It’s all here Risk Management Suite Prevention. Detection. Investigation

It’s all here

Risk Management Suite

Prevention. Detection. Investigation.

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LexisNexis® Risk & Information Analytics Group

Fraud, in various forms, is reaching new levels of sophistication. The implementation ofinformation and analytical solutions is essential to an organization’s security and profitability.

• Managing risk and fraud from new account creation throughout account management is paramount to success for today’s financial services industries.

• Identifying and mitigating risk, minimizing write-offs with effective decisioning, complying with constantly changing regulations requires the right expertise, information and analytics.

LexisNexis® Risk Management Suite: Problem Statement

• In a recent survey conducted by the American Certified Fraud Examiners (ACFE), examiners estimate U.S. organizations lose 5% of annual revenue to fraud.*

• A Bank Systems & Technology article cited that recent studies show that fraud costs financial institutions and retailers more than $50 billion each year.**

• The same article stated that this year, more than 8 million Americans will have their identities used for fraudulent purposes.

Fraud Prevention + Expense Management + Compliance = Profitability

0% 10% 20% 30% 40%

Financial Services

Individuals

Retailers

Government Agency

Credit Bureau

Insurance

Education

Unavailable

The effects of fraud are far reaching — and continue to grow†

37%

34%

21%

3%

1%

1%

1%

2%

Percent of victims with financial loss

* http://www.acfe.com/resources/publications.asp?copy=rttn** http://www.banktech.com/showArticle.jhtml?articleID=188501205† Identity Fraud Trends and Patterns: Building a Data-Based Foundation for Proactive Enforcement, October 2007, Gary R. Gordon, Ed.D., Donald J.

Rebovich, Ph.D., Kyung-Seok Choo, Ph.D., Judith B. Gordon, MLS, Center for Identity Management and Information Protection, Utica College.

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LexisNexis® Risk Management Suite: Compliance Mandate

• The issuance of the final rule of the Identity Theft Red Flags and Address Discrepancies under the Fair and Accurate Credit Transactions Act (FACT Act) of 2003 rule implements sections 114 and 315 of the FACT Act of 2003, an amendment to the Fair Credit Reporting Act.

• The purpose of the Rule is to attempt to minimize incidents of identity theft and fraud in the opening and maintenance of covered accounts by financial institutions and creditors, as well as addressing issues of address discrepancies by users of consumer reports (credit reports and specialty consumer reports) and debit or credit card issuers. • Establishing a Risk Management program• Reporting suspicious activity• Verifying the identity of customers• Applying due diligence to certain types of accounts

involving foreign persons

• The issuance of the final rule of the Identity Theft Red Flags and Address Discrepancies under the Fair and Accurate Credit Transactions Act (FACT Act) of 2003 rule implements sections 114 and 315 of the FACT Act of 2003, an amendment to the Fair Credit Reporting Act.

• The purpose of the Rule is to attempt to minimize incidents of identity theft and fraud in the opening and maintenance of covered accounts by financial institutions and creditors, as well as addressing issues of address discrepancies by users of consumer reports (credit reports and specialty consumer reports) and debit or credit card issuers. • Establishing a Risk Management program• Reporting suspicious activity• Verifying the identity of customers• Applying due diligence to certain types of accounts

involving foreign persons

Historically, institutions have been heavily fined for non-compliance. Actual losses may be 10x – 12x the

compliance penalties due to lost stock value, loss of reputation and customer losses.*

Red Flags Rule took effect 1/1/08 and gives organizations until 11/1/08 to have a written program in place.

* The McKinsey Quarterly 2005 Number 1, Managing operational risk in banking by Robert S. Dunnett, Cindy B. Levy and Antonio P. Simoes.

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LexisNexis® Risk Management Suite: Managing Risk Management Challenges

In today’s constantly changing environment, companies cannot afford to do the absolute minimum to stay in compliance . . . In today’s constantly changing environment, companies cannot afford to do the absolute minimum to stay in compliance . . .

LexisNexis® Risk and Information Analytics Group provides a fast,

comprehensive solution that helps streamline risk management

investigations and perform due diligence research.

Instantaneously authenticate identities, assess financial risk

and examine assets and relationships — all within a single,

easy-to-use online resource.

• Managing risks (e.g., reputation, fraud, compliance, legal, financial, operational) requires effective and efficient management of a number of disciplines

• Manual and non-integrated solutions are not viable ways to manage risk

• Managing risks (e.g., reputation, fraud, compliance, legal, financial, operational) requires effective and efficient management of a number of disciplines

• Manual and non-integrated solutions are not viable ways to manage risk

RiskManagementChallenges

Know YourCustomer

EmployeeTheft

SuspiciousActivity

Reporting

AccountMonitoring

Regulations andCompliance including

Red Flags RuleManaging

Approval Rates

Increased Fraud Sophistication

Effective Restitution and Recovery Efforts

Expense Management

Civil and Criminal Filings

FraudInvestigations

RiskExposure

PublicRecords

Management

EnhancedDue Diligence

Bankruptcies, Liens and Sanctions

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• Manage risk proactively while fulfilling compliance regulations

• Proven 30+ year track record as a trusted provider and custodian of quality information

• Cutting edge technology

• Unique data resources with unmatched breadth

• Advanced scoring analytics

• Linking capability and supercomputing capacity

• Expertise, information and analytics with solutions that span the customer lifecycle

LexisNexis® Risk Management Suite: Why choose LexisNexis® Solutions?

“LexisNexis has really enabled us to continue to open accounts very quickly and smoothly…without any kind of delays in the account opening channels. LexisNexis allows us to tailor our client experience…”

Marc Geeting

BB&T Corporation

Bank Secrecy Act (BSA) Officer

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LexisNexis® Risk Management Suite: Linking and Analytics

People• Quickly verify and validate

names, addresses, phone numbers, voter registration, professional licenses, marriage and divorce records, and criminal history records

• Check OFAC and other global watch lists

• Tool includes:– Find a Person Search– InstantID® Verification – Phones Plus– Negative News– We Also Found

• Critical asset information includes: – Real estate assets– Personal property records such as motor vehicle, boat and

aircraft registrations– Records of key events such as incorporations, liens,

bankruptcies and judgments

AssetsEmploys sophisticated, flexible search technologies in order to optimize each investigation.

Start your search with any piece of the puzzle; there are no

mandatory search fields, and searches are further enhanced

by phonetic ‘sounds like’ technology.

Locate, Authenticate and Investigate

• Find information on millions of businesses — active and inactive records of incorporation, limited partnership, UCC Liens and limited liabilities

• Tool includes:– InstantID® Business

Verific.– Statewide Public Records – Secretary of State Filings– SEC filings– Hoover’s capsules, Dun &

Bradstreet and Experian Business Reports

Businesses

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• Includes everything Risk and Fraud Managers, Risk Analysts, Fraud Operations teams, and Investigators need to protect their organizations

• Accesses thousands of public records at or near origination and provides proprietary data on consumers, businesses and assets

• Provides tools for locating, identifying, verifying and investigating prospects and customers

• Uses advanced technologies to match and link files across multiple, disparate data sources

• Generates scoring and risk assessment with sophisticated analytics

• Assists in meeting due diligence and compliance regulations

• Includes new enhancements for faster, easier processing and decision-making

We’ve combined our most powerful tools and leveraged the most sophisticated technologies to develop a total solution that allows you to perform every aspect of your job, faster and easier.

LexisNexis® Risk Management Suite: Overview

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The Risk Management Suite Combines These Powerful Data Tools

LexisNexis® Risk Management Suite: Powerful Products Combined

LexisNexis Risk Management Solutions® combines all of our best products into one cost effective solution that addresses all of your searching, monitoring, scoring and investigative needs.

LexisNexis Risk Management Solutions® Monitor, identify, authenticate and investigate clients and prospects.

InstantID® Access real-time identity verification and risk scoring.

FraudDefender® Verify identities and determine profitability or risk potential with numeric score.

FraudPoint® Consists of fraud attributes that recognize high-risk conditions at applicant and account management touch-points to improve identity verification and fraud rates.

Negative News Identify negative news related to businesses and individuals.

InstantID® Q&A Get instant results with this automated, query-based identity verification tool.

Global Interdiction Solution Manage and monitor international watch lists.

“Red Flags” ReportHelps to further detect identity crime by displaying identity theft related warning codes to assist in complying with the Identity Theft Red Flags Rule.

Chargeback Defender® Identifies fraudulent or high-risk card not present transactions for retailers, reducing costly manual reviews and improving your bottom line.

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LexisNexis Risk Management Solutions®: Product Enhancements

New search capabilities and features with added intelligence for advanced exception processing and enhanced research included:

• New user interface with easy and quick navigation

• An easy enhanced invoicing system — Coming soon!

• Select components available online, via machine-to-machine connection (XML), or in batch

• Enhanced risk management online content to streamline your research time, including: Foreclosures, Sex Offenders, D&B Minority and Women-Owned Businesses, Mergerstat, D&B Private Company Insights, Standard & Poor’s Corporate Descriptions plus News and more

• Plus! Concealed Weapons, Drug Enforcement Administrations Registrants, FAA Pilot Licenses, Federal Firearms & Explosives, Hunting & Fishing Licenses and Military Personnel (Archived)

Ongoing Enhancements and Improvements

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LexisNexis Risk Management Solutions®: Product Enhancements

New administrative functionality allows you to:

• Turn on/off searches

• Manage user groups and IDs

• Clone IDs

• Run reports

Collectively these enhancements will substantially increase your daily efficiency

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LexisNexis Risk Management Solutions®: Features

• A fast, easy-to-use and comprehensive online resource that helps organizations instantaneously authenticate identities, assess risk, and examine assets and relationships

• People – Verify customers through a variety of means, including InstantID® consumer verification, Negative News, telephone lookups (including reverse look-ups), Office of Foreign Assets control (OFAC) and other watch list checks, voter registrations and professional licenses

• Businesses – Research detailed business information including InstantID business verification, statewide public records, Experian business reports, SEC filings, D&B reports and Hoover’s capsules

• Assets – Review details about assets such as motor vehicle registrations, real estate assets, aircraft and boat registrations

• Court and Administrative Filings – Find court records such as criminal histories, jury verdicts and settlements, inmate records, UCC liens, bankruptcies, mortgage and financial sanctions, judgments and tax liens

• News and Finance – Link to the latest domestic and international news

• Enables institutions to comply with regulations, prevent fraud and perform in-depth investigations to qualify applications or trace incidents of fraud

• A fast, easy-to-use and comprehensive online resource that helps organizations instantaneously authenticate identities, assess risk, and examine assets and relationships

• People – Verify customers through a variety of means, including InstantID® consumer verification, Negative News, telephone lookups (including reverse look-ups), Office of Foreign Assets control (OFAC) and other watch list checks, voter registrations and professional licenses

• Businesses – Research detailed business information including InstantID business verification, statewide public records, Experian business reports, SEC filings, D&B reports and Hoover’s capsules

• Assets – Review details about assets such as motor vehicle registrations, real estate assets, aircraft and boat registrations

• Court and Administrative Filings – Find court records such as criminal histories, jury verdicts and settlements, inmate records, UCC liens, bankruptcies, mortgage and financial sanctions, judgments and tax liens

• News and Finance – Link to the latest domestic and international news

• Enables institutions to comply with regulations, prevent fraud and perform in-depth investigations to qualify applications or trace incidents of fraud

Highlights

Enables organizations to streamline risk management investigations and customer due diligence research

Verifies essential information about people, businesses, and assets

Access to billions of public and private records, including a ‘Negative News’ search

Fast, easy cross-referencing and improved decisioning

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LexisNexis Risk Management Solutions®: Know Your Customer

Expanded Know Your Customer

(KYC) section includes identify

verification, search of OFAC and other watch

lists and employment

validation through People At Work.

Uncover additional details such as real and personal property with which the subject is associated, including buyer/seller information and assessment data. For personal property, reveal details for ownership of cars, boats and planes.

Save time finding a person or business with Quick Search. Search by SSN, reverse phone number, address or company.

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LexisNexis Risk Management Solutions®: Enhanced Due Diligence

Reduce research time with extensive business data and perform business and vendor due diligence with reliable sources such as Hoover’s and D&B.

Look-upUCC liens,

judgments and Offline Civil and

Criminal Court Records (OCCCR),

as well as mortgage and financial

services sanctions.

Research a subject while

fulfilling exception processing and

investigative needs.

Use risk scoring to automate business decisions.

Florida Accidents NEW

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LexisNexis® Risk Management Solutions: Additional Features and Benefits

• You can use the complete solution, or utilize individual segments of the product

• You only pay for what you need

• Free customer training to meet your needs (onsite, telephonic or Web)

• Customer support available 24/7/365

• Comprehensive user and administrative reporting

• Archive searches and results

To streamline your risk management efforts…Visit risk.lexisnexis.com/rmsuiteoffer or call 1-866-858-7246

The information provided by the LexisNexis Risk Management Solutions®, InstantID®, InstantID ® Q&A, FraudDefender®, FraudPoint ®, Global Interdiction Solution, SmartLinx®, KYC or KYC ID are not consumer reports as defined in the Fair Credit Reporting Act (FCRA) and may not be used for any purpose permitted by the FCRA. LexisNexis, the Knowledge Burst logo and LexisNexis Risk Management Solutions are registered trademarks of Reed Elsevier Properties Inc., used under license. SmartLinx is a registered trademark of LexisNexis, a division of Reed Elsevier Inc. InstantID, FraudDefender, FraudPoint and Chargeback Defender are registered trademarks of LexisNexis Risk & Information Analytics Group Inc. Other products or services may be trademarks or registered trademarks of their respective companies. ©2008 LexisNexis Risk & Information Analytics Group Inc. All rights reserved.

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It’s all here Risk Management Suite Prevention. Detection. Investigation