Credit Union tech-talk News

March 26 - March 30, 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

* Northwest Community CU Selects Open Solutions
* WTFCU Protects Member Data with Code Green Networks
* Arizona Federal Signs with USERS’ Maestro Projects Group
* IA Systems and uMonitor Form Strategic Partnership
* PAYjr Signs Co-Branding Deal With CU Association of New Mexico 

Northwest Community Credit Union announced it has selected Open Solutions Inc.’s relational core data processing platform The Complete Credit Union Solution, to address its enterprise-wide data processing needs. Open Solutions is a leading provider of integrated enabling technologies for financial service providers across the United States, Canada and other international markets. In addition to The Complete Credit Union Solution data processing platform, NCCU is also implementing Open Solutions’ integrated solutions including cView (CRM/business intelligence), credit card module, telephony/VRU and the Financial Accounting Suite (integrated financial management solution).

Code Green Networks, a leading developer of solutions for protecting consumer data and intellectual property, announced that WTFCU, a federally-chartered credit union serving the greater Washington D.C. area, is using the Code Green Networks Content Inspection (CI) Appliance to protect sensitive financial data and credit union member information. The Code Green Networks CI Appliance protects information such as social security, credit card and account numbers, and uses patented Deep Content Fingerprinting technology to protect unstructured content in over 390 different file formats.

USERS Incorporated, a business unit of Fiserv, announced that the $1.6 billion Arizona Federal Credit Union has contracted with its Maestro Projects Group for a multi-phased business process improvement project. A division of USERS, Maestro Projects Group provides integration and business process management services.

IA Systems, a provider of lending software and services for credit unions, and Parsam Technologies, the provider of uMonitor financial solutions, announced a strategic partnership. The companies said that credit unions can now seamlessly integrate the creation of new accounts directly into the workflow of loan origination, enabling them to immediately offer lending products to new members.

PAYjr, an online allowance and chore management system that teaches kids about earning, saving and spending money, has signed a co-branding deal with The CU Association of New Mexico. In addition to the youth financial education program, the state league will offer their credit unions the PAYjr CU Succeed Prepaid Card.

Hardware News

For years, RAID has been largely confined to corporate data centers and server rooms, but now Raidon Technology has developed a small RAID module that fits neatly into a 3.5-in. drive bay. The SR2760 has room for two 2.5-in. Serial ATA drives and offers the option of using either RAID 0 to increase capacity and boost performance or RAID 1 to ensure that users won't lose valuable data in the event one disk crashes. The module can support up to 2TB of disk space and transfers data at speeds up to 300MB per second. 

Choosing a proper backup solution can be a challenging task for a smaller credit unions. Fortunately there are appliances on the market that combine tape drives, disk space, and an easy-to-use backup application. We will cover one system in the April issue of Credit Union tech-talk - subscribe today. 

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

Coinstar is looking to add more functionality in 2007 to their coin sorting machines. Coinstar’s new kiosks will use their existing user interface and be able to dispense a wide range of prepaid debit cards, prepaid wireless and long distance cards, gift cards and card reloads. Additionally, the machines will be configurable for future products such as bill payment and money orders. The company wants to place the machines in shopping malls, specialty retail stores, transportation centers and even some financial institutions. 

A Japanese bank is looking to turn their ATMs into virtual loan officers. Mizuho Bank will roll out the instant loan program across 6000 ATMs. They plan to perform a credit assessment on each customer and have unsecured personal loans ready to offer when they use their ATMs.

North Carolina-based State Employees Credit Union operates 900 ATMs - more than any other credit union. They have now embarked on a campaign to make their ATMs accessible to the visually impaired. The credit union started the text to speech upgrade earlier this year and should be completed with the upgrades by this summer. The voice guidance technology utilizes headphones that will provide verbal instructions for the visually impaired. 

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DigitalPersona announced the availability of the DigitalPersona U.are.U Fingerprint Keyboard with new ergonomic design and built-in DigitalPersona placement optical reader. The new integrated keyboard eliminates the need for desktop users to attach two USB devices such as a keyboard and fingerprint reader. Meanwhile, Siemens and Cherry have partnered to introduce a new biometric mouse. Cherry provides the hardware for the Siemens ID Mouse pro3, while the Siemens Biometrics Center developed both the biometric algorithms and software solutions that allow the biometric data from different users to be stored and centrally managed at one location. In action, the user performs a one-time registration by placing their index finger on the integrated fingerprint sensor of the mouse. For subsequent logons, ending the screensaver or access to specially protected data, the user only needs to tap the sensor and is logged on in less than a second. Passwords and PIN numbers are eliminated.

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Online Resources Corporation (ORCC) and Access Softek have formed a partnership to offer a mobile OFX-compatible online banking and bill payment solution dubbed Mobile Finance Manager. The software resides on the user’s SmartPhone-enabled device and allows fund transfers, bill payments, secure e-mails and alerts and multiple account views. The Mobile Finance Manager software is secured by multi-factor authentication and SSL encryption.

Florida-based Community Educators Credit Union is now offering their members anywhere, anytime Wireless Banking services via a partnership with MShift, a leading provider of turn key wireless solutions and services. CECU said that the MShift Mobile Banking Solution permits them to extend core services, such as Account Summaries, Transfers and Bill Payment, so that those critical services and financial data can be accessed from any wireless device, such as web-enabled cell phones, Palm Handhelds, Pocket PCs and RIM Blackberry Devices. MShift also announced that have helped North Carolina-based Allegacy Federal Credit Union improve its Wireless Banking service to offer even greater member convenience. Members who use Allegacy WebBanking now have access from Internet-enabled cell phones, pocket PC devices, PalmOne handhelds, and RIM Blackberry pagers. 

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According to a new report by Symantec, the United States generates more malicious computer activity than any other country. About a third of all computer attacks worldwide in the second half of 2006 originated from machines in the United States, while China generates 10 percent of attacks, and Germany generates 7 percent. However, some of the most sophisticated malware is coming out of Russia as evidenced by a recent Trojan named Gozi that has stolen PIN and identifying information and other personal data from thousands of FI accounts. SecureWorks notes that account and login information from hundreds of organizations has been stolen through Gozi-infected home PCs. 

Imperva has introduced a new feature for its database security tool that tracks changes outside the contents of the database - such as configurations, executables, and operating system registry keys. The new ADC Change Management Module for Imperva's SecureSphere track changes to objects outside the database that are relevant to security, such as the objects in the operating system that the database is running on. Imperva joins their competitor Guardium in offering this feature of tracking changes above and beyond direct changes to objects within a database.

Some security experts believe that overworked IT administrators need to add another item to their checklist: photocopiers and multi-function printers. At issue are the hard drives embedded in many of these devices. Data is stored on the drive before a document is copied or printed; unless security provisions are in place, the data is stored unencrypted and remains there until the drive is full and new data overwrites old. Learn more about this issue in the April issue of Credit Union tech-talk - subscribe now.

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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A small South Dakota bank is putting an interesting twist on prepaid cards. First Bank & Trust offers a prepaid card that also can also be used for small, short term loans. These loans can be up to $1,000 and can be repaid within three months. Credit-challenged consumers will benefit because the bank will report repayment information to the three major credit bureaus.

New York-based SEFCU plans to battle check cashers with their new Check Advantage program. They charge a fee of 1% of the check and $1 per money order which is far less than the check cashing outlets. The credit union is taking advantage of a new federal law that permits them offer check cashing and money orders services to non-members.

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Notwithstanding the past failures of dollar coins, the US mint has launched yet another new dollar coin. The new coins feature George Washington on one side and the Statue of Liberty on the other, and like their two predecessors (the 1979 Susan B. Anthony and the 2000 Sacagawea), are not much bigger than quarters. Despite the fact that the market share of government-issued physical money, both coins and bills, is dropping - from 21 percent in 2003 to an estimated 15.7 percent in 2008 according to the Nilson Report, the Mint is required by the Presidential Dollar Coin Act of 2005 to keep producing coins. Even though various electronic forms of payment, including credit and debit cards, are rapidly taking the place of cash payments, the Mint is making more varieties of coins than ever before.

TriCipher, a leading provider of authentication solutions to protect against fraud and identity theft, announced that a recent TriCipher Consumer Online Banking Study, conducted by Javelin Strategy & Research, reveals that consumers would take advantage of more online banking services if credit unions provided stronger identity protection. "Sixty-seven percent, or 150 million, U.S. consumers don't bank online today," said Stephen Knighten, Javelin Strategy & Research statistical analyst. "Our study results show that offering consumers strong online measures creates highly significant implications for financial institutions. We estimate that the industry could realize a gain of $8.3 billion per year through customer adoption and increased loyalty by offering strong identity protection software to their customers." 

eCU Technologies, an automated financial service technology provider for credit unions, announced the signings of five more credit unions in the first quarter to its UPost online deposit service. They are: American First Credit Union (La Habra, CA); Patriot Credit Union (Chambersburg, PA); Air Force Federal Credit Union (San Antonio, TX); Charlotte Metro Credit Union (Charlotte, NC); and School Employees Credit Union of Washington (Seattle, WA). 

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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Microsoft just detailed a new small-business VoIP phone system, code-named Response Point, plus vendor partners to deliver the systems. Response Point, now in beta testing and shipping later this year, supports both VoIP and conventional POTS service, and includes a voice-activated interface. Three vendors are developing phones based on Response Point specs: D-Link DVX-2000, Quanta Syspine and Uniden Evolo. Microsoft said it designed the phones to allow small businesses to manage the VoIP systems and network connections themselves. To that end, the phones ship with a PC-based management console that enables tasks such as adding a new user or creating a call distribution list.

Samsung is coming out with a new converged IP PBX for small businesses. Samsung claims that their OfficeServ7100 product is affordable, simple, and quick to install. They say that it is targeted for organizations with less than 25 employees who want a completely pre-packaged/pre-labeled/pre-programmed solution.

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Florida-based CallMiner, a developer of advanced speech analytics, announced the availability of CallMiner Eureka!, a speech analytics tool that automatically analyzes and reports on the content, context, purpose and outcome of a recorded conversation. The company claims that their software accurately mines and analyzes every word of every call, in addition to capturing acoustic data (tempo, silence and stress), meta-data and caller information. It then automatically delivers that information to call center manages without the need for customization. 

Javelin Strategy and Research has released a new report titled "Telephone Banking Authentication: Securing a Popular yet Vulnerable Channel" that concludes that "weak authentication measures continue to be utilized for phone banking." Despite the popularity of online banking, the telephone banking channel remains relevant. For example, Javelin's research revealed that 35% of online consumers used their FI's automated telephone system within the last month to perform banking functions such as checking account balances or paying bills. The bottom line is that extensive funds-movement capabilities are found in phone banking systems, yet security design and consumer practices may be deficient in comparison to other channels.

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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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