SOURCE: PassMark Security

October 11, 2005 08:58 ET

Scottrade Selects PassMark for Strong Mutual Authentication

ST. LOUIS, MO, and MENLO PARK, CA -- (MARKET WIRE) -- October 11, 2005 -- PassMark Security, a leading developer of ecommerce authentication systems, and Scottrade, a leading online brokerage, today announced Scottrade has selected PassMark Security's Two-Factor Two-Way Authentication™ system to protect its customers from online fraud and identity theft.

"Protecting our customers' assets is a top priority at Scottrade, and we must stay at the forefront of online security," said Rodger Riney, Scottrade's president and CEO. "This new security system will give our customers confidence that when they log onto any of our trading platforms, they are accessing a legitimate Scottrade trading site and not an imposter. That sense of security is important to our customers and it's important to Scottrade."

--  Two-Factor Authentication.  The PassMark system delivers strong
    authentication by remotely identifying a customer's computers, and using
    them as "second-factor" authenticating hardware.  In this way, strong
    security is achieved without requiring the customer to carry new
    identifying hardware, such as smart cards or other tokens.
    
--  Two-Way Authentication.  Each Scottrade customer will receive a
    "PassMark" - a secret image and text known only to Scottrade and that
    customer.  When a customer sees his (or her) secret PassMark on a Scottrade
    email or Web site, he instantly knows he is dealing with the real
    Scottrade, not an imposter.
    
These two steps create strong mutual authentication -- Scottrade knows it is the real customer, and the customer knows it is the real Scottrade.

In addition, the PassMark system employs a real-time risk-based decision engine that utilizes sophisticated statistical modeling to authenticate users, assess transactions and detect fraud. This risk management system orchestrates a multi-layered defense against hackers and fraudsters.

"With the escalating number and cleverness of online attacks, passwords alone are no longer sufficient protection for financial transactions," said Bill Harris, chairman of PassMark Security. "By implementing PassMarks, Scottrade shows they are serious about protecting their customers and raises the bar for online security in the brokerage industry."

Scottrade plans to introduce the PassMark system early in 2006. Scottrade provides online trading to customers through the firm's trading site, Scottrade.com and its active trader platform ScottradeELITE. Customers can trade stocks online for $7, with unlimited shares.

About Scottrade

Established in 1980, Scottrade is a leader in online investing, serving individual investors who are comfortable making their own investment decisions. Scottrade is unique in the industry because it boasts very low commission rates while offering easily accessible, local branch office support of online trading in 243 locations nationwide. Scottrade.com is the online trading site of Scottrade and offers customers the convenience of placing market orders online for just $7 per trade. In addition to its online capabilities, Scottrade staffs each branch location with a licensed branch manager plus additional brokers and assistants. For more information, visit www.scottrade.com.

About PassMark Security

PassMark Security develops authentication and anti-fraud solutions for consumer ecommerce. Web sites can deploy PassMark's patent-pending Two-Factor Two-Way Authentication™ to provide strong mutual authentication, without requiring their users to carry any new hardware or install any new software. Bill Harris, former CEO of Intuit and PayPal, is co-founder and chairman of PassMark Security. See www.passmarksecurity.com.

Contact Information