Equifax Inc. (EFX) recently offered guidance to guard against the growing menace of identity theft or fraud. Approximately 12.6 million people were affected by identity theft in 2013, according to a survey conducted by Javelin Strategy & Research.
To counter this problem, Equifax has suggested using upgraded security features in smartphones and tablets for social as well as professional purposes, which significantly lower the chances of personal information falling into wrong hands.
Moreover, checking for credit reports and going though the debit and credit card statements thoroughly are helpful in detecting any discrepancy in the transactions. Sharing social security number over the phone or through unsecured channels has been advised against.
Additionally, customers can avail Equifax’s various services within the Identity and Fraud product suite. These help in screening, verification and authentication tools, which in turn will mitigate fraud, protect privacy and reduce data loss, thereby enhancing user acceptance and satisfaction with online channels.
Equifax Identity and Fraud Solutions (:IFS) help to reduce fraud and manage risks in both private and public sectors, thereby creating a secure environment. This, in turn, is expected to help Equifax to expand its customer base and market share.
It is worth noting that more than 70% of the customers use Equifax fraud, ID verification or authentication tools to mitigate online fraud. Moreover, per American Banker, nine out of the top ten banks turn to Equifax for advanced fraud solutions while booking new accounts.
Equifax’s focus on product innovation, broadening of data assets through acquisitions and continued share gains in North America are encouraging. We believe Equifax is well positioned to benefit from its leadership in important markets and strength in international markets.
Given the company’s strong correlation with the consumer and financial markets as well as its U.S. and European exposure, we see a gradual improvement in results. Competition from Fiserv Inc. (FISV), Automatic Data Processing, Inc. (ADP) and Dun & Bradstreet Corp (DNB) are, however, a concern.
Currently, Equifax has a Zacks Rank #2 (Buy).