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March 30, 2004 |
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Welcome to the March edition of ACTion News.
This complimentary service is provided by
ACT Canada; "building an informed marketplace".
It is also available in the Resource Centre
of our web site. Please feel free to forward
this to your colleagues.
If you would prefer to receive this newsletter
in plain text please email your request to
andrea(AT)actcda.com.
This newsletter has been sponsored by ACT
Canada's 2004 Partner:
A Coinamatic Company
IN THIS ISSUE:
1. Editorial Comment
2. MasterCard To Take PayPass To Other Markets
3. Seceti Selects Fraud
Detection Solution
From ACI
4. Database To Track Credit
Card Skimming
5. Contactless Smart Cards
Fly With CATSA
6. EasyPark & Mint
Introduce 'Park &
Pay By Phone' Service In
Vancouver
7. Laptop Theft Puts GMAC
Customers' Data
At Risk
8. JCB System Automatically
Refills Transportation
Smart Cards
9. SCM Microsystems Announces
myEMV Reader
10. Axalto To Provide ING
Smart MasterCards
11. Additional Stories
Available In Members
Only Section
ACT CANADA WOULD LIKE TO THANK OUR NEW & RENEWING MEMBERS:
GENERAL:
IBM ~ member since 2003
Infineon ~ member since
1998
Retail Logic ~ member since
2003
WorkOne ~ member since
2003
GOVERNMENT:
Canadian Passport Office ~ member since 2002
UPCOMING ACT CANADA EVENTS:
Canadian Smart Card Summit
& Golf Tournament:
June 2nd, Diamondback Golf
Club, Richmond
Hill
Cardware 2004, Fall 2004, dates & location
to be announced
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1. EDITORIAL
Source: Catherine Johnston, President &
CEO, ACT Canada (03/30) |
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Hesitant, apathetic and no future. That is
how the North American market is being painted,
but it ain't so Joe! It is easy to lose sight
of the unique, and often-painful nature of
an emerging market such as smart or laser
cards.
Most organizations
keep their plans
confidential
for as long as possible
to thwart their competitors.
Although understandable,
it can depress potential
suppliers and limit
competition, hurting
the buyer in the
long run. Other organizations
move aggressively
into the market,
sometimes
with a weak consumer
application, but
allow
the technology to
be blamed when the
application
fails. Both of these
are currently in
play
in our market and
the media is not
helping.
Where are the success
stories, because
there
are many successful
pilots and implementations?
Where are the lessons
learned that would
build confidence
and help us move
forward?
Where is the will
to learn from mistakes
and the wisdom to
understand the consequences
of inaction?
ACT Canada has focussed
on these over the
past 2 years, through
our events, workgroups,
papers and advocacy
work. On June 2nd,
we
will hold the first
Canadian Smart Card
Summit
bringing together
leaders from Government,
Banking, Industry
and Retailers to
share
thoughts and ideas
and to drive plans
and
progress. Invitations
will be sent out
this
week.
This dialogue and
access to information
are
crucial to success,
so as of this month
you
will see a change
in the ACTion news,
made
possible by the launch
of our members' only
area on www.actcda.com.
We can now make more
news available to
members to support
their
understanding of
this market. ACT
Canada
members are key players
and we are happy
to support their
success through this
expanded
access to information.
This publication
will continue to
update
our global subscibers
on information about
the association,
our members' progress
and
the growth of the
market. Everywhere
we go,
people tell us how
much they appreciate
the
ACTion news and I
would like to thank
each
of you for your interest
in ACT Canada and
the Canadian market.
Let me end by saying
there is a lot of
activity
in Canada in numerous
sectors. Much of
it
is not yet public
for various reasons,
but
my job is to take
each piece of information
and fit it together
like a puzzle. I'm
happy
to say that the Canadian
puzzle is growing
in size and I can
see a clear picture
emerging.
My thanks to our
members who support
our
work and my pledge
to them that ACT
Canada
will take every possible
step to ensure their
success. In addition
to the members' site,
changes to our news
distribution and
the
Smart Card Summit,
we will also be announcing
a major new initiative
next month.
Until then, I welcome you to share my enthusiasm
about the progress I clearly see. | |
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2. MASTERCARD TO TAKE PAYPASS TO OTHER MARKETS
Source: ContactlessNews Volume 2 Number 3 |
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Buoyed by successful trial roll-outs in Orlando,
Florida and Dallas, Texas, and a survey showing
more and more consumers are looking for cash
alternatives, MasterCard International is
poised to launch more PayPass pilots in U.S.
cities this summer.
"PayPass trials
are continuing in
Orlando
and Texas,"
said Betsy Foran-Owens,
VP, product services,
MasterCard International.
In addition to more
U.S. cities, "other
markets will be introducing
PayPass in the
future as well,"
she said.
The Orlando trial
involves RFID-enabled
MasterCards
issued by Chase,
Citibank, and MBNA.
More
than 16,000 cardholders
can use PayPass at
more than 60 retail
locations-including
gas
pumps, theater box
office windows, traditional
merchant countertops,
and drive-thrus.
Dallas involves a
test with a Nokia
cell
phone cover and a
contactless chip.
Nokia
is initiating the
delivery of bankcard
tokens
to consumers. The
trial is slated to
last
up to 8 months and
it involves an estimated
2,000 participants
and a small number
of
merchants in the
area surrounding
Nokia's
Dallas offices.
"One particularly
interesting finding
was that PayPass
prompted infrequent
card
users to pay with
their PayPass enhanced
cards much more frequently
and in a variety
of situations,"
said Ms. Foran-Owens.
This established
a positive link between
MasterCard PayPass
and increased cardholder
activation. In particular,
over the nine-month
trial, we realized
nearly an 18% activation
rate on formerly
inactive accounts."
Another benefit was
that "we saw
a top-of-wallet
impact among PayPass
cardholders. There
was
a nearly 23% increase
on transaction volume
versus the same period
in 2002, and an even
higher increase of
nearly 28% in total
weekly
spending versus 2002."
But a more critical
advantage was the
pattern
of frequent usage
that emerged. "Month
after month, we saw
more than a 12% increase
in transaction volumes
at PayPass merchants,"
she said. "We
saw clear evidence
that
the consumers were
using their PayPass
cards
when they once would
have used cash. The
average PayPass transaction
size during the
trial was around
$21. Eighty percent
of PayPass
transactions were
for purchases under
$25."
All of this fits
nicely with a national
telephone
survey MasterCard
International undertook
last October and
confirms what Ms.
Foran-Owens
said when the PayPass
trial was initiated
last Spring. "We
view the major competitor
to PayPass as cash
rather than other
card
transactions,"
she said then.
According to the
survey, nearly 40%
of U.S.
adults carry less
cash with them compared
with five years ago
and 26% say they
carry
"a lot less"
cash. Findings also
showed that nearly
half (49%) of consumers
carry $20 or less
in their wallet and
86%
reported that they
want to use cash
less
often than they currently
do. These survey
results are in line
with 2002 studies
that
showed 53% of consumers
would use PayPass
to replace cash payments
if their banks offered
it to them, according
to a MasterCard spokesperson.
MasterCard Canada is a member of ACT Canada.
For more information please visit http://www.mastercard.com.
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3. SECETI S.P.A SELECTS FRAUD DETECTION SOLUTION
FROM ACI WORLDWIDE
Source: ACI Worldwide (03/15) |
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ACI Worldwide announced the licensing of
ACI Proactive Risk ManagerTM to Seceti S.p.A,
the second largest card payments processor
in Italy. Responding to the needs of their
Italian banking customers to combat rising
plastic card fraud, Seceti S.p.A will implement
ACI's fraud detection software to help reduce
debit card fraud and provide a fully integrated
authorization and fraud detection service.
Seceti S.p.A provides services to 140 member
banks in Italy.
Seceti's customers
can subscribe to
the service
via web access to
closely monitor fraud
alerts.
They will be able
to closely monitor
any
fraud alerts generated
by ACI Proactive
Risk
Manager in near real-time.
Banks can then
promptly react and
contact a cardholder
if
a transaction appears
suspicious. The service
will bring significant
benefits to the banks
primarily through
cost savings as potential
fraud losses are
greatly reduced.
In addition,
by using Seceti's
integrated card processing,
authorization and
fraud detection service,
the banks will benefit
from a high level
of responsiveness
to changes in fraud
patterns
and activity levels.
"Our goal is
to minimize our customers'
exposure to risk
by identifying fraudulent
activity quickly
and proactively,"
said
Giuseppe Capponcelli,
GM, Seceti S.p.A.
"ACI
Worldwide is able
to provide an effective
fraud detection solution
that provides many
benefits to our customers
and ensures we
work together to
reduce the rising
fraud
levels in Italy.
We are giving banks
much
more control over
their fraud strategies."
ACI Worldwide (Canada) is a member of ACT
Canada. For more information please visit
http://www.aciworldwide.com.
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4. DATABASE TO TRACK CREDIT CARD SKIMMING
Source: ICMA Daily News (03/03) |
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The Australian government plans to launch
a new national database to collect intelligence
on shops, restaurants and people involved
in fraudulent credit card transactions.
The move is part
of an extensive crackdown
on card skimming
syndicates, which
use special
electronic devices
to transfer legitimate
customer information
stored on a card's
magnetic
stripe to fake cards.
Portable skimming
devices
are traditionally
used by fraudsters
to swindle
restaurant and retail
customers, but the
latest take on the
crime last year saw
devices
attached to the card
slot at ATMs.
The Australian Crime
Commission, which
will
operate the database,
has been collecting
and disseminating
information from
National
Australia Bank, Commonwealth
Bank, Westpac,
ANZ, St George Bank,
American Express
&
Visa, including details
of compromised accounts
and suspect merchants.
State law enforcement
agencies will also
have access to the
database.
Ian McKindley , risk
manager for Visa
International
in Australia and
New Zealand, estimates
there
has been a 300 percent
jump in card skimming
since 2001.
Identity fraud itself
is estimated to have
cost more than $1.1
billion in Australia
in 2001-02.
Federal Justice Minister
Chris Ellison confirmed
in a statement to
The Australian Financial
Review that the ACC
was collaborating
with
the finance sector
to establish a national
collection and sharing
of card skimming
intelligence.
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5. HID iCLASS CONTACTLESS SMART CARDS FLY
WITH CATSA
Source: HID (03/23) |
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HID announced that their combination Prox
and iCLASS 13.56 MHz multi-technology contactless
smart cards will be deployed at major airports
in Canada as part of an overall security
program for the Canadian Air Transport Security
Authority (CATSA) and their Restricted Area
Identification Card (RAIC) program.
The role of CATSA
in the deployment
of the
RAIC is to enable
Airport Authorities
to
enhance the security
of the restricted
areas
of the airport. The
deployment of HID's
200,000
multi-technology
contactless smart
cards
will begin in March.
HID is an Assa Abloy Group company. Assa
Abloy is a member of ACT Canada. For more
information please visit http://www.assaabloy.com & http://www.hidcorp.com.
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6. EASYPARK TEAMS WITH MINT TO INTRODUCE
'PARK & PAY BY PHONE' SERVICE IN VANCOUVER
Source: Mint Inc. (03/25) |
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EasyPark Vancouver introduced PayMint, the
wireless "park and pay by phone"
payment service which allows customers to
pay for parking using their own digital cell
phone. The service will be available at all
non-barriered EasyPark lots (over 80% of
total lots), by Mint Inc., a Canadian wireless
payment company. The rollout in Vancouver
is the North American debut of the PayMint
wireless 'park and pay by phone' application
which has been available throughout Sweden
for the past three years.
Parking is currently a $7 billion per year
market in Canada. Research from Strategy
Analytics states that the mobile commerce
market is set to soar to US$200 billion in
North America by 2006, while the Yankee Group
estimates that by that same time, 26% of
all wireless users in the US will be using
their handsets to authorize payments.
"We are confident that Canadian customers
are eager for this type of wireless payment
system," says Frank Maduri, President,
Mint Inc. "Our trial proved that PayMint
is easy to use thus encouraging a high repeat
adoption rate. Also, based on the research
that shows how more than 71% of Canadians
use Interac - more than any other country
- we know customers embrace non-cash payment
options. This is just a logical step forward,"
he adds.
The enforcement side of the service uses
technology and wireless handheld devices
from Epic Data Canada, which recently signed
an agreement with Mint to integrate its TicketManager
technology with PayMint. Epic Data's TicketManager
units are currently being used in White Rock,
BC and in Vancouver.
Mint Inc is a member of ACT Canada. For more
information please visit http://www.mintinc.ca.
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CTST 2004 - APRIL 27 - 29, WASHINGTON, DC
For 14
years
the CardTech/SecurTech name
has been
synonymous
with progressive content
and technology
relating
to the advanced card,
biometric
and security
technology industries.
Wired
prognosticators
fed the
market's unbridled
optimism,
until
they
were driven away by
bear-marketers.
The debate
rages.
Meanwhile,
in spite
of a
lingering
technology recession,
advanced
card
and biometric
technologies
have
quietly
and insistently
entered our
lives,
speeding
our transactions,
protecting
our identities,
securing
our perimeters
and
giving
marketers
a new
tool in the fight
for consumer
loyalty.
Global
demand
for smart
cards is projected
to grow
at a
healthy
rate of eleven percent
yearly
through
2006*.
CTST 2004 will survey
this
"promise
fulfilled"
of real-world
applications
in several
important
sectors,
including
retail,
financial
services, government
and security.
For more information please visit: http://www.ctst.com/conferences/CTST04/conference.html
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7. LAPTOP THEFT PUTS GMAC CUSTOMERS' DATA
AT RISK
Source: Paul McDougall, InformationWeek.com
(03/25) |
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GMAC Financial Services has been quietly
informing about 200,000 of its customers
that their personal data may have been compromised
due to the theft of two laptop computers
from an employee's car at a regional office
near Atlanta.
In a letter to its personal insurance customers,
GMAC Insurance indicates that "a random
theft" of the laptops from a locked
vehicle may have left them vulnerable to
identify theft. The letter indicates that
the stolen laptops contained customers' names,
addresses, dates of birth, Social Security
numbers, credit scores, marital status, and
gender. "For incidents like this, government
regulatory agencies recommend that you place
a fraud alert on your credit file,"
the letter advises customers. The letter
was dated March 12. The theft took place
on Jan. 26.
One GMAC Insurance customer who received
the letter says he was stunned to learn the
company stored such personal data on laptops.
"I'm not sure how or who determines
what constitutes 'secure' when it comes to
customers' personal information. However,
if guidelines deem it acceptable to house
that data on laptops, in parked cars, then
I would question their competence to establish
any process and procedure to ensure the security
of any data anywhere."
A spokesman for GMAC Insurance says it is
reviewing its policies in light of the incident.
Among other things, he adds, GMAC Insurance
now prohibits employees from transporting
"certain types of information"
on laptops and is evaluating new encryption
technologies. The stolen laptops were password-protected
but not encrypted, he says.
Corporate security experts generally advise
businesses to store sensitive data on secure
servers. They usually recommend that employees
requiring the data access it through the
server via secure lines and not store it
locally.
"There are not a lot of companies that
have good procedures for protecting data,
it's common for workers to take sensitive
data home on an unprotected laptop,"
Gartner security analyst Avivah Litan says.
That may be part of the reason why identity
theft has become a problem that's costing
consumers and businesses billions of dollars.
(Editor's note: The FTC estimated identity
theft cost businesses $33 billion in 2002
and as high as $48 billion in 2003. In the
US alone, 27.3 million Americans have been
victims in the past 5 years and to show you
how quickly the problem is growing, 10 million
of those were in the past year.)
Legislators are hoping tougher regulations
will help curb the problem. Under a law passed
last year in California, companies doing
business in that state are required to notify
any customers who are California residents
of any improper release of their personal
data. U.S. Sen. Dianne Feinstein, D.-Calif.,
has introduced a similar bill at the federal
level. Litan believes more high-profile data
leaks could lead to more regulation. "The
problem is becoming rampant so clearly more
action is needed," she says.
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8. JCB SYSTEM AUTOMATICALLY REFILLS TRANSPORTATION
SMART CARDS
Source: ICMA Daily News (02/24) |
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JCB plans to start offering a new service
that will use a credit card account to automatically
replenish a transportation smart card once
the available balance falls below a specified
level.
The user will receive a receipt in the mail
for the new funds on his/her smart card,
just as for beverages or other shopping items
that can be charged to the card. The number
of cards issued has been rising sharply as
users discover their convenience. But until
now, users have had to manually add funds
to the cards.
JCB hopes to market its new system to 10
transportation companies in the next five
years, achieving a user base of 500,000.
For more information please visit http://www.jcbusa.com.
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9. SCM MICROSYSTEMS ANNOUNCES MYEMV READER
FOR MASTERCARD CHIP AUTHENTICATION PROGRAM
Source: SCM Microsystems (03/18) |
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SCM Microsystems announced myEMV, a sleek,
two-factor authenticator designed for use
with EMV smart bankcards and the MasterCard
Chip Authentication Program (CAP). SCM will
market the terminals to banks and their systems
integrators in countries migrating to EMV.
"Banks and card issuers migrating to
EMV need online solutions, and myEMV solves
that problem," said Robert Schneider,
chief executive officer of SCM Microsystems.
"It is an elegantly simple device, yet
it significantly increases the transaction
security for consumers, issuers and merchants.
It fills out our mobile security solutions
for the banking industry by adding an offline
device to our high-security PC-connected
PIN pad solution and other smart card readers."
myEMV is a battery operated smart card reading
device with a display and keypad for entering
PIN codes. It is only slightly larger than
a credit card, with a highly stylized design
featuring an oval shape and perimeter key
placement. The device generates a One Time
Password or Transaction Authentication Number
for the authentication of online transactions
such as e-commerce or e-banking. When a smart
bankcard is inserted, the cardholder is prompted
to enter his or her PIN. The reader then
generates the one-time transaction authentication
code, which the cardholder enters when making
an online purchase using a standard Internet
browser. The authentication data is transferred
across the network and validated by the issuer,
providing a type of "card-present"
verification method for online transactions.
Because it is entirely offline and not connected
to any PC, myEMV is easy for consumers to
set up and use and it is totally platform
independent. Since the security lies in the
smart card, every reader is identical without
the need for personalization, making it a
cost efficient and easy-to-distribute solution.
When used with the MasterCard CAP program,
the combination of the smart EMV bankcard
and the reader creates a strong authentication
tool for e-commerce, e-banking or any Web-based
application where secure authentication is
required. Consumers benefit from higher personal
security for Internet payments and on-line
banking. Web merchants get a payment guarantee,
and a guaranteed identity of the user to
aid in disputes. Issuers can reduce fraud
and improve cardholder acquisition and retention.
Banks that are already issuing paper-based
Transaction Authentication Numbers (TANs)
can also reduce operating expenses associated
with the issuing and tracking of these numbers.
myEMV conforms to the 3DS-CAP specification.
Designs can be customized to carry corporate
logos and custom coloring to suit specific
client requirements. myEMV is based upon
the same platform as the EasyTAN® reader,
SCM's solution for generating TANs for EMV
chip cards based on the SECCOS® (Secure Chip
Card Operating System) software platform.
SCM Microsystems is a member of ACT Canada.
For more information please visit http://www.scmmicro.com.
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10. AXALTO TO PROVIDE ING SMART MASTERCARDS
Source: Axalto (03/22) |
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Axalto announced that it has been selected
by major Belgian bank ING to provide innovative
smart cards for its MasterCard co-branded
program.
This program, initiated by MasterCard last
November and launched in partnership with
Sony PlayStation, aimed at reinforcing young
customer loyalty with innovative credit cards.
ING proposed a MasterCard credit card to
students -and professionally active customers
in the 20-30 age bracket. The smart card
features discount prices on PlayStation 2
consoles and games as well as a differentiated
card body which makes it quite unique on
the banking market today.
"Potentially very volatile, the 20-30
year old customers have become highly strategic
for banks", says Luc Van Puyvelde, Group
Account Director for ING at MasterCard. "Our
experience shows that these customers need
specific products combining payment flexibility,
dynamic offers and especially off the beaten
track look. The design with rainbow-effects
is very innovative and we have wanted to
use SMS as an accordingly innovative channel
to promote the card."
Axalto & MasterCard are members of ACT
Canada. For more information please visit
http://www.axalto.com & http://www.mastercard.com.
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| 11. ADDITIONAL STORIES AVAILABLE IN ACT CANADA
MEMBERS ONLY SECTION |
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These additional stories will now be available
to ACT Canada members via the Members Only
section of our web site. Click on the link
below to access this section. If you are
a member of ACT Canada but do not have your
login details please contact me - andrea(AT)actcda.com.
http://www.actcda.com/members-only/news.htm
Amex Rolls ExpressPay Beyond Pilot Site &
Beyond U.S. Borders
Spelling Standards From The 'Alphabet Soup'
Of The Biometric Technology Industry
Europeans Learn To Like, Trust & Use
Credit Cards
Will That Be Cash Or Octopus? Hong Kong's
Transit Card Replaces Pocket Change.
GSA Draft Document Recommends That Agencies
Use Commercial Credentials
Also available:
Smart Chip Technologies has announced its
Loyalty Program Management System: e-llegiance™,
Loyalty Central™, and LoyaltyCentral.com™
to be presented live at the Electronic Transactions
Association Annual Meeting and Expo in Las
Vegas, NV April 20-22. Full details available
in the members' area and at http://www.sctn.com.
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EDITORS NOTE:
Due to lack of space, we are not carrying
the Target announcement, which has been the
subject of much discussion within the industry.
Many of the media stories we have seen on
this subject have failed to differentiate
between the technology and the application.
Retail applications with strong consumer
benefits, secured by chip will evolve in
the North American market. |
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| ACT Canada is an international non-profit
association for the advancement of card technologies.
We work on behalf of our members to promote
the awareness, understanding and use of all
advanced card technologies; including optical,
smart, capacitive and emerging technologies.
If you would like to learn more about ACT
Canada membership please visit http://www.actcda.com or contact our office at (905) 426-6360. |
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| Please forward any comments, suggestions,
questions or articles to andrea(AT)actcda.com.
If you would like to be removed from our
newsletter distribution list please reply
to this email with the word "REMOVE"
in the subject field. Please note that articles
contained in this newsletter have been edited
for length, and are for information purposes
only. |
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Andrea McMullen
AVP
ACT Canada
tel: 905 426-6360 ext. 24
fax: 905 619-3275
email: andrea(AT)actcda.com
web: www.actcda.com
mail: 85 Mullen Drive, Ajax, ON, L1T 2B3 |
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