Founder of MobilePayUSA Invents Solution To End Identity Theft
April 17, 2012
Las Vegas, Nevada, Electronic Transactions Association Annual Meeting & Expo
The original founder and inventor of MobilePayUSA technology, Randy Smith, states “It’s time to end Identity Theft!” Millions are victims of Identity Theft every year at a cost of billions of dollars and man-hours. ID Thieves had better find a way to make an honest living as Smith estimates up to 99% of most forms of ID Theft could soon be eradicated.
Introducing, MyCreditVault, a solution to make your Social Security, credit, debit, and bank numbers useless to criminals. Credit Freezes are too inconvenient to activate. Credit monitoring and notifications only alert you when fraud has already occurred.
How It Will Work
MyCreditVault will enable any consumer the ability to turn their Money (cards/accounts) ON or OFF in seconds via a Mobile phone app, the web, or IVR (Interactive Voice Response) on phones. Consumers will have 'lock & key' control over their credit files and all bank account transactions. No new credit or bank accounts may be opened and no financial transactions may take place without being verified through the MyCreditVault app or a text confirmation.
MyCreditVault wonders why we can lock almost anything, but not our credit file. Isn't CREDIT as valuable to consumers as CASH? Smith, the mind behind the MyCreditVault movement, suggests Universal, Multi-Factor, Real-Time Authentication is vital in preventing Identity Theft, thus leveling the security playing-field. Banking mobile apps are an example of this type of technology and securely enable us to pay bills or trade stocks in seconds.
Prior to authorizing a user for a MyCreditVault Account, pre-authentication of users is required. This is best handled by banks and credit bureaus as they have already verified our identity. Users will signup online or at their bank and proceed to answer a knowledge-based questionnaire, the same as when you access your own credit report online. Cross referencing databases managed by mobile carriers, U.S. Post Office, DMV, IRS, FBI, National Health Care Anti-Fraud Association (NHCAA) and others will further enhance fraud detection.
An estimated 25 million Americans pay an average of $12.50 per month for credit monitoring services. MyCreditVault believes many more would pay $10-$15/month, for the peace in knowing all their financial accounts are more secure. Providing an improved service should increase adoption and even allow for increased fees, however, Smith points out 100% of Americans could be covered at a cost of just $1/month equaling approximately the $3.75 billion in fees charged for credit monitoring services today. However, for MyCreditVault to be fully embraced by banks, credit bureaus and ID credit monitoring service providers, the opportunity for increased revenues much exist.
If those paying $12.50/month for credit monitoring services doubled to near 50 million Americans or about 20% of all Americans, this would add about $3.75 billion. Javelin Research estimated fraud cost consumers and businesses $54 billion in 2009. CNN reports the Healthcare industry alone, is bilked of $100 billion/year, half being paid by Medicare with our tax dollars. The total estimated cost of Identity Theft to America is near $150 billion/year. If banks, credit bureaus and credit monitoring service providers were to be paid 50% of the savings in the reduction of the cost of Identity Theft and costs were reduced by 1/3, an additional $8.3 billion in revenues would be added for companies providing ID Theft prevention services. In total, new revenues for those protecting our financial accounts could increase by $12 billion/year, thus replacing the estimated $6.6 billion in revenues banks lost from debit card processing, post-Durbin Amendment, and add $5 billion in revenues for those providing ID Theft prevention services. Plus, American consumers, businesses and government agencies would save about $33 billion/year and billions of hours/year!
MyCreditVault calls on banks and credit bureaus to start building this solution together. Smith points out that banks and credit bureaus are OUR TRUSTED SERVICE PROVIDERS and GUARDIANS OF OUR CASH AND CREDIT. They have a great opportunity to increase lost revenues and maintain our trust in them. Smith suggests that there is no VALID reason this solution should not be immediately adopted and built.
MyCreditVault Corporation, a 501 c (4) Pending Organization, was designed to better prevent most forms of ID Theft and reduce the costs associated with Identity Theft.