Fraud Update

   nCipher recently launched payShield, an advanced hardware security module designed specifically for the payment processing market.
   payShield provides a tamper-resistant security platform to protect cryptographic keys and cardholder authentication processes thereby enabling banks, payment processing service providers and credit card issuers to meet latest industry standards. payShield is the first hardware security module to satisfy both the cryptographic security and performance requirements of major initiatives by MasterCard International and Visa.
   As part of these initiatives, both MasterCard and Visa have defined new techniques for identifying and validating the person making a purchase as well as the credit or debit card used for the transaction. One of the common security requirements established by both MasterCard and Visa is the use of cryptographic hardware security modules to underpin the security of the various cryptographic functions that make up the enrollment and authentication process.
   "Initiatives such as 3-D Secure and UCAF are gaining mass acceptance as online banks and merchants understand that there are immediate financial benefits from participation. By mandating the use of a high-grade security infrastructure in order to be a part of the initiatives, there is a real motivation for banks to follow best practice security measures and install the latest in security technology," said Rob Deane, Senior Analyst, Datamonitor.
   nCipher has partnered with Arcot Systems and Cyota. In supporting MasterCard's Authentication Program and Visa 3-D Secure, Arcot TransFortand Cyota SecureSuite software products use payShield to perform specific cryptographic functions including protecting the database of cardholder information through encryption; performing cardholder verification processes and creating digital signatures to confirm cardholder authentication to merchants creating a legally binding record of the process. payShield also provides high-speed cryptographic acceleration to aid processing. This would reduce the need for additional servers as the Visa and MasterCard electronic security programs become more popular.
   "Online fraud is a growing global concern. nCipher and Arcot have been working together to provide a solution to ensure safe and more secure online transactions for consumers, merchants and banks," said Ram Varadarajan, President and CEO of Arcot Systems. "today, we can help card issuers take advantage of MasterCard and Visa's programs, which are anticipated by the associations to reduce e-commerce disputes by up to 80 percent."
   "We're extremely pleased to be working with nCipher and can offer innovative 3-D Secure-based solutions to banks and merchants so they can securely authenticate their cardholders when authorizing an online transaction," added Amir Orad, Cyota Vice President of Marketing and Business Development, adding that the security solutions will help ease customers' concerns about online shopping and e-commerce fraud.
   "There are clear signs of convergence between the traditional payment processing market and the latest Internet security techniques to protect sensitive cardholder information, validate an individual's identity and bring provability to electronic transactions," said Richard Moulds, nCipher's Vice President of Marketing. "payShield builds on nCipher's core expertise and extends our reach into the payment processing market, which is forecast to reach $2.4 billion by 2005 and represents a tremendous new market opportunity for the company."