Alarm has been sounded over alarming rise in frauds involving identity theft. Growing terror threats have also increased the demand for enhanced screening at airports. Can NXT-ID Inc. (NASDAQ: NXTD) be of help and how can that impact its financial performance?
NXT-ID Inc. (NASDAQ: NXTD) is known for its security technologies that encompass secure digital payment, encryption and biometric identification. The global headache that has been created by the rise in incidents of identity theft has created an attractive business opportunity for NXTD. Banks and consumers can leverage the company’s solutions to protect themselves against identity fraudsters.
How serious is identity theft problem?
According the U.K.’s fraud prevention service provider Cifas, identity theft is on the rise in the country. What is happening in the U.K. is that fraudsters are mining social media data to impersonate individuals. Once they have obtained a target’s data on Facebook, for instance, they can turn to the banks and apply for a loan in the name of the victim and the victim will be left to shoulder the credit burden. In some other cases the fraudsters use the stolen personal data to obtain items on credit and leave the victim to foot the bills.
Cifas reported that victims of identity theft in the U.K. rose 57% in 2015 to 148,000 from the previous year. The firm also revealed that as banks have improved their systems to guard against fraud launched using fake personal data, fraudsters are now using genuine personal information, thus posing a fresh challenge to financial institutions and consumers.
The rise in cases of identity theft has created an opportunity for NXT-ID Inc. (NASDAQ: NXTD) to sell its biometric identification products to financial institutions.
Besides banks, NXTD also has solutions that could help airports enhance their security in the face of growing terror threat. The recent attack at the Istanbul airport turned the spotlight to security application vendors such as NXTD as they could help airports become more secure.
Strategic acquisition – NXT-ID Inc. (NASDAQ: NXTD)
NXT-ID Inc. (NASDAQ: NXTD) earlier this year announced that it was acquiring LogicMark for about $20 million in cash to boost its portfolio of biometric products. LogicMark generated revenue of more than $11 million in 2015.