ActivCard Helps Financial Institutions Reduce Fraud and Identity Theft

FREMONT, Calif. -- ActivCard Corp., a global leader in digital identity assurance, today announced it supports the guidance recently issued by the Federal Financial Institutions Examination Council (FFIEC) for strengthening the proof of identity in online banking transactions.

The announcement, “Authentication in Internet Banking Environment,” describes enhanced authentication methods that regulators expect banks to use when authenticating the identity of customers using online products and services. Financial institutions will be expected to achieve compliance with the guidance no later than year-end 2006.

The announcement calls for an end to static passwords, or single-factor authentication, as they are inadequate for high-risk transactions involving access to customer information or the movement of funds to other parties. The guidance reflects the recent technological advances that have been made over the last four years.

“The FFIEC’s announcement is significant for our industry, recognizing multi-factor authentication as a first line of defense in protecting customers information as well as the bank’s reputation,” said Ben C. Barnes, Chief Executive Officer of ActivCard. “ActivCard has been securing online banking transactions for over a decade and has deployed over five million security devices to more than one hundred banking customers worldwide, including the world’s largest banking token deployment ever.”

ActivCard’s worldwide banking customers include: Allied Irish Bank, Barclays Bank, China Trust, Commonwealth Bank, CrĂ©dit Agricole, First National Bank, M&T Bank, Swedbank, and United Overseas Bank. These banks are realizing the benefits of e-commerce while protecting their customers from identity theft attacks. With ActivCard solutions for Financial Services, banks are ensured that their customers’ passwords cannot be used to gain access to their financial information without their knowledge.

“Our employees and customers alike are conducting confidential and time-critical transactions over the Internet, where security is essential,” said Daniel Savoyen, e-Business and Security Director at CEDICAM, a subsidiary of CrĂ©dit Agricole, specialized in payments and flow. “Solutions from ActivCard met our needs. ActivCard offered the interoperability and openness we were looking for as well as a migration path as we continue to evolve our security program.”

“By offering a range of solutions for banks, ActivCard addresses their need for stronger authentication and for administration of credentials or devices that provide an increased level of security,” said Julian Lovelock, Director of Financial Services at ActivCard. “Our open-standard technology provides a lower total cost of ownership, accelerating the return on investment.”

ActivCard Banking Security Solutions are online at www.activcard.com.