NEW FIRM LAUNCHES FIGHT AGAINST IDENTITY THEFT
ID Insight Inc. will help financial services companies identify fraud, protect consumers.
St. Paul, Minn., May 19, 2004 — Today a new company was introduced that promises to take a major bite out of the growing problem of identity theft. ID Insight Inc. will help financial services companies identify cases of stolen identity before consumers and businesses face devastating losses, said Adam Elliott, co-founder and president of the firm.
Identity theft is a problem that cost the U.S. economy over $50 billion during 2003, according to the Federal Trade Commission. ID Insight research shows that the most effective way to identify cases of identity theft in the financial services industry is by looking at address inconsistencies related to consumer accounts.
"It's all about the address," said Elliott. "Nearly every (more than 90 percent) case of identity theft involves an address manipulation. Crooks effectively steal your name, Social Security Number, driver's license number and birth date, but they don't receive mail at your house. Instead, they'll provide another address where the bills and bank statements pile up. If you can determine that there is an address manipulation associated with the account, you can catch the thief."
Bob Clark, co-founder and vice president of business development, said ID Insight will offer two different services to banks, brokerages, credit issuers and other financial services companies by July of this year. TakeOver InsightSM helps detect when a thief uses a consumer's identifying information to compromise an existing account. NewApp InsightSM helps spot cases where a fraudster uses identifying information to open a new account in the victim's name.
Both services are based on Address Differential AnalysisSM - a blend of data and analytics for which ID Insight has filed a patent. The analysis kicks out the Address Differential Score which predicts the likelihood of fraud. The score directs fraud investigators to high-risk transactions, according to Clark, allowing them to act immediately to protect consumers and prevent serious losses.
The financial services industry currently uses a variety of methods to detect identity theft, but they have not been successful at curbing the problem. "Identity theft may have finally met its match," said Elliott. "ID Insight solutions, focused on address, are just what the industry needs to combat this destructive type of fraud."
ID Insight Inc. is a privately held company dedicated to preventing identity theft in new and existing financial accounts. Its management team has extensive expertise in law enforcement, financial services, data management, analytic modeling, and marketing and information technology. ID Insight is based in St. Paul, Minn. and serves financial services clients nationwide.
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Media Contacts:
- Brian Bellmont for ID Insight, (952) 233-0428,
