Assignment 24A Venture Concept 1

Opportunity:

• Every day, card payment users are prone to credit card fraud through skimming due to the easy availability to skimming devices, which grants easier opportunities for skimmers to steal credit card information through card readers. Skimming is a type of credit card theft where a small device is placed in card readers to detect and steal credit card information from the swipe of the magnetic strip. The unmet need is the prevention of skimming, so that card users can freely swipe their card into card readers anywhere, without having to face fraud or having the worry of facing fraud. The potential customers that have the need, are any card users, whether it is debit or credit, because they are the ones that skimmers target and are more prone to facing credit card fraud. The main issue with credit card fraud through skimming, is that as technological advances are arising, it has become more efficient to get away with credit card fraud without the card user knowing. Therefore, the forces that create this opportunity, include the technological advances that have lead to skimming devices that can efficiently hack into card readers. According to Shift, "the United States leads as the most credit fraud prone country with 38.6% of reported card fraud losses in 2018." In which, "Florida had the highest per capita rate of reported fraud, followed by Georgia and Michigan." Though, there is no current satisfactory solution to this need, as many people are still facing credit card fraud today through skimming. However, based on my interviews, many have tried to avoid skimming by using cash payments, being aware of where they use their card, and having EMV chip cards. Although these alternatives can help with the prevention of skimming, the risk of facing the fraud is still inevitable as people are still getting their cards stolen. Thus, this is a fairly big and serious opportunity that is common worldwide, and the window of opportunity is open until an actual solution that meets the needs is found.

Innovation:

• The product that I will be selling that may be applied to the marketplace to address these customers' needs is a technological advanced credit card case that will allow card users to detect skimmers before the skimmers are able to steal their information. The product is a thin, clear case for your card with built in technology that will be able to detect if a card reader is clear of skimmers. The case replicates a credit card with a magnetic strip that is used for detection. With the case on the card, the card users can swipe their card into the reader, and if a green light appears, it indicates that the machine is clear of a skimmer. Though, if a red light appears, it will indicate that there is a skimmer on the machine and that the user should not swipe their actual card into that reader. Once the user has checked if their machine is clear, they can take the card out of the case and swipe it into the reader without any concerns. I will be selling my product with high built-in technology for $150.

Venture Concept:

• Card users will be interested in buying my product due to the countless times and incidents regarding credit card fraud. They are currently seeking solutions towards avoiding this issue, and there has yet to be a satisfactory solution. One thing that all of the incidents regarding credit card fraud through skimming have in common is that the victims of fraud were unaware of when it had happened. That is what makes skimming so successful, the fact that skimmers are able to steal credit card information from consumers through card readers without them even knowing. Therefore, with this common problem of not exactly knowing of whether they are facing credit card fraud or not, consumers will seek my solution of preventing the fraud before the damage can be done. My product would appeal to consumers, as they will be able to become aware of the issue before the issue of skimmers can negatively affect them. There may be hesitations at first when purchasing the product, but I think that the pros will outweigh the cons. There is not really any competitors, other than EMV chips, which people have turned to for more security of their cards. Though, although EMV chips have led to more security on cards, they are still vulnerable to credit card fraud through skimming, as skimmers have also found a way to hack card inserters. I think price points plays an important role, as it is important to make sure that the price is reasonable. You don't want the price to be too expensive, but you don't want it too cheap where consumers will be skeptical of the quality of your product. As for distribution, I would first distribute it in banks to get the name out there. As these consumers are concerned for their checking accounts, claiming frauds, making deposits, I can raise their awareness of my product which will hopefully catch their eye. I find that being in that setting will persuade them even more. Packaging wise, I think the simpler the more effective. Though, the packaging should be enough to communicate itself how the product works, so that when consumers get their hands on the product they will be drawn to it. Lastly, I would need to hire engineers to build the product, technological experts who would be behind the science and technology of the product and test the product, marketers, and distributers. 

Unfair Advantage:

• From my VRIN analysis, I would say my top resource is my Finance Background/Experience. It's always a plus when you go into starting a business with some background and experience regarding your business's field and market. Having this demonstrates your credibility for the business, and your experience can give you a better understanding of your consumer market.

What's Next:

• I want to prevent credit card fraud through skimming with my current product, and take away the worry of getting your card information stolen. I could also expand upon preventing  credit card fraud not only through skimming, but through other ways such as online payment methods.

For Me:

• I want to continue tackling economic issues. In five years, I see Swiped having been launched and me generating new ideas for my next innovation to build upon this product. In the next decade, I see myself steadily managing Swiped. If I do end up coming up with a good new innovation, then I will want to launch it in the next decade to help build up a positive reputation towards solving these issues.