Credit Union tech-talk News

March 12 - March 16, 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

* FSCC Combines Data Protection Technologies by GlobalCerts & Websense
* CU*Answers and Prime Alliance Announce New Partnership 
* PSCU & Digital Dialogue Combine Business Operations 
* William Mills Agency Celebrates 30th Anniversary
* Allegiance Enjoys 3rd Straight Year of Triple-digit Revenue Growth

Financial Service Centers Cooperative, (FSCC) the international credit union Shared Branching Network, announced a technology partnership with two leading data protection vendors, GlobalCerts and Websense, to enhance security measures on the network for participating credit unions representing 12 million members. FSCC selected the GlobalCerts SecureMail Gateway for email encryption, and the Websense Content Protection Suite as their information leak prevention solution.

CU*Answers, a 100% Credit Union owned CUSO, and Prime Alliance recently announced a partnership for promoting web-based mortgage services to credit union members. The system is a complete Loan Origination System and will provide the ability for members to electronically complete and transmit a mortgage loan application. 

PSCU Financial Services, the nation’s largest CUSO, announced it has combined business operations with Digital Dialogue, LLC, of Auburn Hills, MI. Digital Dialogue is a 24-hour call center specializing in member services, new member acquisition, cross-selling and automated lending solutions for credit unions and will continue its operations in Michigan. PSCU Financial Services will expand its portfolio to include Digital Dialogue’s automated lending solutions.

William Mills Agency, the largest independent public relations firm serving the financial industry, is celebrating its 30th year of business in Atlanta. The agency was founded in 1977 by William E. Mills, Jr. and has more than 70 clients throughout the U.S. and Europe.

Allegiance, a premier provider of enterprise feedback management solutions, announced that the company ended 2006 with its third straight year of triple-digit revenue growth, increasing nearly 200 percent. The firm also increased their customer base by more than 1,100 new clients and grew their employee count by 500 percent.

Hardware News

According to research from Carnegie Mellon University, disk drives are being replaced at rates far higher than those suggested by the estimated mean time to failure (MTTF) supplied by drive vendors. The study examined sites running SCSI, FC and SATA drives, and found annual replacement rates of between 2% and 4%, and up to 13% on some systems. However the researchers were quick to point out that the study didn't necessarily track actual drive failures, but cases in which a customer decided a drive had failed and needed replacement. Some analysts are not surprised by the comparatively high replacement rates because of the difference between the "clean room" environment in which vendors test, and the heat, dust, noise or vibrations in an actual data center. 

Servers and some workstations need to stay up and running all night, but non-critical PCs can be shutdown to save on electricity costs. Fortunately there are free and affordable commercial tools that better manage power consumption across PCs. Learn more about them in the April 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

ATM manufacturer Triton announced that they are bringing back the popular De La Rue MiniMech. Beginning March 18, the MiniMech will be available with Triton’s best-selling ATM, the 9100. The MiniMech, a smaller, lower cost cassette mechanism designed and manufactured by De La Rue, allows the cash cassette to be replenished without a special loading tray or keys.

Level Four Software has partnered with Salzburger Banken Software (SBS) to deliver an independent control and monitoring solution for ATMs. SBS’s KIXOperator allows ATM deployers to remotely monitor and control their machines. The companies say that their approach - which uses the CEN/XFS open interface to provide detailed information about every ATM - is an improvement over tradition monitoring methods. 

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Experian plans to work with VoiceVerified to supply a combined data-based ID verification and voice biometric authentication service. Experian authentication technologies - combining public data sources, predictive analytics and challenge questions - will initially be used to verify customer IDs ahead of enrollment for VoiceVerified's telephony-based biometric solution. The consumer voiceprint is then used to validate identity for future remote interactions. Experian says the approach conforms with FFIEC guidelines. 

A British company has come out with a new system for logging on to Windows PCs and networks that they claim helps to counter biometric reliability problems and also makes for a more secure system. Find out more in the April issue of Credit Union tech-talk - subscribe now.

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Mobile Payments World and Edgar, Dunn & Company released their second annual Mobile Financial Services Survey. The 2007 survey was broadened this year to gather input from hundreds of top mobile technology and financial services professionals on the success outlook and forecast in mobile payments, mobile banking and mobile financial services. The survey showed that industry professionals are generally more optimistic this year about the future for mobile payments, with 29% believing that it could happen within 2-5 years, representing an increase of 12% from the 2006 survey. In assessing the potential for mobile banking, respondents identified balance inquiries, bill payment and financial services alerts, closely followed by P2P transfers, as the services which will contribute most to the growth in this area. 

Imation announced a first-of-its-kind tracking technology that uses passive radio frequency identification (RFID) tags and Global Positioning System (GPS) tracking systems to remotely locate tape cartridges, no matter where they are - stationary or in transit. The technology embeds RFID chips in standard tape-cartridge labels. Imation's DataGuard rf Tape Tracking System will be sold as kits that contain one or both scanning devices -- stationary and handheld -- tracking management software, and a newly designed tape cartridge carrying case that fits most tape cartridge formats. The company will roll out the RFID labeling system next month, followed by the GPS component. 

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A recent survey by Dove Consulting for Pulse EFT Association says that debit card issuers may be overreacting to database breaches that compromise card data held by merchants. That is because on average, just 8% of cards issued by notified FIs may have been compromised, and the fraction of cards that ultimately sustain fraudulent activity is fairly low — less than 5% of those compromised. The Dove survey implies that by conducting mass card reissuance, issuers are imposing unnecessarily high costs on themselves. 

In its annual report on financial crimes the FBI noted that the number of mortgage fraud cases has almost doubled the past three years, reflecting a problem that is "pervasive and growing." Mortgage fraud is difficult to track for many reasons. For one thing, the industry is not required to report fraud. Moreover, the sale of mortgage loans on secondary markets can "conceal or distort the fraud," thereby reducing the number of cases reported. The FBI said fighting mortgage fraud is a priority due to the impact of mortgage lending and housing on the broader economy.

The federal government has again declined to mandate that U.S. driver’s licenses be smart cards. However, the proposed driver’s license rules released this month by the U.S. government keep the door open for some border states to add smart card chips to their driver’s licenses. The Department of Homeland Security sets out rules for tamper-proof driver’s licenses and proposes that states continue to use two-dimensional bar codes, which can store about one kilobyte of data. The rules are meant to implement a law passed in 2005 and widely known as Real ID, designed to make the driver’s license less susceptible to counterfeiting. However Real ID has met with a great deal of opposition form many states who say that the federal government has not offered enough help in meeting the high implementation costs. In response, the Department of Homeland Security has pushed back the Real ID deadline by 20 months to the end of 2009.

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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Allowing members to customize their credit and debit cards with photos is old hat compared to card vendor Gemplus' innovative and unconventional card designs. Dubbed "plastic fantastic," this collection allows issuers to differentiate their offerings. The collection includes transparent and perfumed and heat sensitive cards along with glow-in-the-dark, 3D and holographic effect cards. Meanwhile, Scandinavian banking group Nordea is looking at introducing cards with different textures - such as denim - and mirrored cards. 

Raleigh, NC-based Local Government Federal Credit Union is working with the N.C. State Fireman’s Association to offer a unique, bright red debit card to firefighters. Their affinity branded debit card program donates one-half of the merchant’s transaction fee on every transaction to programs endorsed by the N.C. State Fireman’s Association. LGFCU recently passed the $100,000 donation mark.

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According to research firm Celent, forty percent of American households now bank online. The company has released a new report entitled "Retail Internet Banking Vendors: Luring the Laggards." In it, they examine the offerings of nine vendors: Corillian, Digital Insight, Fidelity Information Services, Financial Fusion, Fiserv, Metavante, Online Resources, Open Solutions and S1. Celent says that the drivers behind the next wave of adoption will be deep integration, usability, and security. They note that many online banking vendors have recognized this trend and are well on their way to offerings that will generate significant interest for the next wave of adopters.

American consumers used their debit cards with signatures to purchase $823.5 billion in merchandise in 2005. Now according to CardData statistics, signature debit card volume in the U.S. increased 23% in 2006 - it has now surpassed the $1 trillion mark. 

Visa USA has introduced three new web-based allowance calculators designed to help parents get a better grip on their kids' spending habits while simultaneously giving their children a solid money management foundation. These free calculators are designed to help parents set appropriate allowances for kids of all ages based on the following factors: what parents themselves received for an allowance as children, needs- based expenses versus discretionary spending, and saving for a goal.

Revolutionary Convergence of Security Technology for Secure Internet Banking!

MAGENSA, a Trusted Verification Authority that provides real-time remote-hosted credential authentication services, allows credit unions to integrate PCI and FFIEC compliant multifactor authentication, data encryption, website authentication, and data federation capabilities into existing infrastructures.

MagneSafe P55 is a portable encrypting card reader with MagnePrint card authentication technology. In conjunction with MAGENSA, the MagneSafe P55 is designed to offer secure Internet banking, empowering consumers with the freedom and confidence of knowing that their transactions are secure and protected anytime, anywhere. Additionally, the MagneSafe P55’s LED provides a visual cue for the user to indicate when a secure connection to an authentic website has been established.

For more information about the MagneSafe P55 or MAGENSA, visit www.magensa.net, or call 877.MAGENSA.  

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Cisco has updated their today Unified Communications system to version 6.0. The newest release of Cisco's telephony server bundles presence, Instant Messaging (IM) and options for extending unified communications to mobile platforms. Previously, Cisco provided its presence platform on a separate, optional server with what was then called Unified CallManager. Cisco also announced that Unified Communications will integrate with Microsoft in a number of ways. Unified CallManager, for example, can use Exchange Unified Messaging as a message store for e-mail and voicemail. Microsoft Office Communicator users also have click-to-dial capabilities with Cisco Unified Communications system and there is also a tie-in between Cisco's Unified MeetingPlace and Outlook.

TouchStar Software Corporation is offering small to medium sized businesses their TouchStar IP PBX which provides not only classic PBX functionality, but also offers advanced features like Recording, Monitoring, Conference Bridging, Call Queuing and Remote Agents. In addition, the TouchStar IP PBX provides a GUI Administrator interface that is designed to make moves, adds and changes easy to implement. 

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Aastra USA Inc. has launched a new hosted call center service offering designed for small to medium businesses. The web-based product, CVCC Express, encompasses key incoming call center features of the company’s flagship service, Centergy Virtual Contact Center. These functionalities include automated call routing, announcements, skills-based routing, real-time reporting and historical performance tracking. plus, the company says that their service is free - without any upfront costs and monthly service charges.

While they do not promise zero monthly charges, EagleACD does promise a 'no cost entry' for their services. They say that small businesses can utilize their Automatic Call Distributor (ACD) to hand calls off to agents located in various locations, and employees can be monitored from home, as they work. The company offers Voice ACD, Predictive Dialer, Web Chat and Email-ACD.

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

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

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

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