Own Your Identity

The Problem: Identity Theft Identity theft was the number one consumer complaint to the Federal Trade commission last year. In 2014 alone, more than 1 Billion personal records were leaked. Financial losses totaled more than $50 Billion 1 . Once your information is out there, its difficult to regain control. There are two primary forms of identity theft: Personal Identity Theft SSN’s, Passports, Computer User IDs Financial Instrument Theft Cards, Checks, Electronic Transfers

Current Providers: After-the-fact Identification Credit monitoring services do not protect consumers from identity theft. They only notify impacted individuals after their information has been compromised. Models that scan activity and look for anomalies in transaction requests do hinder malicious activity, but they can create friction for consumers in the process. Those who have had their cards and accounts locked incorrectly express significant frustration with the process. Most systematic indicators and ‘red flags’ are triggered at the end of transaction processes generating millions in fees and losses for processors and banks each year. Identity Fraud Continues to Grow Credit Card Fraud by Source   Credit Card Fraud World Wide 1983- 2014 Losses Continue to Rise  

The Problem: Identity Theft The predominant targets for identity theft focus on easily-accessible identifiers including card numbers, bank account details and personally identifiable data elements. All processes are at risk. Card Transactions Card Present transactions are more mainstream but still do not allow the merchant to confirm your identity. CNP transactions continue to grow reducing the ability to prohibit identity theft through card design. Systematic methods require massive data processing and storage expenses. And they block less than 50% of fraudulent activity. Back-Office Operations Industry standard procedures enforce dual validation. However, back office personnel are still accountable for final approval / release of funds allowing for misuse of personal information. In addition, processes are often cumbersome for both the front and back office due to the required validations. Electronic Fund Transfer The fastest growing segment of the payments space is Electronic Funds Transfer. Millennials are more comfortable using ETF and Cards than paying in cash or check. This opens more transaction channels to the risk of identity theft. Personal Account Details Once compromised, data can be leveraged again and again. New accounts can be created, loans can be secured and monies can be transferred away. And, this data can now be used in other areas of a person’s life like health and tax records. Current processes fail to verify a persons identity prior to authorizing transactions.

The Solution: Sentry Using Software as a Service (SaaS) functionality, Identity Checkpoint’s Sentry service contacts registered account owners directly on their device for approval prior to releasing transactions to processing systems. Back-Office Operations Industry standard procedures enforce dual validation. However, back office personnel are accountable for final approval / release of funds. Processes are often cumbersome Card Transactions CNP transactions continue to grow rendering physical card changes to prohibit fraud less effective. Systematic methods require massive data processing and storage expenses. And they block less than 50% of fraudulent activity. Processing & Payment integration at the bank and processor level Decrease in the losses associated with identity theft Electronic Fund Transfer The fastest growing segment of the payments space is Electronic Fund Transfer. Millennials are more comfortable using ETF and Cards than paying in cash or check. Personal Account Details Once compromised, data can be leveraged again and again. New accounts can be created and monies can be transferred away…. Point of Sale identity theft prevention opportunity Direct Consumer Engagement Current processes fail to verify a persons identity prior to authorizing transactions.

Sentry by Identity Checkpoint Using a pre-authorized device, registered users authorize/ decline transactions. Only those that are approved are released to processing engines. Fraudulent activity is stopped by the identity owner up front. No wasted processing. No Chargebacks. Immediate knowledge of suspicious activity. No Financial loss to bank or consumer.

Electronic Funds Transfer Solution: Sentry from Identity Checkpoint. Each bank leverages disparate processes, particularly within the back office. Sentry can be integrated at several potential points. SWIFT SWIFT Front Office FedWire FedWire ACH ACH Sender Sending Bank Intermediary Bank Receiving Bank Receiver I1, I2, I3,… Fed Back Office Batching (Manual / Electronic) Operator Management Approval (Multistep)

Credit/Debit Card Solution: Sentry from Identity Checkpoint. Transactions are sent to the registered individual for approval BEFORE being released to credit card company for processing. Real-Time approval via registered device –or- Pre-defined approval parameters that ‘green light’ the transaction: Dollar Amount, Store, Physical Location, etc. Customers: Confidence- Only items they approve are sent to processing. Merchants/Vendors: Savings- Only validated transactions get through. No lost stock, no chargebacks, decreased costs.

In Store Purchase Solution: Sentry from Identity Checkpoint. RFID, Chip and Swipe technologies help validate that the card is legitimate. However, they do not validate that the person using the card is authorized to do so. Real-Time approval via registered device –or- Pre-defined approval parameters that ‘green light’ the transaction: Dollar Amount, Store, Physical Location, etc. Customers: Confidence- Only items they approve are sent to processing. Merchants/Vendors: Savings- Only validated transactions get through. No lost stock, no chargebacks, decreased costs.

Wire Transfers (Front Office) Solution: Sentry from Identity Checkpoint. Prior to processing final wire submission, account owner is prompted for approval. Real-Time approval via registered device Negative responses are not released for processing. Customers: Confidence- Only items they approve are sent to processing. Banks: Confidence- Only approved items are processed; Savings- Only validated transactions get through. No lost funds.

Check Solution: Sentry from Identity Checkpoint. Retailer can use the online verification check to validate checking account numbers use and issuance of a specific check. No release of product without validation of account. More manual process but it enables Customers: Confidence- Only items they approve are sent to processing. Banks: Confidence- Only approved items are processed; Savings- Only validated transactions get through. No lost funds.

Personal Account Information Solution: Sentry from Identity Checkpoint. Individuals can maintain their own information on sites, via apps and via established in-person protocols. Individual oversite of all changes. If the individual did not prompt the request to update/modify personal information, the change is not released into database. ‘Safety Net’ review of the modified elements via Sentry. i.e., Do you approve address change of XXX?

Demonstrations (recorded) Credit/Debit Card – Online Credit/Debit Card – In Store Check – Online Check – Written Transfer Between Bank Accounts Wire Transfer User ID Use Government ID Use