Identity Fraud Protection Services: Double Digit Growth to Continue, Yet Confusion and Usability Issues Threaten Market Share

Published by: Javelin Strategy & Research

Published: Dec. 1, 2007 - 36 Pages

Table of Contents

Overview

Primary Questions

Findings and Analysis

Consumer Perceptions Drive Adoption of Identity Protection Services

Five Factors to Gain Market Share

New Accounts Fraud Incurs the Highest Losses, Victim Impact

Credit Cards are Most Targeted for New Accounts Fraud

The Propagation of Consumer-facing Solutions to Fight New Accounts Fraud

Consumers Express Strong Liking for New Data Mining Services

Consumers Want Convenient, Web-based Access to their Credit Data

One out of Four Buy from Issuers¯-But Half Receive Credit Monitoring for Free

State of the Union: Identity Fraud Protection Services Industry

Credit Monitoring Renewal Rates Mirror Purchase Rates, But Need Improvement

Fraud Alerts: The “Middle-Ground” Approach to Identity Fraud Protection

Data Mining: Popular New Offering Needs Refinement to Realize Full Potential

Credit Freezes: The Next Frontier in Identity Fraud Protection

Identity Protection Services Overview

Fraud Alerts: Vendor Overview

Resolution-Oriented Services: Vendor Overview

Data Mining/Scanning: Vendor Overview

Credit Monitoring Services Overview

Partnership Opportunities for Financial Institutions

Child Identity Fraud Protection

Related Research

Methodology

Appendices

Appendix A: Three out of Ten Have Used a Credit Monitoring Service

Appendix B: Most Consumers View their Credit Report Infrequently

Appendix C: Almost One in Five (18%) Has Used Identity Theft Insurance

Appendix D: One out of Three Consumers Wants FI-Provided Identity Insurance

Appendix E: One of every Four Fraud Victims Purchases Credit Monitoring

Appendix F: Almost Three-fourths of Issuers Offer Credit Reports or Monitoring

Table of Figures

Figure 1: Identity Fraud Protection Market Size

Figure 2: Comparisons of Incidence Rates and Average Fraud Amounts

Figure 3: Types of Fraudulent New Accounts Opened

Figure 4: Definitions of Identity Fraud Protection Services

Figure 5: Fraud Protection Services that Consumers Are Most Likely to Purchase

Figure 6: Preferred Features for Potential Purchasers of Identity Safety Services

Figure 7: Consumer Sources of Credit Monitoring Services

Figure 8: Analysis of Consumer Fraud Protection Services, by Category

Figure 9: Credit Monitoring Subscribers’ Likelihood of Renewal

Figure 10: Consumer Usage of Fraud Alerts

Figure 11: Analysis of Identity Protection Services

Figure 12: Fraud Alerts Features by Vendor

Figure 13: MyTruston Features

Figure 14: Data Mining Features by Vendor

Figure 15: Credit Monitoring Features by Vendor

Figure 16: Credit Monitoring Services Offered by Banks

Figure 17: LifeLock for Kids and Family

Figure 18: Child Identity Fraud Protection Services

Figure 19: Consumer Usage of Credit Monitoring

Figure 20: Frequency of Credit Report Access

Figure 21: Consumer Usage of Identity Theft Insurance

Figure 22: Consumer Preferences for FI-provided Identity Safety Features

Figure 23: Consumer Behavior Changes after Fraud Victimization

Figure 24: Percentage of Issuers Meeting Javelin Criteria for Identity Fraud Detection

Abstract

• What are the five factors that will determine success in this market space?
• What are the overall measures of impact of new accounts fraud?
• How many consumers are using credit monitoring services, fraud alerts and credit freezes?
• Which services provide the best value, both for consumers and for financial institutions from the partnership perspective?
• Which vendors are major players in the identity fraud protection services market, and what is the competitive differentiation for each provider?

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