Developed by a CFA working group of consumer advocates and identity protection industry leaders, the best practices aim to encourage identity management companies to engage in responsible behaviors by reducing exaggerated identity theft protection claims and improving accurate communication about the types of identity fraud services and benefits available to consumers.
Washington, D.C. March 10, 2011 CyberScout, the nation’s premier identity management and data risk management services provider, today announced that it fully endorses and follows the Consumer Federation of America’s (CFA) Best Practices for Identity Theft Services. The best practices were developed to reduce deceptive claims and define and encourage industry practices within the identity theft service space. A CFA working group that included company representatives and consumer advocates was responsible for creating the document.
After in-depth research of the identity theft services marketplace, the CFA recognized there was a trend in misleading claims and false advertisement of services and benefits. These descriptions were often ambiguous and confusing, and the services did not always offer the protection that consumers were led to expect.
“Claiming that identity theft is preventable is an irresponsible business practice,” said Adam Levin, Chairman and Founder, CyberScout. “Identity theft risk can be reduced if the appropriate tools are in place for victimization to be detected at an early stage. With the establishment of industry best practices, companies are made aware of the most responsible way to clearly and accurately market and provide their services. CyberScout feels privileged to have worked with the CFA and other respected companies to develop these guidelines.” As part of the CFA’s working group, CyberScout drew from its own experience and methodologies to help shape the best practices. With 100 percent commitment to support and follow the CFA Best Practices for Identity Theft Services, CyberScout pledges to apply responsible industry practices in the areas of promotion, programs, fraud assistance and privacy practices. Additionally, when working through other parties, like banks, credit unions or insurance companies, CyberScout encourages these businesses to adhere to these practices. “Adopting the CFA’s Best Practices for Identity Theft Services spoke to CyberScout’s mission completely,” said Matt Cullina, CyberScout chief executive officer. “We have always been strong believers in accurately promoting and delivering services and benefits to our customers. Not only do we adhere to the identity theft services industry standards but we actually go beyond what the CFA has outlined. By doing this, we hope to give consumers a higher degree of confidence when choosing the right provider at a time when they most need guidance and support.”
Recognizing that documents are often laced with confusing jargon and complicated descriptions, the CFA Best Practices recommends that identity theft service providers have readily available and transparent privacy policies. At a time when consumers are most sensitive about protecting their personal information, like their Social Security numbers or financial account information, it is important for companies to offer clear explanations as to why information is needed and what will be done with it. CyberScout has always informed victims as to why their personal information is being collected, how it will be used and if information needs to be shared with anybody and why.
“Identity theft victims are often vulnerable and guarded with their personal information after an incident, and the last thing a victim needs is a company spewing false promises and inaccurate information,” said Eduard Goodman, CyberScout chief privacy officer. “A tight-knit privacy policy, as well as an informed staff of specialists trained in managing these cases and educating consumers is absolutely necessary.”
Each best practice contains more detailed subsections outlining recommendations about business activities. Among other recommendations, identity theft service providers are encouraged to use caution when referring to statistics in their marketing materials, should ensure that testimonials and case studies are not misleading and should offer clear and comprehensive information about the cost of their service prior to enrollment, among other recommendations.
“Being a part of the CFA Best Practices for Identity Theft Services working group, we are able to show consumers that their level of confidence in companies using responsible identity theft practices is extremely important to us,” Cullina said. “We hope that with the CFA releasing these best practices, companies will make better choices that will aid their consumers in the often overwhelming process of selecting an identity theft service provider.”
