Recession Increases People’s Fear of Identity Theft
January 17, 2010
CHICAGO–(BUSINESS WIRE)–As if the global recession, struggling housing market and high unemployment numbers weren’t enough, market research firm Mintel reveals that Americans increasingly fret about having their identities stolen.
“As banks launch new financial products and services like mobile banking, they need to be mindful of people’s concern about security. One way to improve acceptance of new products is for banks to convince customers that their personal information will remain safe and protected”
Because of today’s dire economic situation, nearly half of adults (46%) say they’re more worried about someone stealing funds from their bank accounts or stealing their identities. Perhaps because of the belief that desperate times lead to desperate measures, or maybe because each dollar is more precious this year, security and identity theft are top concerns for today’s consumers.
Susan Menke, behavioral economist at Mintel Comperemedia, comments:
“Some consumers worry that, because of economic concerns this year, banks aren’t paying as much attention to security and identity theft issues as they have in the past. This really isn’t true, so banks need to reassure their customers that they’re being well taken care of. Focusing on security and identity theft protection capabilities can give banks and credit unions a competitive edge and strengthen customer relationships.”
Identity theft protection is very important to consumers, especially when choosing which banks to do business with. Nine in 10 people told Mintel that protection against identity theft and illegal account access was very or somewhat important to them when selecting a bank. Among small business owners, 42% rank identity theft protection as one of the top three factors they’d consider when obtaining a new business credit or debit card.
“As banks launch new financial products and services like mobile banking, they need to be mindful of people’s concern about security. One way to improve acceptance of new products is for banks to convince customers that their personal information will remain safe and protected,” states Susan Menke.
Visit Mintel Comperemedia’s blog for the latest direct marketing trend analysis: www.comperemedia.com/blog/.
About Mintel Comperemedia
Mintel Comperemedia provides competitive intelligence for businesses looking to advance and improve their direct marketing strategy. Tracking direct marketing (including mail, email and print advertising) targeted at consumers, small businesses and insurance agents, Mintel Comperemedia offers a unique perspective on everything from banking trends to insurance trends to credit card statistics. For more than 35 years, Mintel has provided insight into key worldwide trends, leading the industry for consumer, product and media intelligence. Follow Mintel on Twitter: http://twitter.com/mintelnews.
Investcorp Technology Partners Acquires Equity Stake in Leading Identity Theft Protection Firm CSIdentity
January 15, 2010
ALLIANCE PLANS GLOBAL EXPANSION; TARGETS WORLD’S FASTEST GROWING CRIME
14 January 2010 – Investcorp Technology Partners, the technology private equity arm of alternative investment manager Investcorp, announced today that its Fund III has agreed to acquire an equity stake in CSIdentity, the Austin, Texas-based technology leader in identity theft and fraud protection services. CSIdentity was started by entrepreneur and co-founder Bill Morrow. The Fund has made an initial investment of $35 million in the company.
CSIdentity provides proprietary software solutions and datasets for the $2.8 billion identity theft protection market in the United States. The market is expected to grow over 20% per year for the foreseeable future, driven by the mass-market adoption of the Internet, e-commerce, online banking and other forms of e-payments. An estimated 285 million records of personal information held by government and private sector data banks have been breached since 2008, largely at the hands of computer hackers.
“Our market leading technology solutions are protecting multi-billion dollar corporations, government agencies, small businesses and consumers from identity theft across every U.S. state,” CSIdentity CEO Bill Morrow said. “Our partnership with Investcorp not only validates our position as the technology leader, but fuels our growth trajectory as we further penetrate the U.S. market and expand globally, leveraging Investcorp’s presence and relationships around the world.”
“Identity theft is the fastest growing crime in the world, having claimed more than 10 million victims in the U.S. alone in 2008,” said Alex Guira, co-head of Investcorp’s technology investment business, who will join the CSIdentity board along with London-based Investcorp colleague Dirk Schm?cking. “With its technology leadership, blue-chip client base and superb management, CSIdentity is well positioned to combat this growing pandemic, not just in the U.S. but in Europe and the Middle East as well. CSIdentity is a perfect addition to our existing top-notch portfolio of security software and data analytics companies.”
Approximately 34 million subscribers in the U.S. currently use some form of credit monitoring or advanced identity theft protection services and this is expected to increase over the next few years. CSIdentity leads the industry with advanced Internet surveillance techniques, unrivaled product architecture and the most comprehensive security protection products, including CyberAgent online black market screening in addition to monitoring of payday loans, public and court records, credit reports and even sex offender reports. CSIdentity’s offerings go beyond the simple collation of public data, instead using sophisticated technology to identify potential fraudulent behavior.
CSIdentity’s solutions are used by Fortune 100 financial institutions, public pension funds, telecommunications companies and businesses that offer direct-to-consumer identity theft protection services. CSIdentity’s technologies are used to protect more than 2 million U.S. citizens, both as individuals and businesses, through a suite of business and personal security solutions targeting all aspects of identity theft protection, including identity validation, comprehensive background screenings, identity theft protection for employees and customers, voice biometric identity verification and data breach management.
“CSIdentity is a potentially huge growth story with an ambitious product roadmap,” Guira said. “In addition to expanding its global footprint, we plan to grow its research and development program to ensure we retain our technological superiority.”
About CSIdentity
CSIdentity is the technology leader in providing identity theft and fraud protection services to businesses and consumers. Founded in 2005, The Austin, Texas-based company offers a comprehensive suite of business and personal security solutions targeting all aspects of identity theft. CSIdentity’s products include:
- CSIdentity SAFE - Comprehensive background screening, identity verification, alternate names / alias search, authentication and ongoing criminal monitoring.
- CSIdentity Protector - Full-service identity theft protection including CyberAgent, insurance and restoration.
- CSIdentity Breach - Proactive breach preparation services from discovery to resolution.
- CSIdentity VoiceVerified - Voice biometric identity verification.
For more information, visit http://www.CSIdentity.com.
