VerifySmart Signs MOU with Consortium Headed by New York Financial Systems Executive Tony Cinotti; JV to Introduce Credit/Debit
November 13 2009 - 9:00AM
PR Newswire (US)
TAGUIG, Metro Manila, Philippines, Nov. 13 /PRNewswire-FirstCall/
-- VerifySmart (TM) Corp. (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 New York Financial
Systems executive Mr. Tony Cinotti on behalf of a Consortium (the
"Consortium") made up of professionals experienced in managing
financial services firms across many verticals. The MOU outlines
the terms of an Agreement ("the Agreement") between Mr. Cinotti 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 North America, South America and
Europe. 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 technologies with the Consortium's broad-reaching
sphere of influence, create a turnkey fraud loss solutions company
based in North America's financial capital. VerifySmart
technologies reduced fraud to zero in initial production pilots,
and recent beta testing exceeded expectations both in deployment
speed and fraud loss. The Consortium signing comes on the heels of
an announcement last week by VerifySmart, that the Company had
signed a parallel JV with Indonesian billionaire Mr. Theodore
"Teddy" Rachmat, one of Southeast Asia's most influential business
leaders and financiers, to introduce VerifySmart technologies to
Southeast Asia, Asia and the Middle East. The Americas and Europe
MOU is strategic in that it indicates confidence, by the
establishment, of VerifySmart's suite of zero-loss fraud prevention
and detection technologies and creates, together with the Asia and
Middle East JV, a global network of financial genius working on
behalf of the Company to propagate widespread adoption of its suite
of PCT approved, patent-pending financial fraud prevention and
detection solutions. "This signing formalizes our belief that
VerifySmart will become the global leader in fraud loss solutions.
Their fraud prevention and detection solutions, while impenetrable,
are genius in their brevity, design, execution and cross-platform
compatibility. And, they are based on the most popular of devices,
the SMS-enabled mobile handset," says Mr. Cinotti. The Company
recently announced an alliance with iMobile Interactive of New
Jersey which gives VerifySmart instant consolidated SMS (text
message) access to billions of mobile phone customers worldwide.
"Suddenly, almost all potential credit/debit card customers are
connected by something other than fraud loss risk, they are
connected by VerifySmart's SMS-enabled ability to reduce that risk
to zero." The 'SMS-enabled transaction' as it applies to
debit/credit card fraud prevention and detection, was conceived by
VerifySmart and is protected globally by PCT approvals and pending
patents. "We are very excited about the future and plan to move
quickly to gain traction in all verticals," says VerifySmart
Honorary Chairman Adi Muljo. "This Americas JV, led by Tony Cinotti
and his extraordinarily talented and accomplished group is key to
our business plan, and very soon we will be opening a New York
office to accommodate growth." About Tony Cinotti Tony has over 35
years experience in the Financial Industry. He began his career
with Kuhn Loeb & Company managing all systems and data center
operations. He continued his career with Morgan Stanley and managed
Equity and Government Trading as well as Broker Commissions and
Management and Planning systems. Upon leaving Morgan Stanley he
founded DP Sciences Inc., which provided Management and Systems
consulting to the Financial community. The company was contracted
to build and manage systems and data centers for various financial
clients. DP Sciences was also a service organization processing
over 97 % of all Equity IPO's (Initial Public Offerings) for over
30 clients. Tony also owned seats on The New York Futures Exchange
and was a registered Floor Broker. He was the co-inventor on two
method patents for processing transactions on 3G phones. Tony has a
Bachelors degree in Management from Baruch College. Tony was
instrumental in bringing the iMobile Interactive and VerifySmart
alliance to fruition. iMobile currently interfaces with almost
every phone company in the world. 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. More than
4.1 billion mobile devices are currently in use globally. About
VerifySmart VerifySmart (TM) Corp 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, placing VerifySmart at the
forefront of the fraud prevention revolution. Details of the JV
Company and other of VerifySmart's 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 1-877-685-1584 or visit http://www.verifysmart.com/
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