Credit Union tech-talk News

April 9 - April 13, 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

* IntegraSys Adds 13 New CU Clients to Premier Core System
* Open Solutions to Acquire Fincentric
* WinMagic Joins Microsoft's SecureIT Alliance
* CU*Answers Announces CU*BASE Enhancements

IntegraSys, a business unit of Fiserv and provider of information technology services to credit unions, announced that in the last 30 days, three credit unions — The Family Credit Union, a $65 million institution in Davenport, Iowa; Hermantown Credit Union, a $58 million credit union in Hermantown, Minn.; and U.P. State Credit Union, a $30 million institution in Escanaba, Mich. — implemented the company’s Premier data processing platform. These three institutions chose to switch their core operation to Premier late last year and are part of the 13 new client relationships Premier secured in 2006. 

Open Solutions Inc. has agreed to acquire Fincentric, the Canadian provider of management solutions for credit unions. Open Solutions is a provider of integrated enabling technologies for financial service providers across the United States, Canada and other international markets.

WinMagic Inc., a leader in full-disk encryption, announced that it has joined Microsoft's SecureIT Alliance, a group of industry partners working together to develop security solutions for the Microsoft platform. As a member, WinMagic will be able to collaborate closely with Microsoft and other alliance members to improve platform-product interoperability and security to benefit mutual customers. 

CU*Answers, a 100% Credit Union owned CUSO, recently implemented two new releases to its flagship CU*BASE processing system. There is a new PIB (Personal Internet Branch) system, and many enhancements such as: E-Alerts for Members; Secure Message Center; Member Statement Audit; Courtesy Pay ANR (automated non-returns); ACH Distribution Maintenance via Online Banking; and others.

Hardware News

IBM has enhanced its dual-processor server line with new low-wattage processors from Intel and Advanced Micro Devices. Big Blue has put Intel's new 1.6GHz and 1.86GHz 50-watt quad-core Xeon 5300 "Clovertown" processor in two rack-mounted System x servers. In addition to these two servers, the 3.5-inch thick x3650 and 1.75-inch thick x3550, IBM has beefed up some of their blade servers with new dual-core AMD Opteron chips. IBM says that their clients will save about $130 per year in power and cooling costs by using low-voltage chips.

Meanwhile Stratus Computer has launched a fault-tolerant server based on Intel's latest quad-core 2.66GHz Xeon processor. The ftServer 6200, which Stratus claims is the industry’s first quad-core, fault-tolerant server, is the company's new performance flagship. Running either Windows or Linux, the new server can triple the performance of the previous top-of-the-line model, which is based on a dual-core chip. Stratus makes 99.999% uptime claims for its FT architecture on the grounds that each hardware and software component is duplicated, including the CPU. 

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

Ram raids, also known as smash and grabs, involve brute force to physically remove ATMs from their locations. Unfortunately, these types of attacks using trucks, forklifts, backhoes, etc are increasing in the US and around the world. Some ATM deployers are battling back with heavier safes, specialized enclosures, stronger foundation blots, motion alarms, bollards, GPS solutions, smoke/fogging systems, and cash staining technology. 

MasterCard Worldwide unveiled MasterCard Nearby, a trial of a new service that allows MasterCard cardholders to use their mobile phones to access ATM and merchant locations. The MasterCard Nearby site is accessible from any compatible web-enabled mobile phone. Interested consumers must enroll first at www.mcnearby.com. Information can then be viewed on the mobile Internet or delivered to their mobile phones via an SMS text message

EFD, eFunds Corp., which delivers enterprise payments and data and decisioning solutions, announced that Co-Op Financial Services has extended its long-term contract with EFD. EFD will continue providing third-party EFT processing services, including ATM network access, ATM processing, debit-card services and shared branching services, to Co-Op member credit unions across the country. 

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An Arizona-based company by the name of Axway has come out with a managed file transfer (MFT) solution for the financial services industry. Axway's Synchrony MFT solution consists of a combination of at least two authentication methods selected from two of three categories, such as passwords, digital signing certificate and biometrics. They say that their system addresses all Internet, extranet and intranet activities which includes file transfer protocol (FTP), secure file transfers and managed file transfers.

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Many people believe that the Internet changed financial services forever. However some people see mobile banking as just an extension of online banking, while others strongly disagree and are convinced that mobile banking is fundamentally different from Internet banking. We will cover the key differences in the May issue of Credit Union tech-talk - subscribe today.

Pyxis Mobile, a provider of wireless investment software to the financial services industry, announced the availability of their mPlatform suite of wireless applications for Windows Mobile 5.0 and 6.0 powered devices. The firm says that mPlatform extends critical information from the desktop and the market to the mobile device by providing instant access to CRM, sales, portfolio holdings and performance, and real-time market news and quotes. 

Southern California-based Evangelical Christian Credit Union has partnered with Siemens to build out a secure wireless LAN for two buildings on its 17-acre campus. The wireless network was designed around the credit union’s existing LAN and provides secure, reliable and mobile voice and data services for its 280 employees and 40 call center agents. 

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IBM ISS has rolled out a low-end intrusion prevention system (IPS) aimed at enterprise branch offices, ATMs, point-of-sale systems, and kiosks, as well as small- to medium-sized businesses. The company says that the new desktop-sized IPS appliance - the Proventia Network IPS GX3002 - includes a protocol analysis module for catching unknown threats. It runs $4,000. 

The Security Industry Association's 2007 New Product Showcase was held last week in conjunction with the ISC West Show. The list of some of the winners are as follows: 

Best of show: RSIalarm's Videofied VIA-Pro Intrusion Alarm 

Access Control: SimonsVoss Technologies' SV1 Cylindrical RF Lock 

Biometrics: Union Community's VIRDI 4000 

Integrated Software, Products and Systems: DVTel Inc.'s Universe Intelligent Security Engine 

IP Devices, Products and Software: HID Global's Edge Solo 

Monitoring: DSC's GS3055-1 

Video Device: Extreme CCTV's Black Diamond Technology 

Video Analytics: ioimage's ioicam mmp100dn 

Video Storage and Distribution: Pelco's UTP

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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While many people think that new customers would be shy about receiving emails from their financial institution due to the constant barrage of phishing attacks and unsolicited email messages, that doesn't appear to be the case. According to research from Javelin Strategy & Research, a surprising 42% of new customers prefer communicating with their financial institution through email. 

British bank HSBC has come out with a unique marketing campaign to drive e-statement growth. Every time a customer switches off paper, HSBC will plant one tree in an online 'Virtual Forest.' For every 20 virtual trees, the nonprofit group Trees for Cities will plant one real tree in locations across England.

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According to a report from Aite Group, American financial institutions should work together and replace the wire and ACH systems with a single electronic payments system. Traditionally, ACH has supported low-value, repetitive transactions while wire was used for high-value, time-sensitive transactions. A converged system would have many benefits: less complexity for all involved, easier compliance efforts, and better fraud fighting capabilities.

The majority of Internet users are more concerned with getting identity safeguards for online banking than being reimbursed for losses, according to a survey conducted by Javelin Strategy & Research and commissioned by Authentify. Over half (58%) of the 2781 respondents surveyed said incurring a financial loss was not their primary concern about Internet banking. Instead loss of personal information and the possibility that fraudsters would commit financial fraud in their name were the two main worries. The research also found that the vast majority of respondents - 90% - are willing to sacrifice convenience for stronger security protection for online banking. 

Salt Lake City-based Mountain America Credit Union has jumped head first into offering remote deposit capture for their business members. Through a partnership with MoneyGram and Creative Payment Solutions, the $2 billion credit union allows members to deposit their checks remotely. Mountain America rolled out the service a couple of months ago and has about 10 businesses online right now.

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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The leading broadband satellite provider is Hughes Network Systems and they estimate that there are 10 to 15 million households, and 3.5 million small businesses, that are outside the reach of terrestrial broadband. The HughesNet Business Internet plan ($$179.99 per month if you buy the satellite gear, and $219.99 if you lease) provides up to 2Mbps downstream speeds, and 500Kbps upstream. Home office users can get service for $59.99 for 700Kbps down and 128Kbps up after buying the equipment. 

Cisco Systems announced a new Smart Business Communications System designed to give unified communications capabilities to small organizations. The Unified Communications 500 Series switch/router incorporates call-control software and will support a Cisco Unified IP phone with a focus on easy setup and management. It comes with Cisco's previously announced Unified Communications Manager and Unity Express software, and will be available at $699 per seat in June, with one IP phone per seat.

Network testing vendor Network Instruments asked IT Departments across the country if they were ready to support high-quality VoIP services. Many were not confident - here are the results: 

- Almost 50 percent of those surveyed said they were concerned with their ability to monitor the quality of VoIP service

- 41 percent were unsure of their network's ability to handle the extra bandwidth consumption from VoIP calls

- 36 percent were concerned with the reliability of their VoIP application during periods of heavy use

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Call centers are notorious for high turnover rates, but some experts believe that incentives are the key to keeping loyal workers. We will cover two types of incentives and different kinds of incentive programs in the May issue of Credit Union tech-talk - subscribe today.

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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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