Tuesday, September 16, 2008

41% of Online Shoppers Click "Bye" vs. "Buy"

Here's a Press Release today from TeaLeaf.com regarding a survey done by them in conjunction with Harris Interactive. From a transactional perspective there seems to be a long way to go as 84% of those surveyed feel there's no reason an online transaction cannot be completed on the first try, but according to this poll, most sites are NOT meeting those expectations.

I say that's an easy fix and at the same time it would make the online experience as familiar and simple as the bricks and mortar experience. Here's how easy it would be to do.

Internet Retailers can provide "1 swipe shopping" by simply equipping their site's online shoppers with HomeATM's PIN Entry Device and get 'er dun right "the first time." An additional benefit to "reducing abandonment" is "reducing interchange fees."

It's easy to convince online shoppers to use a personal mag-stripe reader. By enhancing the security of the transaction you a "reducing the risk of fraud." By providing your loyal shoppers with a mini-swiper or a "Reducer"...Internet Retailers will get the added benefit of creating the very real perception that they are looking out for their customers well-being. Instead of giving away a free toaster for opening a savings account (circa 1965) they could give away a "free mini-swiper" for opening up a HATM PIN Debit Account.

The result is a true win-win situation...and according to this report, doing just that would be a "potential multi-billion dollar business opportunity"

C lick Here to Get the Executive Summary of the Report in PDF Format

Potential Multi-Billion Dollar Business Opportunity for Companies That Focus on Improving Online Customer Experiences

"Survey Says" 41% of Online Adults Click Away When They Encounter Problems, Many to a Competitor

For the fourth consecutive year, nearly 9 out of 10 (87%) online adults who have conducted an online transaction in the past year have experienced problems doing so;
41% of online adults who experience problems transacting would switch to a competitor or abandon a transaction entirely if they experienced an online transaction problem;
Four in five online adults who experience problems (84%) share their experiences with others — both online and offline

Tealeaf®, the leader in online Customer Experience Management (CEM) software, today announced the results of the 4th annual survey of online consumer behavior. The study, commissioned by Tealeaf and conducted by Harris Interactive®, focused on consumer transactions on shopping, banking, travel and insurance websites. For the fourth year running, the survey revealed that nearly nine out of 10 (87%) consumers conducting transactions online have experienced problems. When online issues occur, there is an immediate business impact.

For example, if they experienced an online transaction issue, 41% of online adults who experience problems conducting online transactions would simply switch to an online or offline competitor or abandon a transaction entirely. This represents a $57 billion potential impact to revenue on shopping sites alone — a huge opportunity for companies to harness, by ensuring their websites work. On the Web, the competition is just a click away.

According to a recent Forrester Research, Inc. report, "Obstacles to Customer Experience Success, 2008," 91% of business decision-makers said customer experience is either very important or critical to their 2008 efforts. While customer experience is increasingly important to businesses, the Tealeaf survey conducted by Harris Interactive clearly highlights that companies need to take immediate steps to ensure they understand the experience of their customers who are transacting online.

While user expectations are high — more than four in five (84%) online adults feel there is no reason why an online transaction can't be completed on the first try — most sites are not meeting those expectations.

Preference for Online Channels is Rapidly Increasing, as are User Expectations
There is an increasing preference for conducting business online — 84% of all online adults have conducted an online transaction in the past year and more than one-third (35%) generally prefer to conduct business online, according to the survey. Further, 22% of online adults who have conducted an online transaction in the past year expect even better customer service online than when shopping in-person.

Poor Experiences Evoke Reactions
Online problems evoke strong emotions from consumers. According to the survey, the vast majority of online adults who experience problems when conducting online transactions (87%) feel frustrated when they experience such problems. Of those who experience problems, 41% reported feeling angry. Emotions can drive customers to take action by providing feedback via other channels.

Improve Customer Satisfaction and Retention

There is a lack of integration between the contact center and web channels of many businesses. The survey found that 47% of all online adults have contacted a company's call center after they encountered problems using the website. Among those, 64% did not feel that the service agent was knowledgeable about the website, and nearly two in five (38%) did not have their issue resolved. Results also show that, among online adults who have experienced poor customer service from a company's call center when calling about website issues, nearly three in four (72%) either stopped doing business with that company entirely (45%), decreased the amount of business they do with the company (37%), or lodged a complaint with the Better Business Bureau (13%). Improving the service centers' ability to support the online channel not only leads to increased customer satisfaction and retention, but can also turn a support call into an opportunity to expand the business relationship with that customer.

Customers Share Experiences, Amplifying Impacts
More than four in five (84%) online adults who experience problems conducting online transactions share their experiences with others, amplifying the impact of any single experience.

Among those who share their experiences with others, 82% do so using non-online modes of communication such as in-person (74%) and phone conversations (50%) with friends and family, while 58% use online channels to share complaints or reviews, such as on the company's website (39%), in an email to friends and family (23%), on a ratings and reviews website (16%), on an online message board (8%), or on a blog or social network (7%). These Internet postings and comments are often widely disseminated and long lived.

"At US Airways, we strive to do everything we can to be the airline of choice for our customers. To achieve this, we focus on reliability, convenience and appearance in all that we do. From achieving a first place ranking in on time performance among the ten largest U.S. carriers according to the Department of Transportation's Air Travel Consumer Report ... to providing a world-class website that provides our customers the quality service they deserve and demand," said Wes Graham, Director of Internet Distribution, US Airways. "We rely on Tealeaf for real visibility into our over one million customer sessions a day to help ensure we don't skip a beat in the online world. The Web is a major revenue channel for US Airways and extremely strategic to our overall business. With the Tealeaf dashboards we've created, I can see exactly how the site is performing now as compared to the previous week with just a quick glance." "The Web has changed business; companies both large and small compete for the same customers. Now, competition is just a click away and customer expectations continue to grow," said Rebecca Ward, CEO of Tealeaf. "Businesses must take definitive steps to differentiate themselves by understanding and improving their customers' site experiences, and equipping their contact centers to truly meet the needs of online customers. Companies that do take action will be the ones to claim a greater share of this billion dollar business opportunity."

Survey Methodology - The 2008 Online Transactions survey was conducted online by Harris Interactive on behalf of Tealeaf Technology, Inc. between August 5 and August 7, 2008 among 2,010 adults ages 18+, of whom, 1,798 have conducted an online transaction in the past year and 1,572 experienced problems when conducting online transactions. Data were weighted to be representative of the online U.S. adult population. For complete survey methodology, including weighting variables, please contact Shoshana Deutschkron at shoshanad@tealeaf.com.

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ChargeAnywhere Touts PIN Debit for Quickbooks

The Green Sheet 2.0 :: Newswire

South Plainfield, N.J., Sept. 12, 2008 -- CHARGE Anywhere®, a leading provider of secure Point-of-Sale (POS) solutions and electronic payment services, is delighted to announce the ability to accept PIN Debit payments with their card payment plug-in designed for use with QuickBooks®. This is extremely beneficial to the Small and Medium Merchant Business community by allowing them to process PIN Debit transactions without changing their compatible QuickBooks software.

CHARGE Anywhere designed for use with QuickBooks with PIN Debit capability not only expands the merchant's level of service, but reduces cost a merchant pays per transaction. With the increased fraud protection, PIN Debit is a smart decision for small and medium sized merchants that can assist in reducing chargebacks due to less fraudulent purchases. When you integrate these functions into the merchant's QuickBooks software, you are going to have a happier and more productive merchant.

CHARGE Anywhere with PIN Debit feature is available with the use of a PIN pad that will be attached to the computer via cable. The compatible PIN pad devices are the LinkPoint BankPoint II, the VeriFone SE1000, and the Ingenico 3010. All of the mentioned PIN pads are PCI PED compliant and certified. In addition, the CHARGE Anywhere Point of Sale software has been validated* and meets PCI PABP compliance standards and the ComsGate® Payment Gateway is certified as PCI DSS Level 1 compliant. With the addition of PIN Debit, CHARGE Anywhere has significantly improved the functionality of their CHARGE Anywhere payment software for retailers. With PIN Debit devices added, the CHARGE Anywhere designed for use with QuickBooks payment plug-in is now, more than ever, one of the most versatile, secure payment software plug-ins on the market. PIN Debit adds to a long list of features that include customizable software settings, gift, loyalty, versatility, and security.

For more information about CHARGE Anywhere with PIN Debit, please cut and paste the following link into your browser:
http://uploads.comstarinteractive.com/pub/dlerman/CHARGE_Anywhere_Application_Designed_For_QuickBooks_Overview.pdf

Source: Company press release.

Surprise! Affluent "Spends the Most"...Time Online

Link between income and Web time

Among US affluent heads of household surveyed, those with annual household incomes of $250,000 and over spend the most time online, according to a study conducted from March through July 2008 by Ipsos Mendelsohn.

The researcher found that the average number of hours logged weekly increased with income, and that users in the top income tier spent nearly 6 more hours online per week than those whose incomes ranged from $100,000 to $150,000.

Ipsos said affluent Internet users who used PCs went online an average of 25.9 times every week. Wealthy mobile Internet users typically accessed the Web with their handsets 17.6 times weekly.

Just as Internet usage increases with income across the affluent segments, so too are affluents themselves online for longer than the average Internet user.

US adult Internet users surveyed spent an average of 21 hours per week online, according to a study conducted in May 2008 by Illuminas for Cisco Systems.

Monday, September 15, 2008

Microsoft Makes Swift Move into Payments Arena

Microsoft Corp. today announced at Sibos 2008 that it is signing a global partnership agreement with the Society for Worldwide Interbank Financial Transactions (SWIFT).

Microsoft said Monday that it will work to make its technology more compatible with the global, interbank payments network operated by the Society for Worldwide Interbank Financial Transactions (SWIFT).

The announcement signifies a new, higher level of close cooperation between the organizations, under which they will work together to deliver deep industry value and simplify SWIFTNet implementation for customers using Microsoft technology.

It is a mutual, commercially based agreement between the organizations and will open further opportunities for financial service providers and midsized to large corporations to quickly and easily connect to SWIFT.

"The dynamics of financial messaging are changing as institutions look toward technology as a competitive differentiator," said Amanda Westwood, global head of SWIFT's customer service division. "SWIFT customers demand flexible messaging platforms that are cost effective to implement and integrate with their existing systems. The continued work Microsoft does to support SWIFTNet integration and SWIFTSolutions partners goes even further toward helping expand these solutions for our customers both within organizations and across boundaries. We expect our global partnership to promote additional adoption of SWIFT connectivity and SWIFTSolutions in the future."

The development of a SWIFT partner ecosystem will be an important aspect of the global partnership. Microsoft is providing a solid and highly secure foundation on which an expanded set of trusted industry partners can build and implement solutions for SWIFT and deliver stronger solutions for customers. It will also increase the choices available to customers, enabling them to better compete through more flexible and scalable financial messaging solutions.

As a respected voice in the area of payments technology, and demonstrating its further commitment to both SWIFT and its international partner ecosystem, Microsoft has, for the fifth year running, achieved the SWIFTReady Financial EAI Label for 2008 for BizTalk Accelerator for SWIFT, which will be included in Microsoft BizTalk Server 2009.

"We are constantly listening to our customers' feedback, and what we're hearing from the financial services marketplace today is that they are looking to Microsoft, as a respected leader in enabling payments solutions, to provide increased flexibility beyond core SWIFT offerings," said David Vander, worldwide managing director of Banking at Microsoft. "

With BizTalk Accelerator for SWIFT we are enabling fast and easy system interoperability from bank systems to payments networks, thereby helping ensure that customers receive the best possible solution to their business issues, whatever their approach to payments may be. Microsoft continues to collaborate and invest in a trusted community of partners to develop an ecosystem of payments solutions.

A number of these partners are represented here at Sibos, including SWIFT, CashFac, DATALOG, Decillion, EastNets, Expertus, Fiserv NetEconomy, Nimbus, SAGA, SMA Financial, SunGard and XSP, all of which support the development of innovative, cost-effective, mission-critical solutions that will deliver deep industry value for customers and more effectively meet their payments needs globally."

Microsoft BizTalk Server 2009 with BizTalk Accelerator for SWIFT will enable financial institutions to access a comprehensive set of SWIFT solutions and support for protocols, including adapters for SWIFTNet FileAct and InterAct, which provide connectivity between Microsoft BizTalk Server and the SWIFT secure IP network. It also includes business activity monitoring, providing operations managers and business analysts with enhanced visibility into transactions. As well, Microsoft BizTalk Server 2009 will offer extended support of ISO 20022 message repairs, from correcting simple FIN messages to addressing the needs of MX- and ISO 20022-based Extensible Markup Language (XML) messages.

"With more than 8,200 customers today, Microsoft BizTalk Server leads the markets as a solution for enterprise connectivity, enabling integration across our customers' diverse set of heterogeneous systems, line-of-business applications, mainframes and trading partners," said Robert Wahbe, corporate vice president of the Connected Systems Division at Microsoft. "The Microsoft BizTalk Server 2009 release further extends our commitment to ISO 20022 standards and will make it even easier for Microsoft and its partners to build solutions for SWIFT connectivity."

In September 2008, Microsoft also committed to help drive modeling into mainstream use and announced membership in the standards body Object Management Group (OMG). OMG's modeling standards include the Unified Modeling Language(TM) (UML(R)) and Business Process Modeling Notation (BPMN), and Microsoft will take an active role in numerous OMG working groups to help contribute to the open industry dialogue and assist with evolution of the standards to meet mainstream customer needs. This move is a continuation of the company's strong commitment to industry standards and will enable its financial services partners and customers over time to more easily support new industry transaction models.

About Microsoft in Financial Services

Microsoft's Financial Services Group helps financial firms leverage technology to amplify the impact their people can deliver to drive business success. We help our customers in banking, capital markets and securities, and insurance achieve four business outcomes: develop relationships, drive innovation, improve operations and build connections. To do this, we focus our products and technologies, and our work with leading solutions, services and hardware partners, on key areas where we believe we and our partners can deliver exceptional value. Those areas include advisor platforms, channel renewal, core banking, insurance value chain, investment management, risk management and compliance, and payments. For more information, visit http://www.microsoft.com/financialservices .

Bank of America Uses Lehmann to Get Merrill Lynch

Image via Wikipedia

Bank of America Buys Merrill Lynch Creating Unique Financial Services Firm

Combines leading global wealth management, capital markets and advisory company with largest consumer and corporate bank in U.S.

Related: Paulson Statement on SEC and Federal Reserve Actions Surrounding Lehman Brothers

CHARLOTTE, N.C., Sept. 15 /PRNewswire-FirstCall/ -- Bank of America Corporation today announced it has agreed to acquire Merrill Lynch & Co.,Inc. in a $50 billion all-stock transaction that creates a companyunrivalled in its breadth of financial services and global reach.

"Acquiring one of the premier wealth management, capital markets, and advisory companies is a great opportunity for our shareholders," Bank of America Chairman and Chief Executive Officer Ken Lewis said. "Together, our companies are more valuable because of the synergies in our businesses."

"Merrill Lynch is a great global franchise and I look forward to working with Ken Lewis and our senior management teams to create what will be the leading financial institution in the world with the combination of these two firms," said John Thain, chairman and CEO of Merrill Lynch.

Under terms of the transaction, Bank of America would exchange .8595 shares of Bank of America common stock for each Merrill Lynch common share. The price is 1.8 times stated tangible book value.

Bank of America expects to achieve $7 billion in pre-tax expense savings, fully realized by 2012. The acquisition is expected to be accretive to earnings by 2010.

The transaction is expected to close in the first quarter of 2009. It has been approved by directors of both companies and is subject to shareholder votes at both companies and standard regulatory approvals.

Under the agreement, three directors of Merrill Lynch will join the Bank of America Board of Directors. The combined company would have leadership positions in retail brokerage and wealth management. By adding Merrill Lynch's more than 16,000
financial advisers, Bank of America would have the largest brokerage in the world with more than 20,000 advisers and $2.5 trillion in client assets.

The combination brings global scale in investment management, including an approximately 50 percent ownership in BlackRock, which has $1.4 trillion in assets under management. Bank of America has $589 billion in assets under management.

Adding Merrill Lynch both enhances current strengths at Bank of America and creates new ones, particularly outside of the United States. Merrill Lynch adds strengths in global debt underwriting, global equities and global merger and acquisition advice.

After the acquisition, Bank of America would be the number one underwriter of global high yield debt, the third largest underwriter of global equity and the ninth largest adviser on global mergers and acquisitions based on pro forma first half of 2008 results.

Bank of America was advised by J.C. Flowers & Co. LLC, Fox-Pitt Kelton Cochran Caronia Waller and Bank of America Securities. It was represented by Wachtell, Lipton, Rosen & Katz. Merrill Lynch was represented by Shearman & Sterling.

Source: Press Release

National Study on Teens Reshaping Wireless World

CTIA - The Wireless Association

National Study Reveals How Teens are Shaping & Reshaping Their Wireless World. Study Sheds New Light On Teens’ Cell Phone Habits, Expectations & Dream Phone Wishes

Washington, DC – A generation widely defined by mobility, today's teenagers are now making demands of their mobile devices and, in doing so, redefining what mobility will be in the future, according to a national survey, “Teenagers: A Generation Unplugged,” released today by CTIA – The Wireless Association® in conjunction with Harris Interactive.

As the wireless industry celebrates the upcoming 25th anniversary of the first commercial cell phone call (October 13, 1983), this in-depth online study of more than 2,000 teenagers around the nation sheds new light on how today’s teens feel about wireless products and services, how they are using them today and most importantly, how they would like to use them in the future. A growing wireless segment, teens view their cell phones as more than just an accessory.

“A quarter of a century of wireless innovation, new products and customized features has transformed our everyday lives,” said Steve Largent, President and CEO, CTIA – The Wireless Association®. “Teens are a pivotal segment of wireless users. As the first generation born into a wireless society, how they use their cell phones and what they expect of these devices in the future will drive the next wave of innovation in our industry.”

Impact on Teen Life

According to the Harris Interactive study, second to clothing, teens say a cell phone tells the most about a person’s social status or popularity, outranking jewelry, watches and shoes. The study also found that cell phones are fast becoming a social necessity among teens. A majority (57 percent) view their cell phone as the key to their social life.

With nearly four out of every five teens (17 million) carrying a wireless device (a 40 percent increase since 2004), it’s not surprising that six in ten teens (57 percent) credit mobility for improving their quality of life. Over half of the respondents (52 percent) agree the cell phone has become a new form of entertainment and one-third of teens currently play games on their phone. On a more serious note, 80 percent of teens surveyed said their cell phone provided a sense of security while on the go, confirming the cell phone has become their mobile safety net when needing a ride (79 percent), getting important information (51 percent), or just helping out someone in trouble (35 percent).

From texting to talking and logging on to social networking sites, teens carry cell phones to have access to friends, family and current events. Ironically, while only one in five (18 percent) teens care to pinpoint the location of their family and friends via their cell phone, 36 percent hate the idea of a cell phone feature allowing others to know their exact location.

Texting Replacing Talking

Another significant trend confirmed by the study is that texting is indeed replacing talking among teens. Teens admitted spending nearly an equal amount of time talking as they do texting each month. The feature is so important to them that if texting was no longer an option, 47 percent of teens say their social life would end or be worsened – especially among females (54 percent compared to 40 percent of males).

Teens say texting has critical advantages because it offers more options, including multitasking, speed, the option to avoid verbal communication, and because it is fun – in that order. With more than 1 billion text messages sent each day, it is no surprise that 42 percent of teens say they can even text blindfolded, the study revealed.

“Teens have created a new form of communication. We call it texting, but in essence it is a reflection of how teens want to communicate to match their lifestyles. It is all about multitasking, speed, privacy and control,” said Joseph Porus, Vice President & Chief Architect, Technology Group, Harris Interactive. “Teens in this study are crying for personalization and control of exactly what a wireless device or plan can do for them.”

Reshaping the Future

The Harris Interactive study provided a futuristic snapshot as to what teens would like to change about wireless services and devices. They want cell phones that break boundaries and are personalized to fit their lifestyle. Topping their wireless wish list are phones that:

* Guarantee secured data access to the user only (80 percent)
* Provide accessibility to personal health records (66 percent)
* Present opportunities to be educated anywhere in the world (66 percent)
* Bring users closer to global issues impacting teens’ world (63 percent)

“Teens expect mobile technology to change the social fabric of their world and they have laid the future at the feet of this technology like no other,” said Porus. “To our knowledge, no other industry carries these hopes; while teens are interested in cars and music and movies, it is mobility that will change their future!”

While there is no crystal ball to show what phones of the future will look like, the study found that teens are excited and open-minded about the wireless possibilities. The survey found that teens’ ideal future mobile device would feature five applications – phone, MP3 player, GPS, laptop computer and video player – and the following desired features:

* Shock and water proof (81 percent)
* Endless power (80 percent)
* Privacy screen (58 percent)
* Flexible material and folds into different shapes and sizes (39 percent)
* Artificial intelligence – ask it questions and it gives answers (38 percent)

“In the future, mobility for teens means mobile banking, mobile voting, location based services, personal entertainment – the sky is the limit for how mobile our lifestyles can be,” commented Largent. “We’ve certainly come a long way in 25 years and expect teens to be a growth driver for the industry and have a major impact on the wireless landscape for years to come.”

Additional Information, Press Contacts
To review selected research slides from the Harris Interactive study, entitled:
Teenagers: A Generation Unplugged, please visit: www.HarrisInteractive.com/News/MediaAccess.

To watch video clips, listen to a podcast or review a summary of the Harris Interactive study, please click here.

For additional information regarding the full survey results contact Jeanette Casselano (CTIA) at (202) 828-8833, jeanette.casselano@fleishman.com or Carly Lejnieks (Harris Interactive) at (585) 727 7176, CLejnieks@HarrisInteractive.com.

Russian Hack Creates "Rush On" Changing PIN's in Dubai

City of Abu Dhabi

Khaleej Times Online - Rush to Change PINs as ATM Fraud Sinks in

Dubai — Some banks in the UAE have slashed the daily cash withdrawal limit of ATM users by almost half after hackers, who police said were from Russia and Ukraine, used counterfeit bank and credit cards to steal funds from customer accounts.

Some banks even blocked international use of ATM cards as a preventive measure while HSBC Bank temporarily reduced the daily withdrawal limit to Dh6,000 for premier card members and Dh4,000 for others as part of measures to contain the damage.

As thousands of customers thronged ATM machines to change their card PINs (personal identification number) over the past three days, most banks in the UAE said they would continue the state of alert against the fraud, but refused to disclose the size of the money stolen or how many accounts were skimmed.

An initial investigation by banks indicated that cash machines were rigged with devices that stole customers’ PINs as they made withdrawals. Jonathan Campbell James, regional head of security and fraud risk, HSBC Middle East, said his bank did not implement a general blocking of overseas transactions as its customers expected to have access to their accounts wherever they travel.“But when we detect a series of fraudulent transactions coming from a particular geography, we may temporarily restrict access,” he said in a statement emailed to Khaleej Times.

Speaking to Khaleej Times, Major-General Khamis Matar Al Mazeina, Deputy Commander-in-Chief of Dubai Police, said the hackers are from Russia

and Ukraine. Banking sources, however, said the hackers were part of an international network, with most of the fraudulent transactions originating from more than 20 countries outside the UAE.

Al Mazeina said the police were trying to find out the methods used by the gang to steal from bank accounts. “We want to find out whether the breach occurred when customers used their cards to buy on-line or when they used their cards within the UAE and certain other countries.”

He said police still did not have any clue about the number of people and banks hit by the fraud or the total amount stolen by the gang.

“We are in touch with credit card companies, banks and fraud victims although we have not received any complaint so far.” He said the police would meet concerned authorities to probe into the matter and find measures to protect credit card users.

Banks said only ATM debit cards have been counterfeited. “The attack is more sophisticated than that are  routinely experienced, and has come from multiple countries,” Campbell James said.

Most banks continued to encourage customers to change their PIN numbers. “Because a large number of customers have already done so, a significant number of attempts by fraudsters to steal from customers’ accounts have been frustrated,” the bank official said. “HSBC and several banks in the UAE have identified fraud that appears to result from the compromise of ATM information from another bank.

This information has been used to produce counterfeit cards that have been used internationally.”

The bank official said if a customer’s card had been copied and used to steal money, the bank would contact the customer, advise them what had been done, organise a refund and issue a new card free of charge.

“Our special accelerated procedure for refunding UAE customers affected by this particular fraudulent attack is working well. A substantial number of customers have already received their refunds and the process of issuing free replacements for cards which have been compromised is on track.”

HSBC, Citibank, Lloyds TSB,  National Bank of Abu Dhabi and Emirates NBD have cautioned customers to be extra vigilant when using ATMs by protecting their PIN numbers and contacting the relevant bank should anything appear unusual at an ATM machine

UK's B2C e-Commerce Strong in Weak Economy

According to eMarketer.com: "Evidence of an economic slowdown is mounting in the UK. But so far e-commerce seems relatively immune to the downturn." They go on to say:

"This year UK business-to-consumer (B2C) e-commerce sales (including digital downloads and tickets for travel and events) will total £59.8 billion ($116.6 billion), up more than 28% since 2007."

"Due to competitive prices, easy product comparisons, fuel savings and other convenience factors that encourage consumers to shop online," says Karin von Abrams, senior analyst at eMarketer and author of the new report, UK B2C E-Commerce: Continued Growth in Tricky Times, "we expect that online sales will continue to rise steadily during the next four years."

eMarketer predicts that online sales will hit £94.2 billion ($169.6 billion) by 2012, although the annual growth rate will drop below 10%."In fact, the number of new buyers each year will hover at about 1.3 million through 2010 and decline gradually from 2011," says Ms. von Abrams.

"But the most-important driver of sales growth will be increased spending by existing online buyers, as more goods and services become available and e-commerce becomes an essential activity for many."

Petroleum Retailers Talk PCI at NACS

Gilbarco's McDowell Speaks About PCI Compliance at the Petroleum Equipment Institute

Last update: 12:10 p.m. EDT Sept. 12, 2008

GREENSBORO, N.C., Sep 12, 2008 (BUSINESS WIRE) -- Scott McDowell, marketing manager for North American payment products at Gilbarco Veeder-Root, will speak at the Petroleum Equipment Institute's general session on Monday, October 6 at McCormick Place in Chicago. The panel discussion entitled "Preparing your company and customers for PCI compliance" outlines the actions that petroleum retailers, convenience store operators, and equipment distributors must take to comply with Payment Card Industry Data Security Standards (PCI DSS). These standards are designed to protect consumer card and Personal Identification Number (PIN) data in debit transactions at the gas pump and inside the convenience store.

McDowell will present the technology options for fuel dispenser upgrades, in keeping with Gilbarco's expertise in this area.

The Petroleum Equipment Institute is a trade association whose members manufacture, distribute and service petroleum marketing and liquid handling equipment. Founded in 1951, PEI represents over 1600 member companies located in all 50 states and in 80 countries.

Gilbarco Veeder-Root is the leading supplier of gas pumps, payment systems, point of sale systems, and other equipment and services to the retail petroleum market. Gilbarco Veeder-Root also hosts the only interactive educational website about payment security, called www.AskAboutPCI.com.

Gilbarco Veeder-Root is a participating organization of the PCI Security Standards Council. The PCI Security Standards Council is an open global forum for the ongoing development, enhancement, storage, dissemination and implementation of security standards for account data protection.

The PEI conference is held in conjunction with the National Association of Convenience Stores (NACS) trade show. Gilbarco will be exhibiting at the NACS show, October 4-7 at McCormick Place in Chicago.

About Gilbarco Veeder-Root

Gilbarco Veeder-Root and Gasboy are leading suppliers of outdoor payment systems, integrated fuel control, site management, and support services for petroleum marketers and commercial fueling enterprises worldwide. (www.gilbarco.com, www.veeder.com, www.gasboy.com).

For more information visit www.gilbarco.com. To learn more about PCI compliance, visit www.AskAboutPCI.com.

SOURCE: Gilbarco Veeder-Root

Saturday, September 13, 2008

Hacker 11 Update...1 Down, 10 to Go

Man accused in TJX data breach pleads guilty

September 12, 2008 (Computerworld) One of the 11 people arrested last month in connection with the massive data theft at TJX Companies Inc., BJ Wholesale Clubs Inc. and several other retailers pleaded guilty yesterday to four felony counts, including wire and credit card fraud and aggravated identity theft.

Damon Patrick Toey is scheduled to be sentenced on Dec. 10 in U.S. District Court in Boston. He faces a maximum prison term of five years and a fine of $250,000 on each of the counts. In addition, under the terms of the plea agreement, Toey has to forfeit all of the money he earned for his role in the data theft. It is not clear how much he may have made from the attacks, although he had about $9,500 in his possession when he was arrested in May.

Toey was one of 11 alleged hackers arrested last month in connection with a series of data thefts and attempted data thefts at TJX and numerous other companies. Besides TJX and BJ's, the list of publicly identified victims of the hackers includes DSW, OfficeMax, Boston Market, Barnes and Noble, Sports Authority and Forever 21.

In a court filing yesterday, Assistant U.S. Attorney Stephen Heymann said that there is "forensic and/or testimonial evidence" that Toey and his co-conspirators broke into "numerous" other businesses that have not been publicly identified. Heymann said he would be willing to submit the full list "in camera" to the court if needed.

The ID theft ring stole data involving more than 45 million payment cards, leaving 100 or so financial institutions vulnerable to losses from fraud, Heymann said.

The breach was made public in January 2007 by Framingham, Mass.-based TJX, which later reported in a filing with the U.S. Securities and Exchange Commission that 45.6 million credit card numbers were affected -- the largest such breach on record eclipsing the June 2005 CardSystems breach.

(CardSystems was later purchased by Solidus Networks/Pay By Touch)

The alleged thefts by Toey and his companions occurred over a five-year period, from 2003 to 2008, and were largely perpetrated -- at least, initially -- by taking advantage of vulnerabilities in the wireless networks used at retail store locations. Around mid-2007, the group, largely with the help of Toey, started launching online attacks on Web servers and databases handling payment card data. Accused gang leader Albert Gonzalez allegedly invited Toey to move into his condominium in Miami, where he stayed for free and received periodic payments in return for collaborating on the Internet-base attacks.

Many of the Internet attacks that Toey facilitated were SQL injection attacks, according to court documents.

The documents described Gonzalez, Toey and others as going "war-driving" (see War-Driving 101) in commercial areas of Miami looking for vulnerable retail networks they could attack. Once they broke into a network, they would locate and steal "Track 2" data from the magnetic stripe on the back of payment cards as well as PIN-block data associated with debit cards.

The gang allegedly used sophisticated "sniffer" programs to capture password and user account information, which they would then use to break into other corporate servers containing payment card data. The gang also had access to tools that allowed its members to decipher encrypted PINs. The stolen data was then either sold to cybercriminals in Eastern Europe and the U.S. or used to make fraudulent credit and debit cards.

Toey and his gang allegedly maintained servers in the U.S., Latvia and Ukraine that were used to store tens of millions of stolen credit and debit card numbers, according to court documents.

A spokeswoman for the prosecutor's office today said that Gonzalez made his initial court appearance yesterday and pleaded innocent to the charges against him. He remains in custody without bail. His next hearing is scheduled for sometime next month.

The next person scheduled to make a court appearance in connection with the case is Christopher Scott who appears to have played a major role in the data theft at TJX. Scott faces five felony counts, including unlawful access to computers, wire fraud, aggravated identity theft and money laundering.

On two separate occasions in July 2005, Scott compromised two wireless access points at a TJX-owned Marshall's store in Miami. He used the access to download various commands onto TJX servers containing payment card data. In September 2005, Scott and Gonzalez first started downloading payment card data from TJX servers in Framingham.

About a year after gaining access to the TJX network, Scott established a VPN connection between a TJX payment card transaction processing server and a malicious server owned by Gonzalez. That connection, in turn, was used to upload various sniffer programs to the server to capture transaction data as it was being processed.

Scott collected about $400,000 for his part in the data theft and at the time of his arrest, authorities seized about $6,000 in cash, a Rolex watch and nearly two dozen pieces of electronic equipment -- including several laptop computers, storage devices, PDAs and video recorders.

Newly Formed: International Council of Payment Network Operators

International Council of Payment Network Operators Established

International Council of Payment Network Operators Established to Set Common Standards and Rules for Interoperability

Press Dispensary - Representatives of European and North American payment networks will attend the inaugural meeting of the International Council of Payment Network Operators (ICPNO) in London on September 22, 2008.

The ICPNO brings together payment networks from around the world addressing growing demand for a safer way to transact online. The ICPNO was established in 2008 to set common standards and rules for global interoperability of payment networks.

These payment network operators offer a new form of alternate payment which is rapidly gaining market and consumer acceptance, allowing consumers to make payments to online merchants using their chosen financial institution’s online banking website.

The adoption of alternate payment networks has been driven by consumer demand for easier, private and more secure online payment options. The new payment type sponsored by banks uses the existing banking system, including online consumer authentication, cash management and settlement services.

The council’s mandate is to create a framework that allows global interoperability of national networks, providing access to consumers and merchants on other networks and resulting in greater transactional volume for all participating networks.

Global network interoperability is key to allowing a consumer in one country on one network to purchase goods or services from a merchant in another country on another network. Global network interoperability will be facilitated by agreeing common standards and rules covering critical issues such as legal compliance, security, international settlement, fee structure, exchange rate mechanisms, technology integration and communications.

Council membership is open to representatives from payment network operators around the globe or to organisations looking to establish networks in their country.

Benefits of council membership include access to new merchants and consumers in other countries resulting in increased transaction volume and revenue opportunities. Other advantages include gaining knowledge and experience from international network operators, as well as sharing technology and infrastructure. Membership of the global payment network also creates additional incentives for banks and merchants to join a regional network.

“Members of the International Council of Payment Network Operators are transforming online payments around the world. Their success has been driven by a focus on privacy and security while providing consumers with more payment control and flexibility. The ICPNO benefits everyone by setting common standards and rules for global network interoperability,” says Richard Brierley-Jones of the ICPNO.

The first meeting in September will be sponsored by VocaLink, a leading European payment transaction specialist, and chaired by Alex Grinberg of eWise Systems, NACHA’s partner for the Secure Vault Payments network in the USA. Registrations for September’s meeting will close on September 15th, 2008.

About ICPNO – International Council of Payment Network Operators

The International Council of Payment Network Operators was established in 2008 to set common standards and rules for interoperability. The council’s mandate is to create a framework that allows global interoperability of national networks, providing access to consumers and merchants on other networks and resulting in greater transactional volume for all participating networks. Council membership is open to representatives from payment network operators around the globe or to organisations looking to establish networks in their country. See www.icpno.com

About VocaLink

VocaLink is a specialist provider of transaction services to banks, their corporate customers and government departments. It processes domestic and international automated payments and provides ATM switching services. On a peak day, the VocaLink automated payment system processes over 90 million transactions and over half a billion in a month. Its switching platform connects the world’s busiest ATM network of over 60,000 ATMs. Its Real-Time Payments platform underpins the UK Faster Payments service. VocaLink is working with BGC to provide outsourced processing for the majority of Sweden’s domestic payments.

See www.vocalink.com

For further information, please contact:
Richard Brierley-Jones , ICPNO
Tel: +1 720 224 3501
Email: richard@icpno.com
Site: www.icpno.com

Old Web Idea of Micropayments Finally Finds a Home

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DoJ Interest in Google-Yahoo Deal Intensifies
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Guard ID Systems raises $11M
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American Airlines Offers Special Introductory Fares and AAdvantage ...
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The web once more outpaces store sales at Kohl's
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Man accused in TJX data breach pleads guilty
Computerworld - Framingham,MA,USA Once they broke into a network, they would locate and steal "Track 2" data from the magnetic stripe on the back of payment cards as well as PIN-block data

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Tuesday, September 16, 2008

Monday, September 15, 2008

Gilbarco's McDowell Speaks About PCI Compliance at the Petroleum Equipment Institute

Saturday, September 13, 2008

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