Identity Theft Continues to Grow – and Your Customers Want You to Protect Them

by Brian Funicelli 4 min read December 13, 2023

identity theft protection

Online activity is a routine part of people’s days. Americans spend an average of 4 hours and 25 minutes on their phones every day,[1] and many regularly use multiple devices to access the internet. However, with more time spent in the digital space, the risk of identity theft and fraud also continues to grow.

The growing threat of identity fraud

This year, the FTC has already received 5.7 million total fraud and identity theft reports, 1.4 million of which were identity theft cases.[2] More consumers are becoming vulnerable to the threat of identity fraud, but many are unsure of how to protect themselves.

To avoid monetary loss and significant lifestyle disruption, consumers are looking to their financial institutions to provide resources to help them prevent identity theft and protect their personal information online.

Consumers want identity protection from their financial institutions

Consumers also expect their banks to carry the responsibility of protecting their private data from the risk of theft. While most of them trust in the security provided by their banks, about 50% of consumers want their banks to offer additional protective measures.[3] This creates an opportunity for financial institutions to fulfill the role of “data protector” for the customers that depend on them.

The convenience of a full suite of financial services all in one place is also important to consumers, as 45% would prefer to get all their banking products from the same financial institution.[4]

While consumers need identity protection, businesses need new ways to engage their customers and drive more revenue. Fortunately, offering identity protection is an effective way to maintain a sticky relationship with your customers while delivering an enhanced, engaging experience.

Protect your customers from fraud with Identity Protection Services

With identity protection, your customers can:

  • Check for exposed personal information and lower their risk of identity theft
  • Reduce their exposure and decide who can track their activity and access their personal information online
  • Keep control of their digital identity by reclaiming exposed personal information, increasing their privacy, and avoiding future risk

An identity protection solution provides a comprehensive strategy to avoid the risk of identity theft, while delivering exceptional results that your customers need to feel safe and secure.

Providing frequent updates and recommendations about their digital identity and credit score allows you to maintain an engaging communication channel with your customers and boost your brand interaction. For example, the average Experian® user had a 60% alert open rate and 12% post-alert login rate.[5]

As they continue to receive useful suggestions for strengthening their online security, your customers may interact with your app or website more regularly and consistently. This can create valuable opportunities for you to encourage them to open new accounts, start new credit lines, or borrow more money.

In addition, giving your customers an added layer of assurance can drive them to remain loyal, long-standing customers to your business.

  • 96% of active Experian subscribers with a free bundle were still subscribed after 12 months[6]
  • 90% of active Experian subscribers with a paid bundle were still subscribed after 12 months[6]
  • Less than 1% churn rate with fewer than 100 service calls[7]

Consumers want protection from thieves who might steal their personal information, and they expect it from a trusted source. By offering an identity protection solution, you can foster stronger relationships with your customers while reducing their vulnerability to fraud.

Visit our website to see how Identity Protection Services can help you deliver best-in-class protection for your customers.

[1]PC Magazine. Americans Check Their Phones an Alarming Number of Times Per Day. May 2023.

[2]IdentityTheft.org. 2023 Identity Theft Facts and Statistics.

[3]PYMTS. Half of Consumers Want More Security Measures From Banks, January 2023.

[4]PYMTS. 45% of US Consumers Want Banking Bundles. August 2022.

[5]Experian Data, average user experience with Digital Identity Manager, May 2023.

[6]Experiandata, August 2023.

[7]Experian Data, average user experience with Digital Identity Manager, May 2023.

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One Platform, Fewer Handoffs, Faster Decisions

The average credit union manages between 100-300 vendor relationships, and nearly a third have no dedicated staff managing them. What was supposed to drive efficiency is stunting growth and compromising the member experience. Application volume is continuing to rise, and consumers expect a loan decision at digital speed. But for credit unions, meeting that expectation isn't the only goal. They must also continue to make the right lending decisions while also prioritizing risk management. The institutions pulling ahead aren't the ones with the most tools. They're the ones that have turned credit, fraud and decisioning into a single, coordinated system. A single loan decision touches: Credit data Identity verification Fraud signals Decisioning logic Reporting Rarely does all of that live in one place. More often, it’s stitched together across separate platforms, each with its own contract and its own support line. When a credit view and a fraud view are generated separately, they must be reconciled instead of read together in the same instant. Every handoff is a place where a decision slows down and a signal gets missed. It's why a fraud pattern that would be obvious next to the credit file often surfaces only after the funds are already gone. Fragmentation also makes it harder to optimize lending strategies over time. When data, analytics and decisioning are disconnected, credit unions have less visibility into what's working, what's changing and where strategies need to be adjusted. An integrated decisioning ecosystem closes those seams by design, with credit, fraud and lending strategy running on one platform and accessed through a single Application Programming Interface (API). Identity and compliance capabilities can be an integrated decisioning flow. The data doesn't need to be reconciled after the fact because it was never separated in the first place. Stop overengineering, start removing friction When decisioning underperforms, the instinct is to build something more custom: a proprietary model, tighter segmentation, more configuration.  Custom modeling has its place for institutions with the scale and data to justify it. But often, for small or mid-sized credit unions, the bigger opportunity is a flexible decisioning strategy that uses a strong, continuously refreshed model. This shouldn't be either/or. The right approach gives credit unions a strong decisioning strategy today, with the ability to introduce more customized analytics and modeling as their needs evolve.  The same principle applies to strategy management: credit unions can gain greater control through self-service capabilities as they build a more sophisticated data science team.   That kind of flexibility is important as credit unions modernize their decisioning infrastructure. Research surveying more than 2,000 senior credit risk and fraud decision-makers across 11 countries found that organizations investing in unified platforms and modern infrastructure are moving faster and realizing the greatest Return on Investment (ROI).   As their needs evolve, credit unions can adjust decisioning strategies without introducing another layer of technology or relying on third parties to make every change. Until self-service is the right fit, choose a partner that understands what makes your credit union’s membership and risk appetite different from others.  Same member, same afternoon, faster answer Consider a credit union growing its auto and personal loan originations.  A member applies for an auto loan on Saturday afternoon. Credit data, identity and fraud signals are read together in a single real-time pass instead of separate reviews:  Most applications resolve immediately, approved or declined based on a more comprehensive view of the applicant. A smaller number are flagged for quick step-up verification and cleared within minutes. Only genuinely ambiguous cases reach an underwriter, who is working from one complete picture instead of reconciling multiple signals. The member has an answer before the weekend is over. The credit union books the loan before competitors even open on Monday. Built to scale This kind of process holds up today. However, the better test is whether it holds up eighteen months from now when application volume has grown, new products are live and the data flowing through the system looks nothing like it does right now. Future-proofing isn't only about handling more volume. It's about having room to be nimbler and make adjustments as quickly as the market changes. A credit union that relies on standard models within a decisioning strategy may want more customized analytics and greater control over its strategies tomorrow. Connect with us With more than three decades of credit expertise and one of the industry's largest data footprints, Experian helps credit unions do more than solve this year's friction. We're helping to build a decisioning foundation that scales, so growth becomes something the system absorbs, rather than something it must be rebuilt around. Explore More

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