Proof Positive

A Florida firm unveiled a new, anti-fraud, real-time identification authentication solution yesterday targeting financial service providers. iShopSecure’s ‘Proof-Positive’ uses a comprehensive multi-tiered identification approach that can be deployed both in a Web-based and customer service call-in environment. Access is granted based upon proprietary information only the consumers could know and information that could not be in an offender’s immediate possession. Combined with ‘I-Card’, iShopSecure’s credit card replacement technology solution, a consumer can apply for a credit card online, be authenticated, credit decisioned, and download the ‘I-Card’ to immediately begin making online purchases, within 5 minutes. ‘Proof-Positive’ is supported by ‘Equifax Secure’.

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Discover Eagle

Discover Business Services announced Tuesday it will implement HNC’s ‘Eagle’ merchant risk management system for its four million merchant outlets that accept the ‘Discover Card’. ‘Eagle’ is a merchant risk management system designed to protect acquirers from emerging fraud trends, manage risk and profitability, and increase operational efficiency. The system uses neural networks to model typical card usage at each merchant location in an acquirer’s portfolio, providing a statistical prediction of fraudulent activity including collusive or targeted behavior and employee deception. In addition to on-going risk assessment, the ‘Eagle’ system can significantly increase the productivity of portfolio analysts by providing all the information they need to perform merchant analysis on a PC-based workstation with a graphical user interface.

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Smart-e-Card Developer Sold

20/20 Web Design, Inc. announced that it has executed a definitive agreement, accounted for as an acquisition, to acquire Newport Beach based Smart-e-Card developer BentleyTel.com Inc. [http://www.bentleytel.com][1]

20/20 Web Design, Inc.’s management has approved a 4-1 forward split of its common stock with a record date of April 16, 2001. The Company has also filed to change its OTCBB trading symbol and the Company’s name to BentleyTel.com Inc.

The Company announced that Mr. Irving Einhorn, former Regional Administrator for the Los Angeles Securities & Exchange Commission, has accepted the position of Chairman of the Board of BentleyTel. Mr. Einhorn is presently an attorney in private practice and the Company is privileged to have him as chairman. The Company is seeking to expand its board further and has had positive indications for board positions from its strategic partners and other related technology companies.

BentleyTel’s Snap & Send Card, to be released this month, is the first of in a series of innovative international re-chargeable card products that will be released by the Company.

The BentleyTel Snap & Send card is also being marketed as an entry-level to first time “plastic users.” The marketing plan calls for an automatic upgrade to a BentleyTel Smart-e-Card after 10 recharges. The Smart-e-Card carries the same international phone platform but is also a stored value/ATM and international e-funds transfer card. ([http://www.smart-e-card.net][2])

The BentleyTel products are designed to connect family members around the world and corporate travelers to their respective offices and homes via a range of phone, financial services and global unified messaging services. Management is scheduled to proceed to Australia, Malaysia and Philippines to visit its new subsidiaries and to meet the BentleyTel management in each country.

BentleyTel is currently operating as a subsidiary of Global TeleMedia International (OTC Bulletin Board: GLTI), though Global must satisfy pre- existing conditions, a legacy of previous management, in order to satisfy the escrow provisions in order to complete its control of BentleyTel.

Information : Contact 949-253-9588

BentleyTel.com, ([http://www.bentleytel.com][3]) is a leading developer of Smart-e- Cards [http://www.smart-e-card.net][4] interactive software for complex E-commerce solutions, Voice over IP, LAN VPN (Virtual Private Network), ISP, Virtual ISP, The Company also owns telecom, ISP, and software development facilities in the USA, Australia, Malaysia and the Philippines.

[1]: http://www.bentleytel.com/
[2]: http://www.smart-e-card.net/
[3]: http://www.bentleytel.com/
[4]: http://www.smart-e-card.net/

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FUSA Bee

First USA, a subsidiary of Bank One Corporation announced that it will be the exclusive corporate sponsor of the 2001 National Geographic Bee, a program of the National Geographic Society.

Nearly 5 million students now participate in the annual nationwide geography competition. The National Geographic Society developed the Bee in response to concerns about the lack of geographic knowledge among young people in the United States.

“The National Geographic Bee embodies our mission to increase geographic knowledge and we are delighted that First USA has agreed to be this year’s sponsor,” said Terry Garcia, executive vice president, mission programs, at the Society.

“First USA is excited to be working with the National Geographic Society on such a worthwhile project,” said Rosemary Cauchon, executive vice president of partnership marketing for First USA. “Having a solid understanding of the world in which we live and work has never been more important than it is today, especially as more and more businesses become global. The knowledge students gain from studying geography will serve them well throughout their lives.”

The National Geographic Society is the world’s largest nonprofit scientific and educational organization. The 113-year-old Society reflects the world through magazines, books, maps, television and interactive media. National Geographic magazine, the official journal of the Society, has a circulation of about 10 million and is read in every country in the world. The National Geographic Channel, a daily cable network, launched in the United States in January 2001. Abroad, the Channel is received in nearly 100 million households, in 18 languages in 113 countries. The Society has funded more than 7,000 scientific research projects and supports an education program combating geographic illiteracy.

First USA is the exclusive issuer of the National Geographic MasterCard. First USA offers credit cards for consumers and businesses under its own name, the Bank One name and on behalf of 1,900 marketing partners. These partners include some of the leading corporations, universities and affinity organizations in the United States. Bank One Corporation is the nation’s fifth-largest bank holding company, with assets of more than $265 billion.

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1Q Squeeze

The evidence is mounting that this year’s first quarter contraction will be significant. More early returns in CardData’s ‘1Q/01 Portfolio Survey’ are show a sharper than usual decline in receivables. Among smaller issuers reporting thus far, the contraction has averaged between 6% and 8%, according to CardData ([www.carddata.com][1]). First quarter results for most of the top issuers will be released next week.

1Q/01 EARLY SAMPLE GROUP
ISSUER 1Q/01 4Q/00 CHANGE
First Security (UT) $224,956,251 $243,818,323 -7.8%
Randolph Brooks FCU (TX) $ 75,567,019 $ 82,280,836 -8.1%
United Airlines FCU (IL) $ 71,380,418 $ 78,217,897 -8.7%
Sikorsky FCU (CT) $ 22,532,488 $ 24,183,826 -7.0%
Allegacy FCU (NC) $ 21,374,872 $ 22,729,170 -5.7%
Total $415,811,048 $451,230,052 -7.8%

Source: CardData (www.carddata.com)

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

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AmEx & AOL

American Express Publishing Corporation announced a content agreement with America Online, the world’s leading interactive services company, under which content from American Express Publishing magazines Travel + Leisure and Food & Wine will be available across several America Online brands.

Under the agreement, travel and epicurean content from Travel + Leisure and Food & Wine will be available to online consumers through co-branded sites available across America Online brands including AOL, CompuServe and Netscape.com. Articles, reviews, recipes and other promotional opportunities from the magazines will be available to the more than 31 million AOL and CompuServe members and the tens of millions of additional visitors to Netscape.com. The magazines will be promoted in the Travel Channel and House & Home Channel of the America Online brands, in areas on entertaining, travel interests and more. AOL members will also be able to access the magazines through AOL Keyword: Travel + Leisure, and AOL Keyword: Food & Wine. As part of the agreement, AOL will also be promoted in all American Express Publishing magazines: Travel + Leisure, Food & Wine, Departures, T&L Golf, Travel + Leisure Family, and SkyGuide.

![][1] In addition, America Online and Travel + Leisure will work together on a consumer survey called Travel America, to be presented in both online and print media. An online poll will be created by Travel + Leisure and conducted by America Online, and the results will be published as a story in Travel + Leisure later this year. Currently celebrating its 30th year, Travel + Leisure is the world’s largest travel magazine.

Richard Fairfield, CFO/VP, Business Development, American Express Publishing, said, “We are thrilled to expose content from Travel + Leisure and Food & Wine to America Online’s wide audience. In addition, by setting up customized versions of travelandleisure.com and foodandwine.com, we can offer users of the America Online brands great deals on our magazines, books, and other products.”

Jonathan Sacks, President of AOL, said, “American Express Publishing is a leader in luxury lifestyle publications, and I’m pleased to make their great content on travel, food and entertaining available to the users of our brands. Travel + Leisure and Food & Wine are extremely popular, and I’m sure our members will appreciate being able to more easily access online all the features, recipes, travel tips and other information the magazines offer.” American Express Publishing is the leading publisher of luxury lifestyle magazines. Travel + Leisure, Food & Wine, Departures, T&L Golf, and Travel + Leisure Family magazines are part of the American Express Publishing Corporation, a subsidiary of the American Express Company managed by Time, Inc. under the terms of an agreement signed in March 1993. The company also publishes SkyGuide and a variety of cooking, travel, wine, time management, and financial books and products, plus a custom publishing group.

[1]: /graphic/aol/aol_logo.gif

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Credit Ed Week

National Credit Education Week will get underway next week. The national public service campaign is sponsored by the American Collectors Association, Creditors International, and the JumpStart Coalition for Personal Financial Literacy. The campaign focuses on American youth. Yesterday, FL-based InCharge Institute of America said it will release a study that found over half of the survey respondents indicated their parents did not talk to them about the importance of a good credit rating or using credit cards responsibly. The JumpStart Coalition for Personal Financial Literacy is releasing a book entitled: “Improving Financial Literacy: What Schools and Parents Can and Cannot Do”, which is largely based on the results from JumpStart’s 2000 survey measuring 12th graders’ level of knowledge of personal finance basics.

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Cubic NYC Deal

Cubic Transportation Systems said Monday it has been awarded two contracts totaling $8 million to provide more gating and computer equipment to support New York City Transit’s ‘MetroCard’ system. The central computer system stores all data collected on the transit system’s ‘MetroCard’ reloadable magnetic stripe card, including entries, transfers, fares and discounts. It handles more than 6.5 million transactions daily for New York City Transit’s bus and rail systems, Long Island Bus and the New York City Department of Transportation, which contracts with seven independent bus operators. In February, Cubic won a $20 million contract to provide the nation’s first interstate “touchless” mass transit ticketing system. The Washington (DC) Metropolitan Area Transit Authority named Cubic the prime contractor for a new regional program, linking payment for WMATA buses serving Washington, D.C. and parts of Maryland and Virginia with the Metro’s existing ‘SmarTrip’ fare collection system. Cubic-designed payment systems for mass transit are in place in more than 40 major markets on five continents. (CF Library 2/2/01; 3/28/01)

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Infinite Perks

VISA announced yesterday it is beefing up its global premium card with an exclusive offer from Guggenheim museums. Through the end of this year, ‘VISA Infinite’ cardholders will receive two-for-one admission to any of the Guggenheim museums worldwide and a 10% discount on Guggenheim publications in the Guggenheim Online Store. VISA introduced the new card in October in conjunction with National City. The ‘VISA Infinite’ card, originally announced by VISA in Oct 1998, features no preset spending limit, a high minimum credit limit, a customized reward system and a premium concierge service. National City is charging $150 per year for the card. (CF Library 10/30/98; 10/4/00)

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PhoneMiles Rewards

A Canadian firm has launched the ‘PhoneMiles Reward Program’ which enables consumers to earn and accumulate free long distance airtime from every purchase they make with retailers using a special POS system. Ontario-based UniLink says each participating retailer receives a ‘Unilink P.O.S.’ terminal and a supply of ‘PhoneMiles’ cards. The first time a consumer visits any retail partner outlet and makes a purchase, they will be invited to become a member and will be gifted with free long distance airtime. The value of the reward is determined with a formula based on the amount spent and where the purchase was made. The average reward is valued at approximately 3%-20% of the purchased amount. In the first 75 days of the program, UniLink has signed up over 255 retail partners, mainly in the Greater Toronto area, with more than 16,500 ‘PhoneMiles’ members.

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GemSafe Enterprise

Gemplus S.A., the world’s leading provider of smart card solutions, released the next generation of GemSAFE Enterprise, a corporate security solution enabling companies to protect their business communications. GSE offers the most advanced security solutions, combining smart card and public key infrastructure technologies to secure network applications and data transactions. The solution safeguards privacy throughout the enterprise and external business communication by providing controls over authentication and access.

The key added features of the next generation GSE include multiple PKI support and an enhanced card management system, providing remote diagnostics and maintenance. The added capabilities in the new version enable businesses to print and personalize their cards locally, or through a Gemplus personalization center for larger deployments. Combining the card management system with user stations and a development kit, the solution allows businesses to deploy and manage the entire lifecycle of smart cards in-house. The flexibility of the solution makes it possible for enterprises to personalize card systems to fit their individual needs.

The GSE solution customer-base includes a broad range of multi-national corporations, such as ABN AMRO, BRED Banque, British Petroleum, Connecticut Hospital Association, Czech Government, Mondadori Informatica Education, PinkRoccade, Telecom Italia Mobile and Telefonica.

“GemSAFE Enterprise fits our needs well. It was necessary to find a solution that accommodates strong controls for access and authentication,” said Eric Koop, VP for ABN AMRO Bank. “We have trust in the GemSAFE solution; we now have peace of mind that communication and transaction information is being conducted in a secure and convenient manner.”

Pete Lindstrom, a Senior Security Analyst from Hurwitz Group states: “The smart card industry is poised for growth as PKI becomes more widely adopted and e-businesses increase their demand for stronger authentication than the use of a password. Smart cards play a key role in boosting the potential of PKI, authentication, and digital signatures; providing a significant increase in security.” Offering tamper-resistant storage of encryption keys and digital certificates, smart cards are an ideal way to secure and maintain authorized access for business-critical information and applications. GSE provides smart card solutions that meet rigorous security needs for a variety of industries such as retail, banking, and healthcare. Smart cards offer portability and complete control over information access for convenience and protection of privacy.

About Gemplus

GEMPLUS: the world’s leading smart card solutions provider. Since its creation in 1988, Gemplus International S.A.(Euronext: Sicovam 5768 and Nasdaq:GEMP) has driven the global marketing and deployment of smart card-based applications for telecommunications, financial services and e-business security.

Gemplus is instrumental throughout the value chain — chip design, card management systems, software development, and consulting — delivering integrated custom-made solutions for the security, personalization and privacy management needs of clients and partners worldwide.

Gemplus technology has played a defining role in the development of wireless telephony since the introduction of SIM cards into the GSM standard in 1990. For more than a decade, Gemplus has pioneered applications that enable network operators around the world to answer the changing needs of their customers. Gemplus was first to market with a 3G card and supplies a product range compliant with new and emerging transmission standards – 2.5G, 3G. In 2000, revenue was 1.205 billion Euros, up 57% from the previous year’s 767 million Euros. Net income was 99 million Euros. Gemplus employs more than 7800 people in 37 countries worldwide.

Since December 11, 2000, Gemplus shares have been trading on Euronext Paris S.A. First Market and on Nasdaq Stock Market(TM) at GEMP in the form of ADSs. Gemplus: [www.gemplus.com][1] Gemplus is a registered trademark and service mark of Gemplus S.A. GemSAFE and the Gemplus logo are trademarks and service marks of Gemplus S.A. RSA Security is a trademark and service mark of RSA Security, Inc. All other trademarks and service marks are the property of their respective owners.

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

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Datacard Consult p7

Datacard Group announced it has assembled an elite team of smart card specialists that will provide card issuers with a wide range of security evaluation services. The new group, called Datacard Consult p7, will be based in London and serve major card issuers around the world.

The team, which is comprised of experienced mathematicians, cryptographers and smart card chip experts, is already working closely with a number of the world’s largest corporations to measure and improve the security of high-profile smart card programs.

“Creating a trusted platform is a paramount concern for most smart card programs, especially for financial and personal data applications”, said Graham Higgins, Head of Datacard Consult p7. “We believe we have the most accomplished team in the industry for measuring and improving the integrity and security of a chip, an operating system or an entire smart card program. “Essentially, we examine our customer’s chips and operating systems with the skill associated with a more sophisticated attack,” Higgins said. “We generally are able to find fraud, theft and forgery risks that our customers were not expecting.”

Higgins said that although Datacard Consult p7 customers have talented in-house technical staff, they don’t have the specialized skills required to uncover security gaps that can be exploited by the more sophisticated attacks. “Security risks change constantly. Thieves are always attempting to leapfrog the latest security measures,” Higgins said. “Fortunately, because we have a gifted team that focuses exclusively on the smart card, we understand this reality and strive to remain several steps ahead of the latest attack strategies.”

Higgins, along with many of the security experts who comprise the team, previously worked for a company called platform seven (p7), which Datacard acquired in March 2000. p7 as the research and development arm of National Westminster Bank and creator of the Mondex electronic purse scheme and MULTOS operating system, had developed a worldwide reputation for innovative, robust software products and unmatched consultative services.

“Acquiring p7 greatly expanded our smart card portfolio,” said Jerry Johnson, Datacard president and CEO. “We’re now able to provide our customers with the world’s most complete line of smart card issuance and smart card management solutions — including an end-to-end architecture for issuance of multi-application smart cards.

“The acquisition also provided us with the nucleus for Datacard Consult p7, which will become a vital resource for our customers,” Johnson said. “Our mission is to help our customers develop smart card programs that are successful out of the gate and over the long run. Datacard Consult p7 services are a vital part of our overall solution.”

Datacard Consult p7 expects to provide services for a variety of organizations in a number of markets, including financial, healthcare, telecommunications, retail, transportation, insurance, government and education. They also expect to continue providing application development and chip / card evaluation services to all industry sectors.

“Smart cards, especially multi-application smart cards, will store a variety of private and valuable data,” Higgins said. “It will be imperative that card issuers protect this data and preserve trusted relationships with their cardholders. We believe we’re uniquely qualified to help card issuers accomplish that.”

Datacard Group is a world leader in innovative plastic card personalization and identity management solutions. The company provides its customers with integrated systems for a variety of financial, identification and healthcare applications. A diverse solutions portfolio features a broad range of card-related products and services, including the world’s best-selling card personalization and printing systems. Datacard Group also offers smart card life cycle management software, smart card personalization systems, smart card personalization applications and a variety of products and services designed to enhance card-issuing operations. Datacard Corporation, doing business as Datacard Group, is privately held and based in Minnetonka, Minn. The company serves customers in more than 200 countries worldwide. [www.datacard.com][1]

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

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