SCM's Mobile e20 Reader is Certified for the MasterCard OneSMART(TM) Authentication Program
March 11 2005 - 2:30AM
PR Newswire (US)
SCM's Mobile e20 Reader is Certified for the MasterCard
OneSMART(TM) Authentication Program CeBIT, HANOVER, Germany, March
11 /PRNewswire-FirstCall/ -- SCM Microsystems, Inc. (Nasdaq: SCMM;
Prime Standard: SMY), a leading provider of solutions that open the
Digital World, today announced that SCM's e20 personal smart card
reader for financial applications has been certified by MasterCard
International. The e20 reader was successfully tested against the
MasterCard OneSMART(TM) Chip Authentication Program's (CAP) 2004
specifications and was the first such device to achieve this
milestone. The approval makes it possible for financial
institutions and other card issuers to use SCM's mobile reader with
the popular MasterCard authentication program. The OneSMART
MasterCard Chip Authentication Program is a smart card-based
authentication program that is a part of the MasterCard
SecureCode(TM) solution. It can be used to increase security for
Internet banking and other applications requiring strong cardholder
authentication. SCM is demonstrating the online security
capabilities of its e20 mobile reader at CeBIT in hall 17, booth
A01(47) from March 10th to March 16th 2005. "The global migration
to smart card technology is perhaps the most important change to
the card payments industry since its inception," said Robert
Schneider, chief executive officer of SCM Microsystems. "At the
same time, an even bigger change is taking place in the world
around us -- the emergence of ecommerce. SCM teamed up with
MasterCard to bring the power of smart card security into the
virtual world with our handheld authentication device. The result
is an easy to use, but effective solution for ecommerce and online
banking that helps mitigate the risks that phishing and keylogging
programs present to password-based security." "The MasterCard
OneSMART(TM) Chip Authentication Program leverages the EMVTM
infrastructure and extends it into online transactions. By using
smart card readers, such as SCM's e20, the MasterCard program
enables highly secure chip-based authentication of cardholders for
e-payment and e-banking channels. The online applications use
MasterCard M/Chip(TM), which supports credit and debit payments for
chip," said Dr. Toni Merschen, Senior Vice President, Chip Center
of Excellence, MasterCard International. The same approach can be
used to secure mail order and telephone order (MOTO) payments and
online banking transactions. The card reader also allows
cardholders to view a log of their last ten transactions. The
solution is aimed primarily at security-conscious, technology-aware
consumers -- an important and growing segment. How the e20 Works
Functionally, the e20 is a battery-operated smart card reading
device with a display and keypad for entering PIN codes and other
numeric data. After a cardholder enters his or her PIN, the device
generates a one-time valid password or Transaction Authentication
Number that the cardholder uses for the authentication of online
transactions such as ecommerce or ebanking. One option for
achieving an even higher level of security is the challenge
response capability. This feature allows an application to create a
random challenge specific to that transaction. The user enters the
challenge into the e20 reader; the card then generates a response
that the user presents to the application. Introducing a random
challenge into an authentication process is a very strong security
technique. The e20 reader does not need to be connected to a PC, is
easy for consumers to use and it is totally platform independent.
The e20 mobile reader is only slightly larger than a credit card,
with a sleek, highly stylized design. In creating a security device
for the virtual world, SCM's engineers took their inspiration from
the dial on a real world safe. The team settled on an oval shape
and placed the keys around the perimeter. It's small size and light
weight make it both easy to hold and highly portable. It is an
elegantly simple design, yet it significantly increases online
transaction security for consumers, issuers and merchants. Strong
chip authentication is called "two-factor," because it combines
"something I own" (the chip card and the e20 reader) and "something
I know" (the PIN). Though simple for the consumer, it is highly
secure and it works across a variety of channels. Another important
benefit to issuers is that it provides irrefutable proof of
cardholder verification for the transaction, a critical requirement
for card issuers faced with mounting online transaction disputes
among their accountholders. About SCM Microsystems SCM Microsystems
is a leading supplier of solutions that open the Digital World by
enabling people to securely access digital content and services.
The company develops, markets and sells its smart card reader
technology for network and physical access and conditional access
modules for secure digital TV decryption to OEM customers in the
government, financial, enterprise and broadcasting markets
worldwide. Global headquarters are in Fremont, California, with
European headquarters in Ismaning, Germany. For additional
information, visit the SCM Microsystems web site at
http://www.scmmicro.com/. NOTE: EMV(TM) is a trademark owned by
EMVCo LLC. All other company and/or product names are trademarks or
registered trademarks of their respective owners. DATASOURCE: SCM
Microsystems, Inc. CONTACT: Dr. Manfred Muller of SCM Microsystems,
+49-89-9595-5140, or ; or Deb Montner of Montner & Associates,
+1-203-226-9290, or , for SCM Microsystems Web site:
http://www.scmmicro.com/
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