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Javelin updates protection criteria via safety survey

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SAN FRANCISCO (12/23/09)--Javelin Strategy and Research has updated its fraud prevention criteria so financial institutions can help consumers enroll in mobile banking without requiring online banking sign-up and providing a password manager. The criteria are used in Javelin’s surveys to test financial institutions’ consumer-facing identity fraud, prevention, detection and resolution capabilities. Javelin recently conducted a survey to show how financial institutions can increase safety and loyalty through security measures. Researchers contacted financial institutions with questions about identity theft and recorded the number of calls needed to answer the questions. An average of 6.2 calls was needed to answer the questions, Javelin found. To receive credit, an institution must have a security feature that satisfies the criteria and the service must be provided for free. Overall, financial institutions have improved their prevention by 27 percentage points, and slightly improved detection and resolution capabilities, Javelin said. Half of fraud is discovered by victims themselves. Fraud costs up to $48 billion in losses. “It is critical to empower consumers to self-detect and self-monitor their accounts,” Javelin said. The firm recommended that consumers regularly review their credit information. Javelin uses mystery shopping and website research to score financial institutions by gross annual deposit volume against the criteria. Javelin’s most recent study represents about 50% of the U.S. market in 2009, by dollar value of deposits.