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Identity Theft: More Likely if You Speak English

Posted by John B. Frank Monday, October 27, 2008 0 comments

SAN JOSE, Calif. - (Business Wire) Online consumers in English-speaking countries are the most frequent victims of identity theft, twice the rate of France, Germany and Spain, according to a new study released by PayPal. With the holiday season fast approaching, three quarters of online shoppers worldwide are concerned about online scams or identity theft. The research, conducted by Ipsos, examined online security fears and habits in the United States, Canada, France, Germany, Spain and the United Kingdom.

The survey found that 10 percent of online shoppers in Canada, the U.S. and the U.K. had experienced identity theft. This compares with only five percent in France, Germany and Spain. Approximately 25 percent of online shoppers in the three English-speaking countries knew friends or family who had their identities stolen.

“This survey shows that while concerns about ID theft form a universal language, more identity theft tends to occur in countries where a higher percentage of e-commerce is concentrated,” said Michael Barrett, chief information security officer for PayPal. “But e-commerce is growing in prominence around the world, and fraudsters will likely follow the money. Consumers everywhere can stay one step ahead and better protect themselves online by following a few simple tips.”

While choosing and safeguarding passwords is one of the most important factors to online security, attitudes and behaviors vary greatly between cultures. German consumers are the most vigilant with passwords. Only about one in four (28 percent) has ever shared an account password with a family member or friend. This compares with 60 percent of Americans and 56 percent of French consumers who shared passwords. Consequently, Germans also experienced the fewest problems with identity theft -- only three percent of German consumers have experienced identity theft, and fewer than one in 10 knows someone who has.

Almost half of consumers in all countries surveyed use important dates, family member names, nicknames or pets’ names as their online passwords. French and Spanish consumers are most lax when it comes to updating their passwords. Sixty-one percent of French consumers and 63 percent of Spanish consumers change their passwords less than once per year or only when required to do so.

The survey found that about 40 percent of consumers in all six countries use social networking sites, and some of these consumers display personal information that they also use for passwords. More than one in four French consumers display their birth dates on social networking sites and also use birth dates as online passwords. Less than 10 percent of consumers in the UK and Canada do the same.

Other Global Findings

Spanish consumers are relatively new to e-commerce, and more than 80 percent of those respondents said they are concerned that products purchased online will not be as pictured or expected, will be of poor quality, or will not arrive at all.
Privacy is the number one concern among Canadians, with more than half (53 percent) indicating that they are “very concerned” about protecting their privacy.
Consumers in Germany, the UK and Canada are least likely to store their passwords on their browsers (70 percent, 61 percent and 58 percent, respectively, never do so). About half of the consumers in the U.S., France and Spain store passwords on their browsers.
Americans are most likely to write down their passwords in order to remember them (36 percent do so). Fewer than 20 percent of consumers in all other countries surveyed write down passwords.
More than half of all consumers receive financial statements in the mail. Only 17 percent of consumers in France and 23 percent of consumers in Spain own shredders, compared to a large majority in all other countries.

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10 Tips to Secure Online Shopping that You Won't Need to Know!

Posted by John B. Frank Tuesday, October 7, 2008 0 comments

Editor's Note: Before you read this story about 10 tips to prevent hackers from getting your card information when shopping online, I should let you know that ultimately, practicing these tips won't protect you. I will however, show you a simple and logical way to make your online transactions exponentially more secure...ultimately providing you and yours with the peace of mind so many online-shoppers lack, yet desire. Here's how...

Simply place an order for a HomeATM Personal Swiping Device, and you won't ever have to worry about the following 10 tips designed to "help" protect your identity when shopping online.

Even if you were to memorize and practice the art of using all 10 of these tips, you are NOT going to be protected when shopping online. You'll be more protected, but not fully protected. But there is a way to fully protect you when you shop online.

It's simple...compare the two choices:

Choice One (current method): Think about it. Does any part of your mind, intuition, thought process, knowledge, etc. think this is a safe way to purchase anything online? Then why would you enter your card information including your card number and expiration date into a box on a website and then worry hacker will see your data or break into the the retailers system in the future, steal your data and wipe out your bank account?

Choice Two (Our Way): For the cost of shipping and handling, we'll send you our SwipePIN device and you can process your purchases online the same way you do it in retail stores.

Simply take out your card and swipe it yourself in the safety of your own home. See the numbers on the PIN pad? Yes, it even allows you to further secure the transaction with your PIN. (all data is fully encrypted). You should be "SwipePIN your Slider"

This globally patented platform brings the Point of Sale device Home...where the Point of Sale occurs. Better yet, (and here's our direct response TV commercial pitch) "Try HomeATM's SwipePIN device at home FREE for 90 days...just pay shipping and handling ($5.00) and if you're not completely convinced it's the most secure way to make your online purchases, let us know and we'll deactivate it. Otherwise, use it to send us $5.00 dollars for a total cost of only $10.00! You can now shop online safely, securely with the knowledge that both your card and card reader are hack and skim free, respectively. (You can also rest assured it hasn't been tampered with)

Until you start using the SwipePIN method, consider these tips to reduce your risks. But remember, there's keyloggers, hijackers, screen scrapers, hacktivists, wardrivers and myriad other threats that these tips don't protect you against.

Ten Online shopping tips to protect your identity

This holiday season many online shoppers wanting to avoid the hassle of visiting crowded shopping malls will look to the web as a quick and easy to purchase gifts for friends and loved ones. Although the number of Canadians shopping online continues to grow, there are still many consumers who won't shop online for fear they could be victims of identity theft.

The truth is that identity theft is a relatively rare occurrence and most identity theft occurs in using low tech off-line methods therefore most experts agree that shopping online is very safe provided consumers use some common sense when shopping online.

To help make shopping online more safe and secure, Digital Home presents the following Ten Tips for Secure online holiday shopping:

1. Only provide personal information if you're on a secure Web site. Once you are logged in, make sure the Web address starts with "https"("s" means it's secure). For added safety, check for a site certificate before submitting information on a secure page. Confirm the owner of the certificate by clicking on the padlock icon at the bottom of most browsers. You should see the owner listed as well as the site address. This address should match the Web site address at the top of the page; if they do not match, you may be at a fraudulent Web site and should not enter personal data.

2. Never respond to emails asking you to "confirm" recent transactions after you shop. These likely are "phishing" scams sent to lure private information from you.

3. Maintain a paper trail. Print and save records of your online transactions, including the product description and price, the online confirmation/receipt, and copies of any email(s) you exchange with the seller.

4. Do not share your passwords with anyone and never provide your social insurance number, birth date, or mother's maiden name in an email.

5. Make sure all of your security software is up-to-date before you do your online shopping. That includes anti-virus software, anti-spyware, and firewalls.

6. Check a company's privacy policy before doing business with it. A company should allow you to know what personal information its Web site is collecting, why and how it will be used. If you can't find a privacy policy -- or if you can't understand it -- consider taking your business to another site that's more security-conscious and accommodating to customers.

7. Consider using a separate email account for your online shopping. You can set up a free email account online through several different services.

8. Check your bank and visa accounts regularly for any activity you did not initiate. This is especially needed during the busy holiday shopping season. You should be able to log on quickly and check to see if there is any unusual activity in your bank or credit card account that you did not initiate. If there is, contact your bank immediately.

9. Do business with companies you know and trust. Research a company before revealing personal or financial information online. Confirm an online seller's physical address and phone number in case you need to get in touch with them. If you get an email or pop-up message from the seller while you're browsing that asks for financial information, don't reply or click on the link in the message. Legitimate companies don't ask for this information via email or pop-ups.

10. Watch out for fake "look-alike" sites. Some con artists disguise their Web site as a well-known company's site. Check your browser's address bar to make sure you're always using the correct Web site address. If the Web site seems suspicious, leave it immediately and call the company.

Finally and perhaps the most important piece of common sense when shopping online is one that is true when shopping offline - Never let anyone see your card numbers and never hand your card over.

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Just Say No to Double-Dipping!

Posted by John B. Frank Friday, October 3, 2008 0 comments

PayPal Double-Dips with Billing Glitch; eBay Credits Coming?

By Ina Steiner
AuctionBytes.com

Some PayPal members discovered the online-payment service had "double-dipped" their accounts. PayPal waited until October 1st to post the problem on its Announcement Board, explaining that some PayPal Debit Card transactions that were initiated on September 26th were debited twice due to a processing error. "We have begun processing the corrections for the duplicate payments and they should appear in your PayPal account in the next few days. We apologize for any inconvenience this may have caused and are working to resolve this issue as soon as possible."

PayPal spokesperson Michael Oldenburg said the company would be communicating with affected customers individually by email and was working to correct the duplicate payments in the next few days. He declined to reveal how many accounts were affected by the glitch.

Meanwhile, sellers have been wondering whether eBay has issued credits yet for a glitch that caused items listed or revised on eBay between September 17 - 19 not to appear eBay Search. eBay announced the credit on its Systems Announcement Board and subsequently removed the post. Some sellers complain that they've been unable to reference it when speaking to eBay customer service representatives, some of whom are reportedly unaware that eBay promised the credits. eBay has not responded to inquiries about the credits.

Meanwhile, eBay Australia announced that buyers are having trouble redeeming vouchers.

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PaymentsSource Webinar Available for Public Viewing

Posted by John B. Frank Friday, September 19, 2008 0 comments

Last week I posted "PaymentsSource Webinar Review" about attending a webinar on a new online publication coming out from SourceMedia they call "PaymentsSource."

SourceMedia publishes American Banker, Bank Technology News, ATM & Debit Card news and more.

If you would like to view a replay of the webinar you can click below:

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More on More Card Skimming...

Posted by John B. Frank Wednesday, September 17, 2008 0 comments

Tampa police show a skimming device — the false card slot goes over the original; underneath is a card reader that captures information. A camera is typically hidden on the ATM, often in a pamphlet holder, angled to view the monitor and keypad.

By KEITH MORELLI | The Tampa Tribune

A troubling trend in automated teller machinations has found its way into the Bay area and Tampa police say anyone who uses the convenient roadside bankers can be a potential victim.

Three times over the past two weeks, "skimmers" have been attached to automatic teller machines in the Bay area, devices that steal the numbers off debit and credit cards and record personal identification numbers as they are tapped into the keyboard.

Among the most recent victims: Tampa police Cpl. Mark Altimari, who put his debit card into the Bank of America ATM on the corner of Nebraska and Fowler avenues around lunchtime Sept. 5. He wanted to make a $20 withdrawal.

"I noticed my card wouldn't slide in smoothly," he said at a Monday news conference called to warn banking customers of the latest method of identity theft. "It kind of seemed odd to me." His card went in but only partially came out, he said. He pulled on it, and the whole card reader pulled off the face of the ATM. That's when he knew his card had been scanned by a device that was not an original part of the machine.

He immediately notified the Bank of America and bank security officials told him to check for a camera. He felt behind the trim over the keyboard and found a tiny camera the size of two sticks of gum hidden there. The entire piece of trim itself had been taped into place and looked like it was a part of the ATM. The camera, positioned over a tiny hole in the trim, was aimed at the keyboard to record PIN numbers as they are punched in.

Tampa police Sgt. Becky Bodamer said a similar card scanning device, this one less bulky and barely noticeable, was recovered at Pilot Bank, 4005 S. Dale Mabry Highway, around 4 p.m. Friday.

As of Monday morning, no one had reported missing any money from accounts in either of the banks, Bodamer said, but it was uncertain how many people had used the machines.

Some sophisticated devices are designed to transmit the card number the moment it is being used to criminals nearby, she said. But these devices were not that technologically advanced. They had to be gathered from the ATM and plugged into a computer to retrieve the data, she said. Because they were seized by police, it is assumed the thieves did not have a chance to obtain the information.

The two devices were different enough to lead detectives to think they likely were not put there by the same people, she said. Detectives are in contact with Clearwater investigators, who discovered a similar scanner at a bank there last week.

Clearwater police said that more than 20 people who used that Wachovia ATM over a two-day period last week have complained about money being pilfered from their accounts.

Officers found evidence of an adhesive on the ATM at the bank branch office at 2699 Gulf-to-Bay Blvd. They said the scanning device probably was attached to the machine and recorded information about customers' accounts, including personal identification numbers, as the customers used the machines.

In all cases, the devices looked like ordinary card slots, but were not. The false slot holds an additional card reader to capture information. Hidden cameras are one method of capturing a PIN, but another method is a false keyboard, glued onto the face of the ATM directly above the real keyboard. The fake records the PIN number as it is punched in.

If working properly, the machine will give the card back, along with any cash withdrawals, and the user would walk away not knowing their personal banking information had been compromised, Bodamer said.

In many instances, she said, the devices, "can't be detected unless you're a bank official."

Tampa police issued these tips for ATM safety:

Use secure ATM machines, inside a bank lobby or inside a store. Offenders can install the scanners quickly, but likely won't go inside a place of business to do it.
Cover the keyboard with your free hand when you punch in your PIN. This obstructs the view of any hidden cameras that may be present.
Skimming devices may protrude from the face of the ATM. If something looks suspicious or if the keyboard jiggles or the card slot is not quite level, leave and use another ATM and contact the bank to report it.
If the machine keeps your card, call the bank immediately.
Don't accept help from anyone hanging around the ATM. They may be there to try to observe your PIN number.

Bodamer said the ATM data-thieving trend began in South Florida and is making its way north. Those behind the high-tech identity thievery are likely part of an organized group with knowledge of how such instruments work, she said, and enough cash to invest in the equipment.

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41% of Online Shoppers Click "Bye" vs. "Buy"

Posted by John B. Frank Tuesday, September 16, 2008 0 comments

Here's a Press Release today from TeaLeaf.com regarding a survey done by them in conjunction with Harris Interactive. From a transactional perspective there seems to be a long way to go as 84% of those surveyed feel there's no reason an online transaction cannot be completed on the first try, but according to this poll, most sites are NOT meeting those expectations.

I say that's an easy fix and at the same time it would make the online experience as familiar and simple as the bricks and mortar experience. Here's how easy it would be to do.

Internet Retailers can provide "1 swipe shopping" by simply equipping their site's online shoppers with HomeATM's PIN Entry Device and get 'er dun right "the first time." An additional benefit to "reducing abandonment" is "reducing interchange fees."

It's easy to convince online shoppers to use a personal mag-stripe reader. By enhancing the security of the transaction you a "reducing the risk of fraud." By providing your loyal shoppers with a mini-swiper or a "Reducer"...Internet Retailers will get the added benefit of creating the very real perception that they are looking out for their customers well-being. Instead of giving away a free toaster for opening a savings account (circa 1965) they could give away a "free mini-swiper" for opening up a HATM PIN Debit Account.

The result is a true win-win situation...and according to this report, doing just that would be a "potential multi-billion dollar business opportunity"

C lick Here to Get the Executive Summary of the Report in PDF Format

Potential Multi-Billion Dollar Business Opportunity for Companies That Focus on Improving Online Customer Experiences

"Survey Says" 41% of Online Adults Click Away When They Encounter Problems, Many to a Competitor

For the fourth consecutive year, nearly 9 out of 10 (87%) online adults who have conducted an online transaction in the past year have experienced problems doing so;
41% of online adults who experience problems transacting would switch to a competitor or abandon a transaction entirely if they experienced an online transaction problem;
Four in five online adults who experience problems (84%) share their experiences with others — both online and offline

Tealeaf®, the leader in online Customer Experience Management (CEM) software, today announced the results of the 4th annual survey of online consumer behavior. The study, commissioned by Tealeaf and conducted by Harris Interactive®, focused on consumer transactions on shopping, banking, travel and insurance websites. For the fourth year running, the survey revealed that nearly nine out of 10 (87%) consumers conducting transactions online have experienced problems. When online issues occur, there is an immediate business impact.

For example, if they experienced an online transaction issue, 41% of online adults who experience problems conducting online transactions would simply switch to an online or offline competitor or abandon a transaction entirely. This represents a $57 billion potential impact to revenue on shopping sites alone — a huge opportunity for companies to harness, by ensuring their websites work. On the Web, the competition is just a click away.

According to a recent Forrester Research, Inc. report, "Obstacles to Customer Experience Success, 2008," 91% of business decision-makers said customer experience is either very important or critical to their 2008 efforts. While customer experience is increasingly important to businesses, the Tealeaf survey conducted by Harris Interactive clearly highlights that companies need to take immediate steps to ensure they understand the experience of their customers who are transacting online.

While user expectations are high — more than four in five (84%) online adults feel there is no reason why an online transaction can't be completed on the first try — most sites are not meeting those expectations.

Preference for Online Channels is Rapidly Increasing, as are User Expectations
There is an increasing preference for conducting business online — 84% of all online adults have conducted an online transaction in the past year and more than one-third (35%) generally prefer to conduct business online, according to the survey. Further, 22% of online adults who have conducted an online transaction in the past year expect even better customer service online than when shopping in-person.

Poor Experiences Evoke Reactions
Online problems evoke strong emotions from consumers. According to the survey, the vast majority of online adults who experience problems when conducting online transactions (87%) feel frustrated when they experience such problems. Of those who experience problems, 41% reported feeling angry. Emotions can drive customers to take action by providing feedback via other channels.

Improve Customer Satisfaction and Retention

There is a lack of integration between the contact center and web channels of many businesses. The survey found that 47% of all online adults have contacted a company's call center after they encountered problems using the website. Among those, 64% did not feel that the service agent was knowledgeable about the website, and nearly two in five (38%) did not have their issue resolved. Results also show that, among online adults who have experienced poor customer service from a company's call center when calling about website issues, nearly three in four (72%) either stopped doing business with that company entirely (45%), decreased the amount of business they do with the company (37%), or lodged a complaint with the Better Business Bureau (13%). Improving the service centers' ability to support the online channel not only leads to increased customer satisfaction and retention, but can also turn a support call into an opportunity to expand the business relationship with that customer.

Customers Share Experiences, Amplifying Impacts
More than four in five (84%) online adults who experience problems conducting online transactions share their experiences with others, amplifying the impact of any single experience.

Among those who share their experiences with others, 82% do so using non-online modes of communication such as in-person (74%) and phone conversations (50%) with friends and family, while 58% use online channels to share complaints or reviews, such as on the company's website (39%), in an email to friends and family (23%), on a ratings and reviews website (16%), on an online message board (8%), or on a blog or social network (7%). These Internet postings and comments are often widely disseminated and long lived.

"At US Airways, we strive to do everything we can to be the airline of choice for our customers. To achieve this, we focus on reliability, convenience and appearance in all that we do. From achieving a first place ranking in on time performance among the ten largest U.S. carriers according to the Department of Transportation's Air Travel Consumer Report ... to providing a world-class website that provides our customers the quality service they deserve and demand," said Wes Graham, Director of Internet Distribution, US Airways. "We rely on Tealeaf for real visibility into our over one million customer sessions a day to help ensure we don't skip a beat in the online world. The Web is a major revenue channel for US Airways and extremely strategic to our overall business. With the Tealeaf dashboards we've created, I can see exactly how the site is performing now as compared to the previous week with just a quick glance." "The Web has changed business; companies both large and small compete for the same customers. Now, competition is just a click away and customer expectations continue to grow," said Rebecca Ward, CEO of Tealeaf. "Businesses must take definitive steps to differentiate themselves by understanding and improving their customers' site experiences, and equipping their contact centers to truly meet the needs of online customers. Companies that do take action will be the ones to claim a greater share of this billion dollar business opportunity."

Survey Methodology - The 2008 Online Transactions survey was conducted online by Harris Interactive on behalf of Tealeaf Technology, Inc. between August 5 and August 7, 2008 among 2,010 adults ages 18+, of whom, 1,798 have conducted an online transaction in the past year and 1,572 experienced problems when conducting online transactions. Data were weighted to be representative of the online U.S. adult population. For complete survey methodology, including weighting variables, please contact Shoshana Deutschkron at shoshanad@tealeaf.com.

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HomeATM's PIN Debit Offering Helps SMS Achieve 108% Gain

Posted by John B. Frank Friday, August 15, 2008 0 comments

As Stated by SmartCard Marketing Systems Inc. (PINKSHEETS: SMKG) "Management is pleased to announce Prepaid card loading and payment processing volume continued at expected levels during the 2nd quarter. Card loads and payment processing for the 2nd quarter of 2008 was $458,688 compared to $272,937 in the same quarter of 2008, a 68% gain for the quarter. In the first six months of 2008, SMKG processed $889,583 compared to $317,177 for 2007 representing a 180.4% gain for the first half of the year and attaining the $1 million milestone in July of 2008. Operating losses were cut by 40% for the first half over the first 6 months of 2007, from $182,013 in 2007 to $109,169 in 2008.

We are very pleased with these achievements as it is a difficult segment to establish an online presence in the Money remittance Industry and to continuously grow our base of customers daily."

As the company continues to deliver prepaid card programs and rollout of the Pin Debit HomeATM offering through Velocitymoney.com and Velocitymerchant.com sales, revenues/commissions from transactions continue to grow.

Contact: Max Barone, CEO 1-866-774-2555

maxbarone@gosmartcard.com

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Chase Paymentech Breakup = New Payment Processing Option for Online Retailers?

Posted by John B. Frank Tuesday, July 29, 2008 1 comments

More changes are coming in online payment processing. as more payment alternatives slowly gain traction, with more (can you say HomeATM?) on the way. Soon, online retailers will have another payment-processing option as a big processor plans to split into two.

That company is Chase Paymentech Solutions LLC, which claims to process two out of three e-commerce purchases made by U.S. consumers.

Chase Paymentech Solutions is a 12-year-old joint venture now owned by First Data Corp., the biggest U.S. payment card processor, and J.P. Morgan Chase & Company, one of the country’s biggest banks and card issuers.

After private equity firm KKR (which yesterday announced it is going public) bought First Data, Chase had the option of busting up the joint venture, and announced in May it would do just that.

What it means for the many online retailers that use Chase Paymentech as a processor—including Walmart.com, Zappos.com, Overstock.com and Buy.com—is that the company will split nearly in two, with Chase taking the Chase Paymentech name, 51% of the assets, the Dallas headquarters and most of the employees. Importantly for e-retailers, Chase will retain the Salem, N.H., processing facility that specializes in handling online and catalog transactions.

However, First Data will get a copy of the Salem technology and is expected to launch its own e-commerce processing operation.

Once First Data gets that operation up to speed, expect increased competition for the processing business of online retailers, says payments consultant Steve Mott of BetterBuyDesign. “Many of them will have multi-year contracts, so there will not be a mass exodus right away,” Mott says. “But in time there should be a very vigorous competition for these customers.”

More of the details of the division of contracts and assets will be forthcoming over the next few months, says Mia Shernoff, executive vice president of marketing at Chase Paymentech. Ultimately, she says, retailers will benefit, “because online merchants will get two companies very focused on investing in the business in their own way.”

A First Data e-commerce processor would join an already crowded field in which prices keep going down, especially for larger online retailers. The competition among large processors has driven processing costs for big e-retailers down to under a penny per transaction, says Allen Weinberg of the Glenbrook Partners payments consulting firm.

(Editor's Note: Regardless of lower processing fees due to competition, the Interchange Fees remain much higher than they would be if processed as a "PIN Based" Transaction)

There are certainly plenty of alternatives, but as of now...they're all the same. Providing online retailers with a PIN Debit/Credit option would place HomeATM into a unique position to change the way transactions are done online.

Meanwhile, consumers have several ways to pay other than the familiar pieces of plastic carrying the brands of Visa, MasterCard, American Express and Discover. Adoption of alternative payments is growing gradually and analysts expect it will pick up—especially if more merchants offer and promote these alternative payment types.

Many consumers continue to shy away from buying online because they fear their personal or payment card information will fall into the wrong hands. (What I call the "Hand It Over Buddy" effect) and why yesterday I posted my article entitled: "Reverse Matriculation: Bringing the POS Device Home" in which I talked about why we should put the swipe/PIN Entry device into the hands of online shoppers so they don't have to enter card information.)

In a survey late last year, 75% of respondents agreed that they did not like giving out their credit card number or personal information online, including 36% who strongly agreed with that statement.

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Reverse Matriculation: Why Wedgies Are All Good!

Posted by John B. Frank Monday, July 28, 2008 0 comments

Online Banking (the security of which) has been taking a beating over the past couple of weeks. But there's good news too...according to the BBC, Barclay's PIN Sentry Device has made online banking more secure. ( read more on Barclay's PIN Sentry Device and HomeATM's Wedgie) at: HomeATM Has Powerful Potential!

Last Wednesday, I posted a relatively sarcastic article pointing out how blatantly insecure paper checks were (are)...while questioning how it was, that they lasted so long. It got me to thinking... in the future, what will be the perception of the way we process today's online transactions?

So, please allow me a moment in order to set the table for the following blatantly tongue-in-cheek, (yet truly sincere) "insecure scenario:" I will use a brick and mortar example and tie it in with it's analogy to an "online purchase." Ready?

Okay, here we go...Let's imagine that you enter into a store, and you find something you'd like to purchase. Naturally, you pick the item up (hit select) and walk up to (proceed to) the checkout counter (checkout basket).

Much to your chagrin, when you arrive at the checkout counter...there isn't anyone "physically" there....nor is there a "physical" POS device which you can utilize for self-checkout. (e.g. Something along the lines of NCR's FastLane or Pay at the Pump device whereby you can "swipe" your own card and checkout.) Instead...what you find at this "unmanned" checkout counter, is a pen and a piece of paper. The piece of paper contains three rectangular boxes with instructions.

1. The first instruction tells you to: "write down (enter) your credit/debit card account number in box 1.

2. The second instruction informs you that you'll need to: "write down (enter) your secret 3-digit code on the back of your credit/debit card in the box labeled number 2" (for "enhanced security" (sic) this information is required to be entered, thus potentially hacked, by the card companies)

Furthermore, you are instructed that you CANNOT leave with your goods, as they are to remain with us here at the store. We will, however, ship them to you within 24-72 hours...if all goes well...therefore:

3. The third instruction informs you that you need to "write down (enter) your name, address, and zipcode" in box number three so we can ship your goods when the time comes. Please the sheet of paper with your name, address and card information, in the basket and leave the store or continue shopping....

Question: When put it in these terms, would you follow the instructions posed at the checkout counter? You wouldn't do it would you?

Yet, fundamentally this is how every online transaction is currently done. (except of course, ones that are abandoned*) *Note: Checkout abandonment is a costly problem for Internet Retailers, yet a problem which HATM's wedgie also helps to alleviate.)

This brings me to my point on why HomeATM's "Wedgie" is "all good." Under the aforementioned scenario, it is blatantly clear that, when it comes to online banking or online transactions, "the card swiping/PIN Entry Device" should be put into the hands of consumers!

Hand It Over Buddy

One's first reaction might be to think that asking the consumer to utilize a personal "card swiping PIN Entry Device is not how checkouts are currently done at brick and mortar locations. There, it is the retailer who is provides the card swiper/ PIN entry device. True, but therein may lie the problem(s). Let me explain...

It was these very same retailers in the "bricks and mortar" world who, "for security purposes" altered their checkout procedures by "shifting" the act of "swiping the card" over to "the consumer."

The reason behind them doing so is because it seems that there were instances whereby some customer's cards were being swiped (by insiders) not only into the retailers POS device, but also into a secondary magnetic card reader. Thus the information contained on the magnetic stripe, was being captured exposing that customers data to potential identity theft/fraud.

Word got out in the press, and in response (and to prevent this from happening), it was decided that the problem could be alleviated if the consumer never "handed it over." but, instead, "swiped the card" themselves. Thus the recent practice of consumers swiping their own cards was born.

So there's nothing behaviorally "new" when it comes to asking a consumer to swipe their card themselves. They've been doing it for a while. In fact, the practice of entering their PIN was existant well before the actual swiping of the card with the use of swivel devices that turned toward the customers in order for them to be able to enter their pin.

Swipe At Home or "Don't Leave Home With It"

With that said there really is no difference between asking a consumer to swipe their own card at home, or swipe it at a retail location. But to be sure, let's analyze:

1. Consumer Swipes their card at the physical "bricks and mortar" store location ...okay, got it...now let's do it the other way...

2. Consumer Swipes their card at "home" where the "virtual store" is located.

Seems the same to me.* *except of course, at home, whereby neither the card nor the Wedgie ever leaves the possession of the consumer, thus shielding said consumer from the potential harm caused by "a rigged" swipe device...

(See: Cost Plus Alerts Consumers in Southern California Area of Suspected Electronic Funds Transfer Unit (PIN Pad) Tampering at Eight Retail Locations)

It is appearing more and more evident that until someone figures out a way to secure transactions without them, a peripheral card swiping/PIN Entry Device that can be easily connected to a PC, PDA and mobile phone, is an online shoppers "best bet" to protect them against fraud.

Thus...HomeATM Wedgies are "all good"...

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1.4 Billion Internet Users to Grow to 2.4 Billion Within 8 Years...IDC

Posted by John B. Frank Wednesday, July 23, 2008 0 comments

25% of the World's Population Use the Internet Regularly

To expand on my post a couple weeks back entitled: "HomeATM Has Powerful Potential, I bring you this article from VUNet.com on Global Internet use. But before I do, I thought it important to point out the distinction between Web PC users and "web enabled" users. There's two sets of numbers out there.

These numbers include "web enabled" users and provide some insight as to not only the size of our potential market, but why HomeATM provides "Secure PIN Transactions From ANY Web Device." Make no mistake...HomeATM's potential market is not limited to PC users.

In order to provide an example of why that's an important distinction, here's a quote taken from a recent NY Times Article entitled: "Inside Nairobi, the next Palo Alto?" (*The link to the "full article" has been provided below)

"Nairobi is home to a digital brew that invites optimism about its chances for creating unusual innovations. The city has relatively few wired phone lines or networked personal computers, so mobile phones are the essential digital tool. Four times as many people have them as have bank accounts. Text messages are far more popular than e-mail. Safaricom, the dominant mobile provider, offers a service called M-pesa that lets customers send money with text messages. Nokia sells brand-new phones here for as little as $33. - NY Times"

Here's the article from Vunent.com:

A full "quarter of the global population" will regularly use the internet during 2008, according to IDC's Digital Marketplace Model and Forecast.

The figure of 1.4 billion people is set to jump to 1.9 billion over the next four years, bringing internet access to roughly 30 per cent of the world's population.

"The internet will have added its second billion users over a span of about eight years, a testament to its universal appeal and its availability," said John Gantz, chief research officer at IDC. "These trends will accelerate as the number of mobile users continues to soar and the internet becomes truly ubiquitous."

Net-enabled mobile devices will help drive the global online trend, surpassing the desktop PC as the primary means of accessing the internet by 2012, according to the report.

China, which last year overtook the US in terms of overall internet users, will see its online population increase from 275 million today to 375 million in 2012.

Revenue-generating opportunities will be driven by consumer and business-to-business purchases, and one billion global online shoppers will account for $1.2tr worth of business-to-consumer transactions by 2012.

However, it is in the business-to-business arena that IDC forecasts the most spectacular growth rates, generating estimated worldwide revenues of $12.4tr over the next four years.

Here are the May comScore numbers for total Internet audience

Worldwide - 853mm (up 10% from 772mm last year)

North America - 185mm (up 4% from 178mm last year)

Europe - 240mm (up 8% from 223mm last year)

Asia - 323mm (up 14% from 283mm last year)

Latin America - 63mm (up 19% from 53mm last year)

Middle East/Africa - 43mm (up 23% from 35mm last year)

As is typically the case, the smallest markets are growing the fastest. But a couple other things stand out to me. North America only added 7mm this year from last. Asia added 40mm Internet users in the past year. Europe added 17mm. Latin America added 10mm. Africa and the Middle East added even more Internet users than North America.