Download Release (word)
Download Release (pdf)
Norwalk, Conn. - April 13, 2007 - Affinion Group, a leading global affinity marketer, has acquired CardCops, a Malibu, Calif.-based ID theft protection, data monitoring and analysis technology solutions leader, further solidifying the group's position as a the preeminent identity protection provider.
Terms of the deal were not disclosed.
As a leader in credit monitoring and identity theft protection, we are excited to add CardCops and its advanced technologies to our already extensive fraud prevention and protection solutions business," said Tom Rusin, chief revenue officer and general manager of Affinion Group. "CardCops is the premiere ID theft watchdog on the Internet, and this innovative company - combined with our strong suite of ID theft prevention products - is ushering in a new era of identity fraud protection."
CardCops was founded in 1999. Its pioneering technology monitors the Internet for fraudulent activity involving consumers' personal information such as credit card account, debit card account. PIN numbers, social security numbers, mother's maiden name and many other types of personal information. CardCops collects compromised personal information from foreign "underground" chat rooms where full sets of personal information are bought and sold by identity thieves for $10 to $30. CardCops' exclusive technology will alert members instantly if their personal information has become compromised, and assist them with keeping their identity safe.
Being part of the Affinion Group gives CardCops more resources to gather more data to deliver greater protection to Americans, e-commerce companies and businesses across the country," said Dan Clements, chief executive officer of CardCops. "These ID thieves on foreign soil who attack Americans are the modern day bank robbers, and we can stop them before they even commit the crime."
By using CardCops' sophisticated monitoring capabilities and comprehensive proprietary database, Affinion Group will help financial institutions protect customers' vital data while enabling online merchants to sell products and services securely.
Affinion Group and CardCops partnered last year to launch a sophisticated new tool called ID Secure that uses cutting-edge public records, Social Security number and credit card monitoring technology to fight identity theft. ID Secure (www.idsecure.com), a revolutionary new solution, arms consumers with an unprecedented way to proactively manage their identity information and avert potential ID theft and fraud.
Identity theft is the fastest growing crime in America, with 27.3 million victims in the past five years, and nearly 20 million in the past two years alone, according to a study from Javelin Strategy & Research. This crime costs more than $56 billion, or $6,383 per victim, annually, and has become so prevalent, that an identity thief strikes on average every 3.5 seconds. In fact, ID theft has now surpassed drug trafficking as the No. 1 crime in America, according to the Justice Department.
About CardCops
CardCops (www.cardcops.com) protects consumers from identity theft by providing them with the means of determining whether their credit card, social security number, or other personal information has been compromised, even before it is used to commit a crime; and helps global Internet merchants reduce losses due to fraud by identifying transactions involving stolen credit cards. CardCops collects compromised data from cyberspace and makes it available in "real time" to consumers, merchants and banks. CardCops began scouring cyberspace for compromised personal and financial information in 2000, and has supplied information to the Credit Card Associations, the FBI, the Secret Service, various Attorneys General offices, and other law enforcement agencies. What is unique about much of the data found by CardCops is that it has not yet been used maliciously, and therefore enables the CardCops customer to take pro-active steps to prevent identity theft and fraud from occurring.
About Affinion Group
Affinion Group (www.affiniongroup.com) is a leading affinity direct marketer of value-added membership, insurance and package enhancement programs and services to consumers. With more than 30 years of experience, Affinion Group currently offers its programs and services worldwide through more than 5,200 affinity partners. Its diversified base of affinity partners includes leading companies in a wide variety of industries, including financial services, retail, travel, telecommunications, utilities and Internet. Affinion Group also has a growing loyalty solutions operation that administers points-based loyalty programs. Based in Norwalk, Conn., Affinion Group has approximately 3,000 employees throughout the United States and in 14 countries across Europe.
Affinion Group has established itself as a premiere security, credit monitoring and identity theft protection innovator. It launched HotLine, a leading ID theft, credit card, fraud protection and security service in 1969. PrivacyGuard, a comprehensive membership credit monitoring product which was created in 1992, remains one of the largest in the U.S. Other ID theft protection services in Affinion's thriving security business include PC SafetyPlus, an identity theft software service that protects members with a personal firewall to thwart hackers and other online ID threats. PC SafetyPlus software features automatic updates and service upgrades for protection against prevailing computer viruses, spyware and worms. Last year, Affinion Group introduced ID Secure, the next generation of ID theft protection that arms consumers with tools to proactively manage their identity information and avert potential ID theft and fraud via the Internet.
About Affinion Group
As a global leader with almost 40 years of experience, Affinion Group (www.affinion.com) enhances the value of its partners' customer relationships by developing and marketing loyalty solutions. Leveraging its expertise in customer engagement, product development and targeted marketing, Affinion provides programs in subscription-based lifestyle services, personal protection, insurance and other areas to help generate increased customer loyalty and significant incremental revenue for more than 5,550 marketing partners worldwide, including many of the largest and most respected companies in financial services, retail, travel, and Internet commerce. Based in Stamford, Conn., the company has approximately 4,250 employees and markets in 17 countries globally. Affinion holds the prestigious ISO 27001 certification for the highest information security practices, is PCI compliant and Cybertrust certified.Safe Harbor Statement Under the U.S. Private Securities Litigation Reform Act of 1995
This press release may contain statements that are forward looking, as that term is defined by the Private Securities Litigation Reform Act of 1995 or by the Securities and Exchange Commission in its rules, regulations and releases. These statements include, but are not limited to, discussions regarding industry outlook, Affinion's expectations regarding the performance of its business, its liquidity and capital resources, its guidance for 2011, the consummation of the acquisition of Prospectiv and the impact to Affinion's business and the other non-historical statements in the discussion and analysis. These statements can be identified by the use of words such as "believes," "anticipates," "expects," "intends," "plans," "continues," "estimates," "predicts," "projects," "forecasts," and similar expressions. All forward-looking statements are based on management's current expectations and beliefs only as of the date of this press release and are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from those discussed in, or implied by, the forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, risks related to general economic and business conditions and international and geopolitical events, a downturn in the credit card industry or changes in the techniques of credit card issuers, industry trends, foreign currency exchange rates, the effects of a decline in travel on the Company's travel fulfillment business, termination or expiration of one or more agreements with its marketing partners or a reduction of the marketing of its services by one or more of its marketing partners, the Company's substantial leverage, restrictions contained in its debt agreements, its inability to compete effectively, and other risks identified and discussed from time to time in Affinion's reports filed with the SEC, including Affinion's most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q. Readers are strongly encouraged to review carefully the full cautionary statements described in these reports. Except as required by law, the Company undertakes no obligation to revise or update publicly any forward-looking statements to reflect events or circumstances after the date of this press release, or to reflect the occurrence of unanticipated events or circumstances.