Thursday, April 22, 2010

Zeus Trojan Threatens Online Banking













A security firm is warning that a powerful new version of the Zeus Trojan is likely to lead to a significant rise in fraud losses.



Trusteer, who provide security services to many online banks, have warned that Zeus variants can now penetrate even strong layers of protection by using HTML injection and transaction tampering.



The increased sophistication of the Trojan means that it can now bypass the previously effective security built into Firefox, which is used by about 30 per cent of online banking customers.



The company has advised banks to make sure that their detection and mitigation methods are up to speed and warned users to check that that their anti-virus and operating systems are up to date.ADNFCR-2575-ID-19735557-ADNFCR
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Zeus Trojan Threatens Online Banking













A security firm is warning that a powerful new version of the Zeus Trojan is likely to lead to a significant rise in fraud losses.



Trusteer, who provide security services to many online banks, have warned that Zeus variants can now penetrate even strong layers of protection by using HTML injection and transaction tampering.



The increased sophistication of the Trojan means that it can now bypass the previously effective security built into Firefox, which is used by about 30 per cent of online banking customers.



The company has advised banks to make sure that their detection and mitigation methods are up to speed and warned users to check that that their anti-virus and operating systems are up to date.ADNFCR-2575-ID-19735557-ADNFCR
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TD Bank, America's Most Convenient Bank, Enhances Presence in Attractive Florida Market





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TD Bank, America's Most Convenient Bank, Enhances Presence in Attractive Florida Market





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Visa and MasterCard to Respond to SmartMetric Lawsuit in May

MasterCard Worldwide


SURFSIDE, FL, Apr 22, 2010 (MARKETWIRE via COMTEX) -- SmartMetric, Inc. (SMME 0.14+0.08+133.33%) announced today that both defendants, namely MasterCard Inc. and Visa Inc., have contacted SmartMetric concerning its patent infringement lawsuit. Both defendants have requested time to respond. By agreement responses will be made by both credit card companies in May 2010.
SmartMetric filed on March 15th, 2010 a lawsuit against Visa Inc. and MasterCard Inc., Case No. CV10-1864 alleging patent infringement against the SmartMetric issued U.S. Patent No. 6,792,464.
Mr. Hendrick, the President & CEO of SmartMetric, said that MasterCard alone admits in a press release on its corporate website that it has issued more than 50 million cards that use a technology that SmartMetric claims breaches its patent.
SOURCE: SmartMetric, Inc.
http://www2.marketwire.com/mw/emailprcntct?id=06C0572B69DFB7F7
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Visa and MasterCard to Respond to SmartMetric Lawsuit in May

MasterCard Worldwide


SURFSIDE, FL, Apr 22, 2010 (MARKETWIRE via COMTEX) -- SmartMetric, Inc. (SMME 0.14+0.08+133.33%) announced today that both defendants, namely MasterCard Inc. and Visa Inc., have contacted SmartMetric concerning its patent infringement lawsuit. Both defendants have requested time to respond. By agreement responses will be made by both credit card companies in May 2010.
SmartMetric filed on March 15th, 2010 a lawsuit against Visa Inc. and MasterCard Inc., Case No. CV10-1864 alleging patent infringement against the SmartMetric issued U.S. Patent No. 6,792,464.
Mr. Hendrick, the President & CEO of SmartMetric, said that MasterCard alone admits in a press release on its corporate website that it has issued more than 50 million cards that use a technology that SmartMetric claims breaches its patent.
SOURCE: SmartMetric, Inc.
http://www2.marketwire.com/mw/emailprcntct?id=06C0572B69DFB7F7
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American Express First Quarter Net Income of $885 Million



http://www.americanexpress.com

American Express Reports First Quarter EPS of $0.73, up 135% from $0.31 a Year Ago

NEW YORK--(BUSINESS WIRE)--American Express Company (NYSE: AXPtoday reported first-quarter net income of $885 million, up 103 percent from $437 million a year ago. Diluted per-share net income was $0.73, up 135 percent from $0.31.
“The biggest turnarounds in spending came from corporate cardmembers and banks who issue cards on our network. Consumer and small business volumes also rose in part because of strength in travel, entertainment and other discretionary categories.”




















(Millions, except per share amounts)   
Quarters Ended
March 31,
  
Percentage
Inc/(Dec)
2010
  
2009
Total Revenues Net of Interest Expense1
$6,606$5,92611%
 
Income From Continuing Operations$885$443100%
Loss From Discontinued Operations$-$(6)#
Net Income$885$437#
 
Earnings Per Common Share – Diluted:
Income From Continuing Operations Attributable to Common
Shareholders(2)$0.73$0.32#
Loss From Discontinued Operations$-$(0.01)#
Net Income Attributable to Common Shareholders2$0.73$0.31#
 
Average Diluted Common Shares Outstanding1,1911,156
 
Return on Average Equity18.0%16.3%
Return on Average Common Equity    17.1%   16.7%   
# Denotes a variance of more than 100%.





      
1 Refer to discussion regarding revenue drivers within earnings release.
2 Represents income from continuing operations or net income, as applicable, less (i) preferred share dividends and related accretion of $72 million for the quarter ended March 31, 2009, and (ii) earnings allocated to participating share awards and other items of $12 million and $4 million for the quarters ended March 31, 2010 and 2009, respectively.
 
Consolidated revenues net of interest expense were $6.6 billion, up 11 percent, compared to $5.9 billion in the year-ago period. The increase was the result of the consolidation of securitized cardmember loans and related debt onto the balance sheet in the first quarter3. Revenues also reflect higher cardmember spending, offset by a smaller loan portfolio and lower yields on both the securitized and non-securitized portions of the portfolio.
Consolidated provisions for losses totaled $943 million, down 48 percent compared to $1.8 billion in the year-ago period. The decline reflected continued improvement in credit quality on the overall portfolio3.
Consolidated expenses totaled $4.4 billion, up from $3.6 billion a year ago, reflecting higher investment in business building initiatives and higher rewards costs.
The company's return on average equity (ROE) was 18.0 percent, up from 16.3 percent a year ago.
During the first quarter, non-U.S. revenue, provision and expenses comparisons were higher due to the translation effects of a comparatively weaker U.S. dollar.
“Cardmember spending was up 16 percent, rebounding strongly from the recessionary lows of last year,” said Kenneth I. Chenault, chairman and chief executive officer. “Credit metrics also continued the improvement that began in the second half of 2009.”
“The biggest turnarounds in spending came from corporate cardmembers and banks who issue cards on our network. Consumer and small business volumes also rose in part because of strength in travel, entertainment and other discretionary categories.
“Throughout the industry – and at American Express – we saw further signs that consumers are managing their post-recessionary finances more cautiously.
“Our ability to generate strong volumes comes at a time when cardmembers are paying down their outstanding debt. This compares favorably to the major issuers who traditionally have had to rely on lending-oriented customers to generate billed business. At a time when so many consumers are focused on value, our relative strength also reflects the importance of pay-in-full charge cards and the appeal of our rewards, customer service and benefit programs.
“To help build on our momentum, we increased marketing and promotion investments back to the pre-recessionary levels. We also made other substantial investments to further strengthen our competitive position as we come out of the recession.
“Beyond those specific investments, we are carefully containing operating expenses not directly tied to growth initiatives.
“Despite the progress we made this quarter, high unemployment levels and the uncertain legislative environment remain challenges to continued growth.
“However, the global economy seems to be poised for continued improvement and our strong competitive position is yielding high quality comparative results.”
Segment Results
U.S. Card Services reported first-quarter net income of $428 million compared with a loss of $7 million a year ago.
Total revenues net of interest expense increased 14 percent to $3.5 billion, from $3.1 billion. The increase was the result of the consolidation of securitized cardmember loans and related debt onto the balance sheet in the first quarter3. Revenues also reflect higher cardmember spending, offset by a smaller loan portfolio and lower yields on both the securitized and non-securitized portions of the portfolio.
Provisions for losses totaled $687 million, down 50 percent from $1.4 billion in the year-ago period. The decline reflected continued improvement in credit quality on the overall portfolio3.
Total expenses increased 25 percent. Marketing, promotion, rewards and cardmember services expenses increased 46 percent from the year-ago period, driven by higher rewards costs and increased investment spending on marketing initiatives. Salaries and employee benefits and other operating expenses increased 2 percent from the year-ago quarter.
International Card Services reported first-quarter net income of $151 million, up from $52 million a year ago.
Total revenues net of interest expense increased 9 percent to $1.1 billion, driven by increased cardmember spending.
Provisions for losses totaled $158 million, down 53 percent from $335 million a year ago, reflecting improved credit performance.
Total expenses increased 17 percent. Marketing, promotion, rewards and cardmember services expenses increased 36 percent from year-ago levels, driven by higher rewards costs and increased marketing investments. Salaries and employee benefits and other operating expenses increased 6 percent from the year-ago quarter.
Global Commercial Services reported first-quarter net income of $92 million, up from $81 million a year ago.
Total revenues net of interest expense increased 9 percent to $1.0 billion, reflecting increased spending by corporate cardmembers and higher travel commissions and fees.
Provisions for losses totaled $78 million, up 66 percent from $47 million a year ago, reflecting higher volumes and an enhancement to the reserve methodology.
Total expenses increased 5 percent. Marketing, promotion, rewards and cardmember services expenses increased 43 percent from the year-ago period, reflecting higher rewards costs and increased marketing investments. Salaries and employee benefits and other operating expenses increased 1 percent from the year-ago quarter.
Global Network & Merchant Services reported first-quarter net income of $267 million, up from $250 million a year ago.
Total revenues net of interest expense increased 16 percent to $997 million, reflecting higher merchant-related revenues from the rise in global card billed business, as well as an increase in revenues from Global Network Services’ bank partners.
Total expenses increased 29 percent. Marketing and promotion expenses increased 159 percent from year-ago levels, driven by increased brand and merchant-related marketing investments. Salaries and employee benefits and other operating expenses increased 6 percent from the year-ago period.
Corporate and Other reported a first-quarter net expense of $53 million, compared with a net income of $67 million last year, reflecting higher operating and liquidity expenses. The results for both periods reflected income of $220 million ($136 million after-tax) for the previously announced MasterCard and Visa settlements.
American Express is a global services company, providing customers with access to products, insights and experiences that enrich lives and build business success. Learn more atwww.americanexpress.com and connect with us on www.facebook.com/americanexpresswww.twitter.com/americanexpress and www.youtube.com/americanexpress.
* * *
The 2010 First Quarter Earnings Supplement will be available today on the American Express web site at http://ir.americanexpress.com. An investor conference call will be held at 5:00 p.m. (ET) today to discuss first-quarter earnings results. Live audio and presentation slides for the investor conference call will be available to the general public at the same web site. A replay of the conference call will be available later today at the same web site address.



     
3 Upon the adoption of new accounting standards governing the accounting for transfers of financial assets and consolidation of variable interest entities on January 1, 2010, the company began consolidating the assets and liabilities of its previously unconsolidated American Express Credit Account Master Trust (Lending Trust). Among the changes arising from the consolidation of the Lending Trust, expenses related to written-off securitized cardmember loans moved from revenues net of interest expense into provisions for losses.


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