. http://www.mytruston.com.

Because the problem is so large and the alternatives are so poor, the mindset of consumers has CHANGED. People want and need a way to deal with the identity theft problem in a self-service way. It’s almost counter to what you might think, but people’s IDENTITY and financial well-being are so important to them, they feel a need and a responsibility to do something about it themselves. That’s where we come in.

]]> By: Courtney Benson http://venturebeat.com/2007/02/13/why-banks-aren%e2%80%99t-doing-enough-to-stop-identity-fraud/comment-page-1/#comment-17428 Courtney Benson Tue, 13 Feb 2007 19:52:49 +0000 http://www.venturebeat.com/contributors/2007/02/13/why-banks-aren%e2%80%99t-doing-enough-to-stop-identity-fraud/#comment-17428 UPDATED - I'm in total agreement with you on this Ken, until and unless the risk bearer becomes the financial institution, customers and companies will bear the burden. The other possibility is that customers start showing their dissatisfaction via their wallets and Washington and that will take a lot of time and effort. UPDATED – I’m in total agreement with you on this Ken, until and unless the risk bearer becomes the financial institution, customers and companies will bear the burden. The other possibility is that customers start showing their dissatisfaction via their wallets and Washington and that will take a lot of time and effort.

]]> By: Courtney Benson http://venturebeat.com/2007/02/13/why-banks-aren%e2%80%99t-doing-enough-to-stop-identity-fraud/comment-page-1/#comment-17427 Courtney Benson Tue, 13 Feb 2007 19:32:52 +0000 http://www.venturebeat.com/contributors/2007/02/13/why-banks-aren%e2%80%99t-doing-enough-to-stop-identity-fraud/#comment-17427 I'm in total agreement with you on this Ken. Until and unless the risk bearer becomes the financial institution customers and companies will bear the burden. The other possibility is that customers start showing their dissatisfaction via their wallets and Washington and that will take a lot of time and effort. I’m in total agreement with you on this Ken. Until and unless the risk bearer becomes the financial institution customers and companies will bear the burden. The other possibility is that customers start showing their dissatisfaction via their wallets and Washington and that will take a lot of time and effort.

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