SOURCE: Elephant Talk Communications

Elephant Talk Communications

Elephant Talk Communications

March 09, 2011 04:00 ET

ValidSoft Products May Help Prevent Fraud, Ovum Report Advises

LONDON--(Marketwire - March 9, 2011) - ValidSoft Limited (http://www.validsoft.com ), a wholly owned subsidiary of Elephant Talk Communications, Inc. (OTCBB: ETAK) (www.elephanttalk.com), today announced that the company and its fraud detection technology had been featured in a new report from Ovum, a leading research and analysis firm based in London (http://about.ovum.com/app/mobile-devices-are-being-used-to-prevent-fraud/).

Ovum, part of the Datamonitor Group, independently evaluates new technologies and approaches, helping clients in the telecom and other industries identify and seize new business opportunities. In a February 2011 report, Ovum senior analyst Andy Kellett describes growing concerns over the security of networks that include mobile phones. Kellett says that "two interesting technological solutions have caught Ovum's attention during the last year and both are from ValidSoft. Ovum's opinion report confirms the value of ValidSoft's technologies and its readiness to go-to-market."

The first problem tackled by ValidSoft's products is determining whether or not credit or debit card transactions are real or fraudulent. As the Ovum report points out, fraudulent transactions outside of the UK using card numbers stolen from British citizens have jumped 77% since 2009. As a result, banks are increasingly likely to reject legitimate transactions by UK citizens travelling abroad. As many as 90% of these legitimate transactions may be flagged as fraudulent, the Ovum report says: "When banks reject a foreign transaction because there may be fraud involved, they are far too frequently declining genuine purchases and embarrassing their customers." Banks must spend hundreds of millions of dollars following up with each of these transactions to spot the truly fraudulent ones.

ValidSoft's VALid-POS™ product dramatically boosts the chances of correctly determining which transactions are real and which aren't. The company's software uses information about the location of a credit card owner's cell phone. If a credit card number is being used to buy a diamond ring in Antwerp when the card owner's cell phone is still in London, thieves are probably at work. But if the cell phone is also in Antwerp, then the card owner probably is buying a nice gift. Of course, as the Ovum report says, this approach depends upon cell phones being turned on when people are travelling. "However, given that this is one of first actions most of us undertake when we arrive at a foreign airport, there is a good chance of this happening," the report says.

The second ValidSoft product can help governments or banks deliver services, such as benefit and welfare payments, more efficiently and cheaply. Currently, citizens who get such payments must regularly travel to a benefits centre to verify that they are who they claim to be. But ValidSoft's VALid-4F™ system uses four types of authentication to verify identity using a mobile phone, saving everyone time and money.

The VALid-4F™ system first checks to make sure that the person has a registered cell phone that's been authenticated. Then, the person must have the correct password or PIN. That's fairly routine. But then the system adds two more types of authentication. As with card fraud detection, it checks the location of a cell phone to ensure that the phone isn't in a different place than its owner for compliance purposes. And finally, it uses a sophisticated biometric voice verification system capable of precisely identifying a person when they talk into the phone. "The bank or government can use the voice verification software together with the additional 'invisible' checks to ensure that it's really you," explains Pat Carroll, CEO of ValidSoft.

The Ovum report cautions that "both the financial and government sectors require strong proof that mobile validation techniques can add value to their fraud prevention and service delivery approaches." But it adds that the testing of ValidSoft's products has been "extensive" so that the proof is growing. Now, the choice of whether to use ValidSoft's technology "is reaching the critical decision-making stage," the report says.

For ValidSoft, the Ovum report brings added credibility. "We are pleased that Ovum has recognized that our anti-fraud and security products have real value to banks, governments, and other customers," says CEO Carroll, CEO of ValidSoft Limited. 

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.

Forward-Looking Statements
Certain statements contained herein constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may include, without limitation, statements with respect to the Company's plans and objectives, projections, expectations and intentions. These forward-looking statements are based on current expectations, estimates and projections about the Company's industry, management's beliefs and certain assumptions made by management. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Because such statements involve risks and uncertainties, the actual results and performance of the Company may differ materially from the results expressed or implied by such forward-looking statements. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Unless otherwise required by law, the Company also disclaims any obligation to update its view of any such risks or uncertainties or to announce publicly the result of any revisions to the forward-looking statements made here. Additional information concerning certain risks and uncertainties that could cause actual results to differ materially from that projected or suggested is contained in the Company's filings with the Securities and Exchange Commission (SEC), copies of which are available from the SEC or may be obtained upon request from the Company.

Contact Information

  • Contact:
    ValidSoft:
    Emmanuelle Filsjean
    Email: Email Contact
    Tel: +44 (0)20 3170 8999

    Elephant Talk Communications, Inc:
    Mr. Steven van der Velden
    Tel: + 31 20 653 59 16
    E-mail: Email Contact
    www.elephanttalk.com

    Investors:
    Alliance Advisors, LLC
    Thomas P. Walsh
    Tel: + 1 212-398-3486
    Email Contact