Mandarin Oriental Breach
Hackers hit pay dirt with the recent credit card system breach of upscale hospitality chain Mandarin Oriental Hotel Group. Considering the hotel’s wealthy clientele, many of hacked cards have very high or no credit limits.
SMB Cyber Security
San Jose-based ThreatMetrix unveiled several risks and preventative strategies for small and medium businesses (SMBs) protect against data breaches.
ACI Gears Up to Acquire ReD
ACI Worldwide will acquire ReD for an all-cash purchase price of $205 million and expects the transaction to close in the middle of the third quarter, 2014. ReD is a leading ecommerce and fraud prevention company serving the payments industry. The company’s suite of solutions – ReD Shield®, ReD Fraud Xchange, ReD PRISM®, ReD Alerts, ReDi, ReD1 Gateway and LiveProcessor – helps customers drive up revenues while reducing fraud losses and increasing the efficiency of their fraud management teams. ReD serves retailers, issuers, acquirers, processors and switch networks globally. ReD has a compelling SaaS and transaction-based financial model, with over 80 percent recurring revenue.
Breaches Stimulate EMV Migration
The survey of U.S.-based financial industry professionals was conducted in March 2014 at BAI Payments Connect and reports that 44% of customer accounts have been compromised. More than 15% of financial institutions indicated recent breaches put more pressure on fraud operations resources to do more to protect themselves while 12% indicated that they experienced a negative impact on their brand. Over 75% of respondents said they are looking at additional resources to combat fraud in their organizations, of which 50% are looking to invest in fraud detection system technology, 15% are investing in more training for their fraud management teams and 10% are beefing up staff with new personnel. Although data breach-related fraud has a negative impact on the bottom line and on the industry in general, over 40% indicated their customers appreciate the proactive outreach and response to market events.
Pay.On Launches Fraud Protection
Pay.OnFraud and chargebacks are a core issue and a significant challenge for acquirers, PSPs and ISOs. The threat is international and ubiquitous. Choosing, integrating and calibrating the right risk management solutions is just as complex. For payment providers, continuously optimising their risk management is essential; however, being able to stay on top of everyday business at the same time is virtually impossible. PAY.ON, leading operator of Web-based, omni-channel payment infrastructure systems, boasts all the necessary expertise thanks to working with leading risk management providers for over ten years. PAY.ON is now integrating this knowledge into the new security product ‘OneClickSafe’ to provide its PSP/ISO and acquirer clients with immediate, maintenance-free, state-of-the-art and secure protection against fraud and chargebacks at the click of a mouse. OneClickSafe has the right safeguard ready for each PSP/ISO and acquirer: In addition to the security barriers automatically included, the ‘Smart’ version offers a global blacklist for every merchant account, a plausibility check by BIN country code (country IP) and a duplicate check in real time. ‘Advanced’ offers all the functions included in the ‘Smart’ version, as well as an anonymous proxy check and a merchants’ account velocity check to identify and combat fraudulent merchant activity.
Diebold to upgrade Denali Alaskan FCU ATM fleet
Diebold will upgrade the Denali Alaskan Federal Credit Union ATM fleet and provide a variety of integrated services. Diebold is replacing the credit union ATMs with 48 of its “Opteva” ATMs, most of which include Diebold’s leading deposit automation technology, and maximizing Denali Alaskan’s ATM uptime and reducing the credit union’s maintenance with remote and on-site services with its “Integrated Services” offering. These outsourced services will help the credit union provide a richer consumer experience and realize improved efficiencies with minimal capital investment.
Wirecard to Process Bechtl AG IT e-Commerce
Wirecard AG will take over credit card acceptance and end-to-end fraud prevention for Neckarsulm-based Bechtle AG’s IT eCommerce division. When making payments by credit card, customers of the subsidiaries Bechtle direct, Comsoft direct and ARP will thus benefit from processing that is both secure and simple using Wirecard’s payment platform. Bechtle AG operates in Germany, Austria and Switzerland with around 60 IT system houses. The Group is one of the leading providers for IT eCommerce with retail companies in 13 European countries. Wirecard AG’s PCI-compliant payment platform provides secure, flexible, simple and transparent payment processing.
Element Payment Encrypted Data Entry
Element Payment Services payment processing has made available its “ID TECH SecureKey M Series,” featuring Element “TransForm” point-to-point encryption (P2PE), a family of keyboard-emulated (driverless), point-of entry devices that encrypt both key-entered and MagStripe card data. Element “TransForm P2PE,” SecureKey devices protect cardholder data immediately upon entry, simplifying PCI compliance for merchants and software providers. Element and ID TECH have a long track record of providing secure hardware devices, paired with leading technology, to the marketplace. Recognizing a gap in the marketplace for a device to encrypt manually keyed transactions, which has long complicated PCI compliance and increased security costs, ID TECH and Element conceptualized and developed the SecureKey M series.
Bank account and card fraud Grow 10% in 1H/11
Analysis of frauds recorded by Members of CIFAS indicates 111,504 confirmed frauds were recorded to the National Fraud Database by CIFAS Members in the first half of 2010; an increase of 10% compared with the second half of 2010. Additional findings show Identity frauds have remained at nearly one in two of all frauds recorded (46%), with a further 10% of frauds involving the illegal hijacking of a victim’s account, proving the continued value of personal and financial data to the modern financial criminal; Frauds involving the fraudulent misuse of an account or facility have risen to their highest levels since 2009, and account for a staggering 24% of all frauds; and plastic card accounts account for 38% of all account takeover cases. With this, 1H/11 saw an 10% fraud increase.
Jack Henry Deploys Redi Risk Management
Jack Henry & Associates electronic payment solutions for financial services organizations announced its “Jack Henry Banking” division has established a new strategic alliance with Redi Enterprise Development to offer the Redi “iRisk” solution. With this, “iRisk” enhances Jack Henry Banking’s existing suite of risk management and protection solutions with the ability to consolidate disparate risk management activities across the entire enterprise into digestible information so banks can more frequently, accurately, and quickly evaluate their overall operational and financial risk. Twenty-two Jack Henry Banking clients have already contracted for the iRisk solution.
Kirkpatrick Bank Deploys NetSecure eBanking
NetSecure Technologies, a provider of online transaction security hardware and software, announced Edmond, Okla.-based Kirkpatrick Bank ($500 million in assets) will offer SmartSwipe, an online purchase security system, to help protect customersâ private and financial information, while they shop online.
According to bank officials, Kirkpatrick Bank selected NetSecureâs SmartSwipe to provide proactive protection against existing attacks as well as new emerging attacks designed to steal sensitive personal information. The bank will begin offering SmartSwipe to customers in December.
âCredit card fraud continues to be an increasing problem for consumers all across the nation,â said Robert Banks, Chief Operating Officer for Kirkpatrick Bank. âBy offering SmartSwipe to our customers, we will help eliminate fraudulent activity and provide a safer environment for banking and shopping online. Weâre excited about this new offering and confident our customers will quickly adopt this technology.â
By leveraging NetSecureâs Dynamic SSL technology, SmartSwipe secures sensitive data at the point of origin, before it ever reaches the computer, protecting sensitive financial and personal information from endpoint threats such as keylogging, spyware and man-in-the-middle attacks. Now, Kirkpatrick Bankâs check card holders can swipe their check card from their home computer just like in a store. Using the same level of encryption found in ATMâs, SmartSwipe encrypts the card information while being swiped, rendering it unreadable to hackers and malicious programs.
A strong proponent of proactive security, Kirkpatrick Bank also offers fraud seminars to educate customers on the risks of check card fraud, providing preventative strategies to avoid identity and financial theft. Its Fraud Watch system provides an additional layer of security, monitoring customersâ accounts and alerting of any abnormal activity.
According to Daniel McCann, president of NetSecure Technologies, âEnd-to-end encryption is the only way to effectively prevent credit card fraud, and consumers have already demonstrated their demand for such an effective solution. In a recent survey of 1,000 consumers and small businesses, we found that 70 percent of respondents who bank or shop online would use an online purchase security system, such as SmartSwipe, if their financial institution or credit card company offered it. Institutions like Kirkpatrick Bank are ahead of the curve in proactively offering customers a solid security solution.â
About NetSecure Technologies
Established in 2006, NetSecure Technologies Ltd. is a technology company focused on developing patented security solutions for online transaction security. Where consumer information is the most vulnerable: the point of origin. With its recent release of SmartSwipe, an online purchase security system, NetSecure is dedicated to providing consumer-oriented, next-generation online payment solutions to break down the barriers that prevent consumers from fully embracing the online marketplace. For more information, please visit www.smartswipe.ca.
FreedomPay Launches Real Time POS Data Gateway
FreedomPay intelligent transaction management solutions launched its “FreeWay” scalable transaction and payment gateway with âLevel 4 Data.” Providing its users visibility in the transactions that power global business, “Level 4 Data” provides intelligent business information to analyze the real business drivers behind every transaction. It includes specific details about the product sold, such as manufacturer, make, model, model year, part number, serial number, stock keeping unit (SKU), promotional or loyalty rewards, and other critical information. This allows companies to precisely identify the specific products, promotions, and loyalty programs that are driving sales increases; track service enhancements for preventative maintenance programs; analyze field service and repair efforts; plan for changes in inventory demand; and evaluate supply and demand chain analytics to the individual part number.