SCM Microsystems establishes strategic partnership with BioID

SANTA ANA, California, ISMANING, Germany, and SACHSELN, Switzerland, November 12, 2009 – SCM Microsystems and BioID AG announced today that they have entered into a strategic partnership to create biometric enabled access solutions, beginning with the joint development of biometric authentication solutions for IT security. SCM’s expertise in smart card reader technology and other authentication hardware, combined with BioID’s state-of-the-art face, iris and voice recognition technology will enable strong, reliable, and convenient user authentication for enterprise, government and consumer applications. In addition, SCM’s vast reseller network and direct relationships with government and enterprise clients offer established distribution channels for these new solutions.

“BioID’s unique and powerful multimodal biometric authentication technology has been widely used for many years for applications from remote and home office protection, to corporate and private banking, to remote access protection for the military,” said Felix Marx, CEO of SCM Microsystems. “This cooperation will enable us to expand our offerings with multi-factor biometric authentication solutions, both in our target physical and logical access markets as well as to newer markets where strong user authentication is required.”

Concerns about identity theft, privacy and data security are driving organizations to consider new authentication approaches. Regulatory agencies like the Federal Financial Institutions Examination Council (FFIEC) no longer consider simple passwords strong enough to protect sensitive data and transactions such as medical records or Internet banking. A leading market analyst firm has recommended that companies should switch as soon as possible to stronger authentication methods for high-risk access systems, and should plan for wider deployment in the next few years.

In response to this demand, in the first phase of the relationship the two companies will develop a solution suiting for SCM’s @MAXX Secure Storage token family, adding an extra layer of security with BioID’s renowned face, iris and voice recognition technology. The resulting product will protect vital and sensitive user data such as Internet and application passwords, payment card PINs and private keys for data encryption and digital signatures, while roviding strong user authentication requiring using a password or PIN, the @MAXX token and the user face, iris and/or voice.

“SCM Microsystems and BioID are a natural fit because both companies are addressing problems in many of the same areas, such as Internet and network security, e-passports, e-commerce and secure medical record access,” said Ho Chang, CEO of BioID AG. “Our personal recognition software and SCM’s expertise in smart chip readers and tokens create strong synergies, allowing us to offer customers in these markets secure and convenient security solutions. We look forward to a fruitful long-term collaboration.”