Margins and Paddings Update

It’s no surprise that cybercrime and data breaches are hot topics for media and bloggers these days. Unfortunately, because of all the attention paid to these topics, we’ve seen some inaccurate information about Experian circulating in news outlets and other Web sites. I want to take a moment to clarify the facts and events, including Experian’s involvement in the case involving Court Ventures, a company that collects and aggregates information from public records; US Info Search, a company that provides location and other data for people and companies; and a criminal named Hieu Minh Ngo. In fact, you may have seen recent news reports that a number of states are looking into Experian as it relates to this issue that was originally raised last year. First, let me say that this is an unfortunate situation and one that we continue to take very seriously. And we of course will fully cooperate with investigators, and plan to provide any information that will assist them in their investigation. I also want to be very clear: No Experian database was accessed in this incident. In fact, the database that was accessed in this criminal scheme was owned and controlled by US Info Search, a company that is completely separate from Experian. How was Experian involved? In March 2012, Experian purchased the assets of Court Ventures, a company that focuses on collecting court records that contain limited personally identifiable information (PII). As a side to its primary business, Court Ventures, at the time of acquisition, had a contract with US Info Search. That contract allowed customers of Court Ventures to access US Info Search’s data to find the address of a person in order to determine which court records to review. After Experian’s acquisition of Court Ventures, the U.S. Secret Service notified us that Court Ventures had been and was continuing to resell data from a U.S. Info Search database to a third party, possibly engaged in illegal activity. The suspect in this case posed as a legitimate business owner and obtained access to U.S. Info Search data through Court Ventures prior to the time Experian acquired the company. Following notice by the U.S. Secret Service, Experian discontinued reselling U.S. Info Search data and worked closely and in full cooperation with law enforcement to bring Vietnamese national Hieu Minh Ngo, the perpetrator, to justice. Ngo pleaded guilty to his crimes several weeks ago and will be sentenced in June. Additionally, Experian has filed suit against the former owners of Court Ventures for permitting the sale of US Info Search's data to Ngo, and intends to hold those individuals fully responsible for their conduct in permitting the sale of data to an identity thief unbeknownst to Experian. We look forward to addressing this issue through proper legal channels. Was Experian’s credit data compromised? No Experian database was compromised. Some news reports and sensational headlines are saying that Experian lost 200 million consumer records. This is not the case, as it was not Experian’s database that was accessed, but rather US Info Search’s database was the original source of the consumer information. Although we do not know the exact number of records actually accessed at this point, we know that 200 million is false and that the actual number is much lower. What is Experian doing about it? In terms of notifying consumers, Experian does not know which consumers' information was disclosed as the data did not come from an Experian database and no other information now available to Experian would identify which consumers should be notified. Experian has engaged US Info Search to determine whether it is possible to identify the consumers who actually have been affected. Those efforts have not yet produced a reliable process for identifying consumers who appropriately should be notified but efforts are continuing. This is a situation that Experian takes very seriously and we acknowledge the concern consumers may have about this illegal access. We are actively pursuing the facts and we are working with investigators to help uncover what records may have been affected. You have our commitment.

Santander, one of the UK's leading providers of current accounts, mortgages, loans and savings products, has signed a five year contract for the deployment of Experian’s Originations and Customer Management products on their PowerCurve™ platform, to support its customer acquisitions and portfolio monitoring processes. The PowerCurve Originations and PowerCurve Customer Management solutions will help Santander support customer acquisitions and portfolio review processes across their retail and business banking products The PowerCurve platform allows Santander the ability to create unique profiles for each of its customers, encompassing each customer’s entire relationship with the business. This includes scores and metrics for risk, affordability, profitability, propensity to pay and lifetime value. Mark Staveley, Chief Credit Officer at Santander UK, comments: "The ability to share strategies across products, portfolios and lifecycle stages was pivotal to our software selection and partner of choice. We were looking for a partner with proven experience of delivering highly complex, large scale credit risk infrastructure projects under demanding timescales, and to work in an integrated manner with the business.  We selected Experian because of the business’ ability to meet our requirements and experience in undertaking platform hosting solutions." You can read the full Santander press release here: http://bit.ly/1jDyHYR

Pinterest is the top social media traffic driver for retailer Websites; Amazon.com is the top source of traffic from social sites. According to new research from Experian Marketing Services, a global provider of integrated consumer insight, targeting, data quality and cross-channel marketing, social media Websites are playing an increasingly important role in driving traffic to other Websites, including retail Websites and even other social networking sites, at the expense of search engines and portal Websites. As of March 2014, social media sites now account for 7.72 percent of all traffic to retail Websites, up from 6.59 percent in March 2013. Further, Pinterest, more than Facebook or YouTube, is supplying the greatest percentage of its downstream traffic to retail sites. This trend, among others, is highlighted in Experian Marketing Services’ recently released 2014 Digital Marketer: Benchmark and Trend Report. The report is an annual go-to resource for marketers looking for key industry benchmarks, insights, technology trends and consumer data. “While search still dominates, social media is becoming a significant source of traffic across the Internet as consumers increasingly use sites like Facebook, Pinterest or YouTube more as discovery platforms,” said Bill Tancer, general manager of global research, Experian Marketing Services. “Many of today’s marketers are leveraging the power of social communities to increase customer engagement and expand their brand’s reach. For retailers, all eyes are on Pinterest.” According to the report, more retailers are directing their customers to social media within their email campaigns. Ninety-six percent of marketers now promote social media in their emails, and in 2013, Pinterest had the greatest year-over-year increase. Pinterest is now being promoted by 64 percent of brands within emails. Amazon.com is the top source of downstream traffic from Pinterest, Facebook and YouTube After visiting Facebook, YouTube or Pinterest, consumers are visiting Amazon.com more frequently than any other retailer Website. The top five retail sites downstream from Facebook: Amazon.com Walmart Zulily Target Beyond the Rack The top five retail sites downstream from Youtube: Amazon.com Walmart GameStop Crutchfield Target The top five retail sites downstream from Pinterest: Amazon.com Target Zulily Walmart Nordstrom “Social media continues to grow as an influential source of traffic for retail sites, and it’s important that marketers understand what is driving customers to their Web page,” said Tancer. “Amazon is clearly benefitting from this trend across all of the major social networks. Meanwhile, gaming and electronic retailers GameStop and Crutchfield are top downstream sites for YouTube, which is likely due to enthusiasts sharing videos of game performance and setup, and how-to videos for electronic enthusiasts.” Social drives more traffic to other social Websites In addition, social media Websites increasingly are responsible for driving traffic to other social sites. Upstream traffic from social networking Websites rose 20 percent in 2013 over 2012. Despite still driving the greatest share of traffic to social networking sites at 39.1 percent, search engines’ share declined 13 percent year-over-year. Upstream industries visited before social networking and forum sites 2013 versus 2012 Industry Click share 2013 Year-over-year difference Search engines 39.1% -13% Social networking and forums 15.1% 20% Email services 8.4% 18% Portal front pages 5.4% -41% Multimedia 5.0% 41% Games 2.5% 16% Software 1.6% 16% Television 1.6% 74% Reference 1.2% 28% Department stores 1.1% 48% Source: Experian Marketing Services’ 2014 Digital Marketer: Benchmark and Trend Report The 2014 Digital Marketer: Benchmark and Trend Report is available via a free download at http://ex.pn/PpijOx. The 2014 Digital Marketer webcast hosted by Bill Tancer can be viewed at: http://ex.pn/P2IFFd.