SOURCE: eFunds

July 13, 2005 07:30 ET

eFunds Announces Identity Theft and Fraud Prevention Solution for Financial Institutions

Address Analysis Helps With FACT Act Compliance

SCOTTSDALE, AZ -- (MARKET WIRE) -- July 13, 2005 -- eFunds Corporation (NYSE: EFD), a leading provider of risk management, electronic payments and global outsourcing solutions, today announced that its subsidiaries, Penley, Inc. and Chex Systems, Inc., are introducing new services designed to help financial institutions and their customers fight identity theft and fraud more effectively. The enhanced solution includes access to an advanced change of address analysis service and an identity theft protection monitoring service.

To help verify the identity of new customers, Penley's ID Verification compares identity information supplied by account applicants against aggregated data records, including Chex Systems' proprietary DebitBureau® database. When address discrepancies arise as part of this verification check, the new change of address service analyzes the asserted address change to assess the likelihood of fraud. The service can also verify existing client address changes to ensure legitimacy and help streamline processes.

Chex Systems' identity theft prevention service, IDefend, offers a financial institution's customers access to a menu of services, including weekly credit monitoring, and later this year, DebitBureau® monitoring, an annual credit report, a personalized protection plan, custom fraud alerts, a recovery assessment from a trained Recovery Advocate (if victimized), and up to $20,000 in lost wage and expense reimbursement. In the event of a security breach, the solution can also help financial institutions implement a timely incident response plan, which has recently been mandated by the Federal Reserve Board.

"Each year over a hundred thousand consumers in the US become victims of identity theft," said Ariana-Michele Moore, an analyst with Celent Communications. "Such theft affects not only the consumers, but financial institutions who incur significant costs. Identity theft and fraud solutions, such as the one offered by eFunds, can help financial institutions provide a much needed offering for their customers, prevent identity theft and help recover losses incurred if theft does occur."

According to the Federal Trade Commission, identity theft is one of the fastest growing crimes in the United States, claiming 27.5 million victims since 1997. From April 2002 to April 2003, the FTC states that businesses and financial institutions lost $48 billion, or $4,800 on average, on fraudulently purchased items.

"Case studies have shown that more than 70% of all new account fraud involved a change from the most recently known address," said Rahul Gupta, senior vice president and division executive, eFunds. "Not only will this enhanced change of address analysis tool help financial institutions reduce fraud losses, it may help them comply with FACTA Sections 114 and 315."

About eFunds

eFunds Corporation is an industry leader with nearly 30 years of experience and expertise in electronic payments and risk management. eFunds offers electronic funds transfer software and processing, risk management and related outsourcing solutions to financial institutions, electronic funds transfer networks, retailers, telecommunications providers, and government agencies around the world. Committed to providing excellent customer service and award-winning products, eFunds enables its clients to reduce transaction and infrastructure costs, detect potential fraud and enhance relationships with their customers.

ChexSystems(SM) is a service of Chex Systems, Inc., a wholly owned subsidiary of eFunds Corporation.

Statements made in this release concerning the Company's or management's intentions, expectations, or predictions about future results or events are "forward-looking statements'' within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are necessarily subject to risks and uncertainties that could cause actual results to vary from stated expectations, and such variations could be material and adverse. Factors that could result in such a variation include, but are not limited to, the inherent unreliability of earnings and revenue growth predictions due to numerous factors, including many beyond the Company's control, potential difficulties, delays and unanticipated expenses inherent in the development and marketing of new products and services, competitive factors, and the numerous risks and potential additional costs, disruptions and delays associated with the establishment of new business initiatives. Additional information concerning these and other factors that could cause actual results to differ materially from the Company's current expectations is contained in the Company's Quarterly Report on Form 10-Q for the period ending March 31, 2005.

eFunds Corporation
Gainey Center II, Suite 300
8501 North Scottsdale Road
Scottsdale, AZ 85253

Contact Information

  • For additional information:
    Chris Walker
    Email Contact