March 22, 2013
March 22, 2013 Tennessee State Employees Association 627 Woodland Street Nashville, TN 37206 InfoArmor is pleased to present the Tennessee State Employees Association (TSEA) with the following proposal for PrivacyArmor, our flagship identity protection product. Providing comprehensive identity theft protection represents a significant level of insightful concern on behalf of the TSEA and InfoArmor, the leader in deploying identity theft as an employee benefit, is the right choice. PrivacyArmor not only reduces the cost of lost productivity, but also provides an extraordinary level of security and support which improves the quality of life for each employee and their family. As a well-respected employer, TSEA will understand that risk lies with unprotected employees. On average, 5% of the US adult population will be victimized by identity fraud annually. In the event that employees have been victims of a data breach or identity fraud previously, that risk increases by a factor of 10. However, this crime is not limited to adults. More and more, the credentials of minors are being fraudulently leveraged. As a result, InfoArmor s innovative technological advantages are critical to ensure that all family members are effectively protected. When identity theft happens, TSEA becomes the real victim, absorbing hidden financial impact from affected employees. Absenteeism rises, health care benefit usage rises, and productivity declines as employees seek to remedy their ID Theft problem during business hours and on the company s dime. The enclosed ROI calculation in this proposal shows how protecting your employees can help save TSEA significant productivity costs. The opportunity is clear. TSEA must protect its employees from the devastating crime of identity theft and offer this unique coverage to you retiree population. We look forward to serving you. Best regards, Mike Kirschner I National Account Executive InfoArmor, Inc. 7001 North Scottsdale Road, Suite 2020 Scottsdale, Arizona 85253 Phone: 206.599.9101 mikekirschner@infoarmor.com 2 P a g e
Benefit Summary: PrivacyArmor As the leader in identity monitoring, InfoArmor s mission is aligned with that of the TSEA: to help prepare and protect our constituents futures. Our expertise in identity theft protection allows us to help our clients proactively and effectively protect employees in a highly customized manner. Our investment in innovative product development, technological expertise, and extensive training of our people has resulted in the development of a best in class employee benefits focused, identity theft protection program. InfoArmor s PrivacyArmor product suite is the best in breed, low cost identity theft protection program that will protect employees, improve workplace productivity, and drive down human capital costs across your organization. Benefit Features: SNAPD 2.0 Identity Monitoring Patented analytics search and monitor past history (3 year look back) as well as real time identity frauds or threats. By creating a SNAPD (an acronym for Social Security number, Name, Address, Phone and Date of Birth) identity blueprint, InfoArmor monitors over 700 billion data elements, the largest proprietary database of application data, on a daily basis from sources such as: new credit cards wireless carrier applications retail credit card accounts automobile loans mortgage loans payday loans checking accounts and check reorders utility accounts change of address requests public records (DMV records, government databases, real estate records, court records, criminal records, Social Security records) PrivacyArmor can identify anomalies indicative of fraudulent activity up to 90 days sooner and on a broader scope than credit monitoring programs, because this identity monitoring program searches for fraud at the point of new account application/creation (vs. new account approval). 3 P a g e
SNAPD 2.0 also monitors High Risk Transactions and alerts employees real-time when online accounts in the following areas are accessed or leveraged: Alerting Process: Compared to other identity theft protection programs, PrivacyArmor catches: More: Detection capabilities are more far reaching, as InfoArmor identity monitoring captures 85% more fraudulent activity than credit monitoring programs alone. Sooner: Most of our competitors can only see new account information after the account activity has already occurred. Since credit programs can only detect theft after the account opening process has been completed and ultimately approved, they can only catch theft after the fact - and up to 90 days too late. Retroactively: InfoArmor can search rolling data history up to 3 years prior to account activation date in order to seek out prior theft that a victim may or may not already know about. Even unsuccessful attempts at identity theft: Because InfoArmor seeks out theft at the application level, we can catch even the unsuccessful attempts. Other identity monitoring programs do not have the ability to catch these attempts because they only see the accounts that are successfully created and opened. As a result, other programs cannot put the proper and appropriate safeguards in place before another attempt at theft is committed, whereas InfoArmor can and does. 4 P a g e
Internet Surveillance InfoArmor Internet Surveillance monitors the Underground Economy to uncover compromised, sensitive information. Whether is personal identifying data or a medical insurance card, SNAPD Internet Surveillance finds breached data and alerts in real time. Where We Monitor: Malicious Command & Control Networks Black Market Forums Known Compromised Machines & Servers Phishing Networks Exploited Websites How We Monitor: Proprietary hardware and software solution Unparalleled alert accuracy (minimized false positives) Secure: separate reconnaissance and analysis efforts, plus no refined search queries Data We Monitor: SSNs, names, addresses, emails and DOBs Wallet items (i.e. credit cards, medical insurance card) Internet Surveillance includes real time access to a subscriber s Digital Identity Report with Privacy Grade. This interactive, easyto-read report not only summarizes what a deep Internet search uncovers, but also offers tangible value while InfoArmor monitors the Underground Economy. 5 P a g e
WalletArmor 24x7x365 interactive monitoring to detect compromised credit cards, driver s license, medical insurance identification, etc. Enhanced GUI enables easy storage of important documents Expert Privacy Advocate aid in replacing lost/stolen wallets 6 P a g e
Full Service Privacy Advocate Restoration Upon notification of an identity theft incident, Privacy Advocates will immediately reach out to act on behalf of the victim as a dedicated case manager to: Investigate and, when appropriate, confirm fraudulent activity including known, unknown, and potentially complicated additional sources of identity theft. Complete and mail customized, pre-populated, state specific Fraud Packet via certified mail with pre-paid return instructions. Place phone calls, send electronic notifications, and prepare appropriate documentation on the victim s behalf, including anything from dispute letters to defensible complaints, to all appropriate agencies, financial institutions, etc. Issue fraud alerts and victim s statements when necessary, with the three consumer credit reporting agencies, the FTC, SSA, and U.S. Postal Service. Submit Special Limited Power of Attorney and ID Theft Affidavit to involved creditors for card cancellation and new card issuance. Contact, follow up and escalate issues with affected agencies, creditors, financial institutions, etc to reinforce employee s rights. Assist the employee in notifying local authorities to file an official report (s). Utilize real time access to public records reports for further investigation where applicable. Provide peace of mind and resolution of key issues from start to finish as swiftly as possible. Provide copies of documentation, correspondence, forms and letters for the victim s personal records. IdentityMD Restoration is provided in house by InfoArmor Privacy Advocates. Our services are not outsourced and do apply to fraud issues beyond just credit fraud, including criminal, medical and other forms of identity theft. 7 P a g e Interactive, step by step online assistance for identity theft prevention and self-help restoration Utilizes Q&A logic driven assessments Employees can create and access 24/7/365 Encrypted and secure Automatically populates documents including affidavits & dispute letters Provides timely automated email reminders to stay on track Logs progress and captures information in My Journal section Answers many common questions, corrects many common misperceptions with FAQ section Provides guidance on how to access free credit and public records reports Provides WalletArmor s proactive storage access
Allows for Privacy Advocate assistance if an employee has questions about using the tool, or reaches a point in the self-restoration process whereby they require Privacy Associate assistance, he/she may phone our call center for the additional help requested or necessary. Out of Pocket Expense Coverage The $25,000 Identity Theft Insurance policy provides reimbursement for out of pocket costs such as: lost wages, legal fees, notarizing fraud affidavits, certified mail, postage costs and long distance phone charges. Privacy Advocates provide assistance with making a claim. Solicitation Reduction PrivacyArmor s solicitation opt out program enables employees to manage direct marketing campaigns from businesses or organizations in which they do not have (or want) an existing relationship. The service includes the ability (not requirement) to opt in or out of the following: Mail filtering Pre-approved credit and insurance offers National Do Not Call Registry Email solicitations Reduction in these unwanted solicitations limits exposure of personal information, and therefore reduces the root cause of up to 20% of identity theft. 8 P a g e
Enrollment Option #1: Employer Sponsored (10,000 employees) $1.50/ee/month, paid quarterly Covers all employees immediately as of effective date Cost Benefit Analysis and ROI TSEA 10,000 employees x 5% national ID theft incidence rate* = 526 employee victims per year x 59 average work hours spent on self-remediation** 31,034 total productive work hours lost x $ 20.00 average hourly wage = $ 620,680 total annual productivity loss - $ 180,000 annual cost to protect employees with InfoArmor at $ 1.50 per month $ 440,680 net savings 245% ROI * 2013 Javelin Report ** Identity Theft Resource Center (59-168) Enrollment Option #2: Voluntary offered to dependents and retirees $7.95/employee/month $13.95/family/month up to 5 individuals covered Spouses and dependents (minors) are eligible, up to 5 individuals covered under roof or under wallet Payroll Deduction Embedded in enrollment platform 9 P a g e
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