Profits, Right Before Your Eyes. Instant Image Verification.
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Transcript of Profits, Right Before Your Eyes. Instant Image Verification.
Profits,Profits,Right Before Your Eyes.Right Before Your Eyes.
InstantInstantImageImageVerificationVerification
AgendaAgenda
The True ID® ServiceFace-to-FaceOnline
Next Steps
The Investment OpportunityBusiness model and strategyFinancial projections
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“Fastest growing financial crime”Dept. of Justice
The $25 Billion Problem: Identity FraudThe $25 Billion Problem: Identity Fraud
“96% of bank card fraud losses traceable to identity fraud”
Mastercard
“1.4 million fraudulent checks valued a $27.3 million written daily. $9.9 billion losses annually” Create a Check
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Types of Identity FraudTypes of Identity Fraud
Face-to-Face Online
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The Market:Face-to-Face Identity Verification Services
The Market:Face-to-Face Identity Verification Services
TravelRental carsAirlines/Travel agents
OtherBanks/Credit unionsCargo theft/Logistics
RetailHigh-value specialty storesGrocery/SupermarketsDepartment stores
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Effective Loss Prevention:Combating Face-to-Face Identity Fraud
Effective Loss Prevention:Combating Face-to-Face Identity Fraud
Need to HaveProactive deterrentEfficient through put at POSEasy system integrationComplete consumer acceptance
Effective user identity verification Nice to HaveEmployee audit capabilityEnable dispute resolutionOnline usability
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Existing Loss Prevention Solutions Fall ShortExisting Loss Prevention Solutions Fall Short
FalseRejects
FalseRejects
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Introducing the True ID® SolutionIntroducing the True ID® Solution
Proven face-to-face
effectiveness
Portability across channelsand markets
Unmatched consumer
acceptance
Initial Consumer Contact
Consumer Enrolled, Photo
ID Scanned
Real-time Cross-market
Image Verification
Instant Image Verification Stops FraudInstant Image Verification Stops Fraud 9
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True ID Stops Face-to-Face ID FraudTrue ID Stops Face-to-Face ID Fraud
A Proven Solution… Successful pilots in travel, retail, banking & logistics Eliminated fraud cost-effectively Unmatched consumer acceptance
…in an Important Market 16 billion POS check transactions in 1999 $5.9 B annual losses from retail check fraud
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Instant Image VerificationProvides Secure Audit TrailInstant Image VerificationProvides Secure Audit Trail
Efficient dispute resolutionProactive employee fraud prevention
Effective loss prevention
investigations
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The Other Problem: Online Identity FraudThe Other Problem: Online Identity Fraud
By 2005, half of all fraud will be perpetrated online (Source?) Online fraud 12 times greater than face-to-face (Gartner Group)
Online losses are 10% of online retail spending (Meridien Research)
Average chargeback rate for online merchants is 15% compared to 1% for face-to-face transactions (Gartner Group)
52% of consumers who don’t shop online cite security concern (Forrester Research)
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The Market:Online Identity Verification Services
The Market:Online Identity Verification Services
TravelRental carsAirlines/Travel agents
OtherBanks/Credit unions
RetailHigh-value specialty storesBrick to Click retailers
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Online Identity Fraud Solutions:The Needs are SimilarOnline Identity Fraud Solutions:The Needs are Similar
Need to HaveEfficient through put at web siteEasy system integrationEffective user verificationComplete consumer acceptance
Nice to HaveProactive deterrentEfficient dispute resolutionHigh volume cost effectivenessSeamless cross-channel portability
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Online Identity Verification Solutions Fall Short
Online Identity Verification Solutions Fall Short
FalseRejects
The True ID Online SolutionThe True ID Online Solution
At POS Consume
r Enrolled, Identity Verified
In-person
XYZ Dept. Stores 01/05/00 10:43:01AM
1 Item A 49.99 1 Item B 44.99 2 Item C @4.99 9.98 Total 104.96 Paid XYZ Card: 2345
Thank you for helping secure online transactions. Please, retrieve your security certificate within 48-hours
at: www.xyzstores.com
Your Passcode is xi78fhk66k
Please Print Email Address:
janedoeconsumer
@ abcdinternet.net
At POS Issue
One-time Passcode
on Receipt
for Digital
Certificate
Download
Consumer at Home Enters
Passcode on their
PC
Data Validated and True ID Digital Certificate Issued
Strong Authentication,
Real-time Security, Full Audit
Capabilities for In-person AND Online
Transactions
+ =
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The True ID Online SolutionThe True ID Online Solution
Leverages strong face-to-face authenticationBuilds on existing consumer acceptanceAligns costs with risksStrong compatibility with existing channels
Secure cross-channel audit capabilityReduces e-tail checkout hassles
For best “Brick to Click to Brick” shopping experience!
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Instant Image Verification:The Effective Solution to Identity Fraud
Instant Image Verification:The Effective Solution to Identity Fraud
FalseRejects
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The Image Data Investment OpportunityThe Image Data Investment Opportunity
Image Data Strategic AdvantagesFirst mover advantage--no direct competitorsProduction-stage productReal-world market acceptanceManagement with proven capital efficiencyStrong initial investors with industry knowledgeHigh gross margins
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Path to ProfitabilityPath to Profitability
Continue to prove marketsDevelop channels
Control burn while ramping revenue
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The Channels: Key to Mass DeploymentThe Channels: Key to Mass Deployment
Hardware Channels: POS Manufacturers Thin margins A few key leaders; highly competitive Existing products easily integrate True ID functionality Holy grail: A piece of transaction fees Service Channels Processors seek added services, eg check truncation Check & credit verification DBs need higher effectiveness to reduce costs Proprietary card services need higher-margin differentiators
Burn ControlBurn Control
Lean Management Style4 years and production-stage product for $12M
Prove-the-markets-to-Channels StrategyKeeps sales/marketing expenses low and focused
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Minimal Manufacturing-related Capital NeedOn-demand outsourced manufacturingLeasing/financing option tap customer capitalStrategy ensures scaleability
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The Image Data Investment OpportunityThe Image Data Investment Opportunity
First mover advantage--no direct competitorsProduction-ready productReal-world market acceptanceManagement with proven capital efficiencyStrong initial investors with industry knowledgeHigh gross margins
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Growth: MarginsGrowth: Margins
Gross Margin2001•Increase transactions vs. hardware revenues
•Increase ratio of verification to enrollment
•Hardware Production/sales licensing begins•Hardware costs decline
2002•Increase in fully automated online verifications
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Growth: Face-to-Face MarketGrowth: Face-to-Face Market
Terminals Deployed
Terminal Revenue
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Growth: Online MarketGrowth: Online Market
Digital Certificates Issued
Digital Certificate Revenue
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Growth: Face-to-Face and Online TransactionsGrowth: Face-to-Face and Online Transactions
Total Transactions
Total Transaction Revenue
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P & LAug 2000 - Dec 2003P & LAug 2000 - Dec 2003