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In the wake of some of the largest data breaches in history, which were specifically payment card breaches, we thought it would be insightful to take a closer look at how companies are dealing with the aftermath. We are proud to partner with the Ponemon Institute, a premier research think tank, to release the first industry study that closely examines payment technologies and the growing threat of data breaches. The study, “Data Security in the Evolving Payments Ecosystem,” asked professionals to weigh in on several topics including who should be responsible for securing payment systems and how effective their organizations is in preparing for and responding to a payment card breach. New technologies bring consumer convenience and increased security concerns Executives are feeling the challenges of keeping up with the security of emerging systems. While most executives support implementation of EMV chip and PIN technology, for example, with 59 percent of survey respondents indicating it is an important part of their organization’s payment strategy, they do not feel it is the security silver bullet. Barely more than half of respondents (53 percent) believe EMV cards will decrease the risk of a data breach. However, companies are pressured to integrate new systems acknowledging consumer convenience and preferences. More than half accept that risk (53 percent) and noted that, for their company, customer convenience is more important than security. Reality has set in The recent high profile data breaches have had a profound effect on business and they now realize how devastating a breach can be on company reputation and loss of revenue. In fact, a majority of survey respondents (69 percent) are most concerned about loss of customer loyalty after a data breach and fraudulent charges on customers’ payment cards (55 percent). In looking inward, they also do not feel their company is effective in responding to payment card breaches (35 percent). On the right track  It seems not a day goes by without the media reporting on a data breach. This has had an effect as 69 percent of survey respondents said media coverage of payment breaches over the past year caused their organizations to re-evaluate and prioritize security. It’s encouraging to see that this is leading to action; companies are seeing increased attention from the c-suite, with 67 percent of survey respondents saying their executives are more supportive of enhanced security measures to protect payment information. Furthermore, 45 percent of survey respondents increased their security budgets, and 41 percent hired more security staff. Industry collaboration is lacking While companies are doing more, they realize there is still even more to be done. Sixty-five percent of survey respondents said they are increasing employee training (65 percent) and improving or putting a data breach response plan in place (56 percent of survey respondents). Payment professionals also recognize that solving current and emerging security concerns can’t be the job of a single entity. There is consensus on the need for cooperation, with 85 percent of survey respondents agreeing that industry collaboration is critical to achieving a high level of security in the emerging payment ecosystem. And there is certainly room to grow, as the current level of industry collaboration is considered minimal (30 percent of respondents) to nonexistent (20 percent) by survey respondents. The security outlook for all those organizations involved in the payment ecosystem is mixed.  It will be challenging to constantly keep up the pace with new technologies and ward off cybercriminals 24-7, while satisfying consumers who value the benefits of emerging systems. The best path forward for companies is to face the issue head on and prepare for the inevitable data breach and their incident response to mitigate the fallout. To access the full report, Data Security in the Evolving Payments Ecosystem, visit Experian.com/databreach.  

Millennials are considered the “Me Me Me” generation. Why shouldn’t they be? Aged 18–34, millennials have everything going for them in today’s economy. The job market is favorable, and as the creators of advancing technology, they’re poised for growth. According to the U.S. Census Bureau, the “millennial” generation is projected to surpass the outsized baby-boomer generation this year to be the nation’s largest living generation. How are millennials handling credit? This is a generation unique in its behaviors and mindful of its financial position going forward. The choices millennials make as they enter their peak spending years will have a direct impact on the credit market. This is a ballooning opportunity for lenders, and it makes sense for marketers to design their brand experience to target this generation. However, lenders need to understand what appeals to millenials to reach this group. As part of our upcoming Vision 2015 session, we’re giving lenders the analytical insight they need to understand this generation better. This session will explore housing, auto, bankcard and student loan trends in credit establishment, and how millennials compare to Gen X when they were the same age. Our analysis shows that millennials haven’t fully embraced credit. They understand the importance of building credit; however, they’re adopting bankcards at a slower rate than their Gen X counterparts when they were the same age. Forty-six percent of Gen Xers had bankcards when they were 18–34 years old. On the other hand, 27 percent of millennials have bankcards, which is half the rate of the previous generation. Every generation is different and every business is trying to capture the millennials’ attention. How should lenders go about building trust and a lasting relationship with millennials? We took to the streets to speak to millennials firsthand to give you an opportunity to hear their perspective. Come join us to discover “Four great insights about millennials in 40 minutes” and rethink how you can reach millennials at the right time with the right message.

With the objective of supporting the local community and helping Orange County residents overcome financial issues, we have partnered with the Orange County Rescue Mission (OCRM) to spread financial literacy by providing residents with the insight and resources to guide them on a journey to independence. As part of this program, Experian is offering at no charge its Experian Credit EducatorSM product, a tool designed to provide consumers with one-on-one telephone-based education sessions and guide them through important information related to their credit lives. This innovative tool helps prepare consumers for career exploration, future employment opportunities, home rentals and other important financial decisions. We were eager to strengthen our partnership with OCRM because our company strongly supports its goal of providing the homeless with the skills and resources to become self-sufficient. Within 30–60 days of entering OCRM, residents will work with an Experian volunteer to schedule their session. An agent will provide individuals with a copy of their credit report and help them review, understand and improve their credit score. This session enables the resident to identify any potential issues with their credit report or score, while learning the fundamentals of credit reporting from a reputable resource. The phone-based sessions usually take 35 minutes. A significant number of OCRM members have been empowered with in-depth information to take important steps toward improving their financial literacy. The initiative is part of Experian’s broader mission to promote data for good by leveraging insights from the use of Big Data into actionable solutions that benefit consumers, businesses and government organizations. Experian already has provided more than 25 sessions to the OCRM’s members and is on schedule to deliver 15–20 a month as new OCRM members become integrated into the independent-living and job-training programs. OC Register Coverage: New O.C. program helps homeless people fix their credit By Theresa Walker Back when she was living on the streets and panhandling to buy food and drugs, a good credit score was the last thing Jody Puckett figured she needed. “Credit wasn’t even something on my mind because we were living day to day,” Puckett said of the way she and her husband had existed for six years, mostly living in his truck. “We were thinking about how we were going to get a roof over our heads. And food. And dope.” It took nearly two years with Orange County Rescue Mission’s live-in Village of Hope rehabilitation program for Puckett, 46, and her husband, Devin, 47, to shed that sketchy old life and start anew. Now, good credit does matter to the Pucketts. They are clean and sober, working and hope to buy a home someday for themselves and their 7-year-old daughter. Read full article here. Experian Consumer Counsel: Volunteers Helping People Manage Their Credit