SOURCE: Elephant Talk Communications

Elephant Talk Communications

January 05, 2011 08:30 ET

ValidSoft Announces Successful Renewal of European Privacy Seal

LONDON--(Marketwire - January 5, 2011) - Elephant Talk Communications, Inc. (OTCBB: ETAK) (www.elephanttalk.com), an international provider of business software and services to the telecommunications and financial services industries, today announced ValidSoft Limited, a wholly owned subsidiary, has successfully renewed the European Privacy Seal for VALid-POS®, ValidSoft's flagship fraud detection and prevention product. ValidSoft is the first, and remains the only, security software company in the world to be awarded the European Privacy Seal. The December renewal provides further validation that VALid-POS® can fight fraud while maintaining full privacy.

VALid-POS® can save banks hundreds of millions of dollars a year by helping to determine whether credit and debit card transactions are legitimate or fraudulent. ValidSoft recently signed a contract with Visa Europe for their fraud detection and prevention solutions VALid-POS® and VALid®: http://www.visaeurope.com/en/newsroom/news/articles/2010/validsoft_fraud_solution.aspx

VALid-POS®, works by correlating the origination of a purchase or withdrawal using a credit or debit card to the proximity of the card owner through the card owner's cell phone. That's a major improvement on the traditional method of trying to spot fraud, in which banks compare new purchases and transactions to past patterns. If a credit card typically used in London is suddenly buying goods in San Francisco, for instance, those new purchases may be flagged as suspicious.

In most cases, the credit card owner really will be in San Francisco buying goods. But to make sure, the bank has to try to contact the customer. As a result, legitimate transactions mistakenly labeled as suspicious -- so-called 'false positives' -- are a huge expense and headache for banks. Banks often cut off credit cards because transactions look suspicious, only to be left with irate customers. The problem for banks is that 90% of these seemingly suspicious transactions are actually legitimate. The cost to banks globally is upwards of $100 billion a year in the US alone(1).

ValidSoft's system virtually eliminates the false positives, while also spotting the truly fraudulent transactions. The technology works in microseconds, without compromising customers' privacy.

"The renewal of the Privacy Seal for two years confirms that VALid-POS® meets the highest standards for maintaining customers' privacy, while providing the maximum protection against fraud," said Pat Carroll, CEO of ValidSoft Limited. "We are delighted to have passed our first renewal examination and will continue to ensure that VALid-POS® meets all the requirements of European Data Protection law. We understand the enormous benefit this compliance brings to the product as well as to the banks and processors that implement it. We change the 90% failure rate in identifying fraud into a 90%-plus success rate."

"The VALid-POS product shows that privacy protection and effective fraud prevention measures are not a sub-zero game; it achieves at the same time both better protection against fraud, and the highest standards of data protection," said Professor Douwe Korff, a renowned expert in Data Protection and Data Privacy legislation. "Companies that choose this product can thus at the same time serve their own and their customers' interests in the full knowledge that their customers' privacy is not in any way put at risk and that they also will benefit from the strongest form of defence against a primary source of funding for organised crime and terrorist activities(2)."

(1) Source: Gartner Research and Javelin Research -- 2009
(2) Source: Timesonline -- Fraudsters' bugs transmit credit card details to Pakistan -- October 12, 2008

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 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, please visit www.elephanttalk.com.

Contact Information

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