Building Loyalty by Marketing Privacy and Consumer Rights

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• Building Loyalty by Marketing Privacy and
  Consumer Rights

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The Obvious News

• You are one of many Choices

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The Bad News

• When it comes to Privacy and Fraud Issues,
  members are trusting their current banker less.

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• Slides about less trust

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What has changed?

• Your member has lost control of their personal
  information.

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What happened

• The Gramm-Leach-Bliley Act.

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• The Financial Privacy Act

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The GLB Act

• Required Opting Out rather than Opting In.

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The phony message

• Because we value your privacy.

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The result

• Nobody responded!
• Less than 10

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Instantly sold

• Name
• Address
• Balances
• Who you write checks to
• Anything but account numbers
• Existing information

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The result

• Everybody inundated with junk mail.

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At the same time

• Businesses careless about security.
• Casual when security theft happens.

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45,000,000

• Major retailer customers compromised
• Company response
• Oops!
• And, anyway, no one has had their identity
  stolen yet!

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The P.R. Line

• No one has had their security stolen yet!

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Why the P.R. Excuse is Worthless

• Identity Theft Doesnt Happen overnight.
• It doesnt happen one person at a time.

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Identity Theft International Trade

• Online Crime Forums
• Criminals trade and sell your info
• Match legit info with stolen info.

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CardersMarket

• The eBay of crime

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Hundreds of similar sites

• Shadowcrew.com
• Darkprofits.com

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Hundreds in operation

• Ten shut down
• All selling data stolen from companies like major
  retailers and info brokers

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The value of your members information

• Actual credit card with pin 500.00
• Card number with pin 7-25
• Data Bunch
• Account number
• Billing address
• Social security
• Birthday 80-300

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Money!

• Drivers License 150.00
• Birth Certificate (or copy) 150.00
• Social Security Card 100.00
• Paypal account log-on 7.00
  

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How Long Until Your Stolen Info actually used?

• Can be years.

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Favorite organized crime target

• Credit unions

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Easier to crack

• Credit Unions

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And it doesnt take I.D. Theft!

• What happened at a high-security credit union

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Organized Crime and Advanced Phishing

• Phish screen pops-up on real Citibank screen

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Many Variations!

• Over 26,000 different Phishes!

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Right now, your members receive

• Ten Email Phishes Per Week
• Instant Messages

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Intrusion in the Marketplace

• Harvesting while you shop.
• AOL Connectivity
• No consequences for companies.

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Whatever the intrusion

• They are concerned.
• Their Pocketbooks and Credit Is Jeopardized.
• They are mad.

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The Result?

• A Core Drop In Trust
• Nearly 80 percent of consumers willing to
  switch financial institutions for better
  security. Unisys Corporation

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Who Likes this?

• The banks!

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• Theyre claiming the high ground!

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The Funny Thing

• Banks are part of the problem.
• Information-sharing problem.
• Banks place hurdles for customers.
• Security Centers serve as outs for banks

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An opportunity for us?

• We can be a solution.

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Remember this quote?

• Nearly 80 percent of consumers willing to
  switch financial institutions for better
  security.

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The Opportunity for Us

• Lets own Privacy and Fraud Issues

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The plan

• All on the web site.

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Most important message

• You are proactive in protecting members privacy.

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What we become

• We become the member source for all information
  on all privacy and fraud issues.

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Big Message

• You are different than your
• competitors

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Overall Objective

• Members to see us as advocates.
• Members to see our uniqueness on issues.

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We are different

• We make opting out easy to do.

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We are Different

• We dont sell our members information to
  outsiders.

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We are different

• We work quickly with members who are injured.

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Banks give the runaround

• Months to solve problems.

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We are different

• We dont hide problems when they happen.

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Remember Colorado C.U.?

• Responded in hours.
• Issued press releases.
• Worked instantly with members.

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We are different

• We dont hide behind BMA clauses.

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BMA

• Consumers are getting angry

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BMA

• The clauses are everywhere. Why?

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Smart Marketing

• Advertise BMA Free
• Tie to your integrity
• Tie to your privacy concerns

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A quick and easy start

• Make privacy information highly visible and
  available to your customers.

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A Turnkey Privacy and Fraud Center

• We provide it for free.

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Cheap marketing

• Add a Privacy and Fraud homepage link now!

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Cheap marketing

• Offer our Privacy Handout.
• Its Free.
• You print.

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Long-term marketing

• Incorporate Privacy and fraud awareness in all
  marketing.

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Short-Term plan

• The Board Set the Agenda
• Privacy and Fraud Strategy
• Strong Funding Support
• Sense of urgency

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A fact to remember

• Nearly 80 percent of consumers
• willing to switch financial institutions
• for better security.