SOURCE: Elephant Talk

Elephant Talk

February 03, 2011 04:00 ET

Elephant Talk Communications' ValidSoft Subsidiary Could Cut Card Fraud Around Future Super Bowls

SCHIPHOL, THE NETHERLANDS--(Marketwire - February 3, 2011) - Elephant Talk Communications, Inc. (OTCBB: ETAK) -- Super Bowl XLV is far more than a super football event. Each year, there is also a Super Bowl of spending -- much of it via credit and debit cards -- and the potential for thieves and scammers to target unsuspecting fans, worldwide.

According to a survey by the Retail Advertising and Marketing Association, the average U.S. consumer is expected to spend $59.33 on Super Bowl XLV game-related merchandise, apparel and food. Total Super Bowl spending is expected to reach $10.1 billion. And, there's big-ticket spending for the game. At least 4.5 million of those who plan to watch the Super Bowl will buy a new television. The dark side of the global Super Bowl party is the ease with which criminals can steal card details and use them to obtain cash and rack up expensive goodies. The total cost of card fraud is in the hundreds of billions of dollars per year.

To fight fraud in Europe, Visa Europe, the European Payments Company, recently signed a contract (http://www.visaeurope.com/en/newsroom/news/articles/2010/validsoft_fraud_solution.aspx) with ValidSoft (http://www.validsoft.com/), the Ireland-based wholly owned subsidiary of Elephant Talk Communications, Inc. (OTCBB: ETAK) (http://www.elephanttalk.com/). ValidSoft is a leading provider of electronic fraud detection and prevention, and specializes in card related fraud detection, prevention and resolution.

Under the terms of the recent agreement, ValidSoft will provide its card fraud detection and prevention technology VALid-POS®, as well as the strong authentication capability, VALid®. The agreement paves the way for Visa Europe to offer these fraud prevention solutions as value-added services to its 4000+ members in Europe.

The ValidSoft solutions dramatically improve the ability of banks to detect and prevent fraud. VALid-POS®, works by instantly correlating the origination of a purchase or withdrawal using a card, to the proximity of the card owner through the card owner's cell phone, without ever tracking the user. Typically, banks try to spot fraud by comparing new purchases to past spending patterns. If a card typically used in New York is suddenly being used to buy computers in Texas, that's suspicious. With ValidSoft technology, in less than half a second the issuing bank can be provided with unique highly accurate anonymous information to enable the bank to decide whether the transaction is legitimate or fraudulent. "We turn the industry's 90% false positive rate (this is where legitimate transactions are denied) into a 95%+ success rate," says Pat Carroll, ValidSoft CEO. "And in doing so we can save the banking industry billions of dollars per year."

VALid-POS® is not available in the U.S. in time for Super Bowl XLV, but when it gets here, it can help cut down on card fraud impacting future Super Bowl fans.

"The U.S. is our strategic focus for the second half of 2011 and beyond," says Carroll. "Ultimately we expect the U.S. to be our largest market. We are confident that our card authentication technology can make the Super Bowl, and other American events and holidays, even more enjoyable by giving consumers the peace of mind that comes from knowing their transactions are safe and secure."

VALid-POS® works by correlating the origination of a purchase or withdrawal using a card, to the proximity of the card owner through the card owner's cell phone, in real time. Was a card user actually near home when someone bought a new TV a hundred miles away? Did that fan really travel to the Super Bowl, or is a thief using his credit card at the Super Bowl? Location data is not recorded or stored, so privacy is assured. In fact, ValidSoft is the first, and only, software Security Company in the world to be awarded for VALid-POS® the European Privacy Seal, certifying its compliance with the stringent European Data Protection and Privacy laws.

About ValidSoft
ValidSoft Limited, headquartered out of Tullamore, Ireland, is a wholly owned subsidiary of Elephant Talk Communications, Inc. (OTCBB: ETAK), and is a market leader in providing solutions to counter electronic fraud relating to cards, the internet, and telephone channels. ValidSoft's solutions are telecommunications based and are at the cutting edge of the market, utilising their access to the most sophisticated global telecommunications networks and expertise. The solutions are used to combat card-present and card-not-present fraud as well as electronic fraud on all channels, including the most advanced fraudulent attacks such as Man-in-the-Browser. The solutions are designed for mass markets, in a highly cost effective and secure manner, yet are easy to use, intuitive and leverage the most ubiquitous devices available. For more information please visit www.validsoft.com.

VALid-POS® was originally awarded the European Privacy Seal in March 2010, certifying its compliance with European Data Protection law and enabling Issuers to implement on an opt-out basis only -- ValidSoft is the first, and only Security Software company in the world to be certified to EuroPriSe standards.

About Elephant Talk Communications
Elephant Talk Communications, Inc. (OTCBB: ETAK) is an international provider of business software and services to the telecommunications and financial services industry. The company enables both mobile carriers and virtual operators to offer a full suite of products, delivery platforms, support services, superior industry expertise and high quality customer service without substantial upfront investments from clients. Elephant Talk provides global telecommunication companies, mobile network operators, banks, supermarkets, consumer product companies, media firms, and other businesses a full suite of products and services that enables them to fully provide telecom services as part of their business offerings. The company offers various dynamic products that include remote health care, credit card fraud prevention, mobile internet ID security, multi-country discounted phone services, loyalty management services, and a whole range of other emerging customized mobile services. For more information visit: www.elephanttalk.com.

Contact Information

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