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2009 Consumer Identity Protection Services Scorecard: Competition Intensifies as Vendors Aggressively Expand Offerings

Published by: Javelin Strategy & Research

Published: May. 1, 2009 - 45 Pages


Table of Contents


Overview

Primary Questions

Findings and Analysis

Vendor Scorecard

Methodology

ID Protection Services Market Sizing

Top Six Trends to Watch in ID Protection Services

The Future of Fraud Alerts: Are Vendor-Provided Fraud Alerts Subscriptions in Jeopardy?

Customer Retention Rates

Recommendations

Consumers

Vendors

Financial Institutions

Consumer Cost for New Accounts Fraud Shifts From Consumer to Industry in 2008

Fraudulent New Credit Card Accounts Increase Over 2007 Levels

Identity Fraud and Consumer Fraud Protection Services: A Review

Consumers Rate Fraud Alerts as Most Effective in ID Theft Protection

Should Identity Protection Service Vendors Consider Including Anti-Virus Protection?

Personal Information and Credit Monitoring Users Rank Most Satisfied

Case in Point - No Solution is 100% Guaranteed to Stop Identity Fraud

Identity Protection Services Overview

Fraud Alerts Subscriptions: Vendor Overview

Hybrid Services Vendor Overview

Personal Information Monitoring: Vendor Overview

Resolution-Oriented Services: Vendor Overview

Child Identity Fraud Protection

ID Protection Services Scorecard

Guide to the Ratings

Personal Information Services Monitoring Now Widely Offered Among Vendors

Fraud Alert Hybrid Services Providers are covering More Ground With Comprehensive Protection

Credit Monitoring Services Continue to Dominate FIs’ ID Protection Offerings

Appendix

Related Research

Companies Mentioned

Table of Figures

Figure 1: Consumer Adoption: With Crossover

Figure 2: Millions of U.S. Adult Users: With Crossover

Figure 3: Millions of U.S. Adult Users: Decoupled From Credit Monitoring

Figure 4: Identity Theft Victimization Rates

Figure 5: Comparisons of Incidence Rates and Average Fraud Amounts, 2007 to 2008

Figure 6: New Accounts Fraud Types

Figure 7: Definitions of ID Theft, ID Fraud, and Consumer Fraud Protection Solutions

Figure 8: Consumer Perceptions of Effectiveness, by Product Type

Figure 9: Consumer Ranking of Service Effectiveness Including Anti-Virus

Figure 10: User Satisfaction Ratings, by Product Type

Figure 11: Consumer Satisfaction Ranking for Identity Protection Services

Figure 12: Percentage of Fraud Victims Victimized While Enrolled in an ID Protection Service

Figure 13: Fraud Alerts Subscriptions: Vendor Overview

Figure 14: Hybrid Services: Vendor Overview

Figure 15: Personal Information Monitoring Services

Figure 16: MyTruston Features

Figure 17: Screenshot of Experian Family Secure

Figure 18: Vendors of Child Identity Fraud Protection Services

Figure 19: Product Category: Personal Information Monitoring Services Ratings

Figure 20: Product Category: Fraud Alert Hybrid Services Ratings

Figure 21: Product Category: Credit Monitoring Branded as ID Theft Protection Service Ratings

Figure 22: Identity Protection Services Vendors: Overall Comparison

Figure 23: Actions Taken as a Result of Identity Fraud Victimization

Figure 24: Victims’ Most Frequently Breached Personally Identifying Information

Figure 25: Victims’ Rate of Medical Identity Theft

Figure 26: How Consumers Last Viewed Their Credit Reports

Figure 27: Victims’ Interactions to Resolve Identity Fraud

Figure 28: Consumer Security Preferences

Abstract

In December 2007, Javelin released a comprehensive industry research report introducing the identity fraud protection services space, which had just begun to see tremendous expansion, development and curiosity from other institutions with a vested interest in consumer security. This year’s report provides an update to this rapidly growing market, covering the latest trends in identity protection services, new accounts fraud, and consumer perceptions regarding the wide variety of protection products available. Aside from highlighting consumer satisfaction levels and effectiveness ratings of the primary categories of services (credit monitoring, fraud alerts, personal information monitoring and credit freezes), the report also provides detailed coverage of vendor-specific solutions, as well as a scorecard that examines the features and benefits of the wide variety of products currently available. The vendor analysis of over 20 service offerings includes several returning players, as well as some newer companies and firms that had not been addressed previously. Companies evaluated include Affinion Security Center, Debix, Experian, EZShield, FraudStop, Identity Force, Identity Guard, Identity Secure, Identity Sweep, IdentityTruth, IDWatchDog, Intelius, Intersections, LifeLock, TrustedID, Truston, and financial institutions with their own branded ID theft protection products, among several others. Actionable recommendations are directed toward vendors, financial institutions and consumers.

Primary Questions
  • What key changes have occurred in this rapidly shifting market landscape of consumer fraud protection solutions?
  • To what extent are consumers being impacted by new accounts fraud, which identity protection services are designed to protect?
  • How does the usage of ID protection services break down among U.S. adults, by service category?
  • Which services do consumers perceive as being the most effective in protection, and how do fraud incidence rates differ for consumers who subscribe to ID protection services compared with those who do not?
  • Which vendors have managed to sustain a leading edge over their competitors?


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