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[grupo guitarlumber] 16/4/2004 14:12

Demand high for chip and pin cards 16/04/2004,
According to a new study by MasterCard, UK shoppers are keen to start using new chip and PIN cards.

The company claims that the introduction of the new chip and PIN credit and debit cards will see a significant decrease in those paying with cash or cheques.

Paul Lucraft, the general manager of MasterCard for business services in Northern Europe explained: "The research suggests that the roll out of chip and PIN in the UK will spark a huge step change in the way people prefer to pay.

"They will opt instead for the increased convenience and security offered by plastic once signatures are replaced by PIN numbers."

Around 41 per cent said they would opt for the convenience of plastic, and 42 per cent say they will carry less coins and cash on them.

The main reason respondents gave for making more purchases with the new system rather than cash or cheques was that it will be made safer (55 per cent) and quicker (52 per cent).

The UK chip and PIN programme is part of an international initiative to tackle plastic card fraud.

[grupo guitarlumber] 14/4/2004 15:26

11:39am (UK)
Chip and Pin Cards Could Attract Spending Surge

By Nicky Burridge, Personal Finance Correspondent, PA News


Payments with debit cards look set to rise by more than a third following the introduction of new-style, more secure “plastic”;, according to research today.

Four out of 10 people said they would use their debit card more often once chip and PIN cards were launched, while nearly a third thought they would carry less cash, according to MasterCard.

The group predicts that debit card spending will rise by 37% once the new cards are being used, as the use of cash and cheques continues to decline.

The new cards are intended to reduce fraud by having consumers verify a transaction by keying in a four digit Pin number, rather than signing a receipt.

They also have a smart chip which can store information more securely than a magnetic strip.

The initiative is expected to reduce credit and debit card fraud in the UK – which reached £424.6 million during 2002 – by up to 70%.

The main reason people gave for increasing their card use was that there was less chance of fraud in the new system.

Some 55% said it would be safer and 52% thought keying in a Pin number would be quicker than signing a receipt.

Four out of 10 people thought they would increase their transactions with the new cards because shops could provide secure self-service check-outs.

Research found that approximately three million people who do not currently have a credit card will apply for one when the new system is in place, again because of security from fraudsters.

Paul Lucraft, of MasterCard, said: “The research suggests that the roll out of chip and PIN in the UK will spark a huge step change in the way people prefer to pay.”

Banks are currently replacing credit and debit cards with new chip and Pin ones. By 2005 most plastic transactions will be with the new cards.

TNS questioned 1,086 people over the internet between March 16 and 18

[ariane] 10/4/2004 11:01

by Daniel Thomas

Thursday 1 April 2004

Disney revamping point-of-sale but delaying chip and Pin



The European retail arm of Disney is due to complete an overhaul of its UK point-of-sale systems by late autumn, but it is not going to add chip and Pin compliance until February 2005. The decision means Disney will be liable for any card fraud in its stores for up to two months.



The move is part of a trend among mid-sized retailers to hold back from rolling out chip and Pin systems because of issues over time and cost, despite the fact that non-compliant stores will be liable for fraudulent transactions from 1 January 2005.



The Disney Store Europe is in the midst of implementing new point-of-sale systems across its 110 outlets in the UK, France, Spain and Italy, standardising on IBM EPS technology.



The systems should be in place by October, but the company does not want to add chip and Pin compliance - installing card readers and going through the lengthy accreditation process - over the Christmas trading period.



"We do not want staff, many of whom will be temporary, to be learning a new process over Christmas," said Mitchell Edmond, manager of IS at Disney Store Europe. "So we decided to implement in February and take that risk for a couple of months."



Edmond said many retailers were holding fire on chip and Pin rollouts. "It is a massive task and it is hard to make the business case stack up," he said. "From a cost point of view, you have to treat it as if it is statutory."



The Disney Store Europe managed to extract some cost savings on the project by putting the support services contract, with IBM Global Services, out to tender, Edmond said.



When the IBM deal was up for renewal last August, the company signed up Servus Associates, a firm of management consultants that specialise in the renegotiation of IT contracts, to introduce more competition into the contract.



“Our maintenance contract has always been with IBM and it tended to just rollover every three years,” Edmond said. “We got Servus involved and served notice on IBM before putting it out to tender. We ended up staying with IBM but we will save 25% year on year on the deal.”



Once the point-of-sale systems are in place, The Disney Store Europe hopes to introduce new initiatives, such as mobile queue busting systems and electronic ticketing for Disney theme parks, Edmond said.

[ariane] 08/4/2004 20:26

Oyster smartcard 'ready' for next stage
By Miya Knights [08-04-2004]
'Capping' system will ensure that passengers do not shell out more than they need




The next set of features on Transport for London's Oyster smartcard are soon to be launched in the next stage of its phased roll out.
Oyster Pre-pay, which allows passengers to pay for travel in advance, has already been introduced on the tube and Docklands Light Railway.

Its introduction on buses and trams is expected to follow within the next three months, later than scheduled.

Charles Monheim, Oyster's director of ticketing systems and fare policy, told vnunet.com earlier this year that "pre-pay will be rolled out on buses and trams in March 2004".

TranSys, the private consortium responsible for Oyster operations, declined to say why pre-pay on buses and trams has been delayed, and would not give a deadline for the introduction of 'capping' on the smartcards.

Capping is intended to ensure that customers are not charged for multiple single journeys across the network where a travel card rate would be cheaper.

Until then, Oyster pre-pay users who want a travel card will be forced to buy paper tickets.

This is because pre-pay needs to be fully operational across the capital's transport network for capping to be effective.

"The approach we have taken [to the introduction of Oyster] is low risk," said Steve Beer, chief operational officer at TranSys.

"We could have switched on all the features at once, but thought it far better to opt for new functionality a bit at a time."

Colin Penn, technical programme manager at TranSys, echoed the latest update from Transport for London representatives.

"We can confirm that capping and full pre-pay will be available sometime in the second quarter of 2004," he said. "We are in the initial phases of testing in garages and on buses and trams."

Transport for London and TranSys also announced that they are looking at integrating the rail network into the Oyster scheme, but would not say when this might happen.

[ariane] 08/4/2004 07:51

Chip and pin change
Charlotte Beugge, Daily Mail
8 April 2004

B>What is happening?



HOW you pay for goods and services with your credit and debit cards* will change. Over the coming year, everyone will be issued with new cards which contain a microchip with information about your account


By the end of the year, all major retailers will have pin pads at checkouts. When you pay for goods using a credit or debit card, you will have to key in your pin number instead of signing.


Will these cards look different?


NO, you might already have a chip card. The new Lloyds TSB debit cards, for example, have a small goldpatterned square: this is its 'chip and pin' sign. By the end of this year, 36m chip and pin cards will have been issued.


Why the change?


THE idea is to combat fraudulent card transactions, which, says Visa, amount to more than £1m every day in the UK. France has cut card fraud by more than 80% using this system. By the end of this year, 100 countries will be using it.


Which cards will if affect?


DEBIT and credit cards will all be in the new system. This will be the rub for many of us who might have a fistful of credit cards.


Under the current system, you don't need a pin for a credit card unless you actually draw cash on it. However, once all retailers adopt the machines, you'll need a pin number, so if you can't remember yours, contact your credit card issuer.


How can I possibly remember those numbers?

YOU will be able to change your pin to one you can easily remember - and have the same one for all your cards. You will be able to change it at any cash machine, but you'll need to know your existing number to make the change.


Usual security rules apply. Choose a memorable sequence and don't write it down.


What will happen if I forget my pin at the checkout?


THREE strikes and you'll be out: get it wrong that many times and your card will be locked.


The only way you'll be able to unlock it is by using the unlock facility on a cash machine - but that's only if you have remembered your number. If you can't remember it, you will have to contact your card issuer for a new number before you can use your card again.


What do the chip machines look like?


THE pin pads will look slightly different from store to store, but it'll be a numbered keyboard with a slot for your card.


Some will have a shield so you can't be seen putting your number in - if there isn't one, be sure no one can see you inputting your number.


Anyone who's ever bought goods in a French supermarket will already be used to the system


How will it owrk with telephone and internet sales?


BE CAREFUL. These will be handled exactly as they are now, so don't disclose your pin to anyone.


Do I still need to sign the back of my card?


YES. Many retailers will still be using the old technology for quite a while.


•GAVIN MABBUTT is already a fan of chip and pin cards. Gavin, 33, lives in Northampton, the testing ground for the new technology, so he's had several months to get used to tapping in his pin rather than signing.

He says: 'I think it works really well. Not only does it speed things up at the till, but you don't get that problem that if your signature looks a bit different, they ask for more ID.'


Works well and is far more secure, says Gavin Mabbutt


Gavin, who works as a supervisor at Cosworth Engineering, adds: 'I think it's really safe as well; certainly just as safe as using a cash machine. You'd be suspicious if someone was peering over your shoulder at a cash machine - just as you would if you're using the chip machine at the till.'

Gavin also has never forgotten his pin at the crucial moment. 'When I got the card from Alliance & Leicester, I went to the machine and changed my pin to one I'd easily remember,' he says.

[maywillow] 07/4/2004 19:19

Draft ID cards bill 'within months'

Matthew Tempest and agencies
Wednesday April 7, 2004

A draft bill on ID cards should be published within a month, the home secretary revealed today.
Speaking on Radio 5 in the aftermath of last night's "summit" on immigration at Downing Street, David Blunkett said the Home Office would publish its controversial proposals "hopefully in the next four weeks".

He admitted that there had been "misgivings" from senior cabinet colleagues. However, last week Tony Blair said at his monthly press conference that ID cards would be introduced "more quickly than even we anticipated".

The timetable for implementation would still be lengthy, with experts predicting that even once a bill - sure to be controversial in itself - is on the statute books, the logistics, cost and introduction will not see ID cards in everyone's wallets before around 2010.

Sceptics within the cabinet are thought to include the foreign secretary, Jack Straw; the trade and industry secretary, Patricia Hewitt; and the transport secretary, Alistair Darling. At the weekend Ms Hewitt said there had to be evidence that making ID cards compulsory had "additional benefits".

Despite Spain's use of compulsory ID cards, the bombings in Madrid appear to have speeded the momentum on the issue. Mr Blair's official spokesman said the PM recognised there was an issue "which we are addressing and do need to address in the light of outrages such as Madrid and the threat posed to this country".

Last week the Metropolitcan police commissioner Sir John Stevens demanded the "quick introduction" of ID cards and criticised Ms Hewitt for saying it will take "many years" to introduce ID cards, branding her "wrong".

He said: "Up to a year and a half ago I would have been against identification cards because we had no certainty that the documentation used for identification cards could actually prove with certainty the identification of someone.

"Biometrics, the use of eyes, the use of fingerprints is now a certainty in a way that never was before so therefore identification either whether it be on border controls or whether we have to deal with stop and search in the street, anti-terrorism kind of activity or even along the normal way that police officers work would give a certainty we need."

The prime minister also claimed last week that the civil liberties argument had been "won" and that the only bars on introduction were logistics and cost.

Mr Blunkett conceded today "it would be very surprising if there were not misgivings". Mr Blunkett had hoped to get an ID cards bill into last November's Queen speech, but it was shelved after high-profile objections from Mr Straw - despite he himself having mooted a similar scheme when home secretary.

Last month Stephen Harrison, the head of the Home Office's identity card policy unit, revealed that the "audit trail" of how ID cards were used in transactions would be kept on a central computer, which individuals would not have access to.

People would be able to check and correct data collated on them for the ID card, however.

At present the Home Office is only revealing that the cost of introducing a national ID card scheme will be between £1.3 and £3.1bn - a margin of error of nearly two billion pounds. The Scottish executive has said it will not use identity cards to control access to public services.

Shami Chakrabati, of Liberty, has argued that criminals will use false identity papers to obtain a "genuine" ID card, with their own iris or biometric scan - thus undermining the whole system.

The Liberal Democrats have said the cost of a national ID scheme would outweigh the benefits.

A leading backbench Labour MP criticised the plans for ID cards and questioned whether they were necessary.

David Winnick, a member of the home affairs select committee, said: "I don't believe the case for ID cards has been proven at all.

"If it is to be voluntary, then inevitably it will become compulsory, and that would mean that everyone would have to carry one and produce an ID card when requested to do so."

He added: "If the emphasis now is on terrorism, the fact remains that in Spain identity cards are compulsory from the age of 14 onwards. In what way did that stop the massacre which occurred?"

He added that in the September 11 attacks in New York, all the suspects - although they would not have needed ID cards - were in the country legally.

[maywillow] 07/4/2004 12:52

THE BIRTH of the chip & pin in the Uk


A little under 9 months away

By Startups.co.uk
Published Thursday 25th March 2004 11:56 GMT
Businesses that do not adopt the "Chip and PIN" payment system from next year could be held liable for losses resulting from credit card fraud, an accountancy body warns.

From 1 January 2005, the Chip and PIN system, which replaces signatures for card payments with a "hacker-proof" four-digit PIN number, will be introduced across the UK.

The decision, which follows a successful trail of the system in Northamptonshire last year, is aimed at cutting spiralling credit card fraud in the UK, which is estimated to cost the economy £424m a year.

However, the Association of Chartered Certified Accountants (ACCA) said that the new rules also stipulate that retailers will be held liable for losses if a Chip and PIN card is used fraudulently at a terminal that it not Chip and PIN-enabled.

ACCA warned that small firms now have just nine months to ensure they install Chip and PIN systems, or risk being targeted by con artists.

John Davies, head of business law at ACCA, said that it was vital that all businesses that accept credit and debit cards understand the implications of this liability shift.

"If businesses have complied with card issuers’ instructions and cardholders have been successfully authenticated, then retailers will not be liable if a transaction is later found to be fraudulent.

"However, those retailers who choose not to adopt the Chip and PIN system will be held responsible and, as a result, are likely to become the focus of attention for credit card fraudsters.

"With less than nine months left until the full introduction of this scheme in the UK, many businesses will need to act swiftly to ensure that updated and compliant point of sale equipment is installed and their staff adequately trained," he said.

[maywillow] 07/4/2004 08:33

Debenhams signs Nectar extension
By Peter Smith, Private Equity Correspondent
Published: April 7 2004 5:00 | Last Updated: April 7 2004 5:00

Debenhams has signed a "multi-year" extension to its membership of Nectar and is increasing its involvement in the UK's biggest reward card scheme by becoming a redemption partner.


With J Sainsbury, BP and Barclaycard, Debenhams was a founder member of Nectar, which has 13m UK accounts.

Previously, Nectar points could only be earned at Debenhams and had to be redeemed elsewhere. From late spring, Nectar points can be "earned and burned" at Debenhams.

The department store group, bought by a private equity consortium last year for £1.7bn, said the change would not hit margins because Loyalty Management UK, which owns Nectar, would "fund the discount" on purchases made using points.

Debenhams is considering the sale of its flagship store on London's Oxford Street and other changes to its property portfolio, which has a book value of about £400m.

It has made about 15 per cent of head office staff redundant with further cuts across the chain since it was acquired by CVC and Texas Pacific, two private equity concerns.

But the group is also stepping up its store expansion programme. It has 104 outlets, agreements for 17 new stores, and is in active talks about a further four.

Rob Gierkink, chief executive of Loyalty Management, said Nectar "definitely drives traffic". He would not disclose the length of the new Debenhams contract, which was the first of a launch member to come up for renewal.

As other contracts expired, Mr Gierkink said he was confident the scheme would not lose members. "Eventually we may lose a partner but we would look to replace them with somebody else," he said.

Shortly after taking the helm at Debenhams last year, Rob Templeman, chief executive, indicated he was reserving judgment on Nectar. Yesterday, he said he was pleased with the scheme.

Since its launch, Nectar has broadened its base. Last year, it signed up Vodafone, the mobile phone operator, Adams, the children's clothing retailer, First Quench, the drinks retailer and EDF Energy, the electricity and gas supplier.

[waldron] 05/4/2004 21:54

timely, suggest you take a peek at the IGP thread







20 November 2003

INTERCEDE GROUP plc
("Intercede", "the Company" or "the Group")

Interim Results for the Six Months Ended 30 September 2003

Intercede, a leading developer of electronic identity management software, today
announces its interim results for the six months ended 30 September 2003.

SUMMARY

* Further progress towards break-even as pre-tax losses are reduced from £0.6 million to £0.2 million.

* Gross profit margins increase from 72% to 82% as the proportion of edeficeTM related sales rises from 52% to 62%.

* Intercede is now established as one of the leaders in smart card and identity management software, based on both the excellence of its edefice technology and the penetration of key channels to market.

* Contract wins during the period with a major UK Clearing Bank and the Academic Medical Centre, Amsterdam.

* Good progress made in developing relationships with a number of major industry players, notably Northrop Grumman, Thales and Gemplus.

* The level of cash outflow pre financing is reduced from £1.0 million to £0.3 million.

* Period end cash balances total £1.3 million.

* Mario Houthooft, formerly CEO of NASDAQ listed Vasco, joins the management team to strengthen sales and business development activities.

Richard Parris, Chairman & Chief Executive of Intercede, said today:

"The momentum continues to build with the number of requests for tender, and pre-sales activities in general, at an all time high. This is a very strong
indicator of future sales growth and increasing opportunity for the Group."

From the website:
www.intercede.co.uk

About Intercede

Established in 1992, Intercede is a leading developer and supplier of powerful digital identity management software.

Intercede's edefice serves as the foundation for identity-based solutions that are changing the way organizations improve operating efficiency and security. From campus cards and corporate ID badges to citizen, driving license, health and transportation card programs, in markets as diverse as banking/financial services, service providers and utilities. Many global organizations — including AIB, ActivCard, COLT Telecom, Datakey, Fujitsu, HP, Lloyds TSB and many more — utilize our software and support services to cut costs, improve security, and create new sources of revenue.

Edefice™ Overview

Powerful smart card and identity management software
Edefice is a fully customizable card and identity management system that unites the power of smart cards, tokens, biometrics, public key infrastructure (PKI), applets and a host of other technologies - creating smarter identities. With its open XML based architecture, easy-to-use policy driven interface, card and PKI vendor independence, edefice sets the standard by which other digital identity management systems can be measured.

Edefice includes many key features that help address the administration and infrastructure demands of deploying, migrating-to and managing devices and associated digital certificates, applets and user information.

Check out the opinions of others with a longer aquaintance with the company:
Existing thread (Rambutan2):

[timely] 05/4/2004 20:54

Could someone confirm [or otherwise] whether Intercede have a tie-up with gemplus please.

[waldron] 05/4/2004 18:42

A Card That Asks For ID
By SORA SONG

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Monday, Apr. 12, 2004
When IBM inventor Ed Kelley suddenly discovered that his telephone calling card had been canceled — the number had been stolen and used for exorbitant calls to Central America and Asia — he decided he'd had enough. To put an end to swiped identities and pilfered credit cards, he and IBM engineer Franco Motika set about developing a new generation of smart cards. The recently patented, theftproof card contains a computer chip and features a tiny numerical keypad right on its face. The cardholder inputs a PIN, stored directly in the card's circuitry; the same code must be entered before each use. The PIN turns the card on and generates a unique one-time-only transaction code. For approval, that code has to synch with an algorithm run by the credit-card company's computer. The smart card isn't on the market yet, but its inventors hope it will someday replace all traditional credit cards. IBM plans to license the technology.

From the Apr. 12, 2004 issue of TIME magazine

[waldron] 05/4/2004 15:21

OTI Smart Cards in China

April 5, 2004

CUPERTINO, Calif. — On Track Innovations, Ltd. (Frankfurt): OT5), a global leader in contactless microprocessor-based smart card solutions, today said that distribution of electronic ID cards that carry OTI's technology has begun.

Xinhua News Agency, the state and worldwide news agency in China, reported earlier this week that, "Within the first half of this year, 200,000 residents of Shanghai's Jiading and Chongming districts will be issued new ID cards. After that, the new cards will be distributed throughout the city, according to Zheng Shanhe, the deputy director of the Shanghai Public Security Bureau. Zheng said that by the end of 2008, the cards will be in use nationwide."

About OTI
Established in 1990, OTI (Nasdaq: OTIV; Prime Standard: OT5) designs, develops and markets secure contactless microprocessor-based smart card technology to address the needs of a wide variety of markets. Applications developed by OTI include product solutions for petroleum payment systems, micropayments, mass transit ticketing, parking, loyalty programs, ID and secure campuses. OTI has a global network of regional offices to market and support its products. The company was awarded the prestigious ESCAT Award for smart card innovation in both 1998 and 2000. Major clients include: MasterCard International, Atmel, BP, Scheidt & Bachmann, EDS, Repsol and the Government of Israel. For more information on OTI, visit www.otiglobal.com.

[ariane] 03/4/2004 12:48

Fundamo, Gemplus sign mobile payment sales agreement

Date: 31 March 2004 Issue: Eightytwo (29/03/04-02/04/04)
(ICT World)
Category: Local News


Local banking and mobile commerce software company, Fundamo, and Gemplus International SA, a global provider of smart card-based solutions, have signed an agreement to co-distribute and sell their joint solution for mobile payment and financial transactions globally, with an initial emphasis on emerging mobile markets in Europe, the Middle East and other countries in Africa.




The mobile payment application, already deployed in the African market, is said to be the result of integrating Fundamo's mobile payment, mobile banking and mobile-commerce technology into Gemplus's GemXplore U-choose S@T-enabled SIM cards.

Gemplus has also provided the infrastructure to operate the service on behalf of mobile network operators. The solution has already been successfully implemented in Zimbabwe with 121CellMoney, interoperable between the three mobile operators, NetOne, Telecel and Econet, the company says.

The Gemplus-Fundamo partnership began in SA, where both companies are well established. Using Gemplus's wide distribution network, the solution will be distributed to emerging markets for mobile solutions, where the entry-level range, based on electronic top-up for prepay subscribers, is said to be particularly well suited.

Regions initially targeted include Africa, the Middle East, Russia and Serbia. Mobile services enabled by the Gemplus-Fundamo solution include person-to-person payments, bill payments, purchases for goods and services, pre-paid top-up and cash-on-delivery payments.

"Offering electronic mobile top-up in countries where, in some cases, 95% of subscribers are pre-pay makes good business sense," says Michel Canitrot, vice-president: sales at Gemplus. "Fundamo's suite of products is well suited for integration into the SIM card, and this is, to my knowledge, the most high-end value-added mobile service to date in the African market."
"The formalisation of this agreement builds on a three-year relationship with Gemplus," says Hannes van Rensburg, CEO of Fundamo. "Achieving the backing of such a large global player verifies the quality of our products, and provides Fundamo with global access and exposure to a considerable international customer base in the mobile operating space."

[grupo guitarlumber] 02/4/2004 20:55

Viisage wins multimillion-dollar order for new DoD smart cards
04/02/2004 10:42 AM

Littleton-based Viisage, a provider of advanced technology identity solutions, has been selected by the United States Department of Defense (DoD) to support the production of secure, smart credentials as part of the agency’s Common Access Card (CAC) program.

When closed, the estimated total order from the DoD is expected to be in the range of $6 to $10 million. The CAC program, which has more than four million users across the DoD, is the largest user of smart cards in the U.S. government.

Telos Corp. is the support contractor for the DoD’s Defense Manpower Data Center (DMDC) and is working with Viisage subsidiary Trans Digital Technologies (TDT), which was acquired by Viisage in February 2004.

Viisage will provide a solution to the DMDC, which is expected to include 1,700 Toppan CP400 printers as the fixed site desktop printers, as well as consumables and services for the production of secure identification cards throughout the Real-time Automated Personnel Identification System (RAPIDS).

"We are thrilled that the DoD has selected Viisage as a strategic partner in the CAC program,” said Bernard Bailey, Viisage president and CEO, in a statement. This achievement demonstrates the considerable value TDT adds to Viisage and is representative of the growing traction we are gaining in the federal government market.”

DoD uniformed duty employees, qualified reserve personnel, DoD civilians and authorized contractors use the CAC’s standard identification cards to gain physical access to secure areas and logical access to the Department’s computer networks. The card also serves as the authentication token for the Department's computerized public key infrastructure. The future DMDC roadmap for the program includes expanded use of biometrics and movement toward a contactless smart card.
Viisage stock began trading at $9.31, up $1.63 from yesterday’s close.

[waldron] 01/4/2004 13:28

China Officially Launches Giant Smart Card ID Project


China’s Ministry of Public Security officially began issuing Monday the new chip-based ID card that all of the country’s 900 million adults will carry by 2008. The project manager, Ren Gao, said at the launch ceremony that tests will begin soon in three cities and that by early 2005 the government would roll out the smart card nationwide and stop issuing the current plastic ID card. . The government decided to switch to a contactless chip card to reduce the rampant counterfeiting of the paper IDs, a big problem for officials given the massive migration of Chinese citizens from the countryside to coastal cities over the past two decades. Government officials tell Thomson Media's Card Technology the project will cost $6 billion. That should give a big boost to China's already burgeoning smart card industry. Citing national security, the government says only Chinese companies will provide chips and cards for the project.


The government has chosen four domestic semiconductor manufacturers to provide the chips for the cards. They are: CIDC (China Integrated Circuit design Corp., Ltd), Shanghai Huahong, Datang Microelectronics and Qinghua Tongfang Microelectronics. In addition, the government has selected 10 domestic card manufacturing companies to supply the chip cards.


Each citizen must pay 20 RMB ($US2.40) for the card, but some low-income people will receive cards for free. As the card is rolled out, the card reader market will also boom in the next few years. For instance, there are some 50,000 police stations that are expected to need about five readers each. Hotels, banks and airports will also install readers to check identities—by Frank Tong in Beijing.


(2004-03-31)

[waldron] 31/3/2004 17:54

ID chips offer convenience, privacy groups worried
By LANCE GAY
Scripps Howard News Service
March 31, 2004

- Marketing wizards know an awful lot about you by now, but new technology is going to make their job of tracking your buying habits even easier.

Envision the supermarket or the department store of the future, where every item on the shelf is tagged with its own individualized identity. Shoppers could make their purchases and then zip through the checkout line without stopping for a clerk to tally what they have bought.

The tiny radio frequency identification chips - RFID chips for short - which begin replacing bar codes next year can remain in the shopper's cart while flashing their identities to scanners that count up the cart's contents, then present the shopper with a bill.

Just press your index finger on the credit card machine, and the computer matches your fingerprint to your credit card information and makes the bank transaction. Forget irritable or lazy checkout clerks: just take the receipt from the machine and go home.

The advantage of the chips doesn't end there. In the store, the notice of your purchase is flashed back to the warehouse where employees find replacements for the items you just bought. And once the grocery items are taken home and put in the refrigerator of the future, RFID chips on milk cartons could signal to RFID detectors on refrigerators when the family needs more milk, or when the date stamp on a particular product is expiring.

That's the rosy side of the picture.

There's a scary side too.

Suppose police find a discarded Coke can with an RFID chip at a grisly murder scene. You get a knock on the door in the middle of the night and it's the police who want to know why they traced that Coke can back to the store where you bought it and identified you as the purchaser from the computer records.

And what happens with all of that information the store is collecting on your purchase activities? Your insurance company might like to know if you like a lot of high-fat, sugary sodas and calorie-rich desserts that are likely to make you overweight and prone to an early death. A prospective employer might like to know of your regular liquor purchases. Your spouse would certainly be curious about that expensive jewelry you bought.

Privacy advocates say consumers aren't yet aware of all the dangers of the digital trails people already leave behind them in their daily lives, and the trail is only going to get richer as new technologies appear in the store.

Katherine Albrecht, a consumer advocate who started the Consumers Against Supermarket Privacy Invasion and Numbering, worries that Americans are so complacent about technology, they won't realize how much personal privacy has been lost until it's too late.

"You don't need a crystal ball to look into the future - it's already happening," Albrecht said. "There is an invisible surveillance structure around us now."

The supermarket and department store industry promotes new technologies to cut down annoying delays at checkout lines and permit more efficient control of store inventories.

Bi-Lo, a supermarket chain in the South, reports it has cut check fraud by 60 percent since it started using fingerprint scans at checkout registers. Department chains like Wal-Mart, Target and supermarket chain Albertsons are already notifying manufacturers they want radio-controlled identification chips installed in products starting next year because the chips make warehousing more efficient.

Albrecht says new technologies also will make spying easier. Her advocacy group, which started to fight against supermarket loyalty cards, is now branching out to battle against these new technologies.

Albrecht says the industry isn't giving proper consideration to the rights of people who don't want to be tracked. Consumers already are required to identify themselves on application forms for loyalty cards, and those who want to use fingerprint scans instead of traditional credit cards or checks will have to surrender their fingerprints to the store.

Privacy advocates point out that innocuous supermarket loyalty card data already has been put to other uses.

After the case of Mad Cow disease was detected in Washington state late last year, supermarkets used data collected at checkouts to track meat sold customers so they could warn them. A retired Los Angeles tow truck operator who sued a supermarket after he slipped on a carton of spilled yogurt and broke his kneecap claimed a lawyer for the store threatened to make public data from his loyalty card purchases detailing his purchases of alcohol.

But industry says opponents are mistaken about the dangers of the new technology.

Jack Grasso, a spokesman for the Uniform Code Council, an industry organization in Lawrenceville, N.J., said alarms about RFID chips are speculative and don't reflect the advantages for consumers.

"We're not about tracking people, we're about greater visibility in the supply chain," he said. "Consumers, when educated, are quite accepting of this."

Grasso said the technology is at least five to 10 years away from being useful for widespread applications because of the cost of the chips. And once stores can use the chips to properly monitor their supply chain, it will mean less waste in the warehouse, fresher produce on the shelves and reduced costs passed on to consumers.

RFID chips are only beginning to appear in supermarkets and department stores, but the technology really isn't new. It's similar to the smart cards used to speed through highway tollbooths or key fobs used to speed the purchase of gasoline.

RFID are tiny, radio-controlled chips pasted on the side of products to replace bar codes. They can contain their own power or be powered by an outside reader when it comes into its field. When turned on, the chips identify the product individually.

The chips could be put to many uses. The drug industry is planning to use the chips to thwart drug counterfeiting; security analysts say the technology could lead to keyless offices. Farmers already are using RFID tags on livestock to track them through the food chain.

"Sure, its obvious application is factory inventory control, but you can use it for all sorts of things. Believe me, the market for RFID is vast," predicts futurist Paul Saffo.

Sen. Patrick Leahy, D-Vt., a member of the congressional Internet caucus monitoring the impact of new technology, said those uses of RFID chips are exciting, but they also will provide an extraordinary amount of detail stored in computer data banks about how individuals pass their day, what they like and what they don't like.

"The RFID train is beginning to leave the station, and now is the right time to begin a national discussion about where - if at all - any lines will be drawn to protect privacy rights," Leahy said.

Leahy said he is disturbed by industry testing of RFID chips in stores where consumers were watched on store cameras as they picked up Gillette razor blades equipped with the chips. California's legislature is considering a measure that will require stores in that state to keep data collected from RFID chips separate from that gathered with loyalty cards, and Utah's House of Representatives recently passed a law requiring consumers to be alerted when RFID chips are being used.

The backlash has been more dramatic in Europe, where protests and consumer picketing forced one store to shut down a chip test run.

Grasso, the Uniform Code Council spokesman, said the industry doesn't want to see restrictions put on a promising technology, but welcomes the discussion about privacy concerns. "It's never to early to talk about an important issue such as privacy," he said.


On the Net: www.nocards.org

www.spychips.com

www.epcglobalus.org

[waldron] 29/3/2004 08:35

FOR IMMEDIATE RELEASE

29 March 2004

Scipher plc ("Scipher" or "the Company")

Contract Wins and Year End Update

Contract Wins

Scipher is pleased to announce today that its Secure Identification business,
TSSI, has been awarded two contract wins with the National Health Service (NHS)
totalling £2.5m.

The first contract covers a three-year extension to TSSI's NHS smart card
systems programme that was originally set up to cover doctors in training. The
system is now being expanded to cover a wider group of cardholders including
all other hospital doctors and students within medical schools. The contract is
valued at £1.5m over three years.

The second is a maintenance contract for a three-year period that covers the
existing system installations and the central database management. Over 1000
installations are now in place under the original contract. The value of this
contract is £1.0m over three years.

The smart card system now interfaces with the General Medical Council
registrations system ensuring all doctors' registrations are accurately
recorded. To date, the project, designed and implemented by TSSI, has
successfully been rolled out to over 200 NHS Trusts throughout England. It is
the only NHS-wide system in place that manages doctors' occupational health and
personnel information hosted on a single national file server. The system
allows NHS Human Resource departments to easily record and confirm the
pre-employment checks essential to providing a safe service to patients.

Year End Update

On 5 February 2004, Dr Rudy Burger, CEO of Scipher, announced the outcome of
the strategic review that set out a plan to drive the Company to profitability.

The Company is executing on all aspects of its plan and is ahead of schedule in
a number of areas including its disposals programme.

In particular, solid progress has been achieved on a number of fronts that
include:

* Reductions in cash burn have enabled the Company to continue operating
within its banking facilities

* New senior appointments within Scipher, including Danny Chapchal as Deputy
Chairman and Duncan Penrose as Interim Corporate Finance Director

* New management within TSSI has delivered a notable turnaround in business
performance

* Assuming that the planned restructuring is completed then, in aggregate,
the three core businesses (TSSI, Wavelength and CRL Opto) are expected to
be profitable in the coming year.

As previously stated, the Company has a requirement to raise funds in order to
complete its restructuring and fund growth in its core businesses. Options that
are available to the Company are being pursued.

The Company expects revenues for the year ending 31 March 2004 to be of the
order of £15.0 million and the group operating loss to be less than in the year
ended 31 March 2003.

Dr Rudy Burger, CEO, said: "We are well on the way towards achieving the
turnaround of Scipher's business. There are milestones yet to be achieved,
however I am confident that the progress made this quarter will allow us to
achieve our goals."

Enquiries

Scipher plc:

Dr Rudy Burger Tel: [phone]

Financial Dynamics:

James Melville-Ross Tel: [phone]

Juliet Clarke Tel: [phone]

Notes to editors:

Scipher's core businesses:

* CRL Opto specialises in the development of liquid crystal display (LCD)
technologies for licensing to high volume display manufacturers, and the
development of new optoelectronic products for use in electronic and
optical systems.

* TSSI is a leading provider of fraud prevention and identification systems.
It applies patented magnetics technology into products for the verification
of paper-based documentation and packaging, and biometric technology to
automatically identify and authenticate people.

* Wavelength provides broadband wireless products and solutions for the
transmission of data, video and voice, more effectively and more
economically than competing technologies, with high security, over
distances of up to 15km.



END

[waldron] 28/3/2004 22:15

Old news, but perhaps worth a reread.



ID Data buys Mids & Horsey




09 March 2004 - AIM-listed card systems vendor ID Data has acquired Mids & Horsey Limited, a provider of plastic cards and personalisation services to both the financial and retail sectors, in a deal worth over £3.4 million.

ID Data says the acquisition will move it into profitability, with an additional £5 million of revenues deriving from the deal, as well as increase its capacity by 50% (totalling 300 million cards per year).

The firm will use Mids & Horsey's premises in Petersfield to focus on the financial services sector, where there is growing demand arising from the EMV chip and pin roll out. ID Data will provide outsourced card management services to banks across Europe from the centre, which will house eight Datacard 9000 machines.


As part of the restructuring, ID Data's site in Corby, Northamptonshire, will now focus exclusively on the retail loyalty and gift card markets. The Corby personalisation facility has previously supplied cards and software for brand launches including Tesco Clubcard, Payback and Nectar.


Michael Stewart, MD, ID Data Systems, who will manage the merged business, says the acquisition will "increases our business momentum and capabilities in the demanding, yet profitable financial services arena".


"We are now a full service supplier, to which customers can with confidence outsource more of their back office activities," adds Stewart.