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Banking Identity Safety Scorecard: U.S. Financial Institutions Raise the Bar in Self-Detection-Prevention Efforts Are the Next Target

Product Type: Market Research Report
Published by: Javelin Strategy & Research
Published: October 2006
Product Code: R3424-8
Description
Overview

How Well Do Financial Institutions Protect their Consumers and Allow Consum-ers to Protect Themselves?

U.S. financial institutions (FIs) have made great strides in customer-facing identity fraud detec-tion 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 spe-cific 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. This report uses a combination of mystery-shopper and Web site research to score leading U.S. providers against exacting Prevention, Detection, and Resolution™ criteria derived from Jave-lin’s nationally representative 2006 Identity Fraud Survey Report.

Primary Questions
  • Which customer safety features most differentiate the top financial institutions?
  • What are today’s best investments for reducing the cost of identity fraud and building consumer confidence?
  • Where is banking safety strongest or weakest, and what is the future outlook?
Findings and Analysis

U.S. financial institutions have made the strongest improvement in customer self-detection ca-pabilities, potentially stopping fraud sooner by adding email alerts that make it easier and faster for customers to discover suspicious activities. Meanwhile, FIs are holding steady in offering prevention features, such as anti-phishing email policies, elimination of paper media or eradicat-ing the use of the full nine-digit Social Security number (SSN).
Table of Contents

Overview




Key Findings




2006 Top Banking Safety Rankings




Banking Industry Recommendations




Overall Results




Results for Leaders in Prevention




Results for Leaders in Detection




Deputizing Customers Continues to Be Best Way to Improve Detection




Alerts: Consumers Want More Personalized Control




Results for Leaders in Resolution




Resolution: Granting Victims Greater Access to Stolen Funds Can Give Willing Providers an Edge in Resolution




Conclusions and Full Rankings




Methodology




Appendix:


Comparing 2005 and 2006 Scorecards Methodologies




Related Research




Table of Figures

Figure 1: Customer-Partnering Greatly Expands Detection; Prevention Growth Lags-Percentages of Financial Institutions Meeting Criteria

Figure 2: Overall Highest Rated FIs: 2006 Banking Safety Scorecard

Figure 3: Javelin Prevention, Detection, and Resolution™ Model

Figure 4: Prevention: Top Performing Financial Institutions

Figure 5: Prevention: Remaining Financial Institutions

Figure 6: Prevention: Improvement Gains Slight, More Focus Needed--Percentage of FIs Meeting Prevention Criteria

Figure 7: Detection: Top Performers

Figure 8: Detection Remaining Financial Institutions

Figure 9: Deputizing Customers Continues to Be Best Way to Improve Detection--Percentage of FIs Meeting Detection Criteria

Figure 10: Alerts Most Desired by Consumers

Figure 11: Resolution: Top Performers

Figure 12: Resolution: Remaining Financial Institutions

Figure 13: Percentage of FIs Meeting Resolution Criteria

Figure 14: ID Fraud Safety Scorecard: All Financial Institutions Ranked by Total Score

Figure 15: ID Fraud Safety Scorecard: All Financial Institutions Ranked by Prevention Score

Figure 16: ID Fraud Safety Scorecard: All Financial Institutions Ranked by Detection Score

Figure 17: ID Fraud Safety Scorecard: All Financial Institutions Ranked by Resolution Score
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