Thursday, October 22, 2009

BofA To Sell First Republic Bank

October 22, 2009 (FinancialWire) — Bank of America Corp. (NYSE: BAC) said it has signed a definitive agreement to sell First Republic Bank to a number of investors, led by First Republic’s existing management, and including investment funds managed by Colony Capital, LLC and General Atlantic LLC.

First Republic was acquired by B of A on January 1, 2009 as part of its acquisition of Merrill Lynch & Co. As of Sept. 30, 2009, First Republic posted $19 billion in total assets, $16 billion in deposits, and $15 billion in wealth management assets under management.

The transaction is scheduled to close in the second quarter of 2010. Terms were not disclosed.

Charlotte, North Carolina-based Bank of America serves around 53 million consumer and small business relationships with 6,000 retail banking offices, more than 18,000 ATMs and online banking with more than 29 million active users.

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Microsoft Talks Browser Security at RSA Conference Europe 2009

Microsoft puts a spotlight on browser security

by Mirko Zorz - Wednesday, 21 October 2009.

The Internet is growing. With the steady rise of the number of users from emerging markets getting computers and joining the online world, opportunities abound for the bad guys to launch worldwide attacks. Some of these attacks target specifically these new markets and use password stealers and social engineering techniques. However, there is still a vast range of attacks that targets users through the Web browser.

In general, people tend to be confused when it comes to online security. They read security horror stories in the newspaper and they look to the operating system vendors and browser makers to make sure they are secure.

At the RSA Conference 2009 Europe in London today, Amy Barzdukas, General Manager, Internet Explorer and Consumer Security at Microsoft, discussed what Microsoft is doing to improve the security in Internet Explorer 8.

Continue Reading

"Card Trapping" the Latest Rage with the Bad Guys

Fraudsters trying to capture bank cards at machines

Jeremy Kirk

22.10.2009 kl 10:51 | IDG News Service

If your cash card gets eaten by the automated-teller machine, it may not end up in the hands of a bank employee.

European financial institutions are seeing a sharp rise in card "trapping," where criminals use various tricks in order to capture and retrieve a person's ATM card for fraudulent use.

For the first half of this year, financial institutions reported 1,045 trapping incidents, according to a new report from the European ATM Security Team (EAST), a nonprofit group composed of financial institutions and law enforcement. The figure, which covers 20 countries within the Single Euro Payments Area (SEPA), represents a 640 percent increase over the first half of 2008.

"For the first time, we've seen a significant spike in the number of card-trapping incidents," said Lachlan Gunn, EAST's coordinator. "It's a new trend."

Continue Reading at ComputerWorld

PNC Earns $559 Million in Third Quarter and $1.3 Billion Year-To-Date

Strong quarterly earnings and capital growth

Credit quality deterioration eases

PITTSBURGH, Oct. 22 /PRNewswire-FirstCall/ -- The PNC Financial Services Group, Inc. (NYSE: PNC) today reported net income of $559 million, or $1.00 per diluted common share, for the third quarter of 2009 compared with net income of $207 million, or $.14 per diluted common share, for the second quarter of 2009. For the first nine months of 2009, the company earned net income of $1.30 billion, or $2.17 per diluted common share. Net income was $1.16 billion, or $3.23 per diluted common share, for the first nine months of 2008.

"PNC continued to demonstrate its resiliency in the economic downturn with strong third quarter earnings growth," said James E. Rohr, chairman and chief executive officer. "Once again we delivered pretax pre-provision earnings significantly in excess of our credit costs resulting in growth in capital. We strengthened our balance sheet which we believe is well positioned as the economy begins to recover and the pace of credit quality deterioration eases. Sales across the franchise were strong and we see growing momentum as we added clients and deepened customer relationships in the quarter. We are building on the value of our combined company and are well prepared for the first wave of National City client conversions in early November. As our results demonstrate, we continue to execute against our plans to deliver significant shareholder value now and in the future."

HIGHLIGHTS

Pretax pre-provision earnings of $1.7 billion exceeded the provision for credit losses by more than $750 million in the third quarter of 2009.

Total revenue of $4.0 billion for the quarter reflected strong net interest income and noninterest income as PNC's diverse sources of revenue continued to deliver high quality results. The net interest margin increased 16 basis points linked quarter to 3.76 percent for the third quarter of 2009 primarily due to a substantial reduction in the overall cost of funds.

Expenses remained well controlled and declined $279 million, or 10 percent, compared with the linked quarter.

Capital ratios strengthened as PNC increased the estimated Tier 1 risk-based capital ratio by 30 basis points to 10.8 percent at September 30, 2009 and added 20 basis points to the estimated Tier 1 common equity ratio which was 5.5 percent at September 30, 2009. PNC plans to redeem the preferred shares issued under the TARP Capital Purchase Program when appropriate and in a shareholder-friendly manner, subject to approval by its banking regulators.

PNC continued to maintain a strong liquidity position with an 87 percent loan to deposit ratio at September 30, 2009 combined with significant liquid assets and borrowing capacity. Transaction deposits increased $1 billion during the third quarter, reflecting growth of approximately $3 billion before the impact of the required branch divestitures that included $2 billion of transaction deposits. During the quarter the company continued to manage deposit pricing, reducing nonrelationship certificates of deposit.

Loans declined 3 percent during the quarter to $161 billion reflecting paydowns and reduced demand as customers decreased debt, as well as net charge-offs. PNC remains committed to responsible lending, and loans and commitments of approximately $28 billion were originated and renewed during the third quarter as the company continued to make credit available.

Credit quality deterioration occurred at a slower pace during the third quarter. PNC strengthened loan loss reserves. The provision for credit losses exceeded net charge-offs by $264 million and the ratio of allowance for loan and lease losses to total loans increased to 2.99 percent at September 30, 2009 from 2.77 percent at June 30, 2009. Net charge-offs to average loans were 1.59 percent on an annualized basis for the third quarter down from 1.89 percent for the second quarter of 2009. The allowance for loan and lease losses of $4.8 billion combined with the fair value marks of $6.6 billion on acquired impaired loans represented approximately 7 percent of loans outstanding at September 30, 2009.

Overall the acquisition of National City Corporation continued to exceed expectations.
- The transaction was accretive to year-to-date earnings and is expected to be accretive for the full year.
- Cost savings of approximately $200 million were realized in the third quarter, an increase of $60 million from the second quarter. This brings cumulative savings to more than $460 million, ahead of plan and on track to exceed the $1.2 billion two-year goal.
- The required divestiture of 61 branches including $4.1 billion of deposits and $.8 billion of loans was completed by September 4, 2009.
- The first major conversion of National City customers to the PNC platform is scheduled for completion by November 9, 2009, with the remaining conversions to be completed by June 2010.
- Consolidation of bank charters is planned for early November 2009.
- The combined company is committed to delivering the PNC brand for client and business growth.
Read the Entire Press Release at PNC.com

Online Banking Provide Opportunity to Rebuild Trust Between Banks and Consumers, Says MasterCard CFO

According to BankTracker...Lawrence Flanagan, the Chief Financial Officer of MasterCard, recently had a little heart-to-heart with Forbes about the need to rebuild trust between financial institutions and consumers.

Mr. Flanagan expressed his views on recent turmoil in the industry which has caused customers to feel the need for more security and personal control over their banking.

Internet banking and have given consumers the power to, not only have a strong medium with which to voice wither opinions, but also provided them with the means to literally take their banking into their own hands. (Iagree! consumers can use their own hands to swipe their own card and enter their own PIN!)

With the ability to have the details of their banking information at their fingertips at all times, customers have much more power in the relationship with banks, and with this new dynamic and the technology that makes it possible comes a unique opportunity for banking institutions to rethink the way that they interact with their clients, and rebuild a relationship with them based on mutual understanding and trust.

...Consumers are still wary of the financial sector as a whole, and so will not be fooled by the usual smoke and mirrors act of traditional bank marketing schemes. As Mr. Flanagan put it, “…consumers can sniff out a commercial pitch. Editor's Note: Oh does he mean to say that useless banking promotions are...useless? How about a useful one that allows consumers to take their banking into their own hands...one that offers two two-factor authentication...one that reduces fear, induces trust and eliminates phishing?

The key to engagement and building trust is authenticity (nee: authentication) and giving them the tools they need to make their lives easier.” For example, a HomeATM Authentication Device which 100% replicates the process trusted to dispense cash from an ATM. Swipe Card, Enter PIN, using existing bank rails, existing bank cards and existing PINs. So if MasterCard's CFO sees the opportunity for banks, does he see the opportunity for MasterCard to provide the banks with the "tool" that would "carpe diem" it?

Read the entire article here

RSA 2009: Fake Chip and PIN readers hit UK

Fraudsters are being given a fake chip and PIN reader cheaply in return for giving the criminal supplier a share of the data.

By Asavin Wattanajantra, 22 Oct 2009 at 10:35

A security researcher has warned people to beware of fake Chip and PIN readers swapped for real devices in the UK and around the world. Uri Rivner, head of new technologies at RSA, said that criminals were stealing credit card data using fake Point of Sale (POS) devices.

RSA had also seen a new business model for the crime, where the suppliers of the readers and those using them against customers would both get a cut of the profits.

The fraudster at the POS would get one of the card readers subsidised from a criminal supplier, and swap it for a real device at the targeted store or restaurant in question. When a real customer swiped the card, the reader would work exactly as you would expect a real chip and PIN device to behave.

Speaking at RSA Conference Rivner said: “When a real customer swipes a card it will be like everything is okay. All of the cards will actually work, but all of that information will go to a web server. The mothership – where all of this data is collected.”

The operators would also have the chance to earn money from the fraud, as they would keep about 30 per cent of the credit card data.

Visa Names John Partridge as President

Image via Wikipedia

San Francisco, Oct. 21, 2009 -- Visa Inc. (NYSE:V) announced today that John Partridge has been named President of the company. Partridge's transition from his former position as Chief Operating Officer is effective immediately. He will continue to report to Joseph W. Saunders, Chairman and CEO of Visa Inc., and will oversee all client, marketing and product functions globally, enabling Visa to more effectively and efficiently allocate resources among markets to enhance its service to clients and speed Visa's growth.

About Visa

Visa Inc. operates the world's largest retail electronic payments network providing processing services and payment product platforms. This includes consumer credit, debit, prepaid and commercial payments, which are offered under the Visa, Visa Electron, Interlink and PLUS brands. Visa enjoys unsurpassed acceptance around the world, and Visa/PLUS is one of the world's largest global ATM networks, offering cash access in local currency in more than 200 countries and territories. For more information, visit www.corporate.visa.com .

Source: Company press release.

Does Prepaid Debit, ID Card for "Medical Marijuana" have POTential?

At first I thought this press release regarding a PrePaid POT Card was a joke. I can see it now..."Dude, I can't find my POTcard man...what a bummer...whvvvvvvvvvvvt...'eere it is...cool!

Commerce Online launches pre-paid debit, ID card for medical marijuana

Palm Beach, Fla., Oct. 21, 2009 -- Commerce Online Inc. (Pinksheets: CMIB - News) (www.commerceonlineinc.com ), a leading company specializing in both bricks and mortar and online merchant payment solutions, today announced the initial launch of a branded, pre-paid debit and ID card for licensed medical marijuana dispensaries and collectives operating within the states of California and Colorado.

In an effort to keep these collectives within the guidelines of CA Proposition 215 and SB 420, the Commerce pre-paid debit/stored value ID card will offer a unique cash alternative to these regulated dispensaries for both suppliers and members of collectives. Under new legal guidelines to be issued by the Obama administration no longer seeking prosecution of medical marijuana users or suppliers as long as they conform to state laws, Commerce Online will seek to capitalize on this presently untapped and much needed solution.

"Fourteen states presently allow some use of marijuana for medical purposes: Alaska, California, Colorado, Hawaii, Maine, Maryland, Michigan, Montana, Nevada, New Mexico, Oregon, Rhode Island, Vermont and Washington. California is unique among those for the widespread presence of dispensaries - businesses that sell marijuana and even advertise their services. Colorado also has several dispensaries, and Rhode Island and New Mexico are in the process of licensing providers", according to the Marijuana Policy Project, a group that promotes the decriminalization of marijuana use.

"Being an established player within the merchant services sector and aligning ourselves with the strongest banking and technology partners within the space, we believe Commerce Online is uniquely positioned to offer the most reliable pre-paid debit and identification card to the medical marijuana industry, and roll out our pilot program immediately. Presently, most of these operations only accept cash, as well as pay cash to suppliers to the collectives, subjecting operators and collective members to theft, unregulated and potential criminal activity. There is no doubt that with new legislation for the operation of these facilities and potential legalization in select states, there will be tighter safeguards put into place by federal, state and local governments." Stated Kyle Gotshalk CEO of Commerce Online.

"The Commerce branded, pre-paid debit and ID card will be marketed through our new Collective Card Services division, and may be loaded to any denomination of funds through a PCI compliant gateway, via the Internet, POS system or PayPal Account by the member of the collective or medical dispensary . Members of each collective will be provided a card as a registered member. The card will have a photo id, and act as a pre-paid debit card branded and recognized by the collective. Funds may be transferred by the registered user via internet, POS, or mobile phone. In case of theft or loss, the card may be cancelled immediately through an 800 number provided or online. The card will also act as the Collective member's identification having Picture ID, medical id number identifying him/her as a collective member, the collective name, and expiration date of membership. With recent economic issues and more stringent requirements within the banking industry, many Americans may no longer have or qualify for a credit card or checking account to pay for essential needs or medical services and do not want to exchange or carry large amounts of cash to these locations. The Commerce Online "GreenCard" will essentially be the logical choice as a low cost, effective cash alternative to regulated medical marijuana industry", further stated Mr. Gotshalk.

About Commerce Online Inc.

Commerce Online Inc. (www.commerceonlineinc.com ) is positioned to become a market leader in both online and wireless merchant payment solutions. The Company offers a full spectrum of secure and reliable transaction processing solutions using traditional, Internet Point-of-Sale (POS), e-commerce and mobile (wireless) terminals in conjunction with Industry Alliance Partners. The Company's Alliances provide electronic payment processing suite of services enabling merchants to accept all major credit and debit cards, as well as ATM cards and ACH check drafts for payment whether a retail, service, mail-order or Internet merchant. As an industry leader, Commerce Online is dedicated to delivering comprehensive services, such as merchant account activation, gateway connections, Web development and social network engines to a worldwide client base.

Source: Company press release.

Unisys Security Index - October 2009

The Unisys Security IndexTM presents a social indicator regarding how safe consumers feel on key areas of security. Conducted twice a year, the Unisys Security Index provides a regular, statistically robust measure of concerns about four areas of security:

National security - security and epidemics

Financial security - bankcard fraud and ability to meet personal financial obligations

Internet security - spam, virus and online financial transactions

Personal security - physical risk and identity theft

The survey's results around computer security issues reveal that the percentage of people who don't care about computer viruses or the security of e-commerce and online banking is about the same as the percentage of folks who don't use the Internet, i.e., about 25 to 30 percent of Americans. Ignorance is bliss, it seems.

But one fear that both users and non-users of the Internet share is the fear of identity theft—about 65 percent are either "very concerned" or "extremely concerned"—and that's because ID theft is largely a low-tech threat.

US Security Index, October 2009 Source: Unisys

What's new in the report

Concerns around credit / debit card fraud and identity theft continue to grow around the world

Respondents in all countries are highly concerned about the ability of governments and financial service providers to safeguard their personal data

Despite the recession, consumer concern around the ability to meet financial obligations has decreased in most countries

Consumers are more willing to use biometric technology as a means to verify their identity, with some countries now ranking as highly as 95% in favor (fingerprint and iris scan

In the wake of the recent H1N1 (swine flu) pandemic, concern around the threat of a health pandemic has increased

FULL GLOBAL COMPARISON REPORT DUE MID-NOVEMBER

National Payment Card Can Now Be Processed by RBS WorldPay

I've posted about this company a (de)couple times in the past, (See: KPG Ventures Funds NPCA and, Why $4.00 a Gallon is More Appealing to NPCA) so when this press release came across the wire, it caught my attention.

Between PayPal accepting STAR debit cards, Fifth Third Issuing RevolutionMoney Cards (see previous post) and RBS WorldPay accepting National Payment Card's, I would think that MasterCard might not want to give us such a hard time with an Internet "Card Present" classification, let alone an "unattended PIN Debit" one. There is a trend developing and MasterCard is in a position to secure their market with an innovative marketing move. My great grandfather told me, It's a lot more expensive to fix the leak AFTER the roof caves in.

Las Vegas, Oct. 22, 2009 -PIN Payments News Blog- RBS WorldPay, the fastest growing top ten payment processor in the US, today announced that National Payment Card Association (NPCA) debit cards can be processed by RBS WorldPay. As the leading provider of merchant branded ACH cards, NPCA offers merchants a card acceptance solution with significantly lower transaction fees than traditional credit or debit cards.

"RBS WorldPay is committed to offering our clients a wide range of card acceptance solutions," said Ian Drysdale, senior vice president of Market Development for RBS WorldPay. "Leading merchants are requesting alternative forms of payment that can reduce costs and increase sales. By processing cards from National Payment Card Association, we are further delivering on that promise."

National Payment Card Association first introduced its alternative payment solution in June 2006, earning much attention from industry insiders and consumers. Often referred to as "decoupled debit," NPCA's leading ACH card solution has proven to be a beneficial alternative to traditional card acceptance in both the petroleum industry and other business sectors.

"RBS WorldPay is a premier provider in petroleum card processing. Working with RBS WorldPay highlights the increased national acceptance of our payment solutions for all petroleum merchants, from tier one through mid-tier to single store operators," said National Payment Card Association CEO Joe Randazza.

The NPCA PIN based payment system processes transactions through the Federal Reserve Automated Clearing House (ACH), resulting in lower merchant fees and a self-funded loyalty program that provides immediate savings to consumers. Specifically, the program benefits retailers by helping them save on the interchange fees credit card companies normally charge on each transaction. The merchant can then use some of the savings to incent customer behavior by passing some of that savings along to them right at the pump.

About National Payment Card Association

National Payment Card Association (www.nationalpaymentcard.com ), based in Coconut Creek, FL, is an innovative marketer of ACH decoupled card-based payment systems. The company's primary product is a retailer branded debit card that does not utilize the Visa/Mastercard rails that provides consumers access to funds in their checking accounts so they can pay for goods or services. The ACH Decoupled Debit Card is not a credit or debit card that is linked through the national banking networks, but rather utilizes a user ID for consumer authentication and is processed through the National Payment Card Association network. A Decoupled Debit Card can be a loyalty card, a membership card or Driver's License. National Payment Card Association has filed a series of patent applications for methods of payment processing with a driver's license.

National Payment Card Association is a member of the EFT Network, which is a part of the Electronic Check Council of NACHA. NACHA is the rule-making body for all electronic funds transfers made through the ACH.

About RBS WorldPay US

RBS WorldPay is a leading, single-source provider of electronic payment processing services - including credit, debit, EBT, checks, gift cards, e-commerce, customer loyalty cards, fleet cards, ATM processing and cash management services.

RBS WorldPay is the US-based payment processing division of the Royal Bank of Scotland Group plc. For more information, please visit www.RBSWorldPay.us .

About The Royal Bank of Scotland Group (RBS)

The RBS Group is a financial services company providing a range of retail and corporate banking, financial markets, consumer finance, insurance, and wealth management services. The RBS Group operates in the Americas, Asia and the Middle East serving more than 40 million customers. For more information, please visit www.RBS.com .

Source: Company press release.

Revolution Raises Additional $20 Million, Targets Fifth Third

DiDigital Transactions News wrote a piece regarding the announcement by Revolution that Fifth Third would issue RevolutionCard's.

‘A Major Pivot’ for Revolution Money As It Shifts Its Focus to Issuers

(October 20, 2009 - Digital Transactions News) Revolution announced on Tuesday that Fifth Third Bancorp would be a RevolutionCard issuer, Revolution Money revealed a new focus on building its cardholder base and disclosed another $20 million venture-capital investment on top of the $42 million it received last spring.

Cincinnati-based Fifth Third is now Revolution Money’s main issuer for so-called prime consumers, those with the highest credit scores, chief executive Jason Hogg tells Digital Transactions News. The bank’s merchant-acquiring arm, Fifth Third Processing Solutions, already had been offering Revolution Card acceptance to merchants.

The addition of Fifth Third marks a shift by St. Petersburg, Fla.-based Revolution Money from building its merchant base to a focus on card issuance. “From our standpoint this is a major pivot,” Hogg says.

Revolution Money’s PIN-based credit card charges merchants a flat 0.5% per transaction. That saves merchants money but produces far less fee income for issuers than Visa and MasterCard credit transactions, which average a bit below 2% in interchange, the fee paid by the acquirer to the issuer. Acquirers typically pass on the cost to merchants.

So what’s in it for Fifth Third?

“It brings new relationships to us, we will get new customers, card customers, out of this partnership,” Jon Groch, Fifth Third Bank director of Bankcard Services, tells Digital Transactions News.

Continue Reading at Digital Transactions

Gemalto Announces Third Quarter 2009 Revenue

AMSTERDAM--(Business Wire)--

Regulatory News:

* Revenue at € 401 million

* Robust activity in Middle East and Africa, lagging demand in the Americas

* Further wins in mobile service contracts and governmental projects

* Strong € 59m net cash increase before acquisitions. Net cash position

increases to € 347 million

Third quarter 2009

Total revenue for Q3 2009 was € 401 million, lower than Q3 2008 by 5% at constant exchange rates and by 4% at historical exchange rates. Revenue for the first nine months of the year was € 1 201 million, essentially unchanged when

compared with the previous year. Demand this quarter was softer in the Americas when compared to last year, and Identity and Access Management activity in Europe contracted as enterprises postponed projects. Gemalto confirmed its

leadership in Government Programs, winning two large-scale national projects, and continued to record additional wins in mobile communication service contracts.

Gemalto further strengthened its net cash position, with € 59 million of net cash generated during this quarter.

€ 35 million were used for acquisitions, € 19 million used for the share buy-back program and € 20 million received from the exercise of options by employees. As a result, the Company`s net cash position was € 347 million at the end of the third quarter 2009

Read the Entire Press Release at Reuters

VASCO To Release Q3 2009 Results On October 27, 2009

OAKBROOK TERRACE, Illinois and ZURICH, Switzerland – October 21, 2009 – VASCO Data Security International Inc. (Nasdaq: VDSI;www.vasco.com), a leading software security company specializing in strong authentication products, announced today that it will release its Q3 2009 results on October 27, 2009.

On October 27, at 10.00 am EDT/15.00 CET*, VASCO will hold a conference call, which will be streamed on the VASCO website (www.vasco.com). * Daylight Saving Time ends in Europe on October 25.

Thedial-in telephone numbers for the conference call are:

Dial-in U.S.: 1-800-734-8507

Dial-in International: 1-212-231-2903

Mr. T. Kendall Hunt, Chairman and CEO, Mr. Jan Valcke, President and COO and Mr. Cliff Bown, Executive Vice President and CFO of VASCO, will be available on October 27 to answer analyst, investor and media questions.

About VASCO

VASCO is a leading supplier of strong authentication and e-signature solutions and services specializing in Internet Security applications and transactions. VASCO has positioned itself as global software company for Internet Security serving a customer base of approximately 9,000 companies in more than 100 countries, including almost 1,300 international financial institutions. VASCO’s prime markets are the financial sector, enterprise security, e-commerce and e-government.

Forward Looking Statements

Statements made in this news release that relate to future plans, events or performances are forward-looking statements. Any statement containing words such as “believes,” “anticipates,” “plans,” “expects,” “intend,” “mean,” and similar words, is forward-looking, and these statements involve risks and uncertainties and are based on current expectations. Consequently, actual results could differ materially from the expectations expressed in these forward-looking statements.

Reference is made to VASCO's public filings with the U.S. Securities and Exchange Commission for further information regarding the Company and its operations.

This document may contain trademarks of VASCO Data Security International, Inc. and its subsidiaries, which include VASCO, the VASCO “V” design, DIGIPASS, VACMAN, aXs GUARD and IDENTIKEY.

For more information contact:

Jochem Binst, +32 2 609 97 00, jbinst@vasco.com

Wednesday, October 21, 2009

New Functionality to Chip and PIN Terminal - Funding

Press Release: October 21, 2009 -PIN Payments News Blog - Chip and Pin terminals are no longer just machines to accept credit and debit card payments. A new functionality has been built into these terminals, allowing retailers to borrow their future credit and debit card sales upfront which they can then payback through a percentage of each credit and debit card sale from their customers.

This is a refreshing alternative for retailers who have been struggling to get access to working capital from the banks. Retailers across the country are taking advantage of an asset they already have; their future credit and debit card sales.

This is a perfect time for retailers to learn about this facility that is available to them as Christmas is approaching. Retailers can take advantage by receiving their Christmas takings now which will allow them to invest it into their business by either purchasing Christmas stock, refurbishing their premises or simply whatever they may need.

One merchant who has taken advantage of this new technology is Jake Schamrel of the Courtyard Restaurant. Jake needed working capital to convert unused space in this restaurant into a casual dining room. Once converted, Jake has seen 28% growth in his business revenue.

“This is a genius idea, a unique system that suites my business. The payments are flexible so whether I process £5,000 or £2000 it works alongside my business activity with no risk to me or my business.”

These terminals are giving merchants an alternative route to funding, helping them to grow and improve their businesses. Jake is one of many business owners who will not be beaten and continue to grow his business through the recession.

United Kapital (http://www.unitedkapital.co.uk) is pleased to be one of the first companies to introduce this terminal functionality. Tony Pegg, Managing Director of United Kapital indicated, “These terminals are the most advanced in the market, not only are they effective at their primary function of accepting credit and credit card payments but they give merchants the assurance of working capital as and when they need it. The terminals are PCI DSS compliant and are available to all types of business whether their business currently has a fixed, portable or mobile terminal.”

Financial Services Industry Hit Hardest by Fraud According to Global Report

Out of 10 industries surveyed, half experienced a spike in fraud activity and the remaining saw a decline; the global fraud rate remained steady

BOSTON, October 21, 2009 (PIN Payments News Blog) – The global financial services industry saw a dramatic spike in fraud activity with companies losing an average of $15.2 million over the past three years, according to the latest edition of the Kroll Annual Global Fraud Report, released today at the Association of Corporate Counsel’s 2009 Annual Meeting in Boston. Despite sector-specific spikes and declines in fraud activity, the worldwide fraud rate remained steady in 2009. Companies lost an average $8.8 million to fraud over the past three years, an increase of seven percent over last year’s figure which stood at $8.2 million. The findings are the result of a survey Kroll commissioned from the Economist Intelligence Unit of more than 700 senior executives worldwide.

Fraud levels varied markedly by sector with five industries experiencing a rise in fraud losses (financial services; professional services; healthcare, pharmaceuticals & biotechnology; retail, wholesale & distribution; and travel, leisure & transportation) and five sectors reporting declines (manufacturing; technology; media & telecoms; natural resources; and consumer goods & construction).

Blake Coppotelli, senior managing director in Kroll’s Business Intelligence and Investigations unit said:

“Traditionally every downturn brings about a rise in fraud, but what we are seeing in 2009 is something far more complex. Companies are seeing greater vulnerability due to reduction in internal controls, pay cuts and reduced revenue across the board, but counteracting this increased risk are the realities of today’s constrained business environment, where factors such as high staff turnover, entry into new markets and inter-firm collaboration are far less common than in years past. In short, the current economic crisis has increased the motive for fraud, but decreased the opportunity.

Of course, this shift in business behavior is only as lasting as the economic crisis itself, which is why companies must work to bolster their existing anti-fraud strategies in preparation for the economic changes to come.”

Overall, 30 percent of companies reported the current economic climate had directly increased their exposure to fraud over the past 12 months, with only five percent reporting a decline. Of all the regions surveyed North America experienced the highest incidence of fraud as a result of the global financial crisis (32 percent).

Other key findings include:

The Middle East and Africa experienced the worst fraud levels of all the regions with companies losing an average $11.5 million and seeing the highest incidence rate in seven out of the 10 frauds surveyed

North America was no longer the low fraud leader with seven out of 10 fraud incidences showing an increase over 2008 figures. Companies experiencing internal financial fraud and financial mismanagement rose substantially, however theft of physical assets, corruption and vendor fraud were lower than any other region

Larger companies with annual sales of over $5 billion reported greater average losses (rising to $25.8 million from $23.3 million in 2008), while the situation improved for smaller businesses with yearly revenue under $5 billion (dropping to $4.6 million from $5.5 million last year).

The third Kroll Annual Global Fraud Report includes a full detailed industry analysis across a range of fraud categories and regions. To obtain a copy please visit www.kroll.com/fraud.

Methodology

Kroll commissioned The Economist Intelligence Unit to conduct a worldwide survey on fraud and its effect on business during 2009. A total of 729 senior executives took part in this survey. A little more than a third of the respondents were based in North and South America, 25 percent in Asia-Pacific, just over a quarter in Europe and 11 percent in the Middle East and Africa.

Ten industries were covered, with no fewer than 50 respondents drawn from each industry. The highest number of respondents came from the financial services industry (12 percent). A total of 46 percent of the companies polled had global annual revenues in excess of $1 billion.

About Kroll

Kroll, the world's leading risk consulting company, provides a broad range of investigative, intelligence, financial, security and technology services to help clients reduce risks, solve problems and capitalize on opportunities. Headquartered in New York with offices in more than 60 cities in over 29 countries, Kroll has a multidisciplinary team of more than 3,000 employees and serves a global clientele of law firms, financial institutions, corporations, non-profit institutions, government agencies, and individuals. Kroll is a subsidiary of Marsh & McLennan Companies, Inc. (NYSE: MMC), the global professional services firm.

About The Economist Intelligence Unit

The Economist Intelligence Unit is the business information arm of The Economist Group, publisher of The Economist. Through our global network of about 700 analysts, we continuously assess and forecast political, economic and business conditions in 200 countries. As the world's leading provider of country intelligence, we help executives make better business decisions by providing timely, reliable and impartial analysis on worldwide market trends and business strategies.

Shop.org/Forrester Report Shows Online Retailers Optimistic for ’09

Online Retailers See Opportunity Ahead

- Despite Economy, Online Retailers Report Profitable 2008 -

Washington, October 2009 – Despite a progressively deteriorating economic environment, including the worst holiday season in decades, 57 percent of online retailers surveyed for Shop.org’s State of Retailing Online reported they were more profitable in 2008 than 2007. The survey polled 117 retailers and was conducted by Forrester Research, Inc.

“Many Americans are heading to the internet first to look for sales and promotions, especially when shopping for gifts and big purchases,” said Scott Silverman, Executive Director of Shop.org. “Though online retailers have had their challenges within the past year and watched consumers pull back on spending, e-commerce continues to be a bright spot in business.”

According to the survey, online retailers adjusted to the economy in a variety of different ways. Nine in ten retailers (91%) focused on preserving margins, while 88 percent of retailers amplified promotions or increased “value” messaging. Slightly more than half of retailers (53%) lowered prices as a result of the economy.

As the U.S. economy suffered in 2008, the environment provided an opportunity for some online retailers to focus on gaining market share while other retailers struggled. For many, that concentration proved successful: according to the survey, one-third of online retailers (33%) said they increased market share during the downturn.

“While online retailers have been able to navigate better than most through the economic downturn, companies should continue to focus on keeping costs low and integrating the online and offline channels in order to be best positioned when the economy bounces back,” said Sucharita Mulpuru, Forrester Research principal analyst.

As the economy begins to stabilize and consumer confidence grows, online retailers are hopeful for the future with guarded optimism. Four out of five online retailers (60%) believe the U.S economy will improve within the next year, and half (50%) think their web business will actually fare better than expected in the next 12 months. That said, retailers are being cautious internally: even though the overall sentiment about online retail is strong, thirty-eight percent said that they have actually lowered expectations around the Web business, even though the overall sentiment about the channel is strong.

"The State Of Retailing Online 2009: Profitability Report" is currently available to Shop.org members and can also be purchased directly at www.shop.org/soro. Select Forrester clients will be able to access the report directly on www.forrester.com as part of their subscription service starting on October 23, 2009.

Forrester Research, Inc. (Nasdaq: FORR) is an independent research company that provides pragmatic and forward-thinking advice to global leaders in business and technology. Forrester works with professionals in 20 key roles at major companies providing proprietary research, customer insight, consulting, events, and peer-to-peer executive programs. For more than 26 years, Forrester has been making IT, marketing, and technology industry leaders successful every day. For more information, visit www.forrester.com.

Shop.org, a division of the National Retail Federation, is the world's leading membership community for digital retail. Founded in 1996, Shop.org's 700 members include the 10 largest retailers in the U.S. and more than 60 percent of the Internet Retailer Top 100 E-Retailers. It's where the best retail minds come together to gain the insight, knowledge and intelligence to make smarter, more informed decisions in the evolving world of the Internet and multichannel retailing. Shop.org programs and activities include benchmarking research, events and networking communities.

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Source: Press Release

43 Million People Give Bank Details to Cybercriminals in Last 12 Months?

Question: Do you still really believe it is safe to bank online by typing in your username and password instead of authenticating yourself the same way you would do at an ATM?

According to the latest study by Symantec, up to 43 MILLION people may have voluntarily (can you say..."duped") given their bank details to the bad guys.

Don't people know that "sharing" their username and password to "anybody" (let alone the bad guys) means that the bank won't reimburse them? Seriously...here's an example from Wells Fargo.

Our Guarantee

We guarantee that you will be covered for 100% of funds removed from your Wells Fargo accounts in the unlikely event that someone you haven’t authorized removes those funds through our Online Services. To qualify for this guarantee, you must follow Your Responsibilities below.

Online Services means any Wells Fargo Online^® or Wells Fargo Business Online^®services you use to initiate consumer, business, or brokerage monetary transactions.

Your Responsibilities

You are responsible for protecting your password and account information by: Not disclosing your personal account information to others (including your ATM PIN, online username, and password)

Think about it. 43 Million in 12 months. Voluntarily.

Let's put that in perspective. How long did it take McDonald's to serve 43 Million Hamburgers at 15 cents each? It took them years and years.

43 Million in 12 months means that (as predicted)...it's getting a lot worse before it's getting better...in fact...it's getting downright crazy!

Up to 43 million people could have given their bank details to cyber criminals after being duped by fake anti-virus software online, a web security firm has found.

Figures published by Symantec suggest: 93 percent of the people scammed downloaded the rogue programs "by choice" after being tricked into believing it was legitimate.

Editor's Note: So much for the idea of "educating" customers about the dangers of phishing. I never really thought that was a good "master plan" anyway.

The better "master plan" would be the elimination of typing username/passwords into a box at an online banking website. Then phishers have nothing to phish phor. Otherwise...online banking fraud will double...I suppose instead of giving away a HomeATM SLIM they could ask their online banking customers if they "Would Like Phries" with their Philet-O-Phish...

Click Here for the PDF Version of the Symantec Report

From Symantec: Web users fall prey to the scam when they click on links, pop-ups or flashing adverts warning them their computer is infected. The fake program then appears to run a virus check which tells the user their PC is infected and asks them to pay for it to be cleaned up.

But downloading the software can give criminals access to bank details and computer files. Symantec found 250 rogue programs were downloaded 43 million times in the 12 months to July 2009.

The company's analysts believe a small number of people run networks of more than 1,000 distributors — whose earnings are linked to the number of machines they infect.

The distributors, most of whom are in the United States, may not even realize they are acting illegally. "It is a challenge to (ph)fight this," Orla Cox, Symantec's security operations manager told Sky News Online.

Continue Reading at Fox News

Tuesday, October 20, 2009

Fake Anti-Virus Scams Big Business

Evidence of mass-market small-loss scamming

The Anti-Phishing Working Group recently estimated that 485,000 samples were detected in the first six months of the year, which is more than five times the total detected for the whole of 2008.

Symantec has found as many as 250 different cases of fake anti-virus and scareware scams that are being distributed through 200,000 web sites across the globe.

Cyber criminals could be pocketing up to £850,000 from the scams, the security vendor speculates in a new report on the phenomenon, suggesting that its findings indicate 43 million people were duped into paying for false security software in the year ending June 2009.

David Wall, a criminal psychologist and an expert in cybercrime working at the University of Leeds said of the findings, “Not only have we seen an explosion of activity in the last six months or so but these operation have become almost silky smooth. It has become a form of cybercrime that is almost wholly automated. Once a computer has become infected, the scammers don’t need to be involved in seeing the crime through.”

Continue Reading at CBR

2009 Privacy Trust Study for Retail Banking - Ponemon Institute

SOURCE: Ponemon Institute

Oct 20, 2009

Global Financial Crisis Weighs on Results of Ponemon Institute 2009 Most Trusted Companies for Retail Banking Study

Study Finds Recession, Breaches, Rumors Erode Trust; Stability, Service, Customer Respect Buoy Trust

TRAVERSE CITY, MI--(Marketwire - October 20, 2009) - Privacy and information management research firm the Ponemon Institute has announced the results of its annual study of consumer trust in banks. Now in its seventh year, the 2009 Privacy Trust Study for Retail Banking measures consumer perceptions of trustworthiness for retail banking institutes and identifies the issues that influence consumer opinion.

The specter of the global financial crisis had clear and negative consequences on this year's results, reflected by a second straight overall decline in trust scores. Other factors, such as data breaches, rumors related to poor security practice, annoying advertising campaigns, poor web site design, and aggressive use of data coupled with offshore data management were also found to have a detrimental effect on perception.

In contrast to the downward trend, however, five of the six banks earning a top-five ranking improved their scores over 2008. The factors seen to have a positive effect on a bank's brand included perceived financial stability, quality customer service, clear privacy and security practice disclosures, strong online banking identity and authentication processes, stated or implied commitment to stand behind the customer in case of a breach or identity theft, and respectful advertising and marketing campaigns.

For the fourth year in a row, U.S. Bank earned the highest overall trust ranking. According to the Ponemon Institute, the five most trusted banks for privacy in 2009 are:

           2009                                    2008

1.  U.S. Bank (Minneapolis)           1.  U.S. Bank (Minneapolis)
2.  PNC Bank (Pittsburgh)               2.  National City (Cleveland)
3.  SunTrust (Atlanta)                3.  SunTrust (Atlanta)
4.  Citizens Bank (Providence)        4.  PNC Bank (Pittsburgh)
5.  Bank of America (Charlotte)       4.  Citizens Bank (Providence)
5.  Fifth Third Bank (Cincinnati)     5.  Wachovia (Charlotte)

"We were not surprised to see an overall decline in trust scores owing to the global financial crisis, but the increased trust scores earned by the top banks show that there are many aspects of trust that are absolutely within a bank's ability to control," said Dr. Larry Ponemon, chairman and founder, Ponemon Institute. "Those banks that consistently appear at the top of this study, including U.S. Bank's fourth straight number one ranking, are not there accidentally, but have earned their place through a determined effort to apply sound security and privacy practices to their overall business strategy."

"Earning our customers' trust is fundamental to sustaining a meaningful relationship with them, and trust is particularly important in challenging economic times," said Dan Burks, chief privacy officer at U.S. Bank. "The work of the Ponemon Institute to recognize leading institutions provides a great service to consumers as they seek trusted financial partners."

The 2009 Privacy Trust Study for Retail Banking was derived from a final sample of 6,950 surveys returned from adult consumers residing in all geographic regions of the United States. To request a copy of the study, contact the Ponemon Institute.

About the Ponemon Institute:

The Ponemon Institute© is dedicated to advancing responsible information and privacy management practices in business and government. To achieve this objective, the Institute conducts independent research, educates leaders from the private and public sectors, and verifies the privacy and data protection practices of organizations in a variety of industries.

Media Contact:

Mike Spinney

Ponemon Institute

978-597-0342

Email Contact Click here to see all recent news f

U.S. Bank Ranks First for Consumer Trust in Ponemon Institute Study

MINNEAPOLIS--(Business Wire)--The Ponemon Institute, a privacy and information management research firm, has released the 2009 Privacy Trust Study for Retail Banking and for the fourth year, U.S. Bank has ranked first. U.S. Bank has also ranked in the top five each year since the study`s inception in 2003.

The Ponemon Institute study measures consumer perceptions of trustworthiness for retail banking institutes and identifies the issues that influence consumer opinion. This year, Ponemon found that while the global financial crisis has had a negative impact on banks` scores overall, five of the top six banks saw an increase in their scores, including U.S. Bank.

Financial stability, quality customer service, clear privacy and security practice disclosures, strong online banking identity and authentication processes, stated or implied commitment to stand behind the customer in case of a breach or identity theft, and respectful advertising and marketing campaigns were all cited as positive factors impacting consumer trust in banks. Factors such as data breaches, rumors related to poor security practice, annoying advertising campaigns, poor web site design, and aggressive use of data coupled with offshore data management were found to have a detrimental effect on

perception.

"We were not surprised to see an overall decline in trust scores owing to the global financial crisis, but the increased trust scores earned by the top banks show that there are many aspects of trust that are absolutely within a bank`s ability to control," said Dr. Larry Ponemon, chairman and founder of the Ponemon Institute. "Those banks that consistently appear at the top of this study, including U.S. Bank`s fourth straight number one ranking, are not there accidentally, but have earned their place through a determined effort to apply sound security and privacy practices to their overall business strategy."

"Earning our customers` trust is fundamental to sustaining a meaningful relationship with them, and trust is particularly important in challenging economic times," said Dan Burks, chief privacy officer at U.S. Bank. "The work of the Ponemon Institute to recognize leading institutions provides a great service to consumers as they seek trusted financial partners."

The 2009 Privacy Trust Study for Retail Banking was derived from a final sample of 6,950 surveys returned from adult consumers residing in all geographic regions of the United States. To request a copy of the study, contact the Ponemon Institute.

The Ponemon Institute is dedicated to advancing responsible information and privacy management practices in business and government. To achieve this objective, the Institute conducts independent research, educates leaders from the private and public sectors, and verifies the privacy and data protection practices of organizations in a variety of industries.

U.S. Bancorp (NYSE: USB), with $266 billion in assets, is the parent company of U.S. Bank, the 6th largest commercial bank in the United States. The company operates 2,850 banking offices and 5,173 ATMs in 24 states, and provides a

comprehensive line of banking, brokerage, insurance, investment, mortgage, trust and payment services products to consumers, businesses and institutions. Visit U.S. Bancorp on the web at www.usbank.com.

U.S. Bank

Teri Charest, 612-303-0732

or

Ponemon Institute

Mike Spinney, 978-597-0342