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Fintechs: Customers Need an Ally to Fight ID Theft and Fraud

July 25, 2019 by

Today’s consumers have to be more informed than ever as digital fraud has quickly become the norm—with an estimated 60 percent of consumers worldwide, having experienced an online fraud incident, according to Experian’s 2019 Global Identity and Fraud Report.

Consumers expect companies they do business with to protect their personal information, for their families as well as themselves, as an estimated 1.3 million personal records belonging to children are stolen every year, with 2018 seeing a 126 percent increase in exposed consumer data alone, per the Identity Theft Resource Center.

Fintech companies can get ahead of consumer demand by offering identity protection solutions that cover individuals and their families. Offering solutions that detect cyber threats to personal data, can help Fintechs build loyalty with their customers while gaining a competitive advantage. Bundled identity-protection solutions give fintechs an edge in the market by providing an additional value proposition that can boost new customer acquisition.

Getting Ahead of Consumer Demand

Consumers are facing new threats to their personal data as the world becomes more digital, and that can be hard to manage for everyday people—people like Cory: Married with two kids in middle school, he and his family spend a lot of time online—shopping, banking, and on social media. His family’s vulnerability to identity fraud hit home last year, after his daughter’s Social Security number was stolen on the web.

Cory’s daughter is just one of many victims. In 2018, Social Security Numbers were the most compromised type of personal data. According to the 2018 Child Identity Fraud Study by Javelin Strategy & Research, children are becoming a huge target for fraud. In 2017, over 1 million children were victims of ID theft, resulting in $2.6 billion in damages and over $540 million in out-of-pocket expenses for family.

Cory decided to get serious about protecting himself and his family from data fraud for his family’s financial future. While researching mobile-payments options, he discovered that one of the top-rated financial apps included credit-monitoring and ID protection services. He downloaded the app and registered immediately.

Cory promptly activated the app’s bundled tools for tracking unauthorized credit activity under his own name and Social Security number, and those of his wife and children. He sleeps better knowing his family is protected, and the investment has already paid off. An alert about an attempt to open a bogus credit card in his name enabled him to act immediately in resolving the incident of fraud before it seriously affected his credit.

Cory was so impressed that he recommended the fintech app to friends and family because the bonus offering of identity protection brought him a huge value and increased his trust level.

Experian’s white-label ID protection tools put fintechs on the front lines of the battle against fraud, with tools that make it easy for everyday people to manage the risk of fraud for their families. Services include:

  • Social Security Number Trace Monitoring helps protect customers against synthetic identity theft, by which a criminal combines stolen and fake information to create a new identity used to open fraudulent accounts.
  • Child Monitoring extends identity monitoring to include the credentials of customers’ children.
  • Social Media Monitoring tracks social media activity and notifies you of privacy or reputation risks with the content you are sharing. Parents are also able to monitor their children’s social media activity for these risks, as well as cyber bullying, weapon references and sexual predator activity.

Deeper Customer Engagement

Cory’s increased interaction with the mobile-payments app’s ID-protection tools gave him the confidence to move ahead with real plans to open a new credit card account. He’d been talking to his local bank, but decided to check out an in-app card offer from the financial app instead. The app made it easy by sending him offers that he is prequalified for, and the app’s bundled fraud and credit protection services helped Cory feel great about accepting the offer. Financial service providers that Include ID protection are adding a level of security and transparency that build trust and loyalty and benefit the bottom line.

Ask About Our Identity Protection Products

Experian offers flexible turnkey products that are available via an easy-to-use white-label platform or a hosted solution, giving fintechs the ability to offer a comprehensive set of branded ID protection tools that help protect their customers against fraud. Curious? Download our complimentary eBookHow Credit Education Can Help Fintechs Grow.

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