VerifySmart Receives Request from One of UK's Largest Banks; For Zero-Loss Solution to Credit/Debit and Transaction Fraud Crisis
November 16 2009 - 9:00AM
PR Newswire (US)
TAGUIG, Metro Manila, Philippines, Nov. 16 /PRNewswire-FirstCall/
-- VerifySmart (TM) Corp. (VSMR: OTCBB): ("VerifySmart" or the
"Company"), a global leader in secure and fraud free credit and
debit payment processing services, has received a Solutions Request
(the "Request") from one of the UK's largest and most trusted
banking institutions (the "UK Bank"). The Request encompasses all
aspects of the UK Bank's operations globally, and includes the
potential introduction of a fraud-free co-branded
debit/credit/money transfer card. The UK Bank has operations in 57
countries, is a major credit and debit card issuer and provides
financial services to a vast range of individual, enterprise,
multinational, investment banking and asset management clients
globally. "We received the Request with a large measure of pride,"
says VerifySmart Honorary Chairman, Adi Muljo. "For us it validates
our technologies and the confidence we have in their relevance to
safeguarding the global financial community and reducing or
eliminating credit/debit card and online transaction fraud loss."
VerifySmart executives and developers are working together with the
UK Bank's security and card services divisions to better understand
the intricacies of its business and how best to propose integration
of all VerifySmart core technologies. The next steps would be the
development of a beta testing phase whereby a number of VerifySmart
applications would be used in a controlled test market(s)
environment to measure security and fraud loss efficacy. "Given the
size of the UK Bank's operations globally, it is difficult to know
how long this initial phase will take," continues Muljo, but we do
know with certainty is that our technologies have captured the
attention of one of the most respected and venerable financial
institutions in the world. We are therefore proceeding methodically
and with all due diligence to exploit this opportunity to the
mutual benefit of our potential UK-based partner and of our
shareholders." 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 fraud prevention and detection solutions, while
impenetrable, are unique in their brevity, design, execution, and
cross-platform compatibility. At the heart of the Company's suite
of applications, and their PCT approved pending patents, is
engagement of simple SMS (text message) transactions. SMS-enabled
mobile devices/cell phones are widely adopted and are growing in
popularity. Currently, more than 4.1 billion mobile devices are in
use worldwide. A statistic that, together with VerifySmart's
alliance with iMobile Interactive, immediately connects the fraud
loss problem with the VerifySmart solution in every at-risk country
in the world. 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. VerifySmart's 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 of VerifySmart technologies, fraud loss costs were
reduced to zero. The UK is one of the fastest-growing traditional
and e-commerce markets in the world, and has an extraordinarily
high mobile device subscription rate. A September 2009 study
released by the global market research firm Synovate reported that
of 8,000 urban mobile phone owners surveyed in 11 countries, Brits
were most likely to own a smartphone (21%), and further that "As
the mobile becomes more of an all-in-one device, many other
businesses are facing challenging times. However, the opportunities
for mobile manufacturers and networks are enormous" -- Garton,
Global Head of Media. While VerifySmart recognizes the challenges,
its sees in them an enormous opportunity to partner with networks
and financial institutions to provide a monetizable catalyst for
change. 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 and placing
VerifySmart at the forefront of the fraud prevention revolution.
Details of this and other corporate 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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