nuBridges Seeks to Bolster Encryption Key Management

Data encryption provider nuBridges seeks to bolster encryption key management. A byproduct of encryption is a generation of encryption keys that allow authorized users and applications to lock and unlock the data, all of which need to be managed and protected on an enterprise level. According to Trust Catalyst Principal Kimberly Getgen in a 2009 report on encryption and key management1, “Eight percent of organizations have experienced problems with lost encryption keys, creating security concerns (50 percent), causing data to be permanently destroyed (39 percent), or disrupting the business (39 percent), while 19 percent of respondents said they directly lost business.” The 2009 Trust Catalyst report also shows that “rotating keys, decrypting and re-encrypting data” is the most difficult aspect of key management, according to the survey. In 2008, it was considered the second most difficult aspect, following “preparing for the unfortunate publicity and impact of data breach,” illustrating the rise of encryption key management anxiety among data security professionals.
One publicized mishap concerning backing up keys occurred last summer.
On July 9, The H, a European online security publication, reported that Germany’s first-generation electronic health cards and doctor’s “health professional cards” had suffered a serious setback because it was revealed that the private keys had not been backed up and the production ones had become corrupted. Had this not been a test run of the technology, this oversight in key management best practices would have meant that real data would have been erased.

nuBridges Adds Sales and Operations EVPs

nuBridges has added Kee Murray as Executive VP of Operations and Brad Childress as Executive VP of Sales. As EVP of Operations, Murray brings with him over 25 years’ IT experience and will oversee operation of all nuBridges managed services, including nuBridges Exchange Network global communications gateway; customer service across all product lines; and internal IT. He most recently served as VP of Enterprise Systems Engineering at InterContinental Hotels Group. Meanwhile, as EVP of Sales, Childress will oversee enterprise software sales, managed service sales, professional services and pre-sales engineering teams and joins nuBridges from The Complex Sale global sales effectiveness consulting and training firm, where he served as President and CEO.

nuBridge Says Tokenization is The Way

GA-based data protection provider nuBridge is looking to data security model—tokenization to reduce the
expense of complying with PCI-DSS. Unlike traditional encryption methods where the encrypted data or
“cipher text” is stored in databases and applications throughout the
enterprise, tokenization substitutes a token—or surrogate value—in place
of the original data. Under the PCI DSS, encrypted payment card data is
considered to be “in scope” for audit purposes. By limiting occurrences
of encrypted data to a central vault, organizations can reduce the
number of systems, applications and processes that must be audited for
compliance with PCI DSS. With “Format Preserving Tokenization”,
a token uses the same amount of storage as the original clear text data
instead of the larger amount of storage required by encrypted data.
Because a token is not mathematically derived from the original data, it
is arguably even safer than cipher text. Authorized applications that
need access to encrypted data can only retrieve the data using a token
issued from a token server, which provides an extra layer of protection
for sensitive information. Compared to traditional encryption, a
tokenization architecture can also reduce data storage requirements and
preserve storage space on data collection computers.

MASTERCARD 2Q/09

Citibank, under contracted partnership with AIG Europe Hungarian Branch
Office, is allowing credit card customers to now apply for its
Individual and Family “Cancer Insurance Plans.” “Cancer Insurance Plans”
offers substantial coverage through a single payment, monthly income
payment of up to 12 months and a single surgery payment with fees
ranging from HUF800-16,700, depending on the customer’s age, selected
option and plan. The Family Plan grants spouse and children living in
the same household coverage benefits while upgrades available, depending
on payment options, provide income payments of 50 thousand or 100
thousand forints per month. The surgery payment can be 200 thousand or
400 thousand forint. All Citibank credit card holders aged 18 to 55 are
eligible to apply.

Citi/AIG Pilot Cancer Insurance in Hungary

CardFlash International reports that Citibank has teamed up with AIG to offer a cancer insurance benefit to its credit cardholders in Hungary. A basic and an upgraded option are available, and depending on the selected option the single payment can be approximately US$5,000 or US$10,000, the income substitute payment can be about US$265 or US$525
per month during 12 months, while the surgery payment can be US$1000 or US$2000 in case of diagnosed cancer. In case of the diagnosis of another type of malignant tumor, the single payment is US$1000 or US$2000. All Citibank credit card holder customers aged 18 to 55 are eligible to apply for this product. The monthly insurance fee varies from about $4 to $88 depending on the customer’s age, selected option and plan. The new product part of Citibank’s “Positive Care Plan” in Hungary.

AIG CHAIRMAN

Director Harvey Golub has been elected Non-Executive Chairman of the Board for American International Group (AIG). Originally elected to the AIG Board of Directors in May 2009, Golub was Chairman and CEO of AmEx from 1993 to 2001, where he was hired in 1984 from McKinsey & Co. as a partner. Harvey is also a member of the Board for Non-Executive Chairman of Ripplewood Holdings, Campbell Soup Company, a Non-Executive Chairman of the Board of Directors of The Reader’s Digest Association and a director of RHJ International public investment company. AIG insurance and financial services runs operations in more than 130 countries and jurisdictions.

AIG & CCB

American International Group has agreed to sell 100% of its shares
of AIG Finance (Hong Kong) to China Construction Bank Asia for $70
million cash, plus the repayment of intra-group indebtedness and
deposits of approximately US$557 million. AIG Finance issuer of credit
cards in Hong Kong operates as a restricted license bank that offers a
variety of financial products and services. Deutsche Bank acted as
financial advisor to AIG on this transaction. AIG Finance had more than
500,000 customers, total net loan receivables of HK$4.8 billion and a
retail deposits balance of HK$1 billion. The transaction is subject to
approvals by appropriate regulatory authorities.

PREPAID SUMMIT

VRL has announced its 2009 “Prepaid Cards Summit” agenda. In association
with Visa and Mastercard, the “VRL Prepaid Cards Summit” will be held in
Rome on November 12-13, 2009. The Summit hopes to address research on UK
and Italian consumers focusing on their attitudes and awareness of both
closed and open loop prepaid cards. In doing so, the VRL Conference will
focus on offering attendees unique insights and knowledge from keynote
speakers; insight on unique VRL research on consumer attitudes on
prepaid cards across the region; and an opportunity for networking with
350 key people in prepaid and 200 merchants across Europe.

Former AmEx CEO to Chair the AIG Board

Director Harvey Golub has been elected Non-Executive Chairman of the
Board for American International Group (AIG). Originally elected to the
AIG Board of Directors in May 2009, Golub was Chairman and CEO of AmEx
from 1993 to 2001, where he was hired in 1984 from McKinsey & Co. as a
partner. Harvey is also a member of the Board for Non-Executive Chairman
of Ripplewood Holdings, Campbell Soup Company, a Non-Executive Chairman
of the Board of Directors of The Reader’s Digest Association and a
director of RHJ International public investment company. AIG insurance
and financial services runs operations in more than 130 countries and
jurisdictions.

SANTANDER & AIG

Santander Consumer Finance and American International Group inked
merger agreements regarding their respective consumer finance businesses
in Poland. The transaction is pending regulatory approvals from the
Polish Financial Supervision Commission, will result in an exchange of
shares between Santander Consumer Bank (Poland) and AIG Bank Polska,
resulting in 70% stake to Santander and 30% to AIG in the resulting
combined company, in which Santander will assume the management role.
The combined company will benefit from AIG Bank Polska’s market position
in personal loans, credit cards and deposits, will grow its positions by
leveraging the inherited distribution network and will have 250
branches. Santander has nearly EUR 1,168 billion in managed funds, 90
million customers, more than 14,000 branches and 170,000 employees.

Discover Hires Chief Accounting Officer

Discover has tapped Mark Zaeske, previously with JPMorgan Chase, as SVP
of finance and chief accounting officer. Zaeske was with JPMorgan Chase
since 2003,
where he served in a variety of positions, including as chief financial
officer of the company’s Worldwide Securities Services Division, CFO of
the Treasury Services Division, and CFO of the Commercial Banking
Division. Most recently, Zaeske was the Western Hemisphere regional
executive, Treasury, Liquidity and Investment Products at JPMorgan.
Prior to his employment with JPMorgan, Zaeske was treasurer of AIG
retirement savings from 2000 to 2003, and worked as an associate
director and later, assistant treasurer, for Citigroup from 1996 to
2000. He has a bachelor’s degree from the University of Texas and an MBA
from the University of Chicago.

INVERSORA & INTERDINCO

American International Group has inked agreements to sell 100% of
ownership interests in its consumer finance operations in Colombia
(Inversora Pichincha and Interdinco) to Banco Pichincha C.A. of Ecuador
under undisclosed terms. Subject to approval by the Ecuador
Superintendency of Finance (Superintendencia de Bancos y Seguros de la
República del Ecuador) and the Colombia Superintendency of Finance
(Superintendencia Financiera de Colombia), the transaction is underway.
Inversora Pichincha consumer finance products offers vehicle financing,
personal loans, student loans, insurance premium financing, commercial
loans, credit cards and retail deposits while Inversora Pichincha has 19
branches across Colombia, serving approximately 140,000 customers. AIG
insurance and financial services has operations in more than 130
countries and jurisdictions around the world.