VerifySmart Receives Request from One of UK's Largest Banks; For Zero-Loss Solution to Credit/Debit and Transaction Fraud Crisis
Nov. 16, 2009 (PR Newswire) -- TAGUIG, Metro Manila, Philippines, Nov. 16 /PRNewswire-FirstCall/ - VerifySmart (TM) Corp. (VSMR: OTCBB): ("VerifySmart" or the "Company"), a global leader in secure and fraud free credit and debit payment processing services, has received a Solutions Request (the "Request") from one of the UK's largest and most trusted banking institutions (the "UK Bank"). The Request encompasses all aspects of the UK Bank's operations globally, and includes the potential introduction of a fraud-free co-branded debit/credit/money transfer card.
The UK Bank has operations in 57 countries, is a major credit and debit card issuer and provides financial services to a vast range of individual, enterprise, multinational, investment banking and asset management clients globally.
"We received the Request with a large measure of pride," says VerifySmart Honorary Chairman, Adi Muljo. "For us it validates our technologies and the confidence we have in their relevance to safeguarding the global financial community and reducing or eliminating credit/debit card and online transaction fraud loss."
VerifySmart executives and developers are working together with the UK Bank's security and card services divisions to better understand the intricacies of its business and how best to propose integration of all VerifySmart core technologies. The next steps would be the development of a beta testing phase whereby a number of VerifySmart applications would be used in a controlled test market(s) environment to measure security and fraud loss efficacy.
"Given the size of the UK Bank's operations globally, it is difficult to know how long this initial phase will take," continues Muljo, but we do know with certainty is that our technologies have captured the attention of one of the most respected and venerable financial institutions in the world. We are therefore proceeding methodically and with all due diligence to exploit this opportunity to the mutual benefit of our potential UK-based partner and of our shareholders."
Understanding the Credit/Debit Card and Transaction Fraud Loss
Opportunity
Addressing credit/debit card and online transaction fraud loss is one of the most important issues facing industrialized and developing nations today. The fraud loss numbers, threat to economic security, and acceleration of piracy sophistication are so great that, current and projected loss statistics are difficult to access. It is reported that identity theft and credit card fraud are the fastest-growing categories of US Federal Trade Commission complaints, and that the cost of credit card fraud in the United States is estimated to be US$50 million a day -- a staggering US$18.25 billion a year. In Canada, card fraud costs exceed CAD$8 million per day or $2.9 billion per year.
Currently, the accepted credit/debit card and online transaction fraud detection and prevention solution is the so-called 'Chip and PIN' ("C&P") which originated in the UK in 2004. C&P launched in parts of North America in 2008, but, in spite of high capital costs to implement and high expectations from financial institutions, merchants and consumers, the results have been disappointing at all levels. In 2008 APACS (Association of Payment Clearing Services) reported card-only fraud losses as a percentage of card turnover amounted to 0.12%. Prior to the introduction of C&P, this same statistic was 0.14% -- a mere 0.02% reduction in losses weighed against tens of millions in implementation costs.
VerifySmart's fraud prevention and detection solutions, while impenetrable, are unique in their brevity, design, execution, and cross-platform compatibility. At the heart of the Company's suite of applications, and their PCT approved pending patents, is engagement of simple SMS (text message) transactions. SMS-enabled mobile devices/cell phones are widely adopted and are growing in popularity. Currently, more than 4.1 billion mobile devices are in use worldwide. A statistic that, together with VerifySmart's alliance with iMobile Interactive, immediately connects the fraud loss problem with the VerifySmart solution in every at-risk country in the world. The 'SMS-enabled transaction' as it applies to debit/credit card fraud prevention and detection, was conceived by VerifySmart and is protected globally by PCT approvals and pending patents.
VerifySmart's credit/debit card and online transaction fraud prevention and detection technologies meet the needs of a security challenged transaction processing industry. During alpha and beta testing of VerifySmart technologies, fraud loss costs were reduced to zero.
The UK is one of the fastest-growing traditional and e-commerce markets in the world, and has an extraordinarily high mobile device subscription rate. A September 2009 study released by the global market research firm Synovate reported that of 8,000 urban mobile phone owners surveyed in 11 countries, Brits were most likely to own a smartphone (21%), and further that "As the mobile becomes more of an all-in-one device, many other businesses are facing challenging times. However, the opportunities for mobile manufacturers and networks are enormous" -- Garton, Global Head of Media. While VerifySmart recognizes the challenges, its sees in them an enormous opportunity to partner with networks and financial institutions to provide a monetizable catalyst for change.
About VerifySmart
VerifySmart (TM) Corp designed and developed a Proprietary Hardware/Software Solution that solves Credit/Debit Card fraud by using two Factor Authentication. The Company's Core Technology is designed to meet the needs of the Security challenged Trans action Processing Industry. Present day solutions, such as Verified by Visa, Chip and Pin and CVV Code (all which can be compromised) have not reduced payment card fraud by any significant factor. The VerifySmart solution has reduced fraud to zero in initial production pilots. the Company's proven and highly scalable solution is gaining worldwide attention and placing VerifySmart at the forefront of the fraud prevention revolution.
Details of this and other corporate developments will be released as news develops.
SOURCE VerifySmart Corp.
