Fair Isaac and HP Integrate Platforms

Fair Isaac and HP have agreed to integrate Fair Issac’s end-to-end customer lifecycle management solutions on HP infrastructure enabling financial institutions to manage customer performance at various stages of maturity. Financial services providers will be able to access the industry-standard fraud detection capabilities of Fair Isaac’s Falcon Fraud Manager, which is used to protect more than 450 million active payment card accounts worldwide. The relationship also includes Falcon One(TM) system, Fair Isaac’s new solution for managing multiple types of fraud across the enterprise using a single solution. Fair Isaac helps thousands of companies in over 60 countries manage credit risk.

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UK Cards Compromised by an India Call Center

A British reporter was able to purchase credit card information on 1,000 U.K. cardholders in India for $5,000. The Sun newspaper reporter says the information was supplied by Delhi call center staff working for major British credit card issuers. The Sun says the information was provided on a CD and included names, dates of birth, telephone numbers, addresses, passwords, answers to security questions, as well as the CVV/CVC security code. The reporter said the supplier usually charges about $7500 for information on 1,000 accounts and said he could supply 2,000 accounts per month.

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VISA and NFIB Name 05 Youth Entrepreneurs

The National Federation of Independent Business and VISA USA this week announced the winners of its “Youth Entrepreneur of the Year” award. In recognition of his entrepreneurial achievements and spirit, Mr. Jensen has been awarded a $10,000 educational scholarship. Mr. Jensen is the founder and sole proprietor of Maille Time, a chain maille apparel company. Additionally, four high school seniors were named as NFIB/Visa Free Enterprise Scholars Award and receive a $5,000 scholarship. The Northeast regional winner, Simon Tao has been playing the piano since the age of six and now has his own “Private Piano Lesson” business. The Central regional winner, Vellore Arthi started a Beanie Baby accessory company in the fifth grade and now makes and sells hand-painted magnets and thumbtacks. The Southeast regional winner, Joshua Sommer worked closely with his mother on the successful launch of her business, formulating business plans and managing the computer and database infrastructure and the Western regional winner, Jacqueline Laird whose interest in health and nutrition helped her founded Project ECHO, a volunteer organization which teaches elementary school students about healthy and balanced lifestyles. For the second straight year, Visa USA has donated $100,000 in scholarship money to the NFIB Young Entrepreneur Foundation.

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Sub-Prime Metrics Drive Average Losses Dow

While some issuers such as Discover are reporting near-record lows in delinquencies and charge-offs, average charge-offs among prime-focused portfolios have dropped a mere 20 basis points over year ago levels. However, the industry average among all portfolios has dropped has 115 basis points since last May, driven by sharply lower charge-offs in the sub-prime segment. After sinking to a 4.12% average in February, prime portfolio charge-offs have been heading upward driven by a surge in bankruptcy filings that began in March. Sub-prime portfolios have also been impacted by rising bankruptcy filings, but the improvement in sub-prime metrics has been so strong over the past year that it has driven average losses down. For example, Providian recently reported its managed charge-offs declined 389 basis points between May 2004 and May 2005 and that delinquency declined 180 basis points over the same period.(CF Library 6/16/05)

MANAGED CHARGE-OFFS
MONTH PRIME AVG
May 2004: 4.64% 6.98%
Jun 2004: 4.41% 7.03%
Jul 2004: 4.31% 6.65%
Aug 2004: 4.20% 6.43%
Sep 2004: 4.20% 6.38%
Oct 2004: 4.23% 6.31%
Nov 2004: 4.34% 6.27%
Dec 2004: 4.38% 6.22%
Jan 2005: 4.37% 6.18%
Feb 2005: 4.12% 6.03%
Mar 2005: 4.32% 5.98%
Apr 2005: 4.33% 5.90%
May 2005: 4.44% 5.83%
Source: CardData (www.carddata.com)

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Q Comm to Restate Annual and Q1 Reports

UT-based Q Comm International, a specialist in prepaid transaction processing and electronic POS distribution solutions, says it will restate financial information in its 2004 annual report and first quarter earnings report. The Company is changing its revenue recognition policy on sales of consigned PINs. Q Comm expects the impact of this change to reduce 2004 revenue to between $18 and $20 million from $41 million and reduce first quarter 2005 revenue to between $9 and $10 million from $15 million. The Company also announced this week that its former CFO, who left Q Comm three weeks ago, acted without authorization in advancing $1.5 million to a supplier and it may have to take a $925,000 charge if no recovery is made.

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Asia-Pacific Quantifies Security Breach Impact

As many as 500,000 credit card accounts in the Asia-Pacific region may have been exposed to potential fraud as a result of the security gap at CardSystems Solutions that took place between November 2004 and May 2005. Published reports claim 67,000 Japanese accounts and 50,000 Australian accounts were compromised. The U.S. breach reportedly took place following the installation of new data mining software which enabled a rogue computer program to extract files. (CF Library 6/20/05)

ASIA-PACIFIC BREACH IMPACT
Japan: 67,000
Australia: 50,000
Singapore: 20,000
Hong Kong: 19,000
Taiwan: 16,000
New Zealand: 13,000
China: 9,000
Source: Published Reports

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nCircle Launches a PCI Security Solution

San Francisco-based nCircle has teamed with Montebello Partners and Digital Resources Group to offer a compliance solution for the PCI Data Security Standard. The PCI Data Security Standard outlines best practices for securing credit card data that is stored, processed or transmitted and sets technology requirements such as the use of data encryption, end-user access control, and activating monitoring and logging. Montebello Partners provides security assessment, regulatory compliance and security architecture services. Digital Resources Group is a full services provider of information security technology consulting. nCircle is the leading provider of enterprise-class vulnerability and risk management solutions. Global enterprises in financial services.

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New Biometrics Authentication to be Launched

NY-based National Identity Security is unveiling a biometric solution next week that is capable of eliminating personal identity theft and credit card/check fraud for any type of transactions. The NIS solution will support Ingenico and HPP’s signature and debit capture terminals for banks and retailers. The technology not only captures the signature, it also validates the person at the register by signature and/or personal profile in real time with the use of NIS’ “Biometrics Authentication Technology.” The Company is guaranteeing individuals and companies up to $25,000 per transaction. NIS is charging two cents per transaction to validate the person’s identity

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ICICI Hindustan Lever Network Cobrand

FMCG Hindustan Lever has teamed with ICICI Bank to launch a
co-branded credit card. The card is targeted at consultants of the Hindustan Lever Network. The “ICICI Bank-Hindustan Lever Network Card” offers a customized rewards program. Hindustan Lever Limited is a subsidiary of Unilever. The company’s business sprawls from personal and household care products to foods, beverages and specialty chemicals. The company has a dominating market share in most categories that it operates in such as toilet soaps, detergents, skincare, hair care, color cosmetics, etc. It is also the leading player in food products such as packaged tea, coffee, ice cream and other culinary products.

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Catuity CALS Lands its First Deployment

Sydney-based Catuity has landed a contract with Ohio-based
CertifiChecks for the first deployment of the new Catuity “Advanced Loyalty System.” The system is a turnkey, hosted solution that will be sold to the merchants and chain stores who now use CertifiChecks’ paper-based solutions. The system is expected to be deployed in October and will be offered to CertifiChecks’ 70,000 merchants nationwide. The company also provides gift certificate programs to a top 10 grocery store chain, the U.S. military’s Defense Commissary Agency and Army and Air Force Exchange Service. The Catuity “CALS” is a modularized hosted system that enables unique customer profiles as well as the delivery of points-based, discount and frequency programs, plus offering a flexible gift card solution.

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CineVend to Deploy USTT’s e-Port

Pennsylvania-based USA Technologies’ payment card-enabled “e-Port” has been chosen as the cashless transaction solution by Seattle-based CineVend, a company that has recently launched a business to vend CDs and DVDs. The e-Port is already being used to vend non-traditional items such as cellular phones and calling cards, office equipment, sunscreen products, automotive components and gourmet foods. USA Technologies provides networked credit card and other non-cash systems in the vending, commercial laundry, hospitality and digital imaging industries.

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Skip-the-Line with the AmEx IN:NYC Card

American Express has added a new feature to its “IN:NYC” card that offers cardholders and up to three guests immediate access to skip to the front of the line at some of New York’s most popular clubs and lounges. The new “GET:IN for IN:NYC Cardmembers” is the result of a partnership with Clubplanet, an online nightlife resource. Each week, cardholders will have five different lounges/clubs to choose from. Cardholders also have weekly access to one VIP room with one additional guest and are also eligible for free or reduced admission at the participating venues. The “IN:NYC Card” was launched in October and is targeted at younger New Yorkers. The card offers “INSIDE Rewards” points redeemable for certificates at more than 70 New York City establishments or for one-of-a-kind experiential rewards. (CF Library 9/30/04)

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