ID3 Applications. 800 million people One solution. Forward thinking solutions for a global industry. because identity matters

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1 ID3 Applications Forward thinking solutions for a global industry because identity matters 800 million people One solution

2 ID3 Applications Forward thinking solutions for a global industry Background As far back as 2002, GB recognised the potential for fraudsters to compromise personal identity, and set about designing and building a suite of technologies that could help organisations ensure that stolen identities cannot be used in their business. In the early part of 2003, the UK s first application for the electronic verification of personal identity was launched jointly with BT. URU was developed to help companies comply with legislation designed to prevent money laundering and financial crime. As such it is a powerful tool used in financial services to meet Know Your Customer requirements. In 2005 it was voted Best Compliance Tool of the Year by The Banker magazine in respect of its ability to offer full KYC checks across all channels including online banking. It quickly became evident that the same approach used in Know Your Customer compliance could also work to reduce fraud across the business and ID3 solutions are now widely adopted in nonregulated sectors such as retail and mobile telecommunication to provide protection against fraud involving the use of false or stolen identities. In 2006, ID3 Check was launched, providing identity checking capabilities for more that 20 countries and over 800 million individuals. URU and ID3 Check can be accessed through a single portal to provide truly global coverage in the fight against money laundering, financial crime and underage gambling. In addition, ID3 technology is the solution of choice for more than 80% of online gaming operators for the verification of players. Under gaming regulations, operators are obliged not just to block money launderers from their sites but also to protect underage or vulnerable people from accessing their products.

3 800 million people one solution Clients using the ID verification applications, URU and ID3 Check, can interface to them through one common set of user screens, making the whole ID process totally seamless. ID3 technology s unique data matching capabilities make it possible to authenticate consumers by matching personal information against reference data for over 800 million citizens across the globe from the UK to Australia, Germany to Ireland and South Africa to Sweden. ID3 technology's integrated approach to global identity verification has enabled it to support clients in their own business growth. It enables client organisations to make an instant decision on the authenticity of a customer s personal details, regardless of where in the world they are located. Using a risk-based approach to identity verification, ID3 technolgy enables a client to decide instantly if they should accept a new customer, based on the business own rules and attitudes to risk. ID3 technolgy validates common personal details including name, address and age; tokens of identity such as an International and UK passport, utility bill or ID card - even payment card details and physical location. It provides clients with the greatest degree of confidence that their new customer really is who they claim to be. GB Group s URU and ID3 Check services strike the perfect balance between risk prevention, compliance and commercial viability. Ours is a business of immediacy - the currency market changes within seconds. We need to be able to process over 4,000 instant requests from new customers every month using technology that is easy to use and which accurately identifies people quickly so that we can reduce the need to request additional identification paperwork. Since implementing URU and ID3 Check we have reduced our customer account opening times significantly. In addition, match rates are so good that the volume of people who need to produce additional proof of identification has fallen. As well as providing us with the identity verification framework we need now, GB s services can be used in those territories where we intend to expand - including countries that may become regulated under their respective anti-money laundering and counter-terrorism regimes. Group Money Laundering Reporting Officer

4 Increase Revenue Single Interface Why? Costs Comply With Regulation Client verification is a real issue for us. Having a paper-based authentication process carries inherent risks and is simply unproductive. As for our clients, their first experience of Killik & Co is often a cumbersome paper chase. With URU we have found an ideal solution! GB's team are the first people to take real steps towards removing the need for paper-based ID. We chose them to develop our ID solution because they showed real innovation and imagination in resolving our issues. Operations Director Meeting the global needs of business ID3 technology, through its application in URU and ID3 Check, has been proven to help organisations comply with regulation, improve the customer acquisition process, increase operational efficiency and significantly reduce fraud. Its ability to provide a single point of access to international AND UK data sources makes it unique in the global ID market. Increase operational efficiency URU and ID3 Check both reduce the time needed to authenticate a new customer or employee by authenticating paper proofs of identity at the point of registration. significantly reduce the resources required to validate customer data and store the results for compliance purposes. provide clear evidence instantly to partners or regulators of the AML checks performed.

5 Increase Revenue Single Interface Why? Costs fraud URU and ID3 Check both significantly reduce fraud by making it virtually impossible for fraudsters to use a false or stolen identity. provide an online audit trail of all customer information, enabling a profile of a would-be fraudster to be constructed for future reference. include the ability to authenticate payment cards as part of the ID process, significantly reducing card-not-present fraud. And in one blind trial at a UK bank alone, URU correctly identified 86% of known fraud cases! Comply With Regulation GB and ID3 technology are now an integral part of our customer offering, helping us to process nearly 20,000 new customer accounts every week across all channels to provide consistency in our application processing regardless of where we interact with the customer. Since bringing ID3 technology into the customer application process we have seen disconnection levels fall by more than 40% - a significant saving to the business. Head of Credit and Risk Management

6 Increase Revenue Single Interface Why? Costs Comply With Regulation The benefits of the ID3 application URU were seen as soon as it was implemented. The system gave us greater clarity around the identification of underage players who were attempting to register and bet with Bet Direct and allowed us to prevent them from using the service, in line with industry guidelines. Head of Games Meet global compliance requirements URU and ID3 Check both offer a full and robust anti-money laundering (AML) check in line with global requirements and based on the recommended risk-based approach. protect personal information never revealing the core data that a consumer s personal data has been checked against. provide a valuable audit trail demonstrating exactly what checks have taken place, and the results of those checks. Relevant legislation covered by ID3 includes the 3rd European Money Laundering Directive, Proceeds of Crime Act (UK), Patriot Act (USA), Sarbanes-Oxley (USA), Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Australia) and minimum legal age requirements applicable in certain industry sectors.

7 Maximise customer acquisition rates URU and ID3 Check both Offer the end customer a more comfortable and user-friendly welcome into the business by verifying the customer at the first point of engagement. significantly reduce the time needed to get customers up and running. improve match rates over alternative systems by including the ability to authenticate documents as part of the sign-up process. A French customer was recently checked using ID3 technology by a UK-based mobile phone business. Having recently arrived in the UK from France the individual had no credit or voter footprint in the UK. He described the URU identity service as "fantastic - it was so simple" and had his new phone and contract within 20 minutes. He described the experience at a competitor store as painful and embarrassing - as if he really were a fraudster. URU offers very good value for money. New account openings have gone from 3% (immediate trading) to over 60%. Senior Vice President Increase Revenue Single Interface Why? Costs Comply With Regulation Using URU has significantly reduced our account opening times - we reckon it has shaved more than 15% off the time it takes a new customer to get up and running. We set an expectation that using URU would enable us to match around 85% of our customers. In fact, month on month we are seeing match rates between 86% and 91%. Money Laundering Officer BT and URU are registered trademarks of British Telecommunications plc. ID3 is a registered trademark of GB Group plc. CallID is a registered trademarkof Callcredit plc and verifies customer details against Electoral Roll and non-finacial elements of SHARE data

8 About ID3 technology ID3 technology matches the information input from URU or ID3 Check against a wealth of independent data sources including voters data, address, register of birth and death as well as financial information. Business areas that are currently using URU and ID3 Check Credit & Risk Lending Compliance Customer Services risk of fraud and losses through bad debt losses caused by third party fraud Improve processes to ensure compliance in increasingly dynamic markets Improve account opening rates to meet business targets HR Operations Enable the consistent screening of all new employees to reduce insider fraud and meet AML requirements Investigate suspicious fraud cases to ensure maximum interception rates the overheads and costs associated with identity verification and AML checks because identity matters GB Group plc GB House Kingsfield Court Chester Business Park Chester CH4 9GB Tel: +44 (0) Fax: +44 (0) If you would like information on how ID3 Check and URU could help to reduce the threat of identity fraud and money laundering at your business, please contact: +44(0) id3team@gb.co.uk The UK Telephone Number Database (an extract from BT OSIS) can only be used within GB products for the purposes of teleappending or telephone A-Z listings search. The terms validation and verification refer to GB's Identity Management product and service offerings. For the avoidance of doubt GB Group does not refer to any of BT s products and services where it uses the terms validation and verification.