Credit Union tech-talk News

February 5 - February 9, 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

* Processing Alliance Installs First Three CU*Check 21 Clients
* Ongoing Operations Joins Neverfail Channel Network
* Digital Dialogue & Share One Form Partnership 
* Our Community CU Partners with Tremaine-West
* EPL Forms Alliance with Indirect Lending Technologies

Processing Alliance, a CUSO founded by CU*Answers and Corporate One FCU, announced that three credit union clients are now using CU*Check 21, the CUSO’s electronic deposit automation solution, in their Michigan locations; Frankenmuth CU in Frankenmuth, Kent County CU in Grand Rapids and Alpena Community CU in Alpena. After serving as pilots for CU*Check 21, each client is now scanning, transmitting and retrieving live check images online each day, and will soon begin the forward exchange of image cash letters.

Ongoing Operations, a CUSO offering turnkey solutions for credit unions in the area of disaster recovery and business continuity, and Neverfail announced their partnership to deliver Neverfail’s high availability and disaster recovery solutions to credit unions of all sizes. With Neverfail, Ongoing Operations credit unions remain continuously connected to working applications, no matter where a failure occurs – hardware, software, network or operating system. 

Digital Dialogue and Share One have formed a partnership to provide an integrated automated lending system for Share One's credit unions. Share One's client credit unions will have integrated data processing access to Digital Dialogue's Advanced Decision Engine, a tool that streamlines loan approvals with automated decisions.

Tremaine-West, Inc, an IT consulting firm, announced completion of the Business Continuity Plan for Our Community Credit Union. Our Community CU, (formerly Simpson Community CU), recently completed the multi-faceted Business Continuity Plan after nine months of work with Tremaine-West.

EPL, a credit union owned business technology solution provider, announced a partnership with Indirect Lending Technologies, LLC (ILT) a leading provider of indirect lending solutions for dealers and lenders. The partnership between ILT and EPL provides the opportunity for EPL to offer DILLS (Dealer Indirect Lending & Leasing System) as a complement to EPL’s data processor and other integrated technology solutions.

Hardware News

Lenovo announced a new small form factor machine: the ThinkCentre A55 SFF PC which is 64 percent smaller than the traditional Lenovo desktops and 25 percent smaller than their conventional small desktops. It can be fully customized with up to a 500GB hard drive, Intel Core 2 Duo processor, 4GB of RAM and support for Windows Vista. It is only 3" tall and 12.2" by 14.1" deep and wide. It also comes equipped with Lenovo ThinkVantage Technologies, such as Rescue and Recovery and Client Security System, which Lenovo says helps reduce costs for data recovery and password management. Prices for this desktop begin at $579 for the low-end model.

Hewlett-Packard just launched two thin-client computers, pitching them as power-efficient, low-maintenance alternatives to desktop PCs. The entry-level Compaq t5135 Thin Client and business-class t5530 Thin Client are the size of a paperback book, small enough to be bolted to the back of a flat-panel monitor and free up extra desk space. The t5135 promises simple operation by running a Debian Linux operating system and operating in a "stateless" mode that retains each user's settings only for the duration of each session. The t5530 offers more power by using the Windows CE OS to allow users to run a Web browser, media player or terminal emulator. 

Appliances are usually associated with security and networking, but they are also beginning to deal with data. Find out more about data appliances in the March issue of Credit Union tech-talk - subscribe now.

MagTek®’s ExpressCard 1000 is the industry’s first “ALL-IN-ONE” instant issuance and complete card personalization platform forCredit, Debit, ATM, and Financial Gift Cards designed to fit securely and comfortably within a branch location.

For the first time, card personalization features such as color card-printing, magstripe encoding, smartcard encoding, card embossing, indent printing, and foil tipping have been combined into a single device which provides both the physical and logical security features required to meet the demands of a branch or retailer’s card issuing environment.

Equipped with MagnePrint® card authentication technology (www.magneprint.com), the ExpressCard 1000 offers the capability to capture the card's reference MagnePrint at the time of card issuance so that reference value may be used in conjunction with complementary risk management analytics with card present transactions. The ExpressCard 1000 can be connected as a peripheral to MagTek’s IntelliCAT and MCAPS 3000 PIN selection and instant issuance software suites creating a complete and secure card issuing platform.

For more information on ExpressCard 1000, go to www.magtek.com or call your MagTek sales representative at 800-788-6835.

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ATMs/Kiosks

At its annual trade fair last week in Germany, Wincor Nixdorf announced an aggressive plan to build a field-technician network in the United States in 2007. Currently, Wincor has a servicing presence in 20 states, but plans to expand in to more than 30 states in 2007. Their first step is to sign first- and second-line maintenance and service deals, then move on to more complete service offerings, which will include real-time monitoring. 

Credit Union 24, the credit union-owned point-of-sale network, announced that they set new growth and performance benchmarks in 2006. The Tallahassee-based network signed 23 new credit unions and handled nearly 200 million transactions. 

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Some security analysts have noted a growing trend in the financial world: criminals are beginning to focus their efforts on the telephone banking channel. Some believe that the security industry is finally starting to catch up with online fraudsters, while others note that financial institutions are finding ways to prevent phishing and similar Internet-related scams. Voice verification proponents think that they have the solution to telephone banking fraud - find out if they do in the March issue of Credit Union tech-talk - subscribe today.

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Diversinet announced its MobiSecure Wallet and Vault, which they say is designed to "give financial institutions a unique and easy-to-use solution they can use to provide individuals with fast, convenient and secure access to new applications and services via mobile phone, PDA or PC browser." The MobiSecure Wallet software is downloaded to a phone or PC and provisioned over the air or via the Internet. Once activated, the firm says that it can securely retrieve personal information (PIN numbers, payment access information, loyalty information, etc) from the MobiSecure Vault and securely store it for offline access. The MobiSecure Vault is a server-side secure repository that can provide instant access to large files of stored personal information. The MobiSecure Wallet and Vault issue a one-time password every time the user requires authentication.

Edgar, Dunn & Company's latest newsletter is titled "Mobile Financial Services - Unlocking the Potential". The authors state that "only now are mobile financial products and services finally gaining traction. This is partly due to the fact that the number of mobile users is growing exponentially, but also because new technologies enabling fast and secure data access are promising to deliver greater consumer convenience and ease of use." It is available here: http://www.edgardunn.com/uploads/100030_english/100195.pdf

Credit bureau Experian announced BizGo, a mobile application that provides instant access to verify a company's current information and check its overall credit standing. It supports any Web-enabled cell phone, PDA or other hand-held device. The mini-report provides high-level company data, including key facts such as a business' address and phone number, the number of years in business, annual sales, SIC code and employee count - as well as information regarding bankruptcies, liens, collections or judgments. BizGo reports also include an A to F letter grade ranking for a quick evaluation of the company's overall credit standing. 

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One way to minimize your exposure to malware is to reset your Windows client machines to run without system administrator rights, a.k.a. least-privilege user. Some IT administrators use Microsoft's Active Directory Group Policy feature, but it has its limitations. We will cover another more powerful option in the March issue of Credit Union tech-talk - subscribe now.

According to the Identity Theft Assistance Center, two out of five identity theft victims surveyed know how their personal data was stolen. The firm traced identity theft to the following sources:

- Friends, relatives, in-home employees - 23% 
- Computer hacker/malware/phishing - 22% 
- Mail (stolen or fraudulent address change) - 21% 
- Lost/stolen wallet, checkbook or credit card - 13% 
- Corrupt business or employee - 10% 
- Data breach - 7% 
- House burglarized - 3% 
- Instant credit - 1%

In two related stories, increased vigilance among consumers and businesses has led to a 11.5 percent decline in identity theft, and phishing attacks have outnumbered e-mails infected with viruses and Trojan horse programs for the first time. According to the third annual study by Javelin Strategy & Research, ID theft losses declined from a around $55.7 billion in 2005 to about $49.3 billion in 2006. The study shows that 8.4 million adult Americans, or one in 27, learned last year that criminals committed fraud with personal data. Meanwhile, security mail services vendor MessageLabs is reporting that in January 2007, one in 93.3 e-mails (1.07%) comprised some form of phishing attack, while there were fewer e-mails - one in 119.9, or 0.83% - infected with malware.

MAGENSA™ is a trusted verification authority (TVA) that provides real-time remote-hosted credential authentication services. These services enable credit unions, financial institutions, businesses, and government agencies to integrate PCI DSS and FFIEC multi-factor authentication and end-to-end data encryption capabilities into their existing processing environments without the need for substantial financial investments or massive changes to the existing infrastructure.

Specifically tailored to enhance the security of internet banking and ATM applications, MAGENSA delivers unprecedented security and authentication using the familiar magstripe card credentials (secure tokens) that a credit union has already issued to its members. MAGENSA is powered by the trusted and proven card authentication technology known as MagnePrint® (www.magneprint.com). MagnePrint differentiates a members’ authentic magstripe card from an altered or counterfeit version, transforming the traditional magstripe card into a powerful security token.

MAGENSA’s Secure Data Center (SDC), a reliable 24x7 operations center that is maintained 365 days a year, simplifies the integration of data decryption and MagnePrint scoring into existing websites, and allows for data federation across institutional domains.

For more information on MAGENSA, please visit www.magensa.net or call 877.MAGENSA.

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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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Kana Software announced the release of OnDemand, a suite of customer service applications available as a software-as-a-service offering. The OnDemand package includes call center, e-mail response management, online chat and Web self-service capabilities. Also included in OnDemand is the KANA IQ knowledgebase. The firm says that the system can be launched in as quickly as 5-10 days. It starts at $125 per month per user.

Richardson, TX-based Texans Credit Union has signed with Scantron to provide it with member and employee survey services. Scantron, a subsidiary of John H. Harland, helps create question sets, manage collection processes, analyze and report results, and provide guidelines on how to implement the findings. 

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According to a global poll published by RSA security, 82% of online bankers want financial institutions and brokerages to monitor online and telephone banking transactions for suspicious activity - similar to the way that credit card transactions are monitored. Furthermore, an overwhelming 91% are willing use a new authentication method beyond the standard username-and-password procedure. But consumers are divided on the kind of stronger authentication they want. Nearly three quarters (73%) voted for "risk-based" authentication, which involves a behind-the-scenes assessment of the user's identity based on factors including log-on location, IP address and transaction behavior. Around 40% said they would like to use a hardware token for authentication, while 56% opted for image-based authentication. 

Premier Payment Services is offering outsourced, automated daily account administration software and services for clients of accounting firms, wealth managers and private bankers. The firm offers financial advisors a turn-key package called concierge bill pay so that they can offer daily account management services to their clients. Concierge bill pay is a software and services package that includes bill payment, customized monthly expense statements, and account and vendor dispute resolution. The firm states that "financial institutions offer online bill pay, and there is software like Intuit's Quicken that allows consumers to do this today. However, most people don't want to do this financial chore. Essentially, we eliminate 'you' from the equation."

Credit Union Central of Ontario (CUCO) has come up with an innovative program to provide financial products without interest. In order to serve Islamic members who cannot pay interest, CUCO partnered with a company called UM Financial for mortgages. UM Financial buys the property, with funds from CUCO; the purchaser's name goes on the title to the property. The purchaser contributes a down payment and pays a monthly rental fee equivalent to a mortgage fee. Each transaction is done with the full documentation typical of any real estate deal. So far the credit union has financed about 400 homes purchases to the tune of around $100 million.

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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According to a 2005 study by The Dieringer Research Group, of 135.4 million workers in America, 45.1 million worked from home at least once in the previous year. Naturally, broadband Internet access plays a critical role in telecommuting. If you are doing call center applications or have senior managers working from home, we can provide some tips for helping users with connectivity decisions in the March issue of Credit Union tech-talk - subscribe now.

Microsoft released the Intelligent Application Gateway 2007 (IAG 2007) which is software that gives remote users a way to access Outlook e-mail accounts as well as corporate applications while outside of the organization’s firewall. The software uses the secure sockets layer (SSL) protocol and can be used to gain VPN access via a browser. IAG 2007 can be purchased in pre-configured appliances built by Network Engines and Celestix Networks.

North Andover, Massachusetts-based pbxnsip released version 2.0 of its Windows- and Linux-compatible IP PBX software. The firm says that their system manages an organization’s communications system while maintaining affordability for small and mid-size organizations. New features include: a user portal that houses call lists, click to play voice mail, personal address book; call recording; cell phone support; IM and presence capabilities; improved plug and play endpoint support; music on hold; new auto attendant functionality; integration with Microsoft Exchange 2007; multicast paging and intercom functions; and more. 

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Transera Communications offers an on-demand call management solution, Seratel, which answers to the needs of distributed agents and provides the ability for call centers to grow and expand beyond the limitations of a brick and mortar establishment. Seratel offers an on-demand ACD solution for multi-sourced call centers that allows agents and supervisors to be located anywhere they have access to the Internet and a telephone. Frost & Sullivan named Seratel a 2007 North American Contact Center Product of the Year. 

More and more organizations are using their interactive voice response (IVR) systems for more than just answering mundane questions. In addition to using IVR in traditional ways as a greeting, routing and self-service tool, some are using them to gauge - and attempt to elevate - caller satisfaction. We will cover IVR-based post-call survey systems in the March issue of Credit Union tech-talk - subscribe now.

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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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