Ten tips aim to make technology more efficient for CUs

http://www.cuna.org/newsnow/10/system071410-5.html?ref=hed

LAS VEGAS (7/15/10)—"Information technology is the third top expense—behind staffing and facilities—for credit unions. With nearly half of credit unions having negative earnings last year, 2010 should be a year of automating tasks and work processes to drive efficiency."

So says Rudy Pereira, senior vice president operations and technology at Alliant CU, Chicago, who addressed 10 tips for increasing technology and operational efficiency--best practices from the CUNA Technology Council--during a Wednesday morning breakout session at The 1 Credit Union Conference in Las Vegas.

The conference was presented by the Credit Union National Association and the World Council of Credit Unions Sunday through Wednesday.

The 10 tips are:

1.Automated work flow. Enterprise content management will drive making processes more efficient, Pereira said, noting that often a member's phone call request is forwarded on and not followed through with a single call;

2.Integration. Integration of platforms and information from departments "lets you go from technology victim to leader," he said. An integrated platform can handle 90% of calls from members.

3.Virtualization. By consolidating and lowering the number of servers, Pereira's credit union saved 60% in costs—and reduced energy used.

4.Cloud computing. Linking a large group of servers via high speed networks to create a massive data storage system is in the future. By 2012, nearly 80% of Fortune 1,000 companies will engage in cloud computing. It will bring these benefits, Pereira said: scalability, skilled vendors, reduced cost, flexibility, quality of service, security and privacy. Small companies and start ups are at the front of the trend because they haven't invested in legacy systems that would need replaced.

5.Task automation. This would include job scheduling, lock box, log reviews and allows the tech staff to work on meaningful projects.

6.Member self-service. Members making transactions themselves will increase. At Pereira's credit union, 32% of members were online in 2005 and 60% in 2009. Among the hot new self-service options: ATMs with check image catchers and phones that take photos of a check and can deposit its image instead of the check.

7.Continuous process improvement. By breaking through patterns of "the way it's always been done," credit unions can improve service, ensure quality and reduce expenses.

8.Fraud analysis tools for online banking ATM and self-service phones. In 2005, credit unions saw significant budget losses beyond their insurance deductibles, with Pereira's credit union losing $700,000 on its $208,000 deductible. Insurers have put more responsibility on credit unions to manage their fraud losses.

9.Single sign-ons. Having a single password to log into all the credit union's systems will reduce help desk calls, save employees time waiting to reset passwords, reduce risk of the password being written down, add layered security, and engage employees.

10.Collaboration. More credit unions are beginning to consider partnering with other credit unions to use the same core system and staff. "The key is standardization (among vendors). It can drive up efficiency," Pereira concluded.

Time to embrace biometric ATM scans?

By Jim Kim
Pub(http://www.fiercefinanceit.com/)

People have been talking about biometrics as a financial services security tool for a while now. At least one recent report suggests [1] that the financial sector is indeed emerging as a "potential adopter" and driving force in the global biometric market, which is set to grow at a near 20 percent average annual growth rate through 2012.

More banks do seem to be pondering ways to develop an easy and more convenient authentication alternative to cards and PINs for a range of transactions. North America and Europe dominated the biometric market in 2009 and will do so through 2012. Asia-Pacific and Middle East and Africa will also emerge.

Biometrics can be used at all levels, at the employee and customer authentication levels and beyond. A glimpse of the future comes from Warsaw, where one bank says it is the first in Europe to install a biometric ATM, "allowing customers to withdraw cash simply with the touch of a fingertip." The digit-scanning ATM runs on a system developed by Hitachi. The company says that "an infrared light is passed through the finger to detect a unique pattern of micro-veins beneath the surface, which is then matched with a pre-registered profile." Tests have indicated a one in a million false acceptance rate.

For more on the biometric ATM in Warsaw,

http://www.fiercefinanceit.com/story/time-embrace-biometric-atm-scans/2010-07-09

Links:

[1] http://www.emailwire.com/release/42102-Demand-from-Financial-Sector-to-Drive-Global-Biometrics-Market.html

[2] http://www.cnn.com/2010/WORLD/europe/07/05/first.biometric.atm.europe/?hpt=C2

[3] http://www.fiercefinanceit.com/story/can-len-technology-thwart-atm-skimmers/2010-06-30

[4] http://www.fiercefinanceit.com/story/phone-fraud-biometrics-tool-makes-gains/2009-06-10

[5] http://www.fiercefinance.com/story/atm-dispense-gold/2010-05-13

[6] http://www.fiercefinanceit.com/story/can-jitter-prevent-atm-abuse/2010-06-27

New E-Mail Security Service Offered

By Marc Rapport
http://www.cutimes.com/news/2010/7/Pages/New-EMail-Security-Service-Offered.aspx?utm_source=cutimes&utm_medium=email&utm_campaign=traffic&cmpid=cutimes

Credit unions belonging to the Financial Services Roundtable or its affiliates or the FS-ISAC (Financial Services-Information Sharing and Analysis Center) can take advantage of a new service designed to help financial institutions protect against e-mail fraud.

The Trusted Email Registry is a partnership of BITS, the Roundtable’s technology policy division, and FS-ISAC, with security tools provided by eCert Inc. of San Francisco.

Under the basic version, financial institutions can monitor a limited number of their domains’ e-mail traffic and receive reports about phishing attacks. An enhanced service covers more domains, advanced deployment services, policy enforcement, anti-spoofing tools and other remediation and support.

Credit unions belonging to the Financial Services Roundtable or its affiliates or the FS-ISAC (Financial Services-Information Sharing and Analysis Center) can take advantage of a new service designed to help financial institutions protect against e-mail fraud.

The Trusted Email Registry is a partnership of BITS, the Roundtable’s technology policy division, and FS-ISAC, with security tools provided by eCert Inc. of San Francisco.

Under the basic version, financial institutions can monitor a limited number of their domains’ e-mail traffic and receive reports about phishing attacks. An enhanced service covers more domains, advanced deployment services, policy enforcement, anti-spoofing tools and other remediation and support.

Business Mobile Banking, Fraud Top of Mind in Bankers Survey

Providing businesses with mobile banking and preventing fraud were top of mind for a group of banking brass gathered for a confab in California earlier this year. Social networking, maybe not so much.

Fundtech Ltd., a provider of global payment processing and ACH solutions, said more than 100 transaction banking executives from 53 American financial institutions participated in the polling in May at its Insights Conference in Santa Monica.

Fundtech, based in Jersey City, N.J., and London, said 39% of the respondents planned to deploy mobile business banking services within the next 12 months, 53% said payments fraud monitoring is their biggest challenge and 23% “think adding social networking to business banking is a ‘ridiculous idea,’” although 36% thought there was some potential to it.

What Do You Think?

Reaching Your Members in the 21st Century

Believe me. What you did yesterday to reach your members will not work today.  That's the basis of this critical conference set for November 4-7, 2010 in Phoenix. AZ.

This year we are introducing our annual Reaching Your Member In The 21st Century conference. This event is an innovative, comprehensive conference on Reaching Credit Union Members in today's ever-changing world. The conference is designed for credit union directors, CEOs, supervisory committee members, business development and marketing managers, IT managers, senior management and committee members.

Key topics for this year's program . . .

Strategic Planning...It's A Whole New Ballgame

Revitalizing Your Branch: Delivery Network Growth For The 21st Century
Reaching Your Members Through Social Media
Kick Consultative Selling Up A Notch: Tailor your sales conversations to the life stage needs of your members
Future Technology And Your Credit Union
The Millennial Are Here! Is Your Credit Union Prepared!
Take Back Your Website
Multi Channel Marketing In The New Financial World
The Millennial Are Here...Right Before Your Eyes

Hear from a 21 year old advertising and marketing student on what his generation is expecting from your credit union. You might be surprised.

Full details, resort info, cost, agenda, and more is available at:
http://cuconferences.com/10Reach/Reach10_Agenda.htm

June News and Views Published Below

CU SECURITY & TECHNOLOGY News - Providing a brief summary of news and information related to security and technology issues for credit unions - Plus some interesting and fun web sites . . .

Auto Theft Protection Offered With New Biometric Auto Anti-Theft Device

According to the National Insurance Crime Bureau auto theft is one of the biggest problems in the United States today, with approximately 3,000 cars being stolen per day. And now a Boca Raton, Florida company, Hawk Systems, is trying to do something about it.

They’ve developed an innovative fingerprint authentication technology that offers a proactive biometric security device. Their new device takes a preventative rather than a reactive approach to protecting the nation’s vehicles.

Most other systems, such as car alarms and GPS are reactive systems in that emit radio signals or noise when a car is being stolen. The innovative Hawk system is a multi-layer live fingerprint identification security device that will render a car, truck, or SUV inoperable for any non-authorized person who is in the process of trying to start it. Then, unless it is towed away, it won’t be going anywhere.

CEO Michael Diamant believes, “with an increase in vehicle thefts occurring, people will see the benefit to protecting their vehicle before it is stolen rather than trying to locate and recover it after the fact.”

The company believes that its technology can also be used to help secure hotel and casino operations, banks, employee time clocks, sporting events, and more.
http://www.newsaroundtheworldtoday.com/auto-theft-protection-offered-with-new-biometric-auto-anti-theft-device/1231522/

Hotel Credit Card Scam

This is kinda scary if only because of how simple it is!

You arrive at your hotel and check in at the front desk. When checking in, you give the front desk your credit card (for all the charges for your room). You get to your room and settle in.

Someone calls the front desk and asked for (example) Room 620 (which happens to be your room). Your phone rings in your room.

You answer and the person on the other end says the following. 'This is the front desk. When checking in, we came cross a problem with your charge card information. Please re-read me your credit card number and verify the last 3 digits numbers at the reverse side of your charge card.'

Not thinking anything you might give this person your information, since the call seems to come from the front desk. But actually, it is a scam of someone calling from outside the hotel/front desk.

They ask for a random room number. Then, ask you for credit card information and address information. Sounding so professional that you do think you are talking to the front desk.

If you ever encounter this problem on your vacation, tell the caller that you will be down at the front desk to clear up any problems... Then, go to the front desk and ask if there was a problem. If there was none, inform the manager of the hotel that someone called to scam you of your credit card information acting like a front desk employee.

Car brands: Who owns what?

To help clear up some of the confusion, here is a road map to navigate who owns what brands among the major companies that sell in the U.S. car market.

BMW owns: BMW, Mini, and Rolls Royce

Fiat owns: Alfa Romeo, Ferrari, Fiat, Lancia, Maserati; Chrysler, Dodge, Jeep–20-percent stake

Ford Motor Company owns: Ford, Lincoln, Mercury, Volvo (for now), and still owns 13.4 percent of Mazda

General Motors owns: Buick, Cadillac, Chevrolet, GMC. Also owns a controlling interest in Daewoo, as well as Opel and Vauxhall in Europe and Holden in Australia. (Pontiac to be discontinued)

Honda owns: Honda, Acura

Hyundai owns: Hyundai, Kia

Tata Motors (India) owns: Jaguar and Land Rover

Mazda (partially owned by Ford)

Mitsubishi

Daimler AG owns: Mercedes-Benz and Smart

Nissan owns: Nissan and Infiniti (Nissan is owned by Renault--France)

Porsche owns: Porsche and a majority share in Volkswagen

Subaru (A controlling interest of Subaru is owned by Toyota)

Suzuki

Toyota Motor Company owns: Lexus, Toyota, Scion, Daihatsu and Hino Motors, with a stake in Fuji Industries (Subaru’s parent company) and Isuzu

Volkswagen owns: Audi, Volkswagen, Bentley, Bugatti, Lamborghini, and overseas SEAT and Skoda.

In formal negotiations to be sold:

Hummer: Tengzhong (China)
Saturn: Penske Automotive Group
Saab: Koenigsegg (Sweden)

Biometric Scans Lead to 75,000 Arrests at Airport

In 2009, more than 75,000 people travelling through Dubai International Airport were arrested following iris scans. The numbers of arrests were up by 4,000 compared to the previous year. In most cases, those arrested were people who had previously been deported from the UAE and were trying to re-enter. They were simply kicked out again.

Vigilant immigration staff also spotted 1,200 forged passports. This was among 12 million arrivals and 12 million departures of the course of 2009.

According to figures quoted in an interview, there were only 16 complaints from the public, down from 29 in 2008.

Top 5 Reasons Employees Quit

According to the US Bureau of Labor Statistics, turnover costs an organization 33% of an employees total compensation.

So the employee making $30,000 total annually, would cost you over $10,000 to replace. And that's just the financial impact. There is also a negative impact on overall morale and productivity.

Additionally, results from those who have utilized our W.A.V.E.S.™ (Workforce Attitude and Voicing Employee Satisfaction) Survey have revealed some shocking statistics regarding potential turnover:

>  33% say they would consider leaving their current company for a better offer;

>  20% say they are unhappy with how their bonus is determined;

>  22% say they could use more training; and

>  well over 1/3 of employees say that senior management does NOT understand the obstacles faced by employees or the company!

To prevent turnover and its effects on the entire company, it is imperative for management to understand WHY employees quit. From our recent research, the top five reasons for staff to voluntarily leave their position are:

1. Unhappy with compensation/benefits for work performed
2. No recognition for a job performance/goals achieved
3. Too little training/coaching and feedback
4. Lack of communication (primarly with management)
5. Loss of confidence in company leadership

Will you lose over 1/3 of your good employees because of one or more of these reasons?

If you don't know the answer to that, you should. Many companies we've interviewed about using our W.A.V.E.S.™ Survey have actually confessed that they are "scared to see the results". We encourage all organizations to find out now before it's too late, otherwise they may find that they'll be spending 10 times more in money and time to replace employees than they would have spent to avoid the turnover in the first place.

Visit http://www.plotkingroup.com/Newsletter_Additional_Resources/PlotkinGroup-Article-JUN10-Reasons-Employees-Quit.php

for more information.

More Examples of ID Theft

New $100 Bill With Security Features Unveiled

Federal authorities on Wednesday joined to unveil the new hundred dollar bill, a bill that will combine the usual portrait of Ben Franklin, and some previously added security enhancements, with a pair of brand new, advanced counterfeit-deterrent security features.

The government's new design of the $100 bill combines a portrait of Benjamin Franklin and some security enhancements.

Treasury, and the U.S. Secret Service, and features a blue three-dimensional security ribbon and an interpretation of the classic liberty bell image which, when tilted, changes colors from copper to green, making the bell appear to disappear and reappear in an inkwell.

U.S. Treasurer Rosie Rios said these new security features "come after more than a decade of research and development to protect our currency from counterfeiting."

"To ensure a seamless introduction of the new $100 note into the financial system, we will continue global public education of retailers, financial institutions and industry organizations to ensure that consumers and merchants are aware of the new security features," she added.

A watermark portrait of Ben Franklin, a security thread, and a large, color-shifting "100" have been carried over from the previous design, and the new $100 bill will also includes phrases from the Declaration of Independence and a newly designed, larger image of Independence Hall.

The $100 bill "is the most widely circulated and most often counterfeited denomination outside the U.S.," according to the release.

Fed Chairman Ben Bernanke said that the 6.5 billion $100s that are currently in circulation "will remain legal tender," adding that "U.S. currency users should know they will not have to trade in their old design notes when the new notes begin circulating."

Exactly when the new notes will be circulated has not yet been determined.

Click to enlarge

Are We in The Novelty Phase of Social Media? Is it Coming to An End?

Most marketers would agree that social media marketing is one of the more exciting parts of our job. It's new, growing and best of all, has low costs, which offers us the potential of huge ROI.

The problem is that the novelty phase of social media is coming to an end and we're now faced with the tough questions:

• What is the goal of our social media marketing program?

• What is the ROI?

• Does our social media marketing generate quality leads?

• What metrics should we follow to measure the success of our social marketing?

• How does our social marketing integrate with other tactics like email and search?

• Why should we invest time and resources in social media marketing?

• Are we doing the right things in social media marketing?

The economy is so bad that …

The economy is so bad that …

• I got a pre-declined credit card in the mail.

• African television stations are now showing 'Sponsor an American Child' commercials!

• I ordered a burger at McDonald's and the kid behind the counter asked, "Can you afford fries with that?"

• CEOs are now playing miniature golf.

• Merck laid off 25 Congressmen.

• My ATM gave me an IOU!

• A stripper was killed when her audience showered her with rolls of pennies while she danced.

• I bought a toaster oven and my free gift with purchase was a bank.

• Barack Obama changed his slogan to "Maybe We Can!"

• If the bank returns your check marked "Insufficient Funds," you call them and ask if they meant you or them.

• McDonald's is selling the 1/4 ouncer.

• Angelina Jolie adopted a child from America.

• Parents in Beverly Hills fired their nannies and learned their children’s names.

• My cousin had an exorcism but couldn't afford to pay for it, and they re-possessed her!

• A truckload of Americans was caught sneaking into Mexico.

• Motel Six won't leave the light on anymore.

• A picture is now only worth 200 words.

• They renamed Wall Street "Wal-Mart Street."

• When Bill and Hillary travel together, they now have to share a room.

• The Treasure Island casino in Las Vegas is now managed by Somali pirates

Online Malware Trade Dubbed ‘Fraud-as-a-Service’

 http://www.cutimes.com/news/2010/6/Pages/Online-Malware-Trade-Dubbed-FraudasaService.aspx?utm_source=cutimes&utm_medium=email&utm_campaign=traffic&cmpid=cutimes

Fraudsters have gotten so efficient at creating, selling and deploying malware that one major Internet security firm now calls it “fraud-as-a-service.”

Like legitimate software-as-a-service, the computer tools are offered through their underground industry in an increasingly commoditized fashion, according to RSA, The Security Division of EMC.

The firm–which claims to have shut down almost 300,000 phishing attacks and protects more than 300 organizations–said that its latest analysis found compromised e-mail addresses at 60% of the Fortune 500 companies and that fully 88% of the domains used by those same companies had been infected to some extent by the Zeus keystroke-logging Trojan alone.

Credit unions, however, seem to be falling out of favor a bit with phishers, drawing only 4% of attacks on U.S. financial institutions in March, down from 22% in March 2009 and compared with 57% on national banks and 39% on regional banks, RSA said.

ATM Skimmers Coming to an ATM in Your Neighborhood

This is an excellent post on ATM skimmers, this time with a report on the state of the art in commercially available artisan-crafted skimmers that can be bought through the criminal underground (accept no imitations!):

Generally, these custom-made devices are not cheap, and you won't find images of them plastered all over the Web. Take these pictures, for instance, which were obtained directly from an ATM skimmer maker in Russia. This custom-made skimmer kit is designed to fit on an NCR ATM model 5886, and it is sold on a few criminal forums for about 8,000 Euro -- shipping included. It consists of two main parts: The upper portion is a carefully molded device that fits over the card entry slot and is able to read and record the information stored on the card's magnetic stripe (I apologize for the poor quality of the pictures: According to the Exif data included in these images, they were taken earlier this year with a Nokia 3250 phone).

The second component is a PIN capture device that is essentially a dummy metal plate with a look-alike PIN entry pad designed to rest direct on top of the actual PIN pad, so that any keypresses will be both sent to the real ATM PIN pad and recorded by the fraudulent PIN pad overlay

Meet the face of Big Brother

THE New South Wales State Government is quietly compiling a mathematical map of almost every adult's face, sharing information that allows law enforcement to track people by CCTV.

Experts said few people realized their facial features were being recorded in an RTA database of drivers licence photos that the Government has allowed both state and federal police to access. The federal body CrimTrac has asked NSW for its database so it can be mined nationally by police using the facial recognition information contained in it.

University experts in facial recognition said the correct match rate was as low as 90 per cent, meaning the names of people with faces sharing a similar structure to criminals could be returned in searches.

Dr Carolyn Semmler from the University of Adelaide said police wanted to eventually use facial recognition in smart CCTV cameras allowing people to be tracked anywhere there was a camera.

Wi-Fi key-cracking kits sold in China mean free Internet

Dodgy salesmen in China are making money from long-known weaknesses in a Wi-Fi encryption standard, by selling network key-cracking kits for the average user.

Wi-Fi USB adapters bundled with a Linux operating system, key-breaking software and a detailed instruction book are being sold online and at China's bustling electronics bazaars. The kits, pitched as a way for users to surf the Web for free, have drawn enough buyers and attention that one Chinese auction site, Taobao.com, had to ban their sale last year.

With one of the "network-scrounging cards," or "ceng wang ka" in Chinese, a user with little technical knowledge can easily steal passwords to get online via Wi-Fi networks owned by other people.

Chinese Internet censorship: An inside lookLenovo looks for strong finish at Beijing OlympicsSpammers leverage interest in OlympicsU.S. Congressmen accuse China of hacking their computers

View more related contentGet Daily News by EmailThe kits are also cheap. A merchant in a Beijing bazaar sold one for 165 yuan ($24), a price that included setup help from a man at the other end of the sprawling, multistory building.

The main piece of the kits, an adapter with a six-inch antenna that plugs into a USB port, comes with a CD-ROM to install its driver and a separate live CD-ROM that boots up an operating system called BackTrack. In BackTrack, the user can run applications that try to obtain keys for two protocols used to secure Wi-Fi networks, WEP (Wired Equivalent Privacy) and WPA (Wi-Fi Protected Access). After a successful attack by the applications, called Spoonwep and Spoonwpa, a user can restart Windows and use the revealed key to access its Wi-Fi network.

(Read the entire article at: http://www.networkworld.com/news/2010/050510-wi-fi-key-cracking-kits-sold-in.html)

Daddy , how was I born?

A little boy goes to his father and asks 'Daddy, how was I born?'

The father answers, 'Well, son, I guess one day you will need to find out anyway! Your Mom and I first got together in a chat room on Yahoo. Then I set up a date via e-mail with your Mom and we met at a cyber-cafe. We sneaked into a secluded room, and googled each other.

There your mother agreed to a download from my hard drive. As soon as I was ready to upload, we discovered that neither one of us had used a firewall, and since it was too late to hit the delete button, nine months later a little Pop-Up appeared that said:

Scroll down...You'll love this ...

'You got Male!

BIGGER IS NOT BETTER: Kinecta and NuVision Head to $5 Billion Mega Merger

The boards of the $3.5 billion Kinecta FCU and $1.2 billion NuVision FCU have announced their intent to merge into an institution that will serve 300,000 members in two Southern California counties. What will this produce?  Easy, a $5 billion institution. I'm certain many old time CU leaders are rolling over in their graves. Do these CUs feel they cannot survive unless they merge? There's a bunch of "quitters" here somewhere and it's a shame to see one (or both) throw in the towel.

The Manhattan Beach-based Kinecta will be the surviving institution. Although the two are just now beginning due diligence and have yet to file formal merger documents with NCUA, Huntington Beach-based NuVision now shares CEO Roger Ballard with Kinecta; he took executive control of both institutions yesterday.

Interim CEO Steve Lumm, who retired as Addison Avenue FCU’s CEO in 2007, said he was under contract with Kinecta’s board as a consultant, and wasn’t interested in the permanent position.

A general strategy discussion between Ballard and Lumm evolved into “what if” brainstorming which revealed two credit unions and boards open to merger discussions. They share aerospace legacies and SEG Boeing, which has large employment facilities in both Los Angeles and Orange Counties.

Does this send a signal that all CUs under $1 billion are be in trouble? Will the day come where trillion dollar credit unions cannot survive and will need to merge? Is bigger really better?

http://www.cutimes.com/News/2010/6/Pages/Kinecta-and-NuVision-Head-to-5-Billion-Mega-Merger.aspx

May News and Views Published Below

CU SECURITY & TECHNOLOGY News - Providing a brief summary of news and information related to security and technology issues for credit unions - Plus some interesting and fun web sites . . .

Why a CU should or should not use MySpace, Facebook, or other social media outlets?

If you are a credit union, why should you use or not use MySpace, Facebook, or other social media outlets as methods to attract young adults and teens?

Readers comments as to Why a Credit Union should or should not use Myspace, Facebook, or other social media outlets?

“I believe that if used properly, social media is the most effective method of consumer influence in today’s market.

I can’t source the following numbers, but I know that I’ve seen them somewhere credible before:

- 30% of online consumers find a manufacturer website to be credible.

- 70% of online consumers find media and/or journalists credible.

- 68% of online consumers find other consumers (people whom they have never met) to be credible.

Pretty powerful stuff, no?”

Another reader comments:

“This sounds kind of like an essay question for school.

“Should” reasons/rationale:

* Social media is a way to reach a target market, much like advertising on specific tv shows or cable channels

* social media is influential

* social media is new marketing avenue

* other companies are doing it successfully

* stay competitive

* keep in touch with current trends

* young people have lots of questions about money management & credit unions can provide answers


“Should not” reasons/rationale:

* potential for credit union to lose credibility (if they’re not upfront about who they are & what they do — like when a company’s marketing person “disguises” him/herself as average citizen who says good things about products, services but who is really just pitching for the company)

* social media is unknown territory with lots of potential pitfalls

* young people may resent adults entering their “turf”

* adults aren’t as savvy when entering the cyberspace world of young people

Hope this helps.”

Good luck!

North American Biometrics Market Witnesses Growth Spurt, Finds Frost & Sullivan

The North American biometrics market is likely to experience a steady growth rate, with national ID projects, e-Passports, and other security projects spearheading market growth. Trends indicate that the industry has evolved a great deal over the past 5 years due to the increased accuracy rates and performance levels of the technology. Biometric standards, cost versus performance benchmarks, and interoperability issues have enabled high uptake in civil and commercial applications even as fraudulent activities and identity thefts continue to cost institutions significant revenue losses.

New analysis from Frost & Sullivan (http://www.autoid.frost.com), North American Biometrics Market, finds that the market earned revenues of $364.4 million in 2009 and estimates this to reach $1,588.6 million in 2016.
http://www.autoid.frost.com/

NCUA Warns against Phony E-Mails

E-mails purporting to offer $40 to participate in a survey that say they come from the NCUA are false, the agency warned.

The e-mails, which solicit credit union member participation in an Online Survey or Member Survey are “fraudulent, and may be an attempt to obtain confidential member information. NCUA does not solicit such information from credit union members. This is a phishing activity with no NCUA activity or approval,” the agency said in a statement.

Fraud forced Cardtronics to shut down 1,000+ ATMs

ATM provider Cardtronics Inc. was forced to temporarily shut down more than 1,000 ATMs owned by companies and merchants earlier this year when owners of its armored-car service were charged with fraud.

Cardtronics, which owns and operates more than 28,000 ATMs in the U.S., shut down nearly 4% of its ATMs after the owners of Mount Vernon (N.Y.) Money Center Corp. were arrested Feb. 8, according to Cardtronics' filing with the Securities and Exchange Commission (ATM & Debit News May 19).

Arrested were Money Center Corp. President Robert Egan, 64, and Chief Operating Officer Bernard McGarry, 50. Their company supplied cash to more than 5,300 ATMs, including those of Cardtronics.

The two men were indicted for allegedly defrauding banks, other financial institutions, retailers, hospitals and universities out of $50 million. Instead of segregating cash for each of their clients, they allegedly commingled funds by taking whatever cash that arrived in the vault, regardless of its source, to fill the next day's ATMs, according to the indictment.

The company had to convert the ATMs to another third-party armored-service provider, which resulted in downtime at the machines. Cardtronics estimates it lost $16.2 million from the vault. Money Center has been put into receivership.

Targeting and Measuring Social Media Objectives

http://www.marketingsherpa.com/article.php?ident=31628

(Click above for more information)

Ways to Extend the Life of Your Printer Ink Cartridges

Since ink cartridges can be quite expensive, making them last for as long as possible makes sense. Here are a few simple ways to get the most out of your ink cartridges.

1)  Print in draft mode. Most of the items we print out do not need to printed at the highest quality. Simply printing in draft mode can give you 3 to 5 times more prints from your cartridges.

2)  Store your cartridges properly. If you get a deal on cartridges online and want to purchase a large quantity to save money you should make sure you store them properly. If stored under the right conditions, cartridges can stay in good condition for up to two years. Make sure they are in a place that is not too hot or too cold, keep the cartridges in an upright position, and do not open the packages until you are ready to use them. The vacuum seal helps keep air from the cartridges extending the life of the ink cartridges.

3)  Use the printer frequently. Yes, I said use your printer. If you use your printer on a regular basis you can help keep your cartridges in good working order and prevent the nozzles from getting clogged by dried ink. It is recommended that you print at least a page or so every couple of weeks at a minimum.

CUNA Tech Council Offers Social Media Report

The CUNA Technology Council is offering a new report on the benefits and pitfalls of social media.

The 30-page paper discusses how credit unions should assess how social media tools fit into their overall marketing objectives and what values such specific tools as Facebook and Twitter provide the credit union and members. Protection from malware and other threats also is examined.

The paper was authored by Elizabeth Thompson, a Madison, Wis., writer who has produced more than a dozen white papers for the CUNA Councils and drew on input from credit unions and industry experts and providers.

“Social Media from a Technology Point of View” is free to CUNA Council members and $50 to non-members and is one of more than 200 white papers offered through http://www.cunacouncils.org/.

Poland Installs Europe's First Biometric Fingerprint-Scanning ATM Machine

 Given the financial situations in Greece, Spain, and Portugal in recent weeks, the Euro Zone has plenty of reason to be down on itself. But Poland is showing a bit of financial-sector flash this week, becoming the first nation in Europe to install biometric ATM machines that read fingerprints rather than magnetic cards.

Poland's BPS SA bank set a European -- and if we're not mistaken, a Western -- milestone by installing the biometric cash machine in Warsaw.

Senior Prank at High School Brings Smiles and Donations

Kudos to the Seckman Senior High School girls (St. Louis, MO area)

Sunday night they pulled their senior prank, and a very funny one, and it wasn't destructive. They hung over 1,000 bras from the trees and the fences in front of their high school and they placed signs around, such as "Thank you for the uplifting experience," "Thanks for all your support" and "We're busting out of here."

The students and staff and teachers had lots of laughs for a few days this week. Teachers were known to share the incident on Facebook and comment that this was the best senior prank ever. No harm was done, but fun and enjoyment to be remembered for a long time. By the way, most of these bras were donated to charity, because most of them were very gently used and some of them weren't even used.

Do You Know Where Your Tech Support is Coming From?

How Much Government?

Seventy-five years ago, President Franklin D. Roosevelt was eager to weave a safety net under millions of impoverished Americans who were retired and had no savings.

On his left, supporters called for a massive new government program. On his right, Republicans argued that it wouldbankrupt the country and undermine people's habits of thrift and self-reliance.

Sound familiar?

Internet Flaws Could Bring Down Service in 30 Minutes

In 1998, a hacker told Congress that he could bring down the Internet in 30 minutes by exploiting a certain flaw that sometimes caused online outages by misdirecting data. In 2003, the administration of President George W. Bush concluded that fixing this flaw was in the nation's "vital interest."

Fast forward to 2010, and very little has happened to improve the situation. The flaw still causes outages every year. Although most of the outages are innocent and fixed quickly, the problem still could be exploited by a hacker to spy on data traffic or take down websites. Meanwhile, our reliance on the Internet has only increased. The next outage, accidental or malicious, could disrupt businesses, the government or anyone who needs the Internet to run normally.

The outages are caused by the somewhat haphazard way that traffic is passed between companies that carry Internet data. The outages are called "hijackings," even though most of them are not caused by criminals bent on destruction. Instead the outages are a problem borne out of the open nature of the Internet, a quality that also has stimulated the Net's dazzling growth.

"It's ugly when you look under the cover," says Earl Zmijewski, a general manager at Renesys Corp., which tracks the performance of data routes. "It amazes me every day when I get into work and find it's working."

When you send an e-mail, view a Web page or do anything else online, the information you read and transmit is handed from one carrier of Internet data to another, sometimes in a long chain. When you log into Facebook, your data might be handed from your Internet service provider to a company such as Level 3 Communications Inc., which operates a global network of fiber-optic lines that carry Internet data across long distances. It, in turn, might pass the data to a carrier that's connected to Facebook's servers.

The crux of the problem is that each carrier along the way figures out how to route the data based only on what the surrounding carriers in the chain say, rather than by looking at the whole path. It's as if a driver had to get from Philadelphia to Pittsburgh without a map, navigating solely by traffic signs he encountered along the way — but the signs weren't put up by a central authority. If a sign pointed in the wrong direction, that driver would get lost.

(Read more at: http://www.stltoday.com/stltoday/business/stories.nsf/story/EEB5A07B82E2B45E8625771D0011FA3D?OpenDocument
or:  http://bit.ly/bYqCrR

Why Debit Cards Are a Nightmare

Not all plastics cards are created equal. The major differences in credit vs. debit is in the protections (or lack of protections) that come along with the fine print. A debit card is connected directly to a person’s bank account and when compromised can devastate your bank balance.

I know too many people who’ve fallen victim to some type of debit card fraud whether through skimming or unauthorized purchases and never recouped their losses. Sometimes the banks just won’t budge. They tend not to believe a person who’s PIN and card number was leaked.

Creditcards.com reports The Federal Reserve’s Regulation E (commonly dubbed Reg E), covers debit card transfers. It sets a consumer’s liability for fraudulent purchases at $50, provided they notify the bank within two days of discovering that their card or card number has been stolen. TWO DAYS. That’s it! After that, the maximum liability jumps to $500. Some banks will extend the grace period up to a year, but good luck getting your money back.

Federal laws limit cardholder liability to $50 in the case of credit card fraud, as long as the cardholder disputes the charge within 60 days. And if a victim doesn’t discover or report the fraud until after 60 days have passed, the liability could be the entire card balance, for a debit or credit card. Once your debit card is compromised, you might not find out until a check bounces or the card is declined. And once you do recover the funds, the thief can just start all over again, unless you cancel the account altogether.

Don’t use a debit card. Use credit cards and pay attention to your statements every month and refute unauthorized charges immediately. I check my charges online once every two weeks. If I’m traveling extensively, especially out of the country, I let the credit card company know ahead of time, so they won’t shut down my card while I’m on the road.

National Motor Vehicle Title Registration System

The National Motor Vehicle Title Information System is designed to protect consumers from fraud and unsafe vehicles and to keep stolen vehicles from being resold. NMVTIS is also a tool that assists states and law enforcement in deterring and preventing title fraud and other crimes.

Use NMVTIS to access important vehicle history information. Data available to consumers include:

Title data
Brand history
Odometer reading
Total loss history
Salvage history

More at: http://www.nmvtis.gov/

Debit card scammers target credit union customers

West Virginia-based Star USA Credit Union is warning members about a scam in which customers have received an automated telephone message requesting debit card account information.

Credit union members received the call from scammers. The automated message alleges that customers' ATM/debit cards have been deactivated, and they must reveal account information and a three-digit security code (located on the back of the debit card) to reactivate it.

"They're asking for account information and personal information," said Steve Hewitt, Star USA vice president and spokesman. "They're identifying that the card has been compromised and needs to be reissued."

Star USA is urging members -- and anyone else with a debit or credit card -- not to release banking account and PIN numbers, or other personal information when receiving an unsolicited phone call.

Hewitt said more than a dozen credit union members, including a Star USA board member, have complained about the scam. No customers reported that they fell for the scam, he said.

Hewitt said the scam might be widespread and affect other area credit unions and banks. After speaking with the credit union's insurance carrier, Hewitt learned that a similar scam has been going on in Huntington and other parts of the country. It's often difficult for law enforcement to track down the scammers, many of whom call from outside the U.S., Hewitt said.

April News & Views Published Below

CU SECURITY & TECHNOLOGY News - Providing a brief summary of news and information related to security and technology issues for credit unions - Plus some interesting and fun web sites . . .

Passwords Are Passe', Financial Institutions Looking Toward Biometric ID

Biometric logins that use fingerprints, voice recognition, or identify you based on how you type look set to replace conventional passwords for accessing online banking and credit card services, online payment companies and even internet stockbrokers.

James Pope of the College of Business Administration, at the University of Toledo, Ohio working with Dieter Bartmann of the University of Regensburg, Germany, explain that the security of online financial transactions is becoming an increasing problem, especially as security loopholes in login systems and web browsers emerge repeatedly. Simply logging in with a password looks set to become technically passé.

"Passwords have been widely used because of their simplicity of implementation and use," the researchers say, "but are now regarded as providing minimal security." Moreover, as repeated scare stories about hacking and identity theft pervade the media, consumers are becoming increasingly concerned about online security. Further development of e-commerce and banking will be stifled if the issues of fraud and identity theft are not addressed.

Credit Union Cost Reducing Efficiencies; Here Is What One CU Did

If it comes to laying off employees, cutting salaries, no raises, etc., it's time to REALLY tighten the belt.  Here is what one credit union did to safeguard their existence.

• Eliminated NSF/Overdraft notices - we no longer mail them and encourage members to use on-line alerts instead

• Implemented an employee suggestion program to encourage cost savings ideas from staff

• Eliminate Life Savings/Loan Protection programs to members that were paid for by the credit union

• Evaluated our fee structure and adjusted according to pricing within our local market

• Evaluated Reg D accounts for possible changes

• Eliminated loan payment books

• Stopped offering "overnight" delivery through UPS and now if it is requested, it is paid for by the member

• Switched as many of our vendors over to ACH payments instead of mailing a check for payment

• Introduced electronic paystubs to staff

• Made changes to life insurance and disability coverages

• Changed sick time accrual (we have ours seperate from the PTO)

• Closed some of our ATM's and placed them in storage (it was cheaper to put them in storage than it was to leave them operational and due to the age of them, selling wasn't really an option)

• Evaluated branch hours and adjusted

• Eliminated after-hours (or overflow) third party call center

• Conducted a marketing campaign for e-statements (we offered $5 just for signing up)

• Made changes to our new member packet to reduce size and cost of material

• Evaluated the reports staff printed on a daily basis and set some to spool instead of printing on paper

• Eliminated holiday pay for July 4th (it fell on a Saturday and we normally would have given staff an extra 8 hours of pay)

• Reduced the quantity of coffee supplies and bottled water deliveries for staff. Staff can buy their own water.

• Encouraged members to use our Investment/Financial Planning Representative. He is quite conservative in nature and seems to work nicely with the Baby Boomers. This has helped reduce Cost of Funds while generating revenue for us.

We have done most of the things, plus:

1. We're doing our own office cleaning - vacuum, dust, empty trash, etc.

2. We fired our lawn care guy and now mow our own grass.

3. We were able to renegotiate several contracts with vendors - after threatening to drop totally if they didn't (CUNA bond, VISA servicer, web host, on-line application dude).

4. We dropped the annual cpa audit and have the Supr Comm do one every other year.

5. Made it clear to staff that expenses needed to come down - turn lights off, raise/lower thermostats, order/use fewer supplies, etc.

6. We also looked on the income side with fees and rates but didn't really want to put the burden directly on the members - yet.

Not all of these are permanent changes, but they could be indefinite.

What has your credit union done to increase efficiencies?  Anything?  How about sharing them with us. Make up a list like the above and send to billrogers@swbell.net.

Credit Unions Remain Target of Phishing Attacks

Credit unions accounted for 12% of the phishing attacks on American financial institutions in February, down slightly from January and sharply from February 2009, according to RSA.

The security division of EMC said in its just-issued March report that regional banks continued to account for the majority of attacks, 60% in February, while 28% of the attacks were attempts to gain access to accounts at nationwide banks.

Credit unions were the focus of 14% of the attacks on financial institutions in January and 38% of the attacks in February 2009, according to the RSA Anti-Fraud Command Center, which provides detection and shutdown services against malware attacks on more than 300 organizations in 140 countries.

Fraudsters Take Aim At Mobile Banking

Symptomatic of a new fraud trend targeting mobile banking, at least two banking institutions have posted messages on their websites, alerting members to be wary of a bogus application distributed on mobile phone platforms.

Bayport Credit Union of Newport News, VA, and First Technology Credit Union of Portland, OR, warned members about a mobile banking application that had appeared on the Android Marketplace, part of the Android mobile phone platform. Android is a subsidiary of Google. More than 50 fraudulent banking apps began appearing in the Android Marketplace in mid-December, industry experts say. The apps didn't contain malware, but instead attempted to get users to enter their passwords, account numbers or other personal information.

Google says it has removed the malicious applications, which targeted customers of Barclays Bank, Chase, Wells Fargo, Bank of America, Wachovia and Deutsche Bank, among others.

Read more at: http://www.cuinfosecurity.com/articles.php?art_id=2085

22 Banking Breaches So Far in 2010

There have been 173 reported data breaches so far in 2010, and 22 of these involve financial services companies.

This means that in less than one quarter of the year, we already have seen more than one-third of the 62 banking-related breaches reported in all of 2009.

The numbers are slightly skewed, says Linda Foley of the Identity Theft Resource Center (ITRC), the organization that tracks data breaches, because some of the 22 incidents actually occurred in 2009 but are just now being brought to light - particularly in Maryland, where the state's attorney general's office reported a slew of 2009 incidents on March 1 of this year. "I suspect there will be more [reports] coming," Foley says, "so the trend thus far is we're finally finding out about breaches that are just coming out."

But the new year's breaches are enough to convince observers that last year's trends are continuing. "2010 could be a tough year for everyone," Foley says.


>>  2010 Trends

If the breach trends do continue as they did in 2009, then financial service companies will continue to experience malicious hacking and insider theft. The challenge for organizations such as the ITRC is that many organizations fail to report their breaches. "The problem is: We're not trying to embarrass a company, but inform everyone of what is happening out there."

Based on what Foley says she's seen so far in 2010, much information has been lost, "so there's a real need for businesses to adopt policies to protect data."

Despite the Federal Trade Commission's work in promoting the ID Theft Red Flags Rule, Foley says many businesses still don't want to comply with the requirements. "If you don't want to protect it, then don't collect the data," she advises these organizations.

For those organizations that do buy into data protection, they must deputize their employees to take the responsibility seriously. "You should be telling your employees why it is important, so they buy into the wanting to actively protect data, and so they don't see it as another chore," Foley says.

Biometrics: Getting Back to Business

People and passwords—in the long run, they just don't work very effectively together. At least that's what Phil Fowler, vice president of IT at Telesis Community Credit Union, a Chatsworth, Calif.-based financial services provider that manages $1.2 billion in assets, found out. His team ran a network password cracker as part of an enterprise security audit last year to see if employees were adhering to Telesis' password policies. They weren't.

"Within 30 seconds, we had identified probably 80% of people's passwords," says Fowler, whose group immediately asked employees to create strong passwords that adhered to the security requirements. A few days later, the team ran the password cracker again: This time, they cracked 70%.

"We couldn't get [employees] to maintain strong passwords, and those that did forgot them, so the help desk would have to reset them," says Fowler. Telesis decided to secure network and application access with a biometric system that eliminated the need for user IDs and passwords, opting for the DigitalPersona fingerprint system from DigitalPersona Inc. in Redwood City, Calif.

Identity Fraud Reaches New High in 2009

The bad news is that identity fraud reached a new high in 2009. The good news is that consumers are fighting back.

The number of ID fraud victims jumped 12 percent in 2009, but consumers are becoming more educated and are filing more reports with law enforcement, according to Javelin Strategy & Research.

Javelin analysts said the increase may be due to the economic downturn, when fraud rises historically.

And there are many ways a thief can swipe your personal information, even without your credit card or Social Security card.

For the rest of the story, go to:
http://www.chicagotribune.com/business/yourmoney/sc-ym-0307-identity-theft-20100304,0,5146332.story?obref=obinsite

ATM attacks more sophisticated, says Javelin

ATM attacks have become more sophisticated--shifting from traditional skimming to use of malware inside ATMs or ATM networks, fraudulent mobile alerts and account takeover from stolen information, according to a new report.

Attacks have been reported in which maintenance crews opened up ATMs and installed malware, according to a Javelin Strategy and Research study.

ATM manufacturer Diebold issued a security update last year for its ATMs after they were attacked by criminals who installed malware to steal sensitive customer information (Financial Services Information Security News April 6).

Individuals can gain access to sensitive information in ATMs via administrative privileges to encrypted personal identification number (PIN) data, then use a computer to reverse the PIN encryption, said Robert Vamosi, analyst at Javelin Strategy and Research. Other attacks have involved sending customers fake message alerts asking for account information. Criminals then use the information to create a cloned card, the publication said.

The financial services industry is moving toward Triple Data Encryption Standard for all ATMs that will help prevent such attacks. Other steps financial institutions can take to protect their ATMs include using security software that guards against malware and using encrypted PIN pads in ATMs that are Payment Card Industry Data Security Standard-compliant, Vamosi added.

About 10% of fraud victims experienced fraudulent ATM withdrawals, Javelin said. About 23% of those with the fraudulent withdrawals left their primary financial institution.

March News & Views Published Below

CU SECURITY & TECHNOLOGY News - Providing a brief summary of news and information related to security and technology issues for credit unions - Plus some interesting and fun web sites . . .

Metvante Bill Paying Fuels Credit Union Fee Income; Members Paying Through the Nose

We recently came across a situation where an individual received a check from Metavante, a credit union’s bill paying service, on which payment had been stopped. The individual receiving the check routinely deposited it in his credit union. A few days later he received a notice that payment had been stopped and he was being assessed a $10 fee as a result. The problem is there was insufficient funds in the members account at the issuing credit union on the date the check was issued.

Now, the big question is “Why did the credit union or Metavante even issue a check knowing there was insufficient funds in the account?” This puts the CU and Metavante in a very negative light especially with the person receiving the check. Should this person “trust” future checks from Metavante?

Every person we put this question to has expressed surprise . . . and shock in some cases.

A chat with the Credit Union official says that’s how the Metavante program works and that it worked well. Metavante says “no comment.”

We think we have a finger pointing situation here on a poorly designed service whether it’s the Credit Union’s fault or Metavante. When the check bounced the first time, a fee of $25 was assessed. Metavante processed the bad check a second time resulting in a second fee of $25. It’s interesting to note that when the Metavante check was presented for payment, there were sufficient funds in the member’s account to clear the check.

So here we are. Metavante says it’s the credit union’s policy. The Credit Union says “that’s the way the program works.” The member is out $50 bucks. The bill paying recipient is out $10.

Industry consultants say 10% to 20% of households generate the bulk of overdraft income. The households hit hardest by overdrafts pay an average of $1,374 a year in fees, estimates G. Michael Flores, founder of Bretton Woods, a management advisory firm that works with financial institutions.

If consumers overdraw on a $20 debit card or bill paying transaction, are charged the median fee of $27 and repay the credit in two weeks, they're effectively paying a 3,520% APR, according to the Federal Deposit Insurance Corp.

Robin Rutan, of Glenwood Springs, Colo., says her local credit union pays transactions that overdraw her account by a few cents, without her permission, and charges her $27.

Here is what some firefighter credit unions do.

Charlotte Fire Department Credit Union uses IPay. They receive a file from IPay for posting. If an account does not have sufficient funds, the credit union has an option to post or not post the transaction and determines if a fee should be assessed . . . but no check is issued if funds are not available.

Houston Firefighters Fed. Credit Union says if a member does not have the funds to cover the check, they do not pay it. They also do not charge a fee. If the member signs up for e-mail notification, we will e-mail them that we did not pay the bill. We will try again for the next two of days and then stop.

San Francisco Fire Credit Union says,”If a member has scheduled a payment and there are no funds in the account we do one of two things: 1) We offer courtesy pay up to $750 so if the bill does not take them over that limit, we will issue the payment (97% of all online bill payments are process electronically so no checks are cut) and charge the member a fee.

2) If they either opted out of courtesy pay or are over the limit for courtesy pay we will retry for 3 days and post a message in home banking letting the member know we can’t process the payment – no fee.”

San Diego Firefighters Fed. Credit Union uses IPay. The Credit Union will pay the bill so long as the member has direct deposit and charge them a courtesy pay fee of $22. This is only good for bills up to $1,500. If the bills total over $1,500, they will not pay but return to IPAY. They will then notify the member via e-mail that the bill was not paid due to insufficient funds.

What does your Credit Union do? Share with us who your bill payment processor is. Do they issue checks and then stop payment on them? What is your policy regarding fees and insufficient funds? Send to billrogers@swbell.net. Also, note that Metavante is now part of FIS.

Airport Deals for You And Your Car

Hate having to get up at an ungodly hour for an early-morning flight, drive to the airport in the dark, park your car, then dash to the terminal? Here's one way to cut the hassle and get a good night's sleep. Consider a package deal that includes an airport hotel for the night before your flight, seven to 14 days of parking, and a shuttle to and from your gate-all costing not much more than parking alone.

ParkSleepFly.com is a one-stop shopping site where you can compare the rates and amenities of hotel brands, giving you a choice of more than 1,500 airport hotels in 129 cities in the United States and Canada, and even a few in Europe. Similar sites are Stayl23.com and ParkingAccess .com.

New rules for fee-depleting gift cards

Gift cards have become so popular, given to or by 95 percent of Americans, angering so many of them with unexpected fees and timing-out deadlines, that the Federal Reserve has stepped in with some new rules.

Have you ever found a gift card tucked away only to pull it out and use it and find that all but $3.25 cents of it has been eaten up in fees? I'm not exaggerating. My kids get lots of gift cards as gifts, and because they are not the best at keeping track of such things, this kind of thing has happened around here. So it's good to hear about these changes, though don't expect them to put an end to all fees on gift cards.

Here's what the Fed says will happen as of August 22:

>  Consumers must have at least five years to use gift cards before they expire.

>  However, service or inactivity fees can still be applied, under certain conditions --

>  if the consumer hasn't used the card for at least a year

>  if the consumer is given clear disclosures about them, and

>  no more than one fee is charged a month

Some better. But it's still buyer beware you may be giving a gift that won't be fully used, and recipient remember to use your gift cards! Right away!

Airports to get whole body imagers

Reported by a brokerage firm, 3/25/10

Whole Body Imagers Order Expected: The TSA has a goal of deploying approximately 1,000 whole body imagers in airports by the end of 2011, and another order is expected to come down in the next 30 – 60 days. We believe this order will be for around $50 million, and will be split between the two companies currently certified to provide systems to the TSA, OSI and L-3.

LifeLock to pay $12M in false-claims settlement

LifeLock Inc. has agreed to pay $11 million to the Federal Trade Commission (FTC) and $1 million to a group of 35 state attorneys general to settle charges that the company used false claims to promote its identity theft protection services.

It is one of the largest FTC-state coordinated settlements on record, said FTC. LifeLock and its principals will be barred from making deceptive claims and required to take more stringent measures to safeguard the personal data they collect from customers, FTC said.

The company and its co-founders, Richard Todd Davis and Robert J. Maynard Jr., are barred from misrepresenting the "means, methods, procedures, effects, effectiveness, coverage, or scope of any identity theft protection service." The settlements also bar misrepresentations about the risk of identity theft and the manner and extent to which LifeLock protects consumers' personal information.

The settlements also require LifeLock to establish a comprehensive data security program and obtain biennial independent third-party assessments of that program for 20 years.

Since 2006, LifeLock's ads claimed it could prevent identity theft for consumers willing to sign up for its $10-a-month service, said the FTC.

The agency noted that LifeLock's fraud alerts on customers' credit files protected against only certain forms of identity theft and gave no protection against the misuse of existing accounts; that they did not protect against medical identity theft or employment identity theft; and that they could not provide absolute protection against new account fraud, where fraud alerts are most common.

Other claims made--that LifeLock could prevent unauthorized changes to customers' address information, that it constantly monitored activity on customer credit reports, and that it would ensure the customer always received a telephone call from a potential creditor before opening a new account--were also false, said FTC.

The FTC said it will use the $11 million it receives from the settlements to provide refunds to consumers. It will send letters to current and former LifeLock customers who may be eligible for the refunds, and instructions for applying.

Fingerprint The Same As Credit Card Theft?

By Ravi Das

You know what, today, I was going to start the same process for my daily writings as I always do. That is, look at the latest Press Releases, and decide what is important enough to report to my blog subscribers.

Once I pick a Press Release for the day, I then read it very thoroughly, and analyze the information from it.

As you have noticed, usually the first section is a summary of the Press Release, which is just usually the highlights. The second section usually contains my analysis of the Press Release.

Well, today I thought I would try something just a little different. I attend a lot of networking events here in the Chicago and surrounding areas to promote my newsletter, and other services.

A question I keep getting asked all the time: “What if my fingerprint is stolen”??? And in fact, I was just asked this question a number of times this morning.

Well, my usual answer is that yes, it is a form of ID Theft. But, put things in perspective. It’s not quite the same as Credit Card Theft. With a fingerprint, it’s not the actual fingerprint which is stored, just the mathematical representation of it.

So for instance, look at your fingerprint, and imagine a bunch of one’s and zeroes. That is what your fingerprint is to a Fingerprint Scanner, and what is stored. So, yes there is some possibility something bad could happen, but the chances are sort of remote.

Now look at your Credit Card. You will see the number, and if your card is stolen, yes, there is a lot of damage which can happen. At this point, after you discover your card is missing, hopefully you will contact your credit card company immediately.

So, the two are not exactly the same.

Well, in an attempt to further explore this topic, here is an editorial I wrote, specifically on this. It appears in one of the sample newsletters on my website, which is http://www.biometricnews.net/ .

Man could face felony for not giving bank back money

A man could face felony charges for refusing to give back money to a Cape Girardeau (MO) bank that claims a teller inadvertently gave the customer too much money. Police tell the Southeast Missourian they are still investigating the incident that happened Friday at the Bank of Missouri, but charges of stealing more than $500 are being considered. So far, no charges have been filed.

Police spokesman Adam Glueck says the man came to the bank to exchange a large stack of mixed bills for a stack of $20 bills, but the teller accidentally gave him substantially more than he was owed. The error was discovered after the customer left.

When the bank and police contacted the man, he refused to turn over the excess amount, saying he was given the correct amount. (What do you think his reaction would be if he was short-changed?

Do these people work for your credit union?

Do these people work for your credit union?

A woman at work was seen putting a credit card into her floppy drive and pulling it out very quickly.

When I inquired as to what she was doing, she said she was shopping on the Internet and they kept asking for a credit card number, so she was using the ATM 'thingy.'

---------------

Several years ago, we had an Intern who was none too swift. One day she was typing and turned to a secretary and said, 'I'm almost out of typing paper. What do I do?' 'Just use paper from the photocopier', the secretary told her.

With that, the intern took her last remaining blank piece of paper, put it on the photocopier and proceeded to make five 'blank' copies.