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FRAUD PREVENTION SERVICES NOW TABLE STAKES IN MIDDLE MARKET BANKING

December 15th, 2009

TNS survey finds one in four Middle Market firms have been the recent victim of a financial fraud attempt; eight in ten recent fraud victims are satisfied with the way their lead banking partner responded to the fraud attempt.


New York, NY - December 15, 2009 - TNS, the world's largest custom research company, today released results of its latest survey related to fraud prevention in Middle Market banking.   With one in four being the victim of a recent fraud attempt, security is a top concern for Middle Market executives.  Fielded in November 2009, the survey of nearly 400 senior financial executives provides insight into banks response to fraud and the extent to which fraud prevention services drive consideration of future banking relationships.

More than three-fourths are satisfied with the fraud prevention services that their lead bank offers and more than eighty percent are satisfied with their lead bank's response to a most recent fraud attempt.  "Security is a large enough issue for businesses that it can end a banking relationship if something goes wrong.  But, the industry has done an excellent job in meeting the security concerns of its clients.  The fact that the bar has been set so high creates a situation where fraud prevention services are now viewed as a minimum core requirement for Middle Market banks, not as a differentiator," said Glenn Staada, Vice President of TNS.   "With regard to solicitations and new client acquisition attempts, Middle Market bankers should not expect to differentiate themselves on the strength of fraud prevention services alone," Staada adds.

Fraud Prevention and Considering New Providers

More than one third (40% of firms $3M - $20M, 35% of firms $20M - $2B) do not rate fraud prevention services as being an important factor to them in the consideration of potential new banking partners.  "With the potentially crippling effect that a successful fraud attempt could have on a business, it is surprising to see a high percentage of executives not rating fraud prevention services as an important factor in considering banking partners," says Staada.  "This reflects the fact that fraud prevention has become a core expectation of Middle Market bankers, and thus something that is not a top focus when differentiating options during the consideration process."

Current State of Fraud Prevention Services

Seventy eight percent of executives at firms with revenues between $3M and $2B are very or somewhat satisfied with the fraud prevention services offered by the bank that they consider to be their business' primary provider.  And, only 2% report being dissatisfied with these services.  The bank features that are currently received most favourably relate to check fraud protection, online security, ACH controls, general bank communications, and password controls.

Bank size is perceived to matter when evaluating fraud prevention services, as the country's top 5 banks collectively receive higher satisfaction scores than do large multi-regionals and all other banks; top 5 banks: 83% very or somewhat satisfied, large multi-regionals: 79%, all others 69%).

Response During Fraud Attempt

A meaningful proportion of businesses report being the victim of a fraud attempt during the past year; 24% of those with revenues $3M - $20M and 27% of those with revenues $20M - $2B.

Banks have responded well, especially on behalf of firms in the $20M - $2B revenue band.  In this segment, the bank alerted their clients to the fraud attempt in 60% of the recent cases.  For smaller businesses, the bank less frequently made the initial discovery of the fraud attempt, 41%.

Across both segments, the bank's response to the fraud attempt was extremely well received by the client.  84% of firms with $20m - $2B in revenue were very satisfied or somewhat satisfied with their lead bank's reaction to and performance during a recent fraud attempt.  The bulk of satisfied responses were categorized as very satisfied, 71%.  Firms with revenues between $3M and $20M were satisfied in 79% of the cases, with 70% saying they were very satisfied.

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About TNS

TNS, who recently merged with Research International, is the world's largest custom research agency delivering actionable insights and research-based business advice to its clients so they can make more effective business decisions.  TNS offers comprehensive industry knowledge within the Consumer, Technology, Finance, Automotive and Political & Social sectors, supported by a unique product offering that stretches across the entire range of marketing and business issues, specializing in product development & innovation, brand & communication, stakeholder management, retail & shopper, and qualitative research. Delivering best-in-class service across more than 75 countries, TNS is part of Kantar, the world's largest research, insight and consultancy network. Please visit www.tnsglobal.com for more information.

The Kantar Group

The Kantar Group is one of the world's largest research, insight and consultancy networks. By uniting the diverse talents of more than 20 specialist companies - including the recently-acquired TNS - the group aims to become the pre-eminent provider of compelling and actionable insights for the global business community. Its 26,500 employees work across 80 countries and across the whole spectrum of research and consultancy disciplines, enabling the group to offer clients business insights at each and every point of the consumer cycle. The group's services are employed by over half of the Fortune Top 500 companies.  The Kantar Group is a wholly-owned subsidiary of WPP Group plc. For further information, please visit www.kantargrouptns.com.