SOURCE: Elephant Talk Communications

Elephant Talk Communications

May 03, 2011 10:10 ET

Elephant Talk Subsidiary ValidSoft Offers Strong Solutions to Identity Theft, Bank Fraud

SCHIPHOL, THE NETHERLANDS--(Marketwire - May 3, 2011) - As identity theft and online attacks targeting banks and consumers continue to soar, Steven van der Velden, CEO of Elephant Talk Communications, Inc. (OTCBB: ETAK) (http://www.elephanttalk.com/), is pointing out that ValidSoft, ETAK's wholly-owned subsidiary, has a suite of effective products to help stop credit, debit card, and bank fraud. ETAK is an international provider of business software to the telecommunications and financial industries.

"The scope and scale of the card theft, account hacking, and related crimes are staggering," van der Velden pointed out.

He cited a recent case in the U.S. in which a hacker pleaded guilty in connection with $36 million in card fraud and possession of 675,000 stolen card numbers: http://www.finextra.com/news/fullstory.aspx?newsitemid=22495

In addition, hackers recently accessed private information, and possibly credit card accounts of 77 million Sony PlayStation users: http://arstechnica.com/gaming/news/2011/04/sony-admits-utter-psn-failure-your-personal-data-has-been-stolen.ars

"With ValidSoft's solutions, it's not enough for a criminal to possess a stolen card or card number," said ValidSoft, CEO Patrick Carroll. "That's because VALid-POS® correlates the location of a card with the location of the cardholder's phone, instantly and invisibly to the consumer, while fully protecting the privacy of the consumer. If the card and the phone are not in proximity, it's likely that the card is stolen. Our technology results in a 95+ percent accuracy rate in identifying legitimate transactions thereby virtually eliminating False Positives. A False Positive occurs when an Issuing Bank incorrectly declines a legitimate transaction. Today, when an Issuing Bank 'thinks' a transaction is fraudulent, on average they are incorrect 90% of the time. This is a costly matter for banks with significant negative consumer impact." In addition, the technology's privacy protection features have been recognized by the awarding of the European Privacy Seal.

In cases of online and bank security breaches, VALid®, ValidSoft's multi-factor authentication platform, dramatically improves the ability of banks to detect and prevent fraud. The U.S. Federal Bureau of Investigation (FBI) reported that small and medium-sized banks were the targets of fraudulent wire transfers, resulting in losses of $11 million between March 2010 and April 2011. See: http://www.bankinfosecurity.com/articles.php?art_id=3583&rf=2011-04-27-eb

Currently, ValidSoft has a contractual arrangement with Visa Europe to provide ValidSoft's fraud-prevention solutions, VALid-POS®, and VALid®, ValidSoft's multi-factor authentication platform. The agreement will allow Visa Europe to integrate and market the solutions as services to its member banks as part of its European processing platform. There are about 4,000 member banks in the European Visa group, handling about 24 billion transactions a year, ValidSoft has noted.

About ValidSoft
ValidSoft is a subsidiary of Elephant Talk Communications, Inc. (OTCBB: ETAK), (www.elephanttalk.com) and is a market leader in providing solutions to counter electronic fraud relating to card, the internet, and telephone channels. ValidSoft's solutions are at the cutting edge of the market and are used to verify the authenticity of both parties to a transaction (Mutual Authentication), and the integrity of the transaction itself (Transaction Verification) for the mass market, in a highly cost effective and secure manner, yet easy to use and intuitive. For more information, please visit (www.validsoft.com).

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).

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