Good morning, Tribe. Thanks for joining us here today, and I'm excited to see many new faces, in a sense, that have joined and registered for a topic that we haven't touched here on the Tribe, or over the last couple of years, as we were doing the lunches across the U.S., now with this format on Zoom, it's allowing us to expand our borders. We're now into 20 countries that are registering in for the Zoom events, and of course, all of you that have been loyal and come and invested alongside of us and invested your time to learn more about the topics that we all care about.
Reminder for the people that are new. You can go to TribePublic.com, TribePublic.com, 24/7, 365, and express your interest in seeing companies that are on the platform, as well as any companies that are not, that are primarily focused on NYSE and NASDAQ companies. But as you know, we've had Nobel Prize winners in medicine on here. We're really open. The idea is to get the leaders of companies and sectors and areas that you care about, not just who I care about as an investor, and to learn from that and share the thought process. So feel free to contact me anytime, share notes. I'm investing every day, and I'm learning every day. So I believe in why I named it the Tribe is to bring people together, and that if we all come together, we can learn and be better investors, better people.
And I look forward to continue that as we move forward. Today we have Intellicheck's CEO and CFO, as you see pictured here, Bryan Lewis, the CEO, and Bill White, the CFO, both experienced gentlemen in their fields. And I'm going to invite them to first introduce themselves and their company, and then we'll go into a quick 15-minute, 20-minute format. Remember, you can send me your questions if you already haven't through the Zoom chat feature. And I have some of yours on email, so thank you ahead of time. And we'll try to get everybody out of here in about 30 minutes, and we'll go about our day. Thanks again. And Bryan, would you start by introducing yourself?
Sure. I took over as CEO, it'll be three years next February, so it's been quite a change and transformation for the company since I got here. Prior to that, I have been somebody who kind of goes to companies that need maybe some fixing, good products, good things. Just prior to this, I was the COO of an expert network. When I joined, they were doing $9 million in revenue after being around for seven, eight years, not making money. Four years later, we were doing $90 million profitable, and we sold most of the company to a French PE firm, and that's sort of what I've done, and one of the reasons that I was really interested in coming here, same thing, great product, just needs some focus. And Bill?
Yeah, I've been with the company going on nine years now. Prior to Intellicheck, excuse me, I owned my own physical security business operating in 22 states, camera systems, alarm systems, and other physical security systems. Grew that business from zero to $35 million in revenue within five years, sold the company, joined Intellicheck. I'm a Certified Fraud Examiner as well as a CPA, and I love catching bad guys and stopping bad guys, and that's exactly what we do. So very excited to have Bryan on board.
Thank you, Bill. Thanks for the introduction. Maybe Bryan, if you could go ahead and share your PowerPoint, and we'll get to that. Maybe you could, part of that, I'm sure you're going to introduce your field because we'd really like to understand better about why Intellicheck exists. I know it affects all of us, if we like it or not, the solutions that you provide. Please proceed.
Sure. Can you guys see the screen?
Yes.
Yep. Cool. Okay. So just so everybody knows, this is on our website in the investor relations portion of the website, and also the forward-looking statement, just so we get that out of the way, but who we are at a glance, we are an identity-as-a-service company. We are authenticating IDs and people to do two things. One, to stop identity theft, and then a minor portion of our business, we work very closely with law enforcement and people who sell age-restricted products to make sure that they are selling to whom they should sell to. Our primary focus is stopping identity theft in the financial services space, particularly retail markets. We focused on that because we thought that would be the fastest path to revenue growth and profitability, and certainly, that turned out to be the truth.
The main thing that we're doing is making sure that somebody is who they say they are when they want to register for something, particularly financial services, loans, buying cars, all sorts of things like that. The problem is so much of the data to steal your identity is out there easily for sale on the dark web. It all started with the Equifax breach where 145 million of us had our data leaked out there. And every year, we set new records for the amount and type of data that is breached. So all that information, really cheap. If you think about when you go in to get credit or you're doing anything, they usually ask you for a couple of things. One is your Social Security number, and the other is some form of ID. Now, your Social Security number on the web costs about $1.
Your driver's license information is $20. Your credit report, depending on the quality of your credit, anywhere from $80-$150. The most expensive thing to buy, usually about $100-$150, is a fake ID. These are stacks of them that we get from law enforcement. And that's what they use to go shopping as you. And we'll talk about how we stop that. So just by way of background, the company's been around for about 25 years authenticating IDs. We started off doing it for military bases and secure government facilities. They figured out that the best way to make sure that you are who you say you are is if your military or government-issued ID was real. So what happened is they gave us basically all their secret sauce, right?
The security encoded in a barcode, and that's how we knew you could get on that base. Now, that led to what's been a 21-year relationship now with AAMVA, which is the American Association of Motor Vehicle Administrators, and that is the sort of umbrella organization for all DMVs in Canada, the U.S., and Mexico, and for 21 years, we've been the Courtesy Verification Program, which means we provide the DMVs with barcode testing prior to and post-release of new driver's license formats, so the last one I remembered happening was Colorado, so when they change their format, what they do is they send us, "Here's our barcode format. Here's all the security features hidden in that barcode. Check some formulas," things like that, and they give us a couple hundred blank printed driver's licenses.
We give them back a report card on how well they have programmed their machines to print the barcode. And that's what gives us the unique insight into proving that the license is real, and therefore, so are you. Now, we do more than just the back of the license, the barcode. We also do optical character recognition and facial recognition. And that's important in a person-not-present authentication where I might be doing something online or calling into a call center. So we can make sure that the back of the license, we've authenticated the barcode. What's printed on the front through optical character recognition matches what's encoded in the back. And then we have the user take a selfie where it's just a video burst. So we can then give two other factors back. One, that the face matches what's on the license. And two, that it's live.
We see movement. We know that it wasn't just a photo of a photo. So typically, when you go into a store, two ways that we do this, again, on-prem. If you go into a store and they say, "Typically, if you want to open up a charge account today and save 10% on your purchase," what they do is they ask for your driver's license. They use the same gun that they use to scan the merchandise, to ring it up, to scan the back of your barcode. It's sent to us. We authenticate it. We parse the data and prefill the application. And all the user has to do is usually put in their Social Security number and income. Off that goes for decisioning for credit. Generally, it's less than 30 seconds from the time they take your license to the time the credit is issued.
So the retailers love it because it's a much simpler, faster way to get more credit card holders because they tell us that they shop anywhere between four and 10 times more often when they have a card than when they don't. So they like it. And now, also, the bank knows that with greater than 99% certainty, they've stopped identity theft from happening and taking on those losses. To put the losses in scale, last year, there were 14.3 million Americans had their identity stolen, $16.9 billion in losses. That was up $2.2 billion from the year before. Banks, additionally, through synthetic identity fraud, where people are conjured up out of thin air, need an additional $8 billion in losses. So it is a pretty large amount that we are helping our clients save.
Again, for the person-not-present journey, and I say that everybody always wants to talk about online. But if you think about it, a lot of this happens over the telephone. The way that people steal your account often at a bank is just by calling up the call center and having enough information about you to convince them that you are the person whose identity they're stealing, change the address, change other things. And before you know it, somebody has control of your bank account. So same thing. If it's online, the user enters in their cell phone. A text is sent to the cell phone. If you call into a call center, the call center employee asks for your cell phone number. The text is sent, and they can decide, again, do they want front, front and back, or front and back and facial. Their determination.
We do work on multiple platforms. Again, point of sale, e-commerce online. We've got people that use us in kiosks for things like underage alcohol sales. We are in about 4,000 bank locations, so the teller, they need to authenticate you. The same device that if you hand them a check and they put it through the machine that reads it, can also read the barcode. You can do it on your home personal computer, and also, we work on mobile devices, so any way that somebody is going to interact, we've got a solution that will allow authentication. The main use cases that I've been driving most of the revenue have been certainly credit card applications, so in-store, online, or in a call center. We've got clients who do a lot of TV advertising for credit cards. If you want it in your wallet, you call them up.
They'll authenticate you. And again, in-store, they use that same scanning gun. Another big way that people will steal from you is they know where you have credit. And they just say, "Hey, I forgot my credit card." And they do an account lookup. And again, I do it all the time at Nordstrom. And the one thing they ask for is six digits of my Social Security number and my driver's license. Non-receipted returns, big organized crime rings usually do this. About $9 billion in losses to the retailers when they authenticate the person for a non-receipted return. Generally, their crime numbers drop drastically. And then again, in retail bank branches, this account takeover where people are taking over investment accounts and banking accounts was one of the fastest-growing parts of fraud last year, up 74% from the year before.
Criminals are realizing it's a big way to get larger amounts of money easier. The ROI for the banks and the issuers and the retailers, really big. Again, we're very quick, less than 30 seconds on average for the whole crediting decision to be made. Very simple. We speed it up. We pre-populate. No errors are made in data entry. And then the one thing that's really important to point out is no new hardware is required. Given the way that we authenticate, we are unlike anybody else in the market. People will often consider us as having competitors named Jumio, Acuant, and Mitek. Now, the difference is those guys base their authentication on what we call templating.
They think that from a photo of the front of the license, knowing where the microprinting is, the holograms, where the photo is supposed to be, they can tell if the license is real or not. I will tell you that most of these fakes come from China, and they have the states' licenses down pat. Usually, within 30 days of a new license being issued, it is for sale on the dark web. Our law enforcement clients tell us that they can't tell that they're fake with the naked eye. That's why 54 law enforcement agencies, 21 at the state level, use us to authenticate driver's licenses. Now, if you think about it, if one of our clients decided they wanted to go to one of those competitors and do front-of-license, that scanner to take a photo costs between $300 and $400.
And let's just use a store like Kohl's as an example. 1,140 stores, on average, 25 point-of-sale systems in each store. Multiply that by $300 for each one of the scanners, and you're close to a $10 million investment. No way they're going to do that. Doesn't make sense for them. We work with that scanning device that already exists there. We're extremely frictionless. Hardly anything that the user has to do to be authenticated. And our clients tell us that the fraud is nearly eliminated. And I'll point to box one here to say how good we are. Before the New York State DMV gave our product to their sworn law enforcement officers, they didn't tell us this. They told CBS News up in Albany. They ran over 1,000 fakes against the system, and we caught every single one of them. So we say we're 99% effective.
Obviously, that day, we were batting 1,000. So between the fact that we are so much more accurate than any of our competitors and no new hardware, anytime we go head-to-head, we win. All right, so again, a lot of changes happened between when I started and today. A couple of main things that we did is I put a lot of focus on who we were selling to, how we were selling, what we were doing. The company had been focusing on the retailers. Retailers don't really care, so we decided we're going to start selling to the banks, and the banks are the ones who have sort of the carrots and the sticks to get the retailers to do the minor amount of programming it takes for their system, their point-of-sale system to read the barcode.
Again, given how much the banks lose on this fraud, we've been involved in sales with the banks when they're trying to steal large retailers from their competitors, and we come in to show them how easy it is to do the programming because the bank offers better rates on the card program as the fraud goes down, so they're using us as a sales pitch to get more clients. Again, we changed how we price. We were on a very, very low per-store model. Made no sense to me. Every single time we scan, there's a chance for you to get ripped off, so I wanted to get paid for each of it, so we went to a per-scan with minimums, so the bank is going to pay us a large amount, generally, minimum per month, and then they can bring in scans after that.
That also leads to very high gross margins. We've always signaled to people that we expect for our core product to be around 85%. Sometimes it's above or below that, depending on if we bought hardware for clients as a courtesy. But around 85% is where we see the margins on this business. And the other thing that we did was I put in together a professional services implementation team to help our clients. Prior to that, we really didn't have it. Half was in sales, half was in IT. They kept pointing at each other and saying, "It's your fault. Nothing's happening." I put it all under Bill. The first year I was here, I think we did about three implementations. The year that we had Bill running this, we did 36.
That's really I got everybody to understand that the cash register doesn't ring unless people are scanning. So we could sell all we want. You don't get it implemented. Nothing's going to happen. The other thing I liked about the per-scan model is it allowed us to really take advantage of the seasonality to the shopping cycle. So we looked at our clients who've been around for a while, fully implemented for over a year. And generally, 21% of the scans come in in Q1, 23% in Q2 and Q3, and 33% come in in Q4. So this per-scan model allows us to get paid the more that we are authenticating and stopping fraud at our clients. So a couple of things, just a quick talk about, and then we can move to questions if you want.
Obviously, you can see that pre-COVID, we were certainly marching along the right way. You can see the seasonality there. Q4, obviously, of 2019, an excellent year for us. Q1 was down, but that's expected to be with the seasonality, but it wasn't down as much as it. We grew. We were adding clients during all of that. We even signed clients and added people during COVID. But obviously, with retail, for the most part, shut down in Q2, we were relying on the minimums and the fact that many of our clients were also considered essential services. So electronics, office supply, and then stores that sell everything from tires to groceries for some of our clients, so they remained open. But you can obviously see in Q3 when things were opening back up, how quickly the revenue comes in when people begin to scan.
Just a quick thing on some Q3 wins that I'm kind of proud of. We brought on board a 3,700-location beauty supply retailer. They're doing both account openings and account lookups. Women's clothing and intimate apparel company went live with their remaining 350 stores, very high-scan client. They got a gourmet kitchen retailer that was in pilot. They went out of pilot, and now they are rolling it out to all their locations. Our financial service company number four added new challenge use cases for person-not-present transactions. So they're going to be scanning a lot more. They're going to make almost everybody who's calling into the call center prove that it's really them before they allow them to learn anything about the bank account. We had two Midwest sort of headquartered super regional banks rolled out to their combined about 2,200 branches.
We signed a credit union in Baltimore, and we also signed one of the largest U.S. humanitarian aid organizations. They've got some special funds that can go for military service personnel in disasters. They found that a lot of people were pretending to be those people. Now they're authenticating them when they apply for any of that aid. And then just finally, sort of ID Check authentication by the numbers. We're used currently by five of the top 10 lenders and credit card issuers. We're in over 30,000 retail locations, over 3,000 bank branches. 54 law enforcement agencies use us. We're in multiple bank call centers and growing. And certainly, a lot of people realized that they hadn't been that worried about their online channels for fraud. They realized that they needed to do that because the crooks needed to make a living during COVID when it was shut down.
They focused a lot of their efforts for online. We now are in about 15 different retailers and growing. If you apply for credit on their website, it directs you to our technology for authentication. So I guess why Intellicheck? We're, again, 99% plus effective in proving that a license is real or not. We are instant. We are fully automated. A lot of our competitors will say things like human-assisted AI. If the computer can't look at the front of the license and figure out if it's real or not, they ship it off to, say, Thailand, where they've got call center people who will look at it. That adds a lot of time to the decision. Doesn't work in that retail environment where there's so many scans happen. Again, no new hardware required.
We are ubiquitous coverage in terms of what's the delivery point, point of sale, every mobile device, computers, whatever it is. And we stop a fraudulent transaction approximately every 90 seconds. So it shows you how often it happens. And with that, you can turn it over to any questions you might have, John.
Sure. Bill, do you want to speak to the financial highlights that are showing there quickly?
Yeah. I think, just the thing that we want to draw attention to is that we crossed into EBITDA positive territory again in Q3 and also net income. We had a net income and positive EBITDA in Q3. That's really the primary highlight, John. Thank you.
Yeah. It's great to see the crossover there. Thanks for the presentation, by the way. Very interesting. It's so much scary what we're dealing with out there today, and it's great to see that the solutions are coming on board to fight this and help organizations do that and keep us, in a sense, safe from that standpoint as we just continue to purchase online, etc., and it just, yes, it just accelerates. It's amazing to see this whole evolution over the last, whatever, 20-plus years. It's just amazing when you look back at this arc. A couple of questions here coming from that just came in. I'll just not in certain order, but let's just go down this one. It says, "DMV provides IDN with sample driver's license, which is how you obtain the barcode information. How many other companies have access to sample identification cards?"
We are the only courtesy verification provider for AAMVA and all the DMVs. They don't provide that information out. I think we got, in a way, lucky. A company had major security clearances working with the military, and I think that's what got the DMVs comfortable with working with us. They kind of felt if the military is willing to give us the formats of those military IDs and we were holding them secure, they felt the same way about their driver's licenses. So it's not something that they share.
Got it. Okay. Thank you. The next question is, "If the criminals know that stores are checking the barcode on driver's license, can't they fake the barcode as well? And if so, are you seeing more of such cases? How do you?"
No. Occasionally, we'll see somebody will come through, and we might get hit a little bit with a certain state, and then it goes away. Most of the time, because we're working with the DMVs and law enforcement, oftentimes it turns out that it's somebody at the DMV working with the criminals putting out a real license. There is a lot of hidden security features in the license. Now, what the bad guys do is microprinting format. They have a microprinting standard. No state follows that standard. But that standard will scan. And that's what the bad guys are all doing, right?
So to show you just how, right, this is, right, you can see that's an FDA app. The federal government decided they were going to try and stop people from getting vaping products and all that. So they take this fake, and they think it's real, right? That kind of shows you the difference between scanning and authenticating, right?
What the bad guys do is they create things that scan. I'm just going to run it on our app. Okay. That fast, it comes back and tells me this is a fake license because we know every single little detail about the barcode for, in this case, Maryland that was in the format that on the date it was issued. There are about 250 valid formats just for the states alone. It doesn't include Canada, Mexico, or all the territories. Some of the states have things like the third letter N converts to a number. That number times another letter converted to a number equals something else hidden in the barcode. Those are the things that they can't copy.
Got it. Thank you. Next question is, "In the 2019 Q4 earnings call, you mentioned pricing increase at contract renewal. How much would sales increase if all contracts were revised to the current pricing model?" Do you remember that call?
Yeah. Yeah. So one of the things we were talking about was we took financial services company number two. They had been one of our longest-standing customers. A broken relationship. They had ridiculously low pricing. For them, we told them we were not going to renew the contract at the rates. We were dealing only with procurement. Procurement said, "Fine, we'll go RFP." We said, "Go ahead. It's just not worth it at these levels." They started the RFP process. The fraud department found out about it, canceled the RFP, and said, "Renegotiate the contract." And we put them on the per-scan with minimums model. The first full quarter that they were on that model, their revenues, the fees they paid us went up 75%.
Now, we don't have anything coming due renewals coming up this year. We do have a few of the big clients coming up in 2022. But I think that gives you an order of magnitude of where we were and where we could be. And we certainly are standing a lot firmer on pricing because we know what we're saving. We've asked our clients. So your sort of average run-of-the-mill department store, it's about $2,100 that they lose every time they're hit, going all the way up to almost $3,000 on average at jewelers. Furniture stores, slightly lower. But it's a significant amount of money. And on average, across all retailers, 0.63% of the time, it's a fake license.
But we see at some of our automotive dealerships, the organized crime rings come in and try and hit them, and they'll have up to 15% of the licenses they scan in a month be fake IDs. So it's a large and growing problem that's not going away.
Got it. Thank you. Next question is, "In a previous earnings call, you noted a competitor having only 16% accuracy out of BarZ . What is the accuracy rate of competitors today?"
Yeah. That particular one was the city of Oxford, Mississippi required that bars use a device, somebody like us, to authenticate people, kids before they got into bars. Oxford, Mississippi police use us. They went around and checked on others. I can't remember the name of that one, but obviously, it didn't work.
I would say that the likes of Jumio, Mitek, Acuant are much better than that, but not good enough. Our clients tell us when they do the scan-offs. And then also financial services company number four was using one of the three of those in their call centers before they used us. They told us that that particular competitor was 65% accurate, and we hear ranges between 65%-80% at catching fakes. So if you think about it, if you're missing 20%-35% of it, your losses are still rather tremendous. And once they go in and they run a bunch of fakes against our system and all the other systems, again, we rarely have lost anything. Since I've been here, we haven't lost anything head-to-head.
It's not a bad position to be in.
Yeah. I kind of like it.
Yeah. I mean, what comes to mind to me, this is a question for me after that statement is, if that's the case, what is in your way of winning future business? If you've got that sort of advantage in the marketplace, what challenges do you see running this company? It seems to me it's you just need to be at the table. How do you?
Yeah. Basically, it's awareness and getting out there, which is one of the reasons on the last earnings call, we talked about the fact I'm going to be expanding the sales force and also spending more money on marketing, branding, awareness campaigns. Part of what we were doing, we were sending such mixed messages. And when I first came on, we had all these separate products, which didn't really make sense. And I think it made it hard for people to understand what we do.
Retail ID, Age ID, Law ID. The core product is called ID Check. So we're rebranding everything as the ID Check authentication engine. And you decide how much horsepower you need. Do you want just the back of the license? Do you want mobile device fingerprinting? All these things that we can offer through stuff we build ourselves or through partnerships. Making sure people understand that we're a true multi-point solution to authentication is going to be important to me because certainly, I'm old enough to know the difference between VHS and Betamax, and Betamax was a lot better, but Sony won the marketing game. And I want to make sure that we don't get outmarketed. And we've got the product. Now we're just going to make sure people know about us.
Makes sense. Especially in this environment, like we were talking before the call about adopting and staying virtual coming out of this. When it comes to salespeople, where do you find them? What do they look like? How do you go about that? And what's your number?
Yeah. So we recently changed out and changed up the management of the sales team. And I brought somebody in who's actually a very experienced not only salesperson because he's run companies and sales teams in the headhunting space. So he's an executive recruiter. So the one thing I do know from starting off my career in sales is that salespeople are really good at selling themselves. And you got to get through the pass of can they sell just themselves or also the product? So having somebody who's got that skill set was important to me.
So I told him that I basically want him just continually adding salespeople at the pace with which we can make sure that they're getting trained properly. So we've begun that process now. Obviously, most sales guys who are good and working are going to be waiting for their Q4 commissions, but we intend to add in very short order.
Okay. Thank you. Here's a question. "Have you quantified the impact of COVID on revenue, bookings, implementations? Is Q3 back to normal, or is it still a depressed number?"
Yeah. What I'd say is certainly there are, I guess, a couple of things. So what we told people in Q2, basically, we were at more or less the minimums or just barely above the minimums with everything that was closed. I'd say that Q3, things were not completely open. There were certainly many states where there were restrictions in place and restrictions on the number of people that could be in a store at any one time, that kind of thing. I also think that there is a portion of the population that is still afraid to go anywhere until a vaccine is proven and is out. So I don't think the world is back to the levels that we certainly were last year at this time. But hopefully, with these vaccines that look very promising, we get there very soon.
Okay. Here's a question that's interesting. I think it's related to sort of one of the reactions I had when researching your company. I've been looking at your company, I think, as a year, year and a half ago that someone brought one of the tribe members actually brought it to my attention. It's on today. The question is, one is that who are you dealing with, right? There seems like a lot of companies, a lot of beyond DMV that are nameless, probably for a reason.
A lot of times, the big companies don't want to advertise that they're working with you. And the question here is, how can consumers and businesses learn with which businesses that use Intellicheck ID so they can choose to do business with those companies? Is there a way that people can identify that? Should they? What do you think? How would you react to that?
Yeah. It's kind of hard. I will say that the analyst that covers this, Mike Grondahl at Northland, I can neither confirm nor deny his detective work, but he's got some research out there where he's actually found some of our clients through that.
So he's published how you can go to the Dillard's website and how it brings you to Wells Fargo and then to us. So because he put that in the public, I can say that. But we're in a lot of the big box stores. As I said, we're in five of the top 10 financial institutions. But it is hard to tell, right? Because you go to some of these stores, both Bill and I have been in multiple Walgreens, for example, and we point out every single time that when they're scanning, they're not authenticating. So when you buy an age-restricted product, they want to see your license. It scans it. We've given them dozens and dozens of fakes, and they think they're doing something, though they don't. So it's kind of hard to tell because oftentimes, even the sales clerks don't know.
But we keep trying to get somebody to come out and say, "Hey, we're doing this for your good," but financial institutions don't want to admit they have a fraud problem.
Yeah. Related to that, you mentioned one analyst. Who else covers you? And related to that, what comps are they showing to you in the marketplace?
So we're covered by B. Riley, H.C. Wainwright, and Northland. And are you saying comps of meaning competitors? Yeah. Yeah. Yeah. Usually, they will talk about the Mitek, the Jumio, the Acuant in discussion. Jumio and Acuant are PE owned. Mitek, the only one that's publicly traded. Okay.
Thank you. And can you offer what price range that these targets that the analysts, the three analysts that are covering you, do you know what the range are on top of them?
B. Riley just upped it to $13 with a buy. I think Northland, Mike's still at $10, isn't he? But Bill, do you recall?
Consensus is $11.33.
Yeah.
Consensus is $11.33.
But I think Wainwright and Riley are at $13.
Hopefully, the analysts will catch up to what I'm seeing here,
Yeah.
but they might be a little shy right now. So hopefully, that's the case for any shareholders. But quick question. Here's another. Is the amount earned around $0.20 per scan other than the base revenue, or how would you?
We haven't given out the cost per scan because obviously, we continue to look to raise it. But what I also say is we do things where it makes the most sense. For example, at an auto dealership, it doesn't make sense for us to be on a per-scan model. They don't do enough scans.
But even if they get the car back, it's now a used car, so they've lost at least 50% of the value. So high numbers there. So we charge a rather high per-location fee in that regard. So for the most part, our clients are on the per-scan. Anybody's going to be doing high volumes. So like a bank, because what we do for them is it's in tiers. So you're going to pay us the minimum. That'll get you N number of scans. Your next million are going to be X, the next million Y, the next million Z in a month. The point of that being, the more of their retailers and internal use cases that they get on the system, their marginal cost of reducing fraud goes down, the more fraud they stop.
So when we're working with them, I don't care whether it comes from retailer A, retailer B, teller, workstation, call center, auto finance group. I just want to see all the scans we can.
Got it. Thank you. And then the follow-up question is, I guess, as more and more consumers are using mobile phone biometrics to authenticate their purchase for online and offline shopping, how will it affect Intellicheck's future?
I think two things on that. One is enrollment, right? Are you really who you say you are? Okay? We look at the first step has to be something. Are you comparing to something that will prove with certainty it's you? After that, you can use biometrics and other things like that. Now, currently, the problem with any of the fingerprint or your face on the phone, all it does is unlock the phone.
It doesn't say that it was me who did it. And there is a certain amount of fraud that happens through family fraud where I'm stealing from somebody else in my family and using their phone or their credit card or their driver's license. So those are good at unlocking, but they aren't secure enough because you can have multiple people have access and a thumbprint on a phone. It won't say right now that it was me or you or Bill who unlocked the phone. It just sends a token that says the phone was unlocked. So our clients don't find it secure enough that they would use it for those types of things.
Got it. Okay. Thank you. And then the last one is, what is the company's growth rate, and what are some of the growth drivers here that you can highlight?
Look, I just wanted the sales guys selling as much as possible, and we put some pretty high targets in front of them, but I look at a couple, in a way, three major growth drivers that we're looking at. We went and looked at all of our retailers and all of our banks and put it in a spreadsheet with all the possible use cases that every one of those clients could be in, and we have so much that we could be selling into our existing client base. I'd say that for any one of the banks, we're just scratching the surface of their retailers that we could be doing their card programs. Many of our retailers, when we first started off, we were only doing account opening.
But what we do know from the numbers is that account lookup scans are about four times higher than new account opening. So if I just took all of the retailers that were only doing account opening, I could 4x the current revenue out of them just by getting them to use the new use case. And again, same thing with the banks. I'm not in every call center. I'm not in every teller workstation yet. So there's plenty there. Then there's still 10 banks, and then Amex and Discover, they issue the vast majority of the credit cards in the United States. We only have five of them, right? So I've got seven more of those to go. And then I look at the amount in areas where people need to authenticate continues to grow. We're getting increased now from things like testing centers.
It used to be you're going to go take your GMAT or go take your Series 7. You went to one of these testing centers. So much of that's being done remote now. They need to authenticate me to make sure that I didn't hire a lawyer to take my LSAT. So it's almost like every time we turn around, we're seeing where's a new marketplace to sell into. I never would have thought that humanitarian aid organizations would need to authenticate people, but they got big budgets, and they give out a ton of money. And anywhere that's happening, we know that the bad guys find a way to steal it. And I just think that the authentication pie just continues to grow.
Follow-up to that, one of the questions is, how are you prioritizing trying to win the remaining top 10 entries versus further monetizing existing customers?
That's part of why I'm expanding the sales team. I'd say that we're good. I've got really good hunters. And again, from my experience, hunters and gatherers are different types of people. So the ones that are really liked to figure out an account plan and go in, oftentimes, that's a level of detail that cold calling, pure thrill of the kill salespeople don't like to do. So we're going to be hiring in that skill set to make sure that we're doing it right, working as teams so that there's always continuity throughout the sales process and while they're customers. But it's going to be expanding the team to be able to make sure that we properly do that.
Okay. Last questions are sort of related. One is, can you speak to the patent portfolio that you have? And then on top of that, is there an argument for an acquisition strategy of any kind here for you at this stage?
Yeah. I guess two things. We think we've got a fairly strong patent portfolio on the processing comparison, document comparison, the things that, particularly in a person-not-present environment, using technology to authenticate. We think that's pretty strong. So obviously, we need to make sure that people understand what we have so that we get the people understand the value of what we own. So it's one of the things Bill and I are talking about and working on. In terms of acquisitions, I think that certainly in this world, I think there is going to be roll-up activity going on.
When I first thought that the smart thing for us to do would be to buy something like facial recognition. But then it seemed like facial recognition vendors coming out of the woodwork. I mean, we get calls all the time, "Hey, you should use our facial recognition." And we've got relationships with two vendors. We've also looked at a lot. Really can't see a difference between any one of them. They're all exceptionally accurate. Problem is that they've all also read this research that says biometrics is going to be a $40 billion industry in three years. So even though they've got revenues of like $100,000, they think that their market cap is closer to $100 million. And I just didn't see the valuation on that.
I'd rather just sell it as part of a partnership and then maybe buy some of this stuff in asset sales as maybe some of these players aren't sustainable. So we're continually looking at things that might make sense. And everybody says, "Well, then might you get gobbled up?" And I'd say the answer is probably yes. I don't think any of our investors would be looking at accepting an offer anywhere near the share price that we're at today. They all tell me that they're in this for the long haul because they see it as quite a growth story. But is it likely?
And then the next question that people usually ask is, "Well, who would that be?" And I look at sort of the people that were doing most authentication in a way where the credit bureaus, they're doing a lot of stuff on knowledge-based authentication, which it doesn't really work very well anymore because that's all the stuff that's been breached. They need to look at other ways, I think, to augment their authentication portfolios. We'd probably be something likely for that. And then it's also, I think, something that's right for maybe a consortium of banks to come in and say, "Hey, let's buy this and make it an industry sort of utility," similar to some other companies that I've been with in the past. So I look at it as it's a really growing market.
There is some cool technology out there that might help what we do, provide more signals for things. So if something came along at the right price, certainly we'd do it. But I also think that we've got a lot that we can do just focusing on what we do better than anybody else and owning that market.
In my opinion, I call this a land grab because once you have sold an enterprise solution to a bank who has now got it in all of their guts, and the bank has sold it to all of their clients, and it's now embedded in the guts of their system, for somebody to come in and take our business away, if we say we're 99% effective, somebody came in and said, "I'm 99.5% effective," I don't see anybody going through the hassle unless you were giving it to them for free, right? And who's going to do that? So my goal is to get in there and get our tentacles in as many places as we can because once they're in, it's really hard to pull them out.
Absolutely. I completely agree. I love that. I love that about your business. Guys, I've not taken you over time here, and I appreciate you addressing a lot of the questions here. And again, Tribe, thanks for all the questions. And I know you have more, but maybe at some point, we can have Bryan and Bill come back on in the future here. But I really appreciate it today. Guys, is there anything you would leave us with before we sign off?
The one thing I'd say is just if you're looking at anything in this space, the three things that you got to look at: scan versus authenticate, efficacy rates, how effective are they, and then how hard is it to implement? And if you think about sort of every day where this is being used, the fact that we don't require any new hardware purchase, I think, is such a competitive advantage and moat to what we do compared to the other players in this space. Those three things, I think, are getting that across to our clients, making sure our salespeople understand how to position that has been one of the main drivers of growth for us. Got it.
Well, thank you again, Bryan and Bill, and sharing so much about your company and your backgrounds. It was a great session today and look forward to possibly doing in the future. Reminder to all the Tribe, if you want to review this by the end of the week, I promise to get this uploaded to our Tribe channel on YouTube at Tribe Public.
And so you can go back and view any notes there. And again, I do encourage you to continue to bring forth other Tribe members across the world, as well as just by going to tribepublic.com and signing up there or registering for the next events. And again, send us your wish list. If you want to see Intellicheck back up here on the Tribe, just express your interest with the wish list and any other companies. Thanks again to our speakers, and thanks again to all of the Tribe that have joined today, and all the best to you. Be safe.
Thanks for having us.
Thank you.
Thanks, everyone.