Credit Union tech-talk News

January 29 - February 2, 2007

• 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

* Ukrainian FCU Selects COCC 
* Perimeter eSecurity Acquires Message Secure 
* First Financial CU Selects Summit
* RMS Launches Credit Union Bonus Online Incentive Platform 
* IntegraSys Transforms CUBE Core Processing System 

COCC, a leading provider of next generation technology services for credit unions, announced that Ukrainian Federal Credit Union of Rochester, New York has selected COCC for a data processing partnership. The $125 million credit union currently serves about 16,000 members across the US.

Perimeter eSecurity, a leading provider of on-demand managed security services, announced their acquisition of Message Secure, also a top provider of managed security solutions to financial institutions. Message Secure is Perimeter's 9th acquired company in the past 3 years and will add over 200 clients to their roster.

Summit Information Systems, a unit of Fiserv, announced it will provide First Financial Credit Union, a $600 million credit union in West Covina, CA, the Summit Spectrum and Fiserv member services solutions, as part of the credit union's initiative to deliver enhanced service and value to its 73,000 members. The credit union will also deploy Summit's document automation solution and will use the integrated Summit-Fiserv Customer Centered Solutions system to personalize their interactions with each member and recommend appropriate specific credit union products and services.

Incentive marketing company Rennhack Marketing Services (RMS) has introduced Credit Union Bonus, a new Web-based rewards platform tailored to fit the needs of the largely untapped credit union loyalty program market for members and employees. RMS says that they have created a simple and affordable online platform designed to parallel bigger rewards programs in branded gift offerings to appeal to credit union members. 

IntegraSys, a business unit of Fiserv, and provider of information technology services to credit unions, announced it has completed the first three platforms of the system-wide technology refresh of its Credit Union Business Environment (CUBE) core processing system. With in-house and service-bureau delivery options, CUBE leverages Microsoft technologies to provide credit unions with flexibility through its open architecture.

Hardware News

Sun, which specializes in very high-end computer systems for large companies and governments, has gradually been embracing lower-cost servers. Until now, Sun has been using AMD chips exclusively, but they recently inked a deal with Intel to use their processors. Intel has about 75% of the market for a common type of low-end, standardized server known in the industry as x86. Intel has also agreed to support Sun's server operating system, Solaris. 

Small credit unions looking for an all-in-one printer may want to consider the Lexmark X9350. For less than $300, you get a device that prints, faxes, scans, and copies. It includes an automatic document feeder and a built-in duplexer, and not only is it network ready, but it is also set up for wireless networking. An alternative is the Canon Pixma MP830 which offers faster speeds and better print quality across the board, but it is not network ready. 

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ATMs/Kiosks

Wincor Nixdorf is holding their annual Wincor World conference this week in Paderborn, Germany. This year they are focusing on cash management across two industries — banking and retail — security, and IT enterprise management. They are showing net-centric branch solutions for self-service and teller operations, and cash recycling systems. New ATMs include the ProCash 2100xe and the ProCash 3100xe. The 2100xe can be installed as a freestanding or through-the-wall unit, while the 3100xe combines deposit, dispense and cash-recycling functionality. Additionally, a bulk-coin deposit and single-coin dispense sidecar for the 2100xe and the 3100xe is available. 

ATM deposits currently account for only about 10% of all transactions at on-premise machines. According to the TowerGroup, each envelope deposit at an ATM costs credit unions about $1.70, compared to 40 cents for a deposit without an envelope. Some analysts believe that 2007 will be the year that imaging ATMs go mainstream as ATM deployers advance their Check 21 capabilities in the back office and the technology becomes more affordable.

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Ingersoll Rand Security Technologies has installed a state-of-the-art biometric entry system for a Swiss bank. The access control system operates completely without ID cards, keys or PIN technology. They have installed 3D face and iris recognition systems as well as so-called speed gates at the new building. Speed gates are a new type of access gate that provide higher flow rates and more user-friendly access. In addition, a vehicle access control system identifying vehicles by their license plates is installed at the entrance/ exit points in the parking facility. Combining biometric methods, such as 3D face recognition and iris scan, to verify a person’s identity, ensures that only authorized persons may enter the building. The speed gates ensure that there is no delay or holdup at the gates during peak times.

iCache is being billed as the first biometric digital wallet. This little device holds your credit card data, frequent flier numbers, and virtually anything with a magnetic strip on it for safe keeping. It uses fingerprint biometrics to unlock the card. No word yet on pricing because the product is still in testing.

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Sapphire Mobile Systems is targeting US financial institutions with their mobile banking system. Their Phire network operates entirely using SMS (short messaging service) and offers members who use mobile payments zero liability on mobile transactions, even if they lose their phone. Members have access to account balances, automated notifications, bill payment alerts and account transfers. They are also touting two factor authentication: each time a member attempts to log in to their web portal, a one-time PIN is sent to their mobile phone. Sapphire also allocates co-marketing funds to spend on direct member communications and advertising.

Meanwhile, the TowerGroup is warning that this year could see a sharp rise in attacks on Internet-enabled smartphones as a number of new banking and payment initiatives enter the mobile channel. The research firm believes that many mobile commerce offerings now emerging from the financial services sector "lack a reasonable and justifiable focus" on mobile security. They note that the success of mobile banking will be partially determined by the industry's ability to effectively contain the malware problems. More than 200 mobile phone malware applications have been identified, and the number is doubling every six months. 

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Research firm Gartner is recommending that credit and debit card issuers add one-time password capability to credit and debit cards in an effort to thwart criminals. Equipped with one-time password capability, a credit card would generate a one-use value to complete each transaction at retail locations or online. That value, or password, would have to match what the card issuer generates before a transaction would be authorized. The firm estimates that it would cost about $3 per card to add this functionality.

Former White House cybersecurity adviser Howard Schmidt is chairman of TrustELI, a security firm that claims to offer the benefits of an entire IT staff in one affordable system. For a one-time fee of about $200 and an estimated $10 monthly management fee, a business with up to five computers can install the system, which includes a cable or DSL modem with a four-port router and a wireless modem. The router, managed via the TrustELI's command center, provides antivirus, anti-spyware, spamware, anti-phishing, content filtering, and a virtual private network.

Perimeter eSecurity announced that it will provide free vulnerability scans through March 2, 2007. Network vulnerability assessments help credit unions determine the threats, risks, and the general security level of their networks by scanning for open ports and vulnerabilities. Perimeter says that their free assessment also includes a "live review" by an expert Security Analyst. 

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SECURITY: 

Finding a Balance between Security and Convenience

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

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

Comodo - http://www.comodogroup.com   Read Andrew J. Pynes' comments:     http://www.cunews.com/roundtable/Comodo.pdf

Corillian - http://www.corillian.com   Read Greg Hughes' comments:    http://www.cunews.com/roundtable/Corillian.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

GalaxyPlus - http://www.galaxyplus.com   Read Vince Francone's comments:     http://www.cunews.com/roundtable/GalaxyPlus.pdf

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

Intrusion - http://www.intrusion.com   Read Jay Barbour's comments:   http://www.cunews.com/roundtable/Intrusion.pdf

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

Network Armor - http://www.networkarmor.com   Read Stephen Goldsby's comments:   http://www.cunews.com/roundtable/NetworkArmor.pdf

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

RSA Security - http://www.rsasecurity.com   Read Marc Gaffan's comments:     http://www.cunews.com/roundtable/RSA.pdf

SecureWorks - http://www.secureworks.com   Read Jon Ramsey's comments:   http://www.cunews.com/roundtable/SecureWorks.pdf

Symitar - http://www.symitar.com   Read Larry Widel's comments:   http://www.cunews.com/roundtable/Symitar.pdf

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

WhiteHat Security - http://www.whitehatsec.com   Read Jeremiah Grossman's comments:   http://www.cunews.com/roundtable/WhiteHat.pdf

WinMagic - http://www.winmagic.com   Read Joseph Belsanti's comments:   http://www.cunews.com/roundtable/WinMagic.pdf

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Javelin Research has released a report entitled 'Debit Rewards Programs: Formulating Offerings that Accelerate ROI'. In it they say that debit card rewards programs are emerging as a formidable tool for financial institutions to influence debit card purchase activity. They note that 66 percent of consumers state cash back as the type of reward they would most like to earn for debit card purchases. However, this number greatly exceeds the percentage of consumers that are actually receiving them. The report concludes that "right now, consumers will not switch their primary financial institution due to a lack of a debit rewards program, but that could change as debit rewards popularity and penetration grows, and debit spending evolves further.”

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The ability to view online check images is becoming more commonplace. Research firm Corporate Insight notes that some institutions are adding new features including keyword searching and zoom. There has also been a movement from grayscale to black and white images. That is because grayscale is typically harder to read than black and white, and the Federal Reserve does not allow grayscale images. An additional feature that some institutions provide is the ability to send a private site message, alerting back office personnel to a false check or questionable check amount. 

Forrester has published a new report entitled 'EBPP Forecast: 2006 To 2011' that forecasts growth in electronic bill presentment and payment. In 2005, electronic bill payment and presentment (EBPP) adoption grew by 34%, the highest annual growth rate in four years. They state that "robust adoption growth is expected during the next five years. as the number of EBPP users will grow by 63% to roughly 60 million households. Gen Yers will propel the growth, as this generation will see a five-year growth rate of 157%."

v-Fluence Interactive Public Relations announced the rollout of its website evaluation and analysis report. The report identifies, analyzes and provides recommendations across your site’s technical attributes, content, style and navigation. The v-Fluence report includes: 

• an analysis of readability that applies current writing-for-the-Web best practices,
• an evaluation of Web 2.0 site elements and user experience, 
• traffic analysis to determine which search engines and sites are driving traffic to your site 
• a competitive analysis section that shows how your site’s traffic and visibility compares to your competitors. 

Safeguard Internet Banking against Authentication Attacks and Phishing

Today's consumers are demanding financial institutions, and for that matter any organization of any size that provides a logon page to personal and business information, deliver unquestionable security whilst maintaining an ease of use balance.

myBiometrix efficiently meets and exceeds these criteria and that of FFIEC and NCUA guidelines through our proprietary interface that addresses the needs of both Consumer and Provider in securing transacting online:

   • Authenticating the consumer (verifying who is accessing information by who they are not what they have)
   • Verifying the providers site (ensuring a Phishing episode is not being perpetrated).
   • Confirming the source of the transaction (originating PC)
In other words, all aspects of the transaction are secured.

myBiometrix leverages an array of foreground and background technology presented through an intuitive user interface that provides multi-factor “personal trait” authentication.

   • irrefutably authenticates “personally” to a website using traits including
   • prevent others from falsely using the owners credentials to log on
   • eliminating the growing incidence of Phishing and Pharming attacks
   • eliminating Key Logger exposure as the keyboard is not used
   • eliminating the need to remember or write down pass-phrases

myBiometrix authenticates through a range of methods including:

   • Finger recognition
   • Voice recognition
   • Face recognition
   • Biometric Smart Card
   • Geometrical code
   • Others…

myBiometrix is a scaleable solution that can be hosted by us as a Managed Service or run In-House. Delivering irrefutable authentication and security and monitoring mechanisms, whilst maintaining a practical usability balance, myBiometrix conveys a holistic approach that is a world leader in irrefutable Authentication and Verification.

Collaboration and Reseller enquiries are welcomed for our range of proprietary Biometric solutions.

LEARN MORE ABOUT myBiometrix:

 www.myBiometrix.com

OR CONTACT US DIRECTLY AT:

busdev@myBiometrix.com

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AltiGen Communications, which introduced its first VoIP phone systems in 1996, has introduced the MAX1000, a VoIP phone system targeted at branch offices and locations with up to 48 users, with support for features such as SIP trunking. The new system also features meet-me conference bridge capability with scheduling application, On-demand voice recording, 4,500 hours of voice mail storage, ExtensionAnywhere mobility and an Enterprise Manager for controlling the system across multiple locations. 

Allworx and Bandwidth.com have formed a partnership that will be targeting small and medium sized organizations. Allworx's family of IP-PBX systems include the Allworx 6x, 10x, & 24x offerings, which are designed for businesses from 30 to 100 employees per site. Bandwidth.com is a nationwide communications provider, offering business-class VoIP services that include SIP Trunk connectivity across IP-PBX systems, T1 or T3 data circuits, network monitoring, management and security. The combination of Bandwidth.com's SIP Trunking service and Allworx's hardware enables smaller organizations to consolidate their voice and data over a single T1 or T3. 

The Florida Credit Union League Service Group has partnered with Telecom Recovery to help Florida credit unions with telephone recovery and business continuity. In the event of a disaster or disruption, credit unions that are using the service can have their calls routed to a secure location. Employees can trigger the transfer of incoming calls to a backup system, and return the call flow back to normal via the Internet. There is no equipment or software to buy, no need to change telephone system providers, and a Telecom Continuity Plan is provided for auditing purposes.

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Altitude Software announced the availability of Altitude uCI 7.5, the latest release of their contact center suite. The firm says that their Altitude IP Contact Center provides businesses with a SIP-based multi-channel contact center, allowing centralized management and configuration as well as intelligent routing, monitoring and reporting capabilities for several contact center deployment options, such as "on-demand" contact center, home or remote agents and multiple sites centrally managed or on customer premises.

Using the HouseCalls Broadcast Voice Messaging solution from TeleVox Software, Chicago-based Alliant Credit Union contacted approximately 10,000 members in two days last week to warn them of possible credit card security breaches at TJX. This sophisticated outbound calling service is capable of placing up to 2,500 calls per minute, each personalized with a human voice and using Alliant’s caller ID name and number. The system also leaves messages and is used by the credit union for its automated collection service.

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

Feb. 27-28, Miami Beach - Winter Biometric Summit

June 7-8, Las Vegas - Credit Union InfoSecurity Conference

October 10-13, Albuquerque - Firefighters' National Credit Union Summit

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