Credit Union tech-talk News

February 18 - February 22, 2008

• General News
• Hardware News
• Software Updates
• ATMs/Kiosks
• Biometric Digest Highlights
• Wireless World
• Security Section
• Leaders Roundtable
• Technology and Marketing
• Online Banking/E-Commerce/
  Website Design
• Internet Access
• Call Centers
• Conferences

* Gulf Coast Community FCU Selects Open Solutions
* Rivermark Community CU Chooses Code Green Networks
* CU*Answers Schedules Record Conversions for 2008
* FSCC Hosts the Credit Union Retail Delivery Convention
* ESP Announces Contract Renewal with Texas Employees FCU

Gulf Coast Community Federal Credit Union announced it has selected Open Solutions Inc.’s The Complete Credit Union Solution-sme (Standard Market Edition) to address its enterprise-wide data processing needs. Open Solutions is a leading provider of integrated enabling technologies for credit unions across the United States, Canada and international markets. In addition to TCCUS-sme, Gulf Coast Community FCU is also implementing Open Solutions’ digital document systems, interactive voice response and home banking.

Portland, Oregon-based Rivermark Community Credit Union has signed with Code Green Networks to implement the company’s CI-750 Content Inspection Appliance. The $375 million credit union will use the appliance to protect data for its 43,000 members.

CU*Answers recently announced it had received commitments and/or signed contracts with 17 credit unions for converting to the CU*BASE Member Processing system. CU*Answers is now sold out for completing CU*BASE conversions until early 2009. This represents the 10th consecutive year in which CU*Answers has sold out its client conversion calendar. CU*Answers also announced it has received commitments from 5 additional clients scheduled to convert to CU*BASE in early 2009.

Financial Service Centers Cooperative (FSCC), the nation’s largest shared branch network with over 3,000 in-network locations, unveiled plans to host the 2008 Credit Union Retail Delivery Convention in the Windy City. The convention will take place June 11-13, 2008 at the Renaissance Chicago Hotel.

Enhanced Software Products (ESP), a credit union core data processing provider with more than a decade of experience, announced that Southeast Texas Employees Federal Credit Union has renewed with ESP for another 5 years. In addition to ESP’s On-line FORZA Core Processing, the Orange, TX-based credit union will be deploying a host of ESP services, including OASIS (Home Banking), PASS (Audio Response) and Single Sign-on Bill Pay (through Southwest Corporate).

Hardware News

With more than 150 million PCs and laptops equipped with the Trusted Platform Module (TPM) microprocessor, some experts say that there's no excuse any more for organizations to overlook it. TPM stores data encryption keys used to scramble information stored on the computer and it provides authentication services for system users. Next quarter Intel will begin shipping TPM as part of its new chipsets going forward. If users don't type in their pin or passcode, they can't access the machine. Proponents say that IT departments can simply add a few lines of code so that their networks are able to accept authentication certificates from TPM machines.

If your credit union's server room is located in an inconvenient or uncomfortable place then it may pay to invest in some hardware and software that allows your IT staff to remotely manage the servers. It can also save night and weekend trips into the office for simple server reboots. We will cover some ways that you can remotely manage your server room and not be dependent on specific platforms or vendors in the March issue of Credit Union tech-talk - subscribe now.

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ATMs/Kiosks

According to studies done by Boston-based Dove Consulting, about 63% of American ATMs will be using Windows by the end of 2008. Level Four Software has published a guide about the importance of Windows ATM monitoring in response to this growth, and IBM’s discontinued support of OS/2. The guide addresses:

• Steps that FIs should follow to implement proactive, intelligent monitoring at ATM terminals.
• How intelligent ATM monitoring can leverage FIs’ investment in Windows and modern ATM hardware by improving network efficiency.
• Cost savings and efficiency gains through redefining the relationship with third-party maintenance providers.
• Technical considerations associated with advanced, intelligent ATM monitoring.

Tranax Technologies and VALID Systems are showcasing their new all-in-one checking cashing terminal at the ATM Industry Association Conference this week. The firms say that the Tranax 500CS simplifies the check cashing process and includes built-in ATM payouts. The unit boasts a small footprint about the size of the average laptop, and is plug and play according to Tranax and VALID.

A Finnish company that claims to be the market leader in mobile phone-based strong authentication and digital signatures has come out with a mobile signature solution that combats ATM skimming and cloning. They say that it can also use mobile phones and PDAs to protect against other fraud such as phishing and identity theft. We will explain how the system works in the March issue of Credit Union tech-talk - subscribe today.

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Digitus Biometrics announced that it is now shipping a networked version of its fingerprint-recognition Digitus Access Control System. The system provides full, centralized control of security access. From one office, IT Departments can constantly monitor who has accessed which areas, and when. They can also instantly administer privileges for any secure access point, without any of the drawbacks and risks associated with card readers or key management. Each Digitus unit includes two components: a fingerprint reader with keypad for placement outside a door, and a controller located securely behind the locked door. The fingerprint reader uses biometric technology to detect a live fingerprint, and communicates with the controller using Digitus’ proprietary code hopping encryption protocol. Each unit functions completely independently of the central server during its general operation, requiring network connectivity only for such administrative tasks as user enrollment and access reporting.

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mFoundry has just published a new whitepaper entitled "Mobile Security Whitepaper." It covers types of attacks, common security issues and types of mobile software solutions. It attempts to answer questions such as:

- What should credit unions know about mobile security?
- What are the risks?
- What are the minimum safeguard requirements and what can credit unions do to ensure that mobile banking efforts are as secure as other channels?"

The popular wireless technology known as Bluetooth could get a lot faster next year by taking advantage of Wi-Fi technology already built into many devices. Linking Bluetooth and Wi-Fi will make it easier and faster to transfer large amounts of data between devices. Some products, like laptops, PDAs and smart phones, already combine Bluetooth and Wi-Fi functions, but they work off separate chips. Most likely, manufacturers will use single chips still under development that combine Bluetooth and Wi-Fi capabilities.

Salem, Oregon-based CU Wireless is rolling out a special cell phone for children dubbed the 'Firefly.' The mobile phone does not have a numeric keypad, but does have one-touch buttons for connecting to parents and a PIN-controlled address book for other important numbers. To make it affordable and attractive to parents, there are no upfront costs, no long term contracts, and parents are alerted when their child is approaching their monthly allowance limit. The CUSO wants to help credit unions in their efforts to attract young families to become first time members or open new accounts.

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When it comes to security, human threats score much higher than those posed by technology. This is according to a new survey by consulting firm Deloitte which found that 75% of companies listed human error as the leading cause of security failures such as breakdowns and systems outages. Forty-eight percent also cited operations and technology lapses as key causes of security failures. Problems resulting from third parties such as contractors and business partners, meanwhile, received 28% of the votes as a root cause of security failures.

Direct losses from identity fraud declined for the second year in a row in 2007, according to a fourth annual US study by Javelin Strategy & Research which found that fraudsters are now increasingly switching to offline channels - such as the telephone - to pilfer confidential personal data. Javelin says the annual cost of ID fraud dropped by nearly 12% over the previous year, from $51 billion to $45 billion. These figures represent the total amount that criminals were able to obtain illegally before detection. However, Javelin says that the total out-of-pocket expense that ID fraud victims incur rose last year - costing an average of $691 in 2007 compared to $554 the previous year.

The use of data encryption could make organizations vulnerable to new risks and threats, said a panel of security experts from IBM Internet Security Systems, Juniper, nCipher and elsewhere. They note that encryption brings risks, in particular via attacks - deliberate or accidental - on the key management infrastructure. They say that when you encrypt data at rest that you are open to loss of keys and a new class of DoS (denial of service) attack where criminals can go in and revoke a key and then demand a ransom. Finally, there is the risk that over-zealous use of encryption will damage an organization’s ability to legitimately share and use critical business data.

- Detect and prevent internal and external attacks on your network
- Meet compliance standards and guidelines such as FFIEC

Credit Unions are mandated to implement controls for ensuring the integrity of member data and information systems. Log Management solutions that consistently monitor, store and analyze log data are essential components of a defense in depth program for protecting these critical assets.

EventTracker from Prism Microsystems secures IT networks from cyber attacks and insider-threats by automating the real time collection, analysis and storage of event logs from all sources. EventTracker provides a unique capability that integrates real-time log correlation and in-depth analysis capabilities with change management. This comprehensive security management approach allows you to quickly detect vulnerabilities and remediate them before costly data breaches occur. EventTracker comes integrated with over 1000 targeted reports to prove to auditors that internal processes are in tune with policies and appropriate safeguards are in place.

Deployed at dozens of credit unions and over 600 companies worldwide, EventTracker is a powerful, cost-effective solution that is highly scalable yet easy to implement and maintain.

Download a free trial and get further information at www.eventlogmanager.com

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Security:

Perimeter, Host and Endpoint Security – Finding the Right Mix

Arcot - http://www.arcot.com   Read R. 'Doc' Vaidhyanathan's comments: http://www.cunews.com/roundtable/Arcot.pdf

Astaro - http://www.astaro.com Read Alex Quinonez's comments: http://www.cunews.com/roundtable/Astaro.pdf

Code Green Networks - http://www.codegreennetworks.com   Read Brian Czarny's comments:   http://www.cunews.com/roundtable/CGN.pdf

Digital Resolve - http://www.digital-resolve.net Read Dennis Maicon's comments: http://www.cunews.com/roundtable/DigitalResolve.pdf

e-DMZ Security - http://www.e-dmzsecurity.com   Read Kris Zupan's comments:   http://www.cunews.com/roundtable/e-DMZ.pdf

Galaxy - http://www.fiserv-galaxy.com Read Vince Francone's comments:     http://www.cunews.com/roundtable/Galaxy.pdf

Harland Financial Solutions - http://www.harlandfinancialsolutions.com   Read Peter McKellar's comments:   http://www.cunews.com/roundtable/HFS.pdf

HEIT - http://www.goheit.com   Read Dan Holt's comments:   http://www.cunews.com/roundtable/Heit.pdf

Integrated Computer Solutions - http://www.icsinc.com   Read Stephen Goldsby's comments:   http://www.cunews.com/roundtable/ICS.pdf

MagTek - http://www.magtek.com   Read Kiran Gandhi's comments:   http://www.cunews.com/roundtable/MagTek.pdf

Netsecuris - http://www.netsecuris.com   Read Leonard Jacobs' comments:   http://www.cunews.com/roundtable/Netsecuris.pdf

Network Box - http://www.networkboxusa.com   Read Pierluigi Stella's comments:   http://www.cunews.com/roundtable/NetworkBox.pdf

Perimeter eSecurity - http://www.perimeterusa.com   Read Kevin Prince's comments:   http://www.cunews.com/roundtable/Perimeter.pdf

Proofpoint - http://www.proofpoint.com   Read Sandra Vaughan's comments:   http://www.cunews.com/roundtable/Proofpoint.pdf

Sydel - http://www.sydelcorp.com   Read Antonio Gonzalez's comments:   http://www.cunews.com/roundtable/Sydel.pdf

TraceSecurity - http://www.tracesecurity.com   Read Jim Stickley's comments:   http://www.cunews.com/roundtable/TraceSecurity.pdf

TriGeo Network Security - http://www.trigeo.com   Read Michelle Dickman's comments:   http://www.cunews.com/roundtable/TriGeo.pdf

ZixCorp - http://www.zixcorp.com   Read Dena Bauckman's comments:   http://www.cunews.com/roundtable/Zix.pdf

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Sparta Systems, the provider of customer-centric process management software, announced the general availability of TrackWise Customer-Centric Process Management (CCPM) solution for financial services. The TrackWise CCPM solution helps automate compliance tracking, employee qualification and training, opportunity management and account opening with "first contact resolution." Sparta says that their user intuitive interface and customizable dashboard ensure that member-facing personnel can quickly learn the new software.

Enterprise Car Sales, which specializes in working with credit unions to increase auto loan volume, is partnering with NewGround to promote member interest in special used car values through a digital signage graphics program for credit unions. NewGround is a full-service design and implementation company for credit unions. Available to credit unions nationwide, the digital content includes high-tech animated images and information developed by NewGround exclusively for Enterprise Car Sales. The images are designed to attract the attention of members while they are doing business inside the credit union and aid employees in cross-selling.

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Gartner announced results of a survey of 4,500 online U.S. adults, conducted in August of 2007 that concludes that while card issuers have put significant efforts into marketing contactless and signature-based debit card payments, they have failed to win over consumers. Gartner found that "consumers prefer alternative payment types that earn issuers less revenue, but which consumers believe are more secure." In particular, PIN-based debit and not signature debit. Gartner also found little consumer interest in contactless or mobile payments.

CO-OP Financial Services now offers Reloadable Prepaid Cards to credit unions. The CO-OP Reloadable Prepaid Card can be used to make purchases everywhere MasterCard or Visa debit cards are accepted. The card can also be used to obtain cash at all of CO-OP Network's 25,000 surcharge-free ATMs around the country. Features include in-branch load and reload, direct deposit capabilities, personalization and online tracking. The program provides for management of all administrative services including plastics, activation, card packaging, transaction processing, reporting and customer service.

An Arizona-based mobile application developer has developed software that permits credit unions to send secure text messages to their members' mobile phones. We will tell you how it works in the March issue of Credit Union tech-talk - subscribe now.

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Iwatsu Voice Networks, a U.S. subsidiary of Tokyo-based Iwatsu Electric, and Esna Technologies announced the release of Version 2.0 of the Iwatsu Enterprise Suite, a combination of Iwatsu’s advanced IP PBX call control hardware and Esnatech’s unified communications platform, Enterprise Communications Server version 4, from Esnatech’s Telephony Office-LinX Version 7.1. Designed for small- and medium sized businesses, the Iwatsu Enterprise Suite Version 2.0 unifies telephony, mobility, messaging, and enterprise presence. Iwatsu Enterprise Suite Version 2.0 offers unified communication applications such as unified messaging, fixed-to-mobile convergence, enterprise presence, instant messaging, SMS messaging, a fax server, IVR (Interactive Voice Response), speech recognition and call routing in a single platform system.

Mitel is touting their suite of IP communication tools. For example, their 3300 IP Communications Platform, an IP gateway, can do IP trunking between branches; and their Teleworker Solution can extend office phone capabilities to phones located in remote offices, hotel rooms and other locations. Mitel's Live Business Gateway permits click-to-call capabilities from Microsoft Office Communicator and from within Office documents. Finally, the Mitel Mobile Extension gives key employees a single phone number and mailbox for multiple communication devices. The presence status of the user is updated no matter which device they are using.

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Research from Frost & Sullivan predicts a huge boom in hosted contact centers. The biggest factor driving the growth in the hosted contact center space is the shift from capital to operational expenditure. This shift to an operational expenditure model, reduced maintenance costs and ease of provisioning multi-sourced contact centers make hosted solutions an attractive value proposition to organizations of all sizes. The hosted market however, will have to work against the widespread perception that companies tend to lose control over operations and compromise the security of critical customer data once they adopt the hosted model, according to the research firm.

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Catch Tom and Bill Rogers, Associate Editor of Credit Union tech-talk at the following conferences in 2007:

February 25-28, Miami - Biometric Summit

February 27-28, Houston - Software & Management Associates' SMArt Session 2008

March 20, Boston - Association of Credit Union Senior Officers

June 5-6, Las Vegas - Credit Union InfoSecurity Conference

October 15-18, Las Vegas - Firefighters' National Credit Union Summit

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