September 14th 2009 - PIN Payments News Blog - Manila, Philippines



VerifySmart(TM) Corp. Enhanced Credit Debit Card Security Solution Provides Next Generation, Near Real-Time Identity Fraud Protection Far Superior to Chip PIN.



Sep. 14, 2009 (PR Newswire) -- TAGUIG, Metro Manila, Philippines, Sept. 14 /PRNewswire-FirstCall/ - VerifySmart(TM) Corp. (VSMR: OTCBB): VerifySmart(TM) (VSC) ("VerifySmart" or the "Company"), a global leader in secure and fraud free payment processing services is providing a transaction authentication solutions that bring a level of security unprecedented in the credit / debit card industry.



Identity theft and credit card fraud are the fastest-growing categories of Federal Trade Commission complaints. The cost of credit card fraud in the United States is estimated to be US$50 million a day which amounts to a staggering US$18.25 billion a year. In Canada, card fraud costs Canadians $8,000,000 per day or $2.9 billion per year.



VerifySmart(TM) debit and credit card security and fraud detection technology allows the cardholder to be aware and authorize any payment transaction and provides the cardholder to be an active watchdog in Credit/Debit Card Fraud and Identity Theft. Current so-called solutions, such as Verified by Visa, 'Chip and PIN' and CVV Code, can all be compromised, and have not reduced payment card fraud by any significant margin.



Chip and PIN technology which originated in the UK in 2004 and launched recently in parts of North America has disappointed the industry. In 2008 APACS (Association of Payment Clearing Services) reported card-only fraud losses as a percentage of card turnover amounted to 0.12%. Prior to the introduction of Chip and PIN, this same statistic was 0.14% - a mere 0.02% reduction in losses gained at the expense of tens of millions in technology modifications.



According to the Bruce Schneier, Counterpane Internet Security, "The soluton is not to better authenticate the person, but to authenticate the transaction." Jean Garascia, Associate Analyst at Javelin Strategy and Research: 2007 Banking Identity Safety Scorecard comments "The Banks must empower customers from the start. Offer them text message account alerts and two-way messaging; let them set limits and parameters on their accounts. The sooner banks provide these tools, the sooner their customers will become identity fraud watchdogs."



In smart contrast to Chip and PIN, VerifySmart(TM) provides a complete solution to lost or stolen cards, identity theft and cloned cards while putting control of the transactions directly in the hands of the card owner. VSC has developed key technology that is simple yet effective. The cornerstone is an authentication model that decouples the verification and PIN process from the physical card or transaction medium offering the industry a new and proven fraud reduction mechanism. VerifySmart's key benefit is a two-part authentication whereby a second source (mobile phone or PDA and a PIN) of identification which cannot be forged, is required to complete the transaction.



VerifySmart's credit and debit card fraud detection and prevention technology is patent and patent-pending (PCT approved) in 29 countries ranked by strategic importance and wireless penetration rates.



Using VerifySmart's credit and debit card fraud detection and prevention technology, card transactions and other applications, such as internet transactions can be verified without requiring the banks and merchants to invest in new equipment and without major modifications to legacy systems. Merchants and financial institutions already heavily invested in Chip and PIN technology upgrades will be significant beneficiaries.



VerifySmart(TM) technology provides for verification through the end client's mobile device, such as a cell phone, with the transaction completely under the control of the card holder at all times. The process is simple and secure, uses technology that consumers and businesses alike are familiar with, does not require new hardware and only takes seconds to complete. VerifySmart's methodology uses a two factor system to verify both the transaction and unique owner credentials in real time creating a security model that is effectively impossible to be breached.



About VerifySmart(TM) Corp.



VerifySmart Corp designed and developed a Proprietary Hardware/Software Solution that solves Credit/Debit Card fraud by using two Factor Authentication.



The Company's Core Technology is designed to meet the needs of the Security challenged Trans action Processing Industry. Present day solutions, such as Verified by Visa, Chip and Pin and CVV Code (all which can be compromised) have not reduced payment card fraud by any significant factor.



The VerifySmart solution has reduced fraud to zero in earlier production pilots. The Company's proven and highly scalable solution is gaining worldwide attention and placing VerifySmart at the forefront of the fraud prevention revolution.