A three month joint investigation, dubbed
“Project 7”, undertaken by the Peel Regional Police Fraud Bureau, the Ontario
Provincial Police Anti-Rackets Section and the Canadian Bankers Association,
in conjunction with Police Services in Durham Region, Windsor, Ottawa-Carleton
and Halton Region, along with the U.S. Secret Service, was concluded on July
6th, 2001.

The investigation is part of a continued commitment to the proactive
policing of criminal fraud groups operating across numerous policing
jurisdictions and a commitment amongst Police Services to work co-operatively.
The targeted groups were involved in common fraud schemes, including
credit/debit card “skimming” and counterfeiting, the theft of personal
identification data and, in one case, internet based fraud.

Over the course of the three months, six search warrants were executed
and eleven persons charged in three judicial jurisdictions with a total of
sixty-seven offences. Five of the persons charged were on bail awaiting trial
for similar offences when arrested. The investigation, coupled with the
seizure of five computers containing pirated data, served to identify retail
outlets across the Province, as the source location for the theft of personal
credit and debit card data. The retailers were in Mississauga, Toronto,
Burlington, Hamilton, Windsor, Ajax and Barrie. The total fraud loss, which
remains to be finalized, is expected to be hundreds of thousands of dollars.
This investigation has however, saved an equal amount of money by recovering
pirated data before it could be encoded onto counterfeited debit/credit cards.

One of the persons charged, had been suspected of being involved in
internet based fraud. At the time of his arrest he was carrying $8,000 USD.
The money was traced to an American citizen in Pennsylvania who had responded
to a pitch he had received via the “net”. The fraud scheme commonly referred
to as the “Nigerian letter” entices persons to assist in secreting money out
of an African nation, most commonly Nigeria.

The public can assist Police and Financial Institutions in curbing
organized fraud by protecting their personal data, especially their debit card
PIN number and by being cautious in responding to any unsolicited messages
received through the “net”. If it sounds too good to be true it usually is.

For further information contact Detective Sergeant Rodrigues, Peel
Regional Police Fraud Bureau 905-453-2121 ext 7330 or Detective Inspector
Chivers, OPP Anti-Rackets 705-329-6400


Oberthur Nabs Grenoble

Oberthur Card Systems of America named Creighton Grenoble senior vice-president of development and systems to manage the development of the company’s next generation e-business infrastructure, smart card software engineering and data-processing services such as internet-based card management & e-fulfillment.

“Creighton is a valuable addition to the management team in the U.S. and will work closely with the product engineering and information technology teams worldwide to continue to grow our card business in the U.S.,” noted Philippe Tartavull, CEO for Oberthur Card Systems for the Americas. “His experience in implementing technology products and enterprise-wide infrastructure will generate new services for our customers and a solid return on investment for our advanced card products.”

A 16-year veteran, Grenoble’s career in technology systems development includes serving as E-Insurance Systems’ CTO where he led the development and rollout of a web based, application service provider (ASP) for the insurance industry.

Grenoble served as a senior manager at Deloitte & Touche, focusing on major e-business, systems integration and organizational transformation projects for a number of industries including financial services, insurance, high-tech manufacturing and medical services. He also led the systems and programming team at O’Melveny & Myers, a leading international law firm, with responsibility for delivering highly secure and reliable applications and network services.

Grenoble received his MBA from the University of Southern California and a B.S. degree in math and computer science from the University of California, Los Angeles.

About Oberthur Card Systems

Oberthur Card Systems (Paris Stock Exchange – Code SICOVAM 12413), a global leader and the innovator in the smart card industry, is shaping the future by offering the ultimate in SIM, WAP, 3G (IMT-2000/UMTS), e-wallet technologies & Internet-based card management services coupled with a firm commitment to open standards.

Championing EMV migration, Oberthur is the world’s #1 supplier of MasterCard and Visa cards, #1 in banking, e-commerce, m-commerce and pay-TV, Oberthur is also the #1 in JavaTM and GSM technologies.

Oberthur Card Systems has an international reach ensured by 30 sales offices and 20 manufacturing sites across the five continents. Oberthur Card Systems had sales of 451.1 million Euros in 2000.



Visa Canada announced Monday its first Canadian pilot of a hotel enhanced data service. The three-month
pilot will involve the Delta Centre-Ville in Montreal.

Electronic enhanced data helps corporations reduce expenses, increase
productivity and improve travel and entertainment expense management
processes. The Visa hotel folio service uses Extensible Markup Language (XML)
to capture, transmit and deliver detailed information beyond the basic data
usually contained in a standard payment transaction. With this service,
corporate travel managers can receive an electronic breakdown of virtually all
expenses charged to a room including telephone calls, in room service, mini-
bar, laundry, restaurant bills and taxes. Hotel folio data is a key component
of successful vendor management for corporate travel managers.

“Enhanced data really simplifies the travel management process which
inevitably, helps increase profitability for an organization,” said Joanne
Modugno, Senior Product Manager, Corporate Cards, Visa Canada. “This service
complements existing Visa best practices for organizations that use Commercial

The demand for electronic hotel folio data has grown exponentially.
Despite an increased focus on automation, most companies handle thousands of
paper documents as part of the expense management process with the majority of
business travelers collecting and submitting paper receipts and invoices. For
Visa Commercial Card users, electronic hotel folio data simplifies expense
reporting and improves internal processes. For hoteliers, electronic folio
data delivers a competitive advantage, increased profitability and value-added
services for corporate customers.

This Visa initiative is part of a global strategy to deliver hotel folio
data to companies in key markets around the world. Hotel related expenses
represent a significant portion of corporate travel budgets, and electronic
folio data will help companies manage this cost component efficiently. Visa
plans to expand the enhanced data program and is working on a broader rollout
of data-enabled properties by the end of this year.

As the “World’s Best Way To Pay”, Visa is the leading credit card payment
brand in Canada and around the world. There are more than 23.6 million Visa
cards accepted at more than 574,000 merchant locations across Canada. Visa
Canada plays a pivotal role in advancing new payment products and technologies
to benefit its 26 Member financial institutions and their cardholders. In
Canada, Visa cards generated more than $93 billion in annual volume in 2000.
Visa-branded cards are accepted at over 650,000 ATM’s around the world.



The California Reinvestment Committee Monday called on Federal Reserve Chairman Alan Greenspan to
respond to scores of letters criticizing Citigroup’s planned purchase of
Banamex and California Commerce Bank by holding public hearings in
Los Angeles. Monday was the last day for public comment and the Federal Reserve
has as yet been unresponsive to public comment. Citigroup has stated that it
will use the Banamex name to market to Latinos in the U.S. Community
organizations, public officials, and members of the public have written to the
Federal Reserve expressing concern that Citigroup will seek to extract high
profits from Latinos while reinvesting little back in Latino communities and
asked for an opportunity to be heard.

Citigroup and its subsidiaries have a pattern of targeting low income
communities with expensive, “sub-prime” products that offer little access to
less-expensive, conventional banking. For example

“This merger will allow Citigroup to continue its pattern of selling
products at high rates to Latinos and low income people while investing little
or nothing in their communities,” said Alan Fisher, Executive Director of the
California Reinvestment Committee. “CRC calls on the Federal Reserve Bank to
listen to the public and hold hearings in Los Angeles, Phoenix and Albuquerque
to review the purchase and the lack of commitment to reinvest in the needs of
Latinos, low income people and Mexicans.”

CRC is a statewide organization of more than 200 nonprofit organizations
and public agencies working for equal access to financial institutions for low
income people and people of color. CRC has comprehensive community
reinvestment agreements with major California banks and savings & loans.



HNC Software Inc. announced Monday a further agreement with HSBC Holdings plc, one of the largest financial service organizations in the world. As part of the new agreement, HSBC will further use HNC’s Falcon, the leading bank card fraud detection system, to bolster its already strong fraud detection systems to protect its credit and debit card account customers worldwide.

“We’re pleased to be amplifying our partnership with HSBC, a global banking powerhouse,” said John Mutch, chief executive officer of HNC Software.

“We chose to expand our relationship with HNC due to the considerable success Falcon has brought us in reducing fraud losses,” said Brendan Cook, who heads HSBC’s Group Cards businesses. “We now have Falcon deployed across four continents to protect our global cards business and we now wish to go even further to strengthen our defenses against fraud.”

Falcon, a neural network-based predictive software system that examines transaction, cardholder, and merchant data to detect a wide range of payment card fraud, currently protects more than 400 million payment card accounts worldwide. The system employs the world’s largest consortium of payment card transactions to accurately predict the likelihood of fraud. Eighty-five percent of all US credit card transactions, and 65 percent of all international credit card transactions flow through HNC’s predictive neural networks every day.

About HSBC

Headquartered in London and possessing assets of $674 billion (US) as of December 31, 2000, HSBC serves more than 25 million customers through its international network of 6,500 offices in 79 countries and territories in the Asia-Pacific region, Europe, the Americas, the Middle East, and Africa. With listings on the London, Hong Kong, and New York stock exchanges, shares in HSBC Holdings are held by some 190,000 shareholders in more than 100 countries and territories. Through a global network linked by advanced technology, HSBC provides a comprehensive range of financial services; personal, commercial, investment, and private banking; trade services; cash management; treasury and capital markets services; insurance; consumer and business finance; pension and investment fund management; trustee services; and securities and custody services.

About HNC Software Inc.

HNC Software is a leading provider of Customer Insight solutions including intelligent response, decision management, and customer analytics software that enables companies in the financial, telecommunications, e-commerce and insurance industries to acquire, manage and retain customers.


Business Center Hires Baker

Georgia Baker, former Retail Market Manager with U.S. Bank, has been appointed to the position of Vice President of Partner Development for Business Center USA. Baker, who spent the last 10 years with U.S. Bank, will focus on the further expansion of Business Center USA’s base of over 300 sales offices.

Business Center USA (formerly known as Money Tree) is a national provider of credit and debit card accounts for retail and Internet merchants and has processed over $5 billion in transactions.


Sears Risk Management

Sears, Roebuck & Co. announced that it expects to reduce costs associated with credit risks and increase revenue streams by several million dollars annually through the use of new software designed by Sears and developed by SignalTree Solutions, Inc. The new software provides expanded functionality and exceptional speed and flexibility in the area of customer behavior modeling performed by the Sears Credit department, significantly improving its credit decision process.

“To the best of our knowledge, no other credit issuer has undertaken a custom scoring initiative as extensive, thorough and forward-looking as Account Scoring Engine (ASE). The ASE represents world-class, industry- leading technology in terms of techniques we will apply to customer scoring, the information we can bring to bear in the scoring/decisioning process, and the speed with which we can deliver modeling and strategy solutions to the marketplace,” said Mark Teague, Director, Portfolio Strategy for Sears Credit. “We will use this technology to better serve our customers and shareholders through superior decision-making in the consumer credit arena.”

Sears selected SignalTree Solutions to build the system due to the company’s proven track record of delivering complex transactional systems, with strict adherence to development methodology. SignalTree Solutions currently is working on the second phase of the Account Scoring Engine, which will enable business users to define new rules through a Web-based interface.

“We were aware that SignalTree had built similarly complex applications for other clients and felt very confident that they could do the same for Sears,” said Ron Callahan, Director of Risk and Information Management for Sears. “Not only did they complete the development on schedule, but they also worked very closely with our business users and IT staff to resolve all the nitty-gritty details in the data conversion.”

“The work we’re doing at Sears showcases all of our strengths,” said Russ Cappellino, SignalTree Solutions Chairman and CEO. “We have a thorough understanding of Sears’ business, we integrate their applications across a variety of hardware and operating systems, and we are leveraging our offshore development facility to minimize costs.”

About SignalTree Solutions

SignalTree Solutions is a leading provider of global sourcing IT solutions, primarily to the North American and European markets. The company has more than 1000 technology consultants at six technology centers strategically located in Los Angeles and Irvine, California; Chicago, Illinois; Jacksonville, Florida; and in Hyderabad and Delhi, India. The offshore technology centers have attained the most prestigious level of organizational excellence, the Software Engineering Institute’s SW-CMM Level 5. SignalTree Solutions seeks to develop strategic relationships with clients by customizing a global sourcing model that best meets the client’s business and technology needs. The company’s ability to build trust and demonstrate reliability has resulted in a number of significant multi-year outsourcing contracts and ongoing business from existing clients. For more information on SignalTree Solutions, visit: .

About Sears

Sears, Roebuck and Co. is a leading U.S. retailer of apparel, home and automotive products and services, with annual revenue of more than $40 billion. The company serves families throughout the country through approximately 860 full-line department stores, and more than 2,100 specialized retail locations, and a variety of online offerings accessible through the company’s Web site, .


NCR Gets Lance

NCR Corporation announced that Howard L. Lance has been named president of NCR and chief operating officer of its Retail and Financial Group, reporting to NCR chairman and chief executive officer Lars Nyberg.

Lance joins NCR after 17 years with global electrical and electronic equipment maker Emerson, having held increasingly senior management positions since joining the company’s Copeland division in 1984. Most recently, he served as executive vice president with responsibility for much of Emerson’s electronics and telecommunications segment, a $4 billion business providing a broad range of power, electronic and connectivity products for the information technology and telecommunications markets.

Lance, whose appointment is effective immediately, will be responsible for four of NCR’s five businesses — Retail Store Automation, Financial Self Service, Worldwide Customer Services and Systemedia.

“Howard has proven ability growing technology-related businesses both organically and through acquisition. His extensive sales and marketing experience, operational capabilities and technology expertise are an excellent fit for NCR, and I’m excited about bringing his business acumen and leadership to NCR and our Retail and Financial Group,” said Lars Nyberg, chairman and CEO of NCR.

Lance began his career in an engineering co-op program with Caterpillar, Inc. while attending Bradley University in Peoria, Illinois. Upon graduation he moved into sales and marketing assignments at Caterpillar, and eventually was appointed marketing director for the Towmotor division.

Following two years at the Scott-Fetzer Company as national sales and marketing manager, he joined Copeland Corporation in Sidney, Ohio in 1984 as manager of its product service business and later became vice president of sales and marketing for the company. Copeland was purchased by Emerson in 1986. Lance’s success increasing sales revenue earned him a general management role in 1993 as president of Copeland’s refrigeration division.

Prior to his most recent role as executive vice president of Emerson’s electronics and telecommunications segment, Lance was group vice president responsible for five of the segment’s business units. Prior to that, he was chief executive officer of Astec plc, at the time a 51 percent Emerson-owned power supply and electronic components business based in Hong Kong.

Lance holds a M.S. in management from Purdue University, and a B.S. in industrial engineering from Bradley University.

NCR’s fifth business — Teradata, a global leader in data warehousing and analytical solutions — continues to be led by chief operating officer Mark Hurd, also reporting to Nyberg. Hurd will assume the title of president of NCR, along with his current title of chief operating officer of the Teradata Division.

“Since assuming responsibility for our data warehousing business in 1999, Mark has continued to demonstrate strong leadership in this space,” said Nyberg.

Along with Nyberg and chief financial officer David Bearman, Lance and Hurd are members of NCR’s Executive Committee. NCR is led by this four-person committee, responsible for establishing company direction and setting strategies and objectives in support of that direction.

About NCR Corporation

NCR Corporation (NYSE: NCR) is a leader in providing Relationship Technology(TM) solutions to customers worldwide. NCR’s Relationship Technology solutions include the Teradata(R) database and analytical applications for customer relationship management (CRM) and business performance management, store automation systems and automated teller machines (ATMs). The company’s business solutions are built on the foundation of its long-established industry knowledge and consulting expertise, value-adding software, global customer support services, a complete line of consumable and media products, and leading edge hardware technology. NCR employs 33,200 in more than 100 countries, and is a component stock of the Standard & Poor’s 500 Index. More information about NCR and its solutions may be found at .


Banamex Backlash

Citigroup’s acquisition of Mexican credit card king Banamex is drawing fire from the Latino community. The California Reinvestment Committee is concerned about Citigroup’s proposed use the ‘Banamex’ name to market to Latinos in the US. The group says Citigroup’s dismal track record in marketing sub-prime products and Citi’s acquisition of Associates Finance will lead to a monopoly in Mexican finance. The CRC also says Citigroup will monopolize wire remittances to Mexico without a commitment to control prices and will continue to dominate EBT while offering inadequate access to these benefits.


Enhanced Access @dvantage

Global Payments Inc. announced the enhancement of Global Access @dvantage, a Web-based payment information management tool, to include a merchant accounting module. The newest payment information access module offers Global Payments’ merchant customers the ability to easily research and review 180 days of authorization and settlement data through a secure Internet connection.

Global Access @dvantage provides merchant customers 24-hour accessibility to research and reconcile transaction and settlement information; confirm ACH transfers; obtain statement information; and track chargeback notifications and media retrievals to prevent revenue loss from overlooked requests. Merchants will also have the ability to export and print data, and to obtain downgrade reason descriptions.

Global Access @dvantage, a payment information portal, also offers two additional modules for immediate and convenient access to transaction information, Master File data, and report images.

Global Access @dvantage offers financial institutions and Independent Sales Organizations full control to manage merchant portfolio records, conduct interchange research, and verify transactions. Financial Institutions can add or update merchant/terminal information, as well as view or print electronic images of pre-formatted reports.

“These enhancements to our Internet reporting product shows Global’s commitment to providing our customers innovative solutions for managing and enhancing their businesses. Offering Web-based solutions gives Global the ability to get enhancements and upgrades faster to market and affords both our customers and Global the ability to increase productivity and reduce expense,” said Global Payments’ President and CEO, Paul R. Garcia.

Global Payments Inc. is a leading provider of electronic transaction processing services to merchants, Independent Sales Organizations (ISOs), financial institutions, government agencies and multi-national corporations. Global Payments offers a comprehensive line of payment solutions, including credit and debit cards, business-to-business purchasing cards, gift cards, check guarantee, check verification and recovery, terminal management and funds transfer services.


TSAI Restructuring

Transaction Systems Architects confirmed Monday it will incur one-time charges in the third quarter of fiscal 2001 of approximately $22 million as a result of its ongoing operational restructuring plan. The Company has scheduled a news conference for this morning. TSAI also announced that it has transferred its 70% ownership in Hospital Health Plan Corporation to HHPC’s minority shareholder. The Company has also closed or significantly reduced the size of certain product development organizations and geographic sales offices. TSAI expects revenue for the third quarter to be between $72 million and $74 million.