Bank of America Reports $6.2 Billion 3rd Quarter Net

Lost $7.3 Billion Q3 2010

October 18, 2011 07:00 AM Eastern Daylight Time 

• Credit Costs Continue to Decrease With Net Charge-Offs Declining Across Most Portfolios
• Strong Capital Generation With Tier 1 Common Equity Ratio at 8.65 Percent
• Average Deposit Balances Increased for the Fourth Consecutive Quarter
• Growth in Corporate Banking Average Core Loan Balance Across All Regions
• Bank of America Merrill Lynch (BAML) Was Ranked No. 2 Globally in Net Investment Banking Fees in the Third Quarter of 2011
• Customer Solutions Pilot Program Showing Positive Results

CHARLOTTE, N.C.--(BUSINESS WIRE)--Bank of America Corporation today reported net income of $6.2 billion, or $0.56 per diluted share, for the third quarter of 2011, compared with a net loss of $7.3 billion, or $0.77 per diluted share, in the year-ago period. Revenue, net of interest expense, on a fully taxable-equivalent (FTE) basis¹ rose 6 percent to $28.7 billion.

“Our focus this quarter was on strengthening the balance sheet by selling non-core assets and building capital to position the company for future growth”

There were a number of significant items that affected results in both periods. The most recent quarter included, among other things, $4.5 billion (pretax) in positive fair value adjustments on structured liabilities, a pretax gain of $3.6 billion from the sale of shares of China Construction Bank (CCB), $1.7 billion pretax gain in trading Debit Valuation Adjustments (DVA), and a pretax loss of $2.2 billion related to private equity and strategic investments, excluding CCB. The fair value adjustment on structured liabilities reflects the widening of the company’s credit spreads and does not impact regulatory capital ratios. The year-ago quarter included a $10.4 billion goodwill impairment charge. Details on the significant items are included in the revenue and expense section of this press release.

“This quarter’s results reflect several actions we took that highlight our ongoing transformation toward becoming a leaner, more focused company,” said Chief Executive Officer Brian Moynihan. “The diversity and depth in our customer and client offerings provided some resiliency in a very challenging environment.”

“Our focus this quarter was on strengthening the balance sheet by selling non-core assets and building capital to position the company for future growth,” said Chief Financial Officer Bruce Thompson. “In that regard, we accomplished a great deal. We reduced the size of our balance sheet by $42 billion from the second quarter of 2011, nearly doubled our Tier 1 common equity ratio since early 2009, and continued to have strong liquidity levels even after significantly reducing both short- and long-term debt.”

Making progress on operating principles

During the third quarter of 2011, the company made significant progress in line with its operating principles, including the following developments:

Focus on customer-driven businesses

• Bank of America extended approximately $141 billion in credit in the third quarter of 2011, according to preliminary data. This included $85 billion in commercial non-real estate loans, $33 billion in residential first mortgages, $10 billion in commercial real estate loans, $5 billion in U.S. consumer and small business card, $847 million in home equity products and $7 billion in other consumer credit.

• The $33 billion in residential first mortgages funded in the third quarter helped over 151,000 homeowners either purchase a home or refinance an existing mortgage. This included approximately 12,000 first-time homebuyer mortgages originated by retail channels, and more than 54,000 mortgages to low- and moderate-income borrowers. Approximately 47 percent of funded first mortgages were for home purchases and 53 percent were refinances.
• Total average deposit balances of $1.05 trillion were up $77 billion, or 8 percent from the year-ago period, and $15 billion, or 1 percent higher than the second quarter of 2011.
• The number of net new consumer and small business checking accounts was positive for the third consecutive quarter as the company continued to focus on the retention of profitable customer relationships.
• Bank of America launched Customer Solutions earlier this year as a pilot in certain markets for new customers. The company has been successfully converting select customers in those markets with favorable results as many customers are willing to increase their balances to achieve account benefits.
• Bank of America continued to expand its service for small business owners by hiring nearly 500 locally based small business bankers through the third quarter of 2011 to provide convenient access to financial advice and solutions. The company plans to hire more than 1,000 small business bankers by early 2012.
• Referral volumes remained strong during the third quarter with referrals from Global Wealth and Investment Management to Global Banking and Markets up 28 percent from the year-ago quarter, and referrals from Global Wealth and Investment Management to Global Commercial Banking up 6 percent from the same period.
• Global Wealth and Investment Management added 475 Financial Advisors in the quarter.

Building a fortress balance sheet

• Regulatory capital ratios increased significantly during the third quarter compared to the second quarter of 2011, with the Tier 1 common equity ratio at 8.65 percent, the tangible common equity ratio² at 6.25 percent and the common equity ratio at 9.50 percent at September 30, 2011.
• The company took advantage of its strong liquidity position to reduce short-term debt by $17 billion and long-term debt by $28 billion during the third quarter. The parent company’s time-to-required funding increased to 27 months from 22 months in the second quarter of 2011.
• The company continued to strengthen the balance sheet by reducing risk-weighted assets by $33 billion from the second quarter of 2011 and $117 billion from the third quarter of 2010.

Pursuing operational excellence in efficiency and risk management

• Earlier this year, the company launched Project New BAC, a comprehensive initiative designed to simplify and streamline the company and align expenses. Implementation of Phase 1 ideas began this month with a goal of reducing expenses by approximately $5 billion per year by 2014, on a baseline of approximately $27 billion in annual expenses for the business areas reviewed in Phase 1. The company expects to incur technology and severance costs during the implementation of Phase 1. The New BAC Phase 2 review began this month and is expected to continue into early 2012 and cover the balance of businesses and operations that were not reviewed in Phase 1.
• The provision for credit losses declined 37 percent from the year-ago quarter, reflecting improved credit quality across most consumer and commercial portfolios and underwriting changes implemented over the last several years.
• The allowance for loan and lease losses to annualized net charge-off coverage ratio remained strong in the third quarter of 2011 at 1.74 times, compared to 1.53 times in the third quarter of 2010 (1.33 times compared to 1.34 times excluding purchased credit-impaired loans).

Delivering on the shareholder return model

• The company continued to focus on streamlining the balance sheet by selling non-core assets, addressing legacy issues, reducing debt and implementing its customer-focused strategy while focusing on expenses to position the company for long-term growth.
• Tangible book value per share² rose to $13.22 in the third quarter of 2011, compared to $12.91 in the third quarter of 2010 and $12.65 in the second quarter of 2011. Book value per share was $20.80 in the third quarter of 2011 compared to $21.17 in the third quarter of 2010 and $20.29 in the second quarter of 2011.

Continuing to address legacy issues

• Since the start of 2008, Bank of America and legacy Countrywide have completed nearly 961,000 loan modifications with customers. During the third quarter of 2011, more than 52,000 loan modifications were completed, compared with 69,000 in the second quarter of 2011 and 50,000 in the third quarter of 2010.
• During the quarter, Bank of America successfully implemented the rollout of a single point of contact in the default servicing business. More than 6,500 employees have now been trained and deployed in these client relationship management roles.

¹ Fully taxable-equivalent (FTE) basis is a non-GAAP measure. For reconciliation to GAAP measures, refer to pages 25-27 of this press release. Total revenue, net of interest expense on a GAAP basis was $28.5 billion for the three months ended September 30, 2011.

² Tangible common equity ratio and tangible book value per share of common stock are non-GAAP measures. Other companies may define or calculate these measures differently. For reconciliation to GAAP measures, refer to pages 25-27 of this press release.

InComm Named Leading Prepaid Organization and Best Prepaid Product Distributor at 2011 Prepaid Awards

ATLANTA, Oct. 18, 2011 /PRNewswire/ -- InComm, the world's leading prepaid product and transaction services company, won top honors at this year's Prepaid Awards, held October 6, 2011, at the Royal Courts of Justice in London.

Nominated in four categories, InComm took home awards for Leading Prepaid Organization Americas, bestowed upon the company for clearly demonstrating an outstanding contribution to the growth and development of the prepaid industry, and Best Prepaid Product Distributor for delivering exceptional commercial benefits through the distribution of multiple prepaid products.

"At InComm, our goal is to provide innovative products for clients on a global scale, so we're pleased to receive the recognition and honor of two Prepaid Awards," said Tim Pope, Managing Director, InComm Europe. "As a leader in the prepaid industry, we will continue to bring market-leading technologies and solutions to our partners, brands and consumers."

Held once a year since 2008 to recognize the achievements and successes of the prepaid sector, The Prepaid Awards bring people and companies from across the industry to reinforce and recognize the efforts made in prepaid products, services and technologies across the world. For more information on the Prepaid Awards, visit http://www.prepaidawards.com/.

About InComm

InComm is the industry leading marketer, distributor and technology innovator of stored-value gift and prepaid products using its state-of-the-art point-of-sale transaction technology and payment solutions to revolutionize retail product sales and customer experiences. With nearly $13 billion in retail sales transactions processed in 2010, InComm is the nation's largest provider of gift cards, prepaid wireless products, reloadable debit cards, digital music downloads, content, games, software and bill payment solutions. InComm partners with consumer brand leaders around the world to provide more than 225,000 retail locations the products and services their customers demand. Since 1992, InComm's patented technologies have made the buying process easier for consumers, while streamlining the selling process for product and retail partners. InComm is headquartered in Atlantawith offices in Australia/New Zealand, Brazil, Canada, Japan, Mexico, Puerto Rico, the United Kingdom, Arkansas, California,Colorado, Florida, Minnesota, Oregon, Texas and Utah. To learn more about InComm, visit www.incomm.com or call (800) 352-3084. Visit InComm Europe at www.incomm.com/uk.do.

SOURCE InComm

Alliance Data Signs Long-Term Extension Agreement With Express, a Top-10 Alliance Data Client

Extended Agreement to Focus on Launching Loyalty Program Geared Toward Enhancing Brand Experience with New Benefits and Emerging Technologies

DALLAS, Oct. 18, 2011 /PRNewswire/ -- Alliance Data Systems Corporation (NYSE: ADS), a leading provider of loyalty and marketing solutions derived from transaction-rich data, today announced that it has signed a long-term extension agreement with a subsidiary of Express, Inc. (NYSE: EXPR) to continue providing private label credit card and marketing services for Express. Established in 1980, Express is a specialty retailer of women's and men's merchandise in North America, with nearly $2 billion in annual revenue and more than 600 stores.

(Logo: http://photos.prnewswire.com/prnh/20051024/ADSLOGO )

Alliance Data will continue providing Express with private label credit card services including account acquisition and activation, receivables funding, card authorization, card issuance, statement generation, remittance processing, customer service functions, and multi-channel marketing services. Currently, Express cardholders earn points for purchases that can be redeemed and applied toward future purchases, and also access cardholder-exclusive sales, promotions and offers.

Under terms of the extension agreement, Alliance Data will work with Express to evolve its card program through new cardholder benefits, new card plastics, and testing a new points-based loyalty program. Additionally, mobile marketing and payment solutions will continue to be explored by Alliance Data and Express, with the focus on enhancing the customer experience, engaging new and existing customers, and acquiring new accounts.

"Express, one of our longest-standing client relationships, is a dynamic and innovative brand, and we look forward to continuing to provide solutions that further fuel their impressive track record for success," said Melisa Miller, president of Retail Services for Alliance Data. "We're excited to continue our relationship with a company that has been a tremendous marketing partner, and to expand our partnership by providing powerful new tools and enhancements that deliver real value to those Express puts first: the customer. We're pleased that our card program has been an important component of Express's sales and marketing strategy, and are eager to collaborate with Express to drive even greater card program performance and support their business growth goals."

Jim Wright, senior vice president, marketing, Express, said, "We are pleased to continue our partnership with Alliance Data, a valued, collaborative relationship that has grown over time. Alliance Data possesses a keen understanding of the competitive multi-channel retail environment, and we look forward to working with them to enhance our credit card program. Coupling our unique brand and loyal customer base with Alliance Data's credit and marketing expertise, we have a great opportunity to take our credit card program to the next level."

About Express, Inc.

Express is a specialty apparel and accessories retailer of women's and men's merchandise, targeting the 20 to 30 year old customer. The Company has over 30 years of experience offering a distinct combination of fashion and quality for multiple lifestyle occasions at an attractive value addressing fashion needs across work, casual, jeanswear, and going-out occasions. The Company currently operates more than 600 retail stores, located primarily in high-traffic shopping malls, lifestyle centers, and street locations across the United States, Canada, Puerto Rico and also distributes its products through the Company's e-commerce website, www.express.com.

About Alliance Data

Alliance Data® (NYSE:   ADS) and its combined businesses is North America's largest and most comprehensive provider of transaction-based, data-driven marketing and loyalty solutions serving large, consumer-based industries. The Company creates and deploys customized solutions, enhancing the critical customer marketing experience; the result is measurably changing consumer behavior while driving business growth and profitability for some of today's most recognizable brands.  Alliance Data helps its clients create and increase customer loyalty through solutions that engage millions of customers each day across multiple touch points using traditional, digital, mobile and other emerging technologies.  Headquartered in Dallas, Alliance Data employs approximately 8,500 associates at 50 locations worldwide. 

Alliance Data is a leading provider of marketing-driven credit solutions, and is the parent company of Epsilon®, a leading provider of multi-channel, data-driven technologies and marketing services, and LoyaltyOne®, which owns and operates the AIR MILES® Reward Program, Canada's premier coalition loyalty program.  For more information about the company, visit our web site, www.AllianceData.com, or you can follow us on Twitter at www.Twitter.com/AllianceData. 

Mobe Selects CellTrust SecureSMS for Secure Mobile Banking Applications

Mobile Mone™ Application Enables Consumers to Use Their Mobile Phone to Safely and Securely Deposit, Withdraw, Send or Spend Money Globally

SCOTTSDALE, Ariz., Oct. 18, 2011 /PRNewswire/ -- CellTrust Corporation, the recognized leader in secure mobile messaging, today announced that Mobe Inc., the leading global provider of mobile money movement solutions, will license CellTrust's SecureSMS 3.0 software to bring an added layer of security to Mobe's mobile banking products.

Mobe, the creators of mobile mone™, a proprietary peer-to-peer mobile money movement platform, will leverage CellTrust's SecureSMS 3.0 SDK for use in a secure mobile wallet application,  that allows consumers to deposit, withdraw, send, spend or secure money from anywhere in the world, anytime of day, directly on their mobile phone.

"The mobile phone is one thing most people never leave home without, and that makes it the ideal tool for personal financial transactions," said Jim McLeod, President and Co-Founder, Mobe Inc. "At the same time, it is imperative to protect consumers from the security risks that come with mobile communication and transactions, and that's where CellTrust comes in. With CellTrust Secure SMS, we added an additional layer of security to ensure the companies and consumers we do business with that the information they share and the transactions they conduct using mobile mone™ are safe and secure, opening the doors to a variety of new mobile banking applications in the future."

Unlike consumer-grade SMS, CellTrust's SecureSMS 3.0 software allows companies and consumers to exchange confidential information in a trusted and safe environment on mobile devices, in compliance with financial services industry regulations. CellTrust SecureSMS 3.0 deploys communication over an SMS control channel supported by all global operators. Mobile users can send fully encrypted SMS messages up to 5,000 characters in length, as well as receive delivery, open and delete acknowledgement, and remote data wipe in the event a handset is lost or stolen. CellTrust has access to 200+ countries and is certified with major operators and handset manufacturers worldwide.

"Over the last year, a number of mobile banking security risks and failures have been publicized, illustrating the need for more secure mobile communication and transactions," said Sean Moshir, CEO, CellTrust. "In partnership with Mobe, we offer consumers and businesses the ability to conduct mobile banking transactions safely and securely, with the flexibility, auditability, simplicity and convenience their mobile phone affords."

With CellTrust SecureSMS 3.0, Mobe's customers will have the ability to conduct peer-to-peer secure money transfer and merchant services via the mobile phone. Consumers can withdraw, deposit and transfer funds between their mobile phone or someone else's mobile phone, debit cards, and checking accounts, and they can make purchases from merchants using their mobile phone. 

CellTrust SecureSMS 3.0 provides a new menu-driven interface with pop-up navigation using the phone's primary scroll button for fast operation. SecureSMS 3.0 also supports all versions of Blackberry 4.5 and up, Android client versions 2.1 and up and Java (J2ME) for traditional flip phones. iPhone and Windows 7 support are coming soon. AES 128 bit and 256 bit encryption ensure your messages are safe while enhanced security is provided through SecureID registration and device whitelisting.

Some of the new features of the SecureSMS 3.0 include:

• New and enhanced encryption model to control overflow and transaction sequencing
• Optional location-based services.
• Message Lifespan to decide how long a message will reside on destination handset or be deleted as soon as read
• Secure Contacts allows an encrypted list of contacts to be imported from an existing list or manually built.
• Multi-Server registration allows a user to register to a public server and to an enterprise server

About Mobe, Inc.

Mobe is the leading provider of mobile money movement solutions to financial institutions, processors, businesses, merchants and customers. Mobe's industry-leading products include mobile mone™, a mobile P2P payments service offered by leading banks and businesses. All Mobe products are supported by industry-leading risk management capabilities that leverage proprietary technology to help financial institutions mitigate risk and reduce fraud. The Company is headquartered in Charlotte, NC. For more information, visit www.mobeinc.com

About CellTrust Corporation

CellTrust is the leading provider of secure mobile transactions and secure mobile communications products and services. CellTrust's patent pending SecureSMS Gateway™ featuring the SecureSMS™ Appliance and suite of mobile applications, provide advanced secure mobile messaging and information management across 200+ countries and over 800 carriers. CellTrust ensures secure and trusted exchange of information on mobile devices to global industries, such as financial services, healthcare, government, education, energy, information technology, marketing, and travel. For more information about CellTrust's Global, African, North American and Australian operations:

www.celltrust.com  

www.africa.celltrust.com  

www.celltrust.com.au

Global Payout Appoints Gil Hooper to Board of Directors

SAN DIEGO, Oct. 18, 2011 /PRNewswire/ -- Gil Hooper has been appointed to the Board of Directors of Global Payout, Inc. (OTC Pink: GOHE).  Mr. Hooper, an international payments sales and marketing professional, brings with him an extensive resume including international banking, debit card issuing and processing, eWallet systems, cross border remittance and mobile payment applications.  His diverse background makes him uniquely qualified to advise Global Payout during its next phase of growth.  Mr. Hooper is currently the CEO of Boundless Payment Solutions, Inc. and the Managing Partner of 3G Consulting, both financial systems companies headquartered in San Diego but operating globally.  He also is a co-founder and principal partner in a lending organization headquartered in Mexico City called Mi Adelanto and, through the 3G organization, an issuer of debit cards throughout Mexico.  He has offices in San Diego, Mexico City and London.

During the early 90s, Mr. Hooper saw an opportunity evolving with a very large and underserved group of consumers in the U.S. and worked with the issuing banks and with Visa® and MasterCard® to develop and process one of the first prepaid debit card programs aimed at the under-banked and disenfranchised within the U.S. market. The prepaid debit card market has since evolved to become a global alternative banking source with millions of users around the world. Mr. Hooper currently advises many of today's leaders in the banking, debit card and the evolving mobile payments industries.

"I am pleased to become a director of Global Payout and look forward to assisting the team in executing its strategy of delivering international payment solutions to the organizations requiring local payment systems in all parts of the world.  Global is well positioned to deliver complete payment solutions creating a lot of value for its clients and Global's stockholders," stated Mr. Hooper.

"Gil brings in-depth knowledge and valuable resources to the Board of Directors and Management Team," said Jim Hancock, CEO and Board Member of Global Payout, Inc. "Gil's strategic contacts in the international payment community allows Global Payout to offer more competitive payout solutions, resulting in larger companies that will produce consistent revenue streams."

About Global Payout, Inc.:

Global Payout, Inc., www.globalpayout.com, headquartered in San Diego, California, is a payment solutions provider offering U.S. and International companies electronic payment and prepaid debit card solutions. Through Global Payout's processors and solution providers the company offers an international payment platform allowing accountholders to move money to personal bank accounts in over 200 countries. In addition, the company provides for U.S. and International debit cards, allowing accountholders without bank accounts to access funds worldwide. As a program manager and reseller, Global, is a provider of prepaid debit cards in the U.S. for payroll and general spend programs.

Alternative Payment Systems in the U.S., 2nd Edition

NEW YORK, Oct. 18, 2011 /PRNewswire/ -- Reportlinker.com announces that a new market research report is available in its catalogue:

Alternative Payment Systems in the U.S., 2nd Edition

There has been a gold rush into alternative payments from prospectors seeking to dig up the next PayPal. But as with past gold rushes, there have been many claims with few successes. Despite history's lessons, with every new "gold rush" come new hopes of striking a rich consumer vein. It is all enough to make one's head spin trying to parse out the various payment types and business models.

In addition, the alternative payments landscape is morphing, particularly in the eyes of consumers. It is no longer just the underlying mechanism that is important—equally important is the consumer perception of the payment. What's more, mobile payments (a subset of alternative payments), are quickly becoming a viable platform ready to explode with merchant and consumer adoption forever changing the payments landscape.

In this second-edition of The Alternative Payment Systems Industry in the U.S., Packaged Facts presents an in depth examination of the U.S. alternative payments business. The report presents the size and growth of the market and puts it in context to both the business-to-consumer (B2C) ecommerce market and the total "consumer" payments market including card payments and electronic payments (online bill payment). Special regard is given to the activity of top players and the varied upstarts, particularly in mobile payments, hoping to steal share and further alter the old school payments paradigm. Major key competitors are profiled, along with a focused analysis of consumer payment demographics and preferences.

Note: Packaged Facts defines alternative payments as entirely electronic and predominantly conducted over the Internet though not all are conducted through the ACH network. Generally, alternative payments exclude all forms of paper and any debit or credit card where the purchase or remittance is made directly with that medium. The most common alternative payments are consumer-to-business purchases and peer-to-peer, also referred to as person-to-person (P2P) payments.

Survey reveals UK fears regarding mobile payments

Many don't trust the idea of mobile payments, even if they're not exactly sure why

The poll of over a thousand UK adults found that only 17%, less than one in five, were wanting to use mobile payments in the future. The fears were a mix of genuine concerns and uncertain apprehension. A quarter of those who didn’t want to use mobile payments said that it “feels less secure but I don’t know why”. Other consumers had fears and worries about phone hacking and security issues – almost half of those questioned were concerned about the lack of security software on mobile phones.  A quarter also feared that their mobile was more likely to be stolen than their wallet. And of course, if or indeed when mobile wallets become a full reality, the mobile phone may well become a far more tempting target to thieves. And it’s already tempting enough to pinch a £500 smartphone... read more

The 9 Most Shoplifted Items in America

Contributed by Business Insurance Quotes

The term "shoplifting" brings to mind images of Winona Ryder, angst-filled teenagers acting out for attention, and grubby kids sneaking candy into their pockets. But retail theft is more common than many of us realize; there are even organized shoplifting rings that nick millions of dollars worth of products. The crime of shoplifting costs U.S. stores $13 billion a year, which often causes the retailers to hike up prices to cover the loss. If some of the items at your local store seem a little expensive, keep your eye on shifty characters around these nine products that shoplifters most frequently target.

1. Meat

   Where's the beef? That's what many retailers are left wondering after a shoplifter hits. In the past several years, meat has often emerged as the top item stolen from stores, as regular shoppers and kleptomaniacs alike feel the urge to slide a steak into their coat pocket. Most meat thieves go for the higher end products, such as filet mignon or lamb chops, and anti-theft experts have started hiding security tags under the price label or in the pad that soaks up the meat juice. All they really need to do though, is keep an eye out for the shopper who is being followed by a pack of drooling dogs.

2. Razors

   The sharpest criminals seem to be taking razors from stores, probably because they are easy to hide and have a high resale value. And Gillette apparently is the best a thief can get. The Mach products from Gillette are always among the most taken razors since they are relatively pricey and high in demand. Americans aren't alone in this trend; razors have ranked among the top shoplifted items in the world since at least 2003. Only men's razors seem to be targeted, though, so we hope that doesn't mean women are starting to skip shaving altogether.

3. Baby formula

   When you consider the fact that it costs more than $10,000 each year to take care of a child, it's really not surprising that there's a market for discounted infant formula. Formula normally costs $25 or more and babies can go through eight or ten cans a month. The financial strain of that, plus everything else tiny people need, can lead some desperate parents to swipe the formula from the store or buy it from less-than-legitimate sources who probably stole it off the shelf. The powdered formula is also used in the drug world to weaken the strength of cocaine or heroin.

4. Cosmetics

   Apparently many thieves are worried about getting wrinkles. One of the top beauty products being shoplifted is Oil of Olay's Regenerist anti-aging line. Maybe the stress of stealing is starting to show on their faces. The Oil of Olay product is only one of many cosmetic items that is frequently taken. Since mascara and lipstick are made small enough for women to carry in their purses, they are also easy to hide from store employees and security guards. Most thieves go for the more expensive make-up or hair care brands to either use or sell, causing cosmetics brands to lose as much as 2% of sales to shoplifting.

5. Alcohol

   When kids enter their rebellious phase, shoplifting alcohol is like the Holy Grail of misbehavior. Not only are they stealing, which they were undoubtedly taught not to do, but they're taking something they're forbidden from having. Because of teenagers and people who may not be able to afford their booze habit, alcohol is one of the things most often stolen from stores. People who are already drunk often go for lower-end brands, but the power names in alcohol, like Grey Goose vodka and Hennessy Cognac, and trendy beverages, such as Mike's Hard Lemonade, often fly off the shelves into sticky fingers if not locked up.

6. Laptops

   Many stores that sell lots of electronic gadgets have loss protection workers at the door who look like guards or bouncers. Their job is to check the receipts of people who have purchased big-ticket items (and probably anyone who looks shady) in order to cut down on the number of thefts. But even with their intimidating muscles, these employees haven't been able to stop the theft of laptops, which are one of the most frequently stolen technology items. The FBI's National Crime Information Center found that more than 100,000 laptops have been stolen annually in recent years. When you consider the price each laptop could fetch, those shoplifters no doubt made a tidy profit.

7. Over-the-counter drugs

   Drugs from drug stores used to be stolen a lot more frequently when those containing pseudoephedrine were available over the counter, convenient for people who want to make meth without raising suspicion. While the theft of over-the-counter medicine has dropped some, these drugs are still among the most likely products to be swiped. Headache medicine, Preparation H, and heartburn tablets are some of the most popular because they can be sold easily on the gray market. Other items like pregnancy tests and weight-loss pills are often stolen because people are embarrassed to purchase them.

8. Smartphones

   The problem with devices that are marketed as being portable (and awesome) is that they are also easy for crooks to carry off. For the average shopper, the idea of taking a smartphone without having the store employees completely set it up and transfer all your contacts for you seems ridiculous. How are you going to get it to work? But for the tech-savvy shoplifter, taking a smartphone and jail-breaking it to make it useable can be an extremely profitable action. That's why most retailers that sell smartphones keep them tethered to the display and lock away the ones available for purchase. And the really smart stores look into GPS applications that could allow them to track stolen phones.

9. Clothing

   We've all walked out of the store with one of those bulky and impossible-to-remove security tags on an item of clothing we just bought. While it's an inconvenience to go back in to have the tag removed, the retailer is just trying to protect one of its easily snatched goods. Since stores are required to provide a certain level of privacy when people are trying on clothes, thieves are given a space where they can go to hide items. Many shoplifters will wear baggy clothing so that they can hide the stolen clothing inside it or simply put it on under what they were wearing. This is especially easy in stores without pesky fitting room attendants making sure you don't take more than six items in the room at a time.

Cubic Receives Contactless EMV Bank Card Type Approval for Next-Generation Tri-Reader® 3

SOURCE: Cubic Corporation

October 17, 2011 07:00 ET

Smart Fare Payment Using Open Payment Contactless EMV Bank Cards, Account-Based Cards and Existing Closed-Loop Transit Smart Cards, All on One Innovative Device

SAN DIEGO, CA--(Marketwire - Oct 17, 2011) - Cubic Transportation Systems, Inc., the transportation unit of Cubic Corporation (NYSE: CUB), has received approval from the top four bank card brands for the Tri-Reader 3 to process their branded contactless EMV bank cards for use in public transit revenue management systems. Cubic has equipment and systems supporting seven of the top 10 largest public transit markets in the United States, United Kingdom and Australia as well as other major markets around the world.

The Tri-Reader® 3 is the first contactless smart card device designed for use in public transport to process all industry standard contactless smart cards. The reader also processes bank-issued contactless EMV cards that meet the financial industry's standards for contactless open payment, and has been approved by EMVCo, American Express, Discover, MasterCard and Visa. The Tri-Reader® 3 supports multiple card schemes -- for example, in the U.K., Oyster, ITSO and contactless EMV cards can now be read concurrently on the same contactless reader. The Tri-Reader 3 was developed by Cubic on behalf of Transport for London and the company has a worldwide license for its use for open payments.

Cubic's technology can also support payments made with Near Field Communications (NFC)-powered mobile phones, a form of payment that Cubic has tested in U.S. and European transit systems.

The Tri-Reader® 3 will give Cubic's customers a transition path to add account-based, open payment contactless EMV bank card and NFC acceptance to the same system.

"Our customers now have an open payment solution, which means that our technology supports any contactless media that conforms to ISO 14443, whether in an account, card or NFC phone based system," said Pradip Mistry, Vice President, Engineering, for Cubic Transportation Systems. "At the same time, we have also ensured that the same levels of speed and reliability we have built into previous generations of card-based fare collection systems are achieved for open payment."

To test and prove its account-based processing technology, Cubic and its customer PATCO have partnered to provide Philadelphia/New Jersey region commuters with the world's first transit-branded all contactless Visa® prepaid card. The new PATCO Wave & Pay ANYWHERE Visa® Prepaid Card began a 12-month pilot program on September 26, marking the first time that consumers will be able to use the same transit payment card for both transit and retail purchases. The Tri-Reader® 3 is also being deployed on London buses and future plans exist to expand the rollout across the whole of Transport for London's estate.

Cubic Corporation (NYSE: CUB) is the parent company of three major business segments: Defense Systems, Mission Support Services andTransportation Systems.

Cubic® Transportation Systems, Inc. is the world's leading turnkey solution provider of automated fare collection systems for public transport including bus, bus rapid transit, light rail, commuter rail, heavy rail, ferry and parking. Cubic's solutions and services include system design, central computer systems, equipment design and manufacturing, device-level software, integration, test, installation, warranty, maintenance, computer hosting services, call centre services, card management and distribution services, financial clearing and settlement, multi-application support and outsourcing services.

Every year, nearly 10 billion rides are taken worldwide using Cubic fare collection systems. Cubic has delivered over 400 projects in 40 major markets on five continents. Active projects include London; Brisbane (Southeast Queensland) region, Australia; New York / New Jersey region; Washington, D.C. / Baltimore / Virginia region; Los Angeles region; San Diego region; San Francisco region; Minneapolis/St. Paul; Chicago; Atlanta region; Miami (South Florida) region; Vancouver and Edmonton, Canada; Sydney (New South Wales), Australia; and Scandinavia.

Cubic Defense Systems is a leading provider of realistic combat training systems, cyber technologies, asset tracking solutions, and defense electronics. Mission Support Services is a leading provider of training, operations, maintenance, technical and other support services. For more information about Cubic, see the company's website at www.cubic.com.