VerifySmart Signs MOU with One of Southeast Asia's Most Influential Business Leaders; JV to Introduce Patent Pending Zero-Loss C
November 02 2009 - 9:00AM
PR Newswire (US)
TAGUIG, METRO MANILA, Philippines, Nov. 2 /PRNewswire-FirstCall/ --
VerifySmart(TM) Inc. (VSMR: OTCBB): ("VerifySmart" or the
"Company"), a global leader in secure and fraud free credit/debit
card payment processing and transfer services, has signed a
Memorandum of Understanding (the "MOU") with Mr. Theodore 'Teddy'
Permadi Rachmat of Indonesia. The MOU outlines the terms of an
Agreement ("the Agreement") between Mr. Rachmat and VerifySmart to
form a Joint Venture Company (the "JV Company") to introduce the
Company's proprietary suite of fraud prevention and detection
technologies to financial institutions, businesses, and economic
development groups in Southeast Asia, with first right of refusal
for Asia and the Middle East. The signing is a timely and strategic
move for VerifySmart as it partners the Company's intellectual
property with one of Indonesia's wealthiest and most influential
businessmen and founder of the multi billion dollar Triputra Group
conglomerate. Under the terms of the MOU, the new JV Company will
be based on a 50-50 revenue sharing model, and will, merging
VerifySmart's in-place development and implementation team with Mr.
Rachmat's legacy of influence, immediately access one of the most
robust and highly-developed commercial transaction environments in
the world. The opportunity for the JV Company lies is the
ever-expanding chasm between the unprecedented speed at which
Southeast Asia's technological and economic environments develop,
and the financial community's inability to harness or eliminate
crippling credit/debit card and online transaction fraud loss.
VerifySmart's patent pending technology reduced credit/debit card
fraud loss numbers to zero in initial testing. "I am
extraordinarily optimistic about the opportunities afforded by
VerifySmart's intellectual property and the patent pending
protections on their IP," says Mr. Rachmat. "Southeast Asia is
desperate for fraud loss solutions that can be implemented in the
near term. I believe VerifySmart has the solutions and we are
certainly well positioned to move quickly to implement them."
Southeast Asia - the vast and densely populated area of Asia
including Singapore, Indonesia, the Philippines, Brunei, Thailand,
Cambodia, Laos, Vietnam and Malaysia, is very evolved
technologically and boasts some of the highest mobile phone
subscription rates in the world. The mobile and online commercial
transaction growth rates for many member countries therefore are
extraordinarily high - up to 40 percent annually. This
extraordinary growth is matched only by a tandem increase in
crippling credit/debit card and online transaction fraud losses.
From his position at the very top of Indonesia's financial
community, overlooking all of Southeast Asia, Mr. Rachmat is keenly
aware of the risks at both ends of the transaction - for a)
institutions and merchant groups issuing fraud-susceptible credit
and debit cards, and transferring large volumes of in-bound
expatriate cash, and b) for individuals holding 100% liability
credit and debit/cash cards with no built-ins for effective fraud
prevention or detection. VerifySmart Honorary Chairman Adi Muljo,
returned Saturday from Indonesia where he penned terms of the MOU
with Mr. Rachmat, a former PT Astra colleague. Both gentlemen look
forward to working together again. "It is an honor to be working
again with Teddy, and on such a worthwhile project as improving the
safety and security of Indonesia's people and her financial
institutions," says Mr. Muljo. About Theodore Permadi Rachmat Mr.
Rachmat, best known as 'Teddy', founded the Southeast Asian
conglomerate Triputra Group (PT Triputra Investindo Arya), a
private company with estimated revenues well in excess of $3b
annually. Triputra grew to dominate the regional automotive
landscape by addressing the industry supply chain at every level,
from retail automotive and motorcycle parts and tire sales, to
vehicle rentals, attire, logistics, financing, coal mining, and the
raw materials used in the manufacture of automotive tires. Mr.
Rachmat is a former President Director and President Commissioner
of PT Astra International and PT United Tractors. He was the
President Commissioner of PT Adira Dinamika Multifinance Tbk, one
of Indonesia's largest multi-brand consumer financing companies
majority owned by private banks in Indonesia and Singapore. Mr.
Rachmat sits on the board of directors for several of the country's
largest banks, and is an active member of Indonesia's National
Economics Board. Understanding the Credit/Debit Card and
Transaction Fraud Loss Opportunity Addressing credit/debit card and
online transaction fraud loss is one of the most important issues
facing industrialized and developing nations today. The fraud loss
numbers, threat to economic security, and acceleration of piracy
sophistication are so great that, current and projected loss
statistics are difficult to access. It is reported that identity
theft and credit card fraud are the fastest-growing categories of
US Federal Trade Commission complaints, and that the cost of credit
card fraud in the United States is estimated to be US$50 million a
day -- a staggering US$18.25 billion a year. In Canada, card fraud
costs exceed CAD$8 million per day or $2.9 billion per year.
Currently, the accepted credit/debit card and online transaction
fraud detection and prevention solution is the so-called 'Chip and
PIN' ("C&P") which originated in the UK in 2004. C&P
launched in parts of North America in 2008, but, in spite of high
capital costs to implement and high expectations from financial
institutions, merchants and consumers, the results have been
disappointing at all levels. In 2008 APACS (Association of Payment
Clearing Services) reported card-only fraud losses as a percentage
of card turnover amounted to 0.12%. Prior to the introduction of
C&P, this same statistic was 0.14% -- a mere 0.02% reduction in
losses weighed against tens of millions in implementation costs.
VerifySmart's patent pending and PCT approved credit/debit card and
online transaction fraud prevention and detection technologies meet
the needs of a security challenged transaction processing industry.
During alpha and beta testing, fraud loss costs were reduced to
zero. At the centre of all VerifySmart solutions, and at the heart
of their PCT approved pending patents, is the engagement of the
mobile device. Of the more than 4.1 billion mobile devices in use
globally, more than two-thirds of them are in Asia. Fraud loss
numbers for Asia and Southeast Asia are not available, but based on
population, mobile device adoption and transaction numbers alone,
the credit/debit card loss prevention and detection opportunities
in Asia and Southeast Asia are greater than anywhere else in the
world. About VerifySmart VerifySmart(TM) Inc designed and developed
a Proprietary Hardware/Software Solution that solves Credit/Debit
Card fraud by using two Factor Authentication. The Company's Core
Technology is designed to meet the needs of the Security challenged
Trans action Processing Industry. Present day solutions, such as
Verified by Visa, Chip and Pin and CVV Code (all which can be
compromised) have not reduced payment card fraud by any significant
factor. The VerifySmart solution has reduced fraud to zero in
initial production pilots. The Company's proven and highly scalable
solution is gaining worldwide attention and placing VerifySmart at
the forefront of the fraud prevention revolution. To provide better
access and services to Southeast Asia's financial services sector,
VerifySmart has plans to relocate its head office to Singapore.
Details of the JV Company and other of VerifySmart's Southeast
Asian business developments will be released as news develops.
Forward Looking Statements This current report contains
"forward-looking statements", as that term is defined in Section
27A of the United States Securities Act of 1933 and Section 21E of
the Securities Exchange Act of 1934. Statements in this current
report which are not purely historical are forward-looking
statements and include any statements regarding beliefs, plans,
expectations or intentions regarding the future. Actual results
could differ from those projected in any forward-looking statements
due to numerous factors. Such factors include, among others, the
inherent uncertainty of financial estimates and projections, the
competitive and regulatory environment for start up software
companies, stock market conditions, unforeseen technical
difficulties and our ongoing ability to operate a business and
obtain financing. These forward-looking statements are made as of
the date of this current report, and we assume no obligation to
update the forward-looking statements, or to update the reasons why
actual results could differ from those projected in the
forward-looking statements. Although we believe that our beliefs,
plans, expectations and intentions contained in this current report
are reasonable, there can be no assurance that such beliefs, plans,
expectations or intentions will prove to be accurate. Investors
should consult all of the information set forth herein and should
also refer to the risk factors disclosure outlined in our annual
report on Form 10-K for the 2008 fiscal year, our quarterly reports
on Form 10-Q and our other periodic reports filed from time-to-time
with the Securities and Exchange Commission pursuant to the
Securities Exchange Act. DATASOURCE: VerifySmart Corp. CONTACT: Mr.
Adi Muljo at 1-800-685-1584 or visit http://www.verifysmart.com/
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