Financial Insights Says Identity Theft Not As Big A Problem As Previously Thought

FRAMINGHAM, MA – OCTOBER 29, 2003 – A new report by leading independent research and advisory firm Financial Insights discusses the findings of ID Analytics’ National Report on Identity Fraud in the bank credit card system of the financial services industry and details actions financial institutions must take to mitigate the risk of fraud. The National Report on Identity Fraud is an analysis and summary of how application data is used to obtain financial and wireless accounts and to commit fraud.

Financial Insights says the financial services industry has had very little empirical data concerning the scale and scope of the identity fraud problem. As a result, media reports and independent observers have put forth their own predictions about how much this problem costs the industry and what should be done to solve it. Now, for the first time, there is a body of research that pinpoints how identity fraud is perpetrated and how it victimizes financial institutions.

“Identity fraud is not as large a problem as recent reports from government agencies have indicated,” says Dennis Behrman, a Financial Insights analyst in the Retail Financial Services group. “However, the problem is large enough to warrant significant attention and should be a top-five business priority for line-of-business decision-makers at retail institutions.“

In the report titled, ”Bank Cards and ID Fraud: Analyzing the National Report on Identity Fraud” Financial Insights reviews the National Report on Identity Fraud’s findings for validity and applies them to segments of the financial services industry, specifically in the credit card space.

For more information on obtaining this report, please contact: sales@financial-insights.com.

About Financial Insights, an IDC Company Financial Insights provides independent research services to users and providers of financial industry technology. The company was formed in November 2002 by combining Meridien Research and the IDC Financial Services Advisory group. The Retail Financial Services practice offers four areas of focus: Payments, Channels, Customer Strategies and Wealth Management. The Capital Markets practice offers Trading Technologies and all aspects of Risk Management. The Corporate Banking practice covers cash management, wholesale payments, trade finance, and small business banking. Each practice delivers reports detailing new issues and challenges and uses its knowledge to advise clients on technology related decisions. Financial Insights is an IDC Company, headquartered in Framingham, MA. Visit www.financial-insights.com for more information.

IDC is a subsidiary of IDG, the world’s leading IT media, research, and exposition company.