SOURCE: FiTeq

FiTeq

March 03, 2015 14:00 ET

FiTeq Renders Breaches Harmless Through Patented Dynamic Payment Authentication Solution

FiTeq-Powered EMV Cards Deliver Immediate Impact in Evolving Payments Technology Environment

PHOENIX, AZ and TIBURON, CA--(Marketwired - Mar 3, 2015) - FiTeq today announced the world's first and only immediate-impact, secure payment solution that renders breaches harmless so fraudsters cannot reuse cardholders' data and replacement cards do not need to be reissued to genuine cardholders. Each time the cardholder makes a payment, a unique transaction-specific code is generated on the FiTeq-powered EMV card and on the bank's authorization platform. Only when these codes match is the card authenticated as genuine, so the transaction can be authorized. 

"Inevitably data breaches will happen. When a breach occurs, cardholders using FiTeq-powered EMV cards can continue to shop without disruption, and it will be the fraudsters who are stopped. This occurs because counterfeit cards using breached data will never generate the next transaction-specific code," said Joan Ziegler, FiTeq's CEO and co-founder. "If the codes do not match, the transaction cannot be completed. The benefit for consumers is not having to deal with the hassle of changing all of their preprogrammed payment information and peace of mind while shopping by phone, online or in-store using either traditional mag-stripe or EMV readers."

Security breaches continue to occur with increasing frequency and more destructive consequences. Most concerning is that one in three breached records results in identity theft1. FiTeq's dynamic authentication approach to payment data makes it virtually impossible to link a person's identity to a purchase. FiTeq's solution devalues exposed data, so it cannot be reused, saving card issuers $188 for each breached record2.

"FiTeq-powered EMV cards immediately protect both consumers and banks," Ziegler said. "FiTeq's frictionless solution works with existing issuer business processes and requires no change for merchants. We are proud to leverage the secure technology already enabling U.S. contactless payments in our FiTeq-powered EMV cards, ensuring consumers' data can never be reused on counterfeit cards. We look forward to FiTeq-powered EMV cards becoming an everyday interactive electronic device. Protecting the consumer is job one at FiTeq." 

The technology underlying FiTeq's solution is already proven and used in millions of U.S. contactless devices under the American Express, Discover, First Data, MasterCard and Visa brands. Features of the solution include:

  • FiTeq's Dynamic Authentication - The FiTeq Energizer Stripe™ generates the FiTeq Transaction Specific Code™ -- a unique code for each transaction when the card is used at the point of sale. The code generated by the FiTeq-powered EMV card must match the one generated on the bank's authorization platform to authorize a payment.
  • "Friction-Free" Experience - The FiTeq-powered EMV cards are both backward and forward compatible so they may be used at EMV terminals, magnetic stripe terminals, contactless terminals as well as internet and phone transactions.
  • FiTeq's Robust Patent Estate - Both FiTeq's solution for authenticating genuine cardholders as well as the manufacturing process to produce FiTeq-powered EMV cards are protected by more than 50 issued patents with the earliest priority date of anyone in the powered payment card industry.
  • Industry-Leading Technologies - FiTeq-powered EMV cards employ the industry's best component technologies, including Infineon processors, E Ink flexible displays and Solicore batteries. FiTeq is an IBM Business Partner, whose mainframes process more than 95 percent of all issuing bank payment card transactions globally.

"Together with E Ink, FiTeq brings innovation to inanimate payment cards in the way E Ink has evolved the eReader category," says Dr. FY Gan, E Ink's vice president of the ESI business unit. "FiTeq integrates our E Ink technology in the form factor of a credit card to display the FiTeq Transaction Specific Code, which is good for only one transaction and cannot be re-used by fraudsters. FiTeq's solution offers great protection against losses from data breaches for the enormous 8.4 billion payment cards market globally. This is an exciting new category for E Ink."

FiTeq introduced its two-part dynamic authentication solution today at the BAI Payments Connect conference. FiTeq-powered EMV cards will be available through financial institutions beginning in Q2 2015.

About FiTeq
FiTeq powers innovation in payments through its patented security and loyalty platforms, ensuring dynamic authentication anytime, anywhere. FiTeq renders breaches harmless by authorizing transactions only when a unique code generated by the device at the point of sale matches the one generated on the bank's authentication platform. The underlying core technologies enable dynamic distribution of rewards at the point of sale with actionable big data. Based in Tiburon, California, FiTeq has raised more than $20 million in venture financing to develop and distribute its patented security and loyalty platform for electronic payments. For more information visit www.fiteq.com.

1 Source: Javelin Strategy: "2014 Identity Fraud Study": https://www.javelinstrategy.com/news/1467/92/A-New-Identity-Fraud-Victim-Every-Two-Seconds-in-2013-According-to-Latest-Javelin-Strategy-Research-Study/d,pressRoomDetail
2 Source: Symantec Corporation and Ponemon Institute: "2013 Cost of Data Breach Study": https://www4.symantec.com/mktginfo/whitepaper/053013_GL_NA_WP_Ponemon-2013-Cost-of-a-Data-Breach-Report_daiNA_cta72382.pdf

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