REBATE DATA CENTER

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REBATE DATA CENTER
RDC
Presented by Tom Brady U.S. Postal Inspection
Service Shirley Ray Lees Marketing Services
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In The Beginning

• 1993 A working relationship was formed
• Postal Inspection Service
• Manufacturers and Fulfillment Businesses from the
  Industry.
• Estimated Fraud Losses
• We estimate that there are 200,000 active
  violators preying on the promotion industry.
• Recent trade publications state losses attributed
  to rebate fraud may exceed 500 million dollars
  per year.

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Evolution

• The Working Relationship evolved into the Joint
  Industry Rebate Fraud Task Force.
• Accomplishments Include
• Identification of Internal controls to safeguard
  mail-in offers
• Standardization of mail-in offer forms
• Recommended content and design
• Published Industry-Wide guideline booklet
• Promotion Industry Guidelines For Mail-In Offers

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Evolution(Contd)

• Accomplishments Include
• A central file database created
• Criteria established
• Rebate Data Center (RDC) created
• A membership organization
• PMA hired for administrative support
• More structure established
• Board of Directors
• Co-Chairs
• Committee Chairs and Members

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Inspection Service Resultsto date

• 1993 to Present
• PS Form 514s (Address Inquiries) 106,465
• Voluntary Discontinuance Letters Sent 7,937
• Voluntary Discontinuance Letters Signed 3,955
• of Voluntary Discontinuance Letters Signed
  50
• Division Referrals 233

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The FutureInternet Fraud and the Inspection
Service

• Computer Intrusion Investigation
• Western Allegheny Division Pittsburgh Field
  Office May 2001
• Orchestrated by individual in Eastern Europe
• 110,000 worth of fraudulently obtained computer
  equipment
• Loss of 2.5 million by computer wholesaler

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RDC Purpose

• Educate on Prevention Techniques
• Provide Industry support to Law Enforcement
• Provide a controlled risk environment for our
  businesses

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RDC Goal Achieved

• The RDC evolved from a task force under the
  leadership of the U.S. Postal Inspection Service
  to a non-profit industry association, directed by
  a fee paying membership comprised of
  manufacturers and fulfillment businesses.

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RDC Goal AchievedStructure

• Co-Chairs
• Board of Directors
• Committees
• Data
• Education
• Law Enforcement
• Membership
• Conference
• Transition

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Goal AchievedCentral File

• The RDC board hired a third party to maintain a
  central file which members and non-members can
  forward suspect data to.
• Members of RDC receive a download providing them
  with information.

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Central File Contains

• Fraud suspects which have met specific criteria
• 1,000,000 Records
• Constantly being reviewed for accuracy
• Delete and update capabilities

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Central File

• Managed by a third party
• Hired by the RDC Board of Directors
• Overseen by the RDC Data Committee

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Goal Achieved

• Provide Law Enforcement Quality Data to determine
  actions required
• Information gathering
• Voluntary discontinuance letter(s)
• Investigation

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Current Initiatives

• Integrate with Confidence in the Mail Task Force
  pending FTC approval letter
• Provide support to the USPIS in combating
  Internet Fraud and other types of Fraud in the
  Promotion and Mailing Industry.
• Web Interface
• Website
• Central File

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Current Initiatives (Contd)

• Maintain data standards, data dictionary for the
  central file
• Standardize communication between members and the
  Industry

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Looking Forward

• First Annual Conference in New Orleans, LA
  October 18th 19th
• RDC
• Confidence in the Mails
• US Postal Inspection Service

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Fall Conference

• The US Postal Inspection Service along with the
  Rebate Data Center and the Confidence in the
  Mails Task Force invite you to their 1st Annual
  Conference.

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Fall Conference

• Where
• When
• Starts
• Ends
• Hotel
• Tel
• Fax
• Registration Fees

• New Orleans, LA
• Oct. 18 and 19, 2001
• Oct. 18th at 1pm
• Oct 19th at 4pm
• Sheraton New Orleans
• 500 Canal Street
• New Orleans, LA 70130
• [phone]
• [phone]
• 375 - Non-Member Companies

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Fall Conference

• Program Oct. 18th Educational
• Programs to choose from
• Internet Fraud Modeling Techniques
• Presented by Scott Bugan, Spiegal,
• Confidence in the Mails Leadership Council
• Refund Programs The Development through
  Execution Phase
• Presented by Sandi Kleemann, Lees Marketing Svcs.
  RDC Education Chair
• Program Oct. 19th Due to be Published Next
  Week.

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And The Future

• Future of this initiative
• Rebate and Mail Order Groups Combining
• Combined leadership
• Common Elements of Central File Database
• Stronger Committees
• Working relationship between the Industry and the
  U.S. Postal Inspection Service will continue

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Thank You.