U.S. ATM/Debit Card Fraud Nears $3B Annuall

A new report has found that ATM/debit card fraud in the U.S. generated losses of $2.75 billion, with an average loss of more than $900. The study suggest that banks have the ability to stop these attacks, but many have not taken the extra steps needed to prevent them. According to the Gartner report, banks can modify their ATM host systems to check for security data on a card’s magnetic strip. This data is unknown to bank customers and therefore cannot be phished. Thieves generally cannot duplicate this security data unless they have insider knowledge of the bank’s algorithms and security codes. Phishing occurs when a cyberthief sends an e-mail with a link to a false Web site. Gartner says the best defense is a transaction anomaly detection system that compares incoming transactions with profiles of what is expected from the user. Anomalies can be flagged for further investigation and/or subsequent interactive authentication of the user, perhaps through a phone call to the user.

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NACM July CMI Index Slips But Indicates Growth

The National Association of Credit Management “Credit Manager’s Index” for July stood at 56.7%, a decline of 1.1% from June, but still implies economic growth. The manufacturing sector continued its downward slide, ending the month of July at 56.9 percent, down 40 points from just one month ago. The Service CMI finished at 56.6 percent, a 180-point drop from June 2005. The National Association of Credit Management (NACM)supports more than 25,000 business credit and financial professionals worldwide with premier industry services, tools and information.

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EFMARK Introduces Premium ATM Cash Manager

Illinois-based EFMARK Premium Armored has introduced its “Premium Cash Manager” program for ATMs, which optimizes cash levels and improves profitability. The program is a fully automated currency management solution that performs the complex process of accurately predicting optimal ATM cash load levels. Most ATM service providers assess high fees for “emergency cash runs” when an ATM “runs dry” unexpectedly. However, EFMARK stands by the effectiveness of its “Premium Cash Manager Preferred” program by absorbing the cost of any emergency cash replenishments that arise. EFMARK’s cash management services include load forecasting, order calculation, reconciliation and Reg E claims. Other cash services include currency vaulting, currency cassette preparation and balancing, and secure currency transport, pick-up and delivery. Greater Iowa CU has already selected EFMARK to provide cash management services for its 400 ATMs.

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Hitachi Consulting Buys Dove Consulting

Dallas-based Hitachi Consulting has acquired Boston-based Dove Consulting Group for a undisclosed amount. Last year, Hitachi Consulting acquired Aspirity as the cornerstone for its national business intelligence practice. Dove Consulting has performed payment strategy work with seven of the Top 10 U.S. banks, major payment networks and government entities. “On Payments” is a periodic Financial Service e-newsletter publication distributed by Dove. President and Founder, David Dove, will become the Managing VP of Hitachi Consulting’s Strategy and Organizational Effectiveness national consulting practice.

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Anti-Phishing Working Group Expands Tracking

The Anti-Phishing Working Group has expanded its charter to encompass broader identity theft issues on the Internet such as pharming and “crimeware.” The APWG this month launched “PROJECT: Crimeware”, an investigation into malicious software that steals access credentials and uses them for attacks, identity theft and financial fraud. While the number of conventional phishing campaigns rose from 14,987 in May to 15,050 in June, the number of unique crimeware instances dedicated to password stealing nearly doubled from 79 in May to 154 in June. Password-stealing malicious code URLs detected grew from 260 in April to 495 in May and to 526 in June. The Anti-Phishing Working Group (APWG) was formed to fight identity theft and email spoofing on the Internet, with over 1,700 members.

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AmSouth Launches the CheckCard Rewards Debit VISA

AmSouth Bank has launched the “CheckCard Rewards” program in which bank customers can get up to 25% cash-back from specific retailers. AmSouth customers making purchases at participating locations on or after August 1, 2005, will have a cash refund amount automatically deposited to their accounts and reported on their monthly bank statements. AmSouth is a regional bank holding company with over $50 billion in assets, more than 685 branch banking offices and 1,240 ATMs.

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JCB Selects Experian-Scorex’s Credit Risk Decisioning

JCB is partnering with Experian and will implement Experian-Scorex’s “Probe” solution into its credit card environment.
“Probe” will allow JCB to analyze and make changes to its credit
strategies in half the current time. This is due to flexibility and
the desk top user control of the solution. The solution also allows for
simulation of strategies and it is a major leap forward from current
systems for control, analysis and monitoring of credit risk strategies,
enabling greater speed-to-market implementation. JCB’s merchant network
includes 12.4 million merchants and spans 190 countries. JCB cards are
now issued in 18 countries with 55 million cardholders.

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FAPS Launches an In-House FirstAdvantage STV Card

Fort Worth, Texas-based First American Payment Systems has launched the “FirstAdvantage” gift and loyalty card, the most recent addition to its in-house product line. FirstAdvantage is ideal for small- to medium-sized businesses that seek to sell gift cards without the high costs often involved, offering a small initial investment and low monthly rates and no minimum quantity when ordering standard gift cards. First American Payment Systems, L.P. provides full service credit card processing for approximately 75,000 merchants throughout the United States.

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eFunds Q2 Revenues Up 10%; Raises Projections

AZ-based eFunds reports second quarter net income of $14.1 million. Second quarter net revenue increased 10% to $116.3 million, excluding the former ATM business, compared to the second quarter of 2004. Overall, revenues declined 17% from the 2Q/04. eFunds sold its ATM deployment business in November 2004. During the second quarter, new customer wins included Societe Generale and eFunds acquired India Switch Company and National Check Protection Services and signed the agreement to purchase WildCard Systems. The Company has raised its 2005 net income estimate from a range of 15% to 19% over the net income of $40.8 million reported in 2004 to 25% to 35% over its 2004 net income due to its anticipated recognition of a $4 to $6 million tax benefit in the third quarter. For complete details on eFunds’ second quarter performance, visit CardData ([www.carddata.com][1]).

eFunds Revenues Historical
2Q/03: $133.0 million
3Q/03: $133.1 million
4Q/03: $135.4 million
1Q/04: $140.9 million
2Q/04: $140.7 million
3Q/04: $140.1 million
4Q/04: $130.5 million
1Q/05: $114.2 million
2Q/05: $116.3 million
Source: CardData (www.carddata.com)

[1]: http://www.carddata.com

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Web Transaction Monitoring Goes to Next Gen

Keynote Systems released a new version of its service for measuring the speed and reliability of Web-based transactions. “Transaction Perspective 6.0” enables companies to measure, benchmark, trend and analyze the performance of their most critical applications and multi-step business transactions from the end user. Other significant enhancements to “Transaction Perspective” include: component level alerting targeted to specific issues allows customers to set alerts on specific network related times, such as DNS lookup, first byte and connection time with a server; baseline threshold alerts for performance trending as part of the alerting strategy, provides more intelligent alerting based on a rolling average for each hour of the week instead of static values that results in fewer false alarms; and enhancements to the “MyKeynote UI” including customization for audience type, configurable schedules and content and search archives for historical reports up to two years. “Transaction Perspective 6.0” is available immediately with prices starting at $1,295 per month (5 pages/10 cities).

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US Dataworks’ Revenue Rises 22% in Q2

Houston-based US Dataworks posted revenues for the second calendar quarter of $1.1 million, compared to revenues of $903,132 for the same period a year ago. Net loss for the quarter was $968,800, compared to a net loss of $1.4 million, for the corresponding period in the prior year. The Company recently announced it exceeded the one billion transaction threshold using its “Clearingworks” payment platform. US Dataworks expects revenues for the next quarter to range from $1.5 million to $1.6 million. For complete details on US Dataworks’ latest results, visit CardData ([www.carddata.com][1]).

[1]: http://www.carddata.com

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