* Forms Global Data Protection Business Unit
* Brings EFTSec Encryption Technology to America and Europe
* Teams with Voltage to Provide End-to-End Encryption
* Offers PA-DSS certified Virtual Terminal
* Reaffirms Support for Card Authentication Technology
SCOTTSDALE, Ariz.--(Business Wire)--
Hypercom Corporation (NYSE: HYC) today announced key initiatives to step up the
payment card industry`s ability to attack payment card data fraud. Effective
immediately, the Company is bringing its Asia-Pacific-based EFTSec Server
payment data encryption technology to North America, Latin America and Europe,
teaming with Voltage Security, Inc. to deliver highly innovative and scalable
cryptographic technology, and forming a global data protection business unit to
address customer-specific security threats with five key approaches to data
security.
"We are bringing to market innovative and highly adaptable security solutions
that can meet each of our customer`s individual implementation requirements and
technology choices to protect cardholder data and preserve cardholder trust in
the integrity of the electronic payments system," said Philippe Tartavull, Chief
Executive Officer and President, Hypercom Corporation. "Banks, processors,
retailers and consumers will not tolerate endless attacks and incessant
expenditures on card data security. Just as the threats are multi-faceted, so
too must be the security approaches to counter these threats."
Delivers Five Key Components Required to Protect Payment Card Data
End-to-End Payment Data Protection: Hypercom believes end-to-end payment data
protection encompasses protecting data throughout its lifecycle-not only
encrypting it when in transit but also when at rest in a merchant or payment
processing enterprise environment. Hypercom also believes that the scope of
payment data protection includes the use of strong security technology
throughout the design, deployment, operation and maintenance of payment
terminals and their applications including the loading and storage of debit keys
that reside on those devices.
* Line Encryption for Data in Transit: Line encryption encrypts cardholder data
during transaction processing, starting at the payment terminal and ending at a
trusted point where the data is decrypted. That trusted point can be within a
large merchant or payment service provider environment. Hypercom was the first
electronic payment solutions provider to initiate card data encryption with its
EFTSec technology introduced in 2006. Developed to combat attacks then prevalent
in several Asian countries, EFTSec is now the defacto industry standard for
payment terminal initiated link encryption in Asia. EFTSec is already in use by
seven major banks with combined assets of more than US$178 billion, and licensed
to and implemented by several major terminal manufacturers. Unlike recently
introduced competing solutions that require customers to purchase custom
equipment or utilize third party decryption services, EFTSec leverages existing
network infrastructure.
* Protection for Data End-to-End: Hypercom has teamed with Voltage Security,
Inc. to implement cryptographic technology that delivers an array of end-to-end
encryption across its product line. Management of card data at rest and in use
is critically important and must be protected at all times. That said, portions
of the data must be available for legitimate business purposes. Voltage`s
technology provides businesses with strong protection without compromising
flexibility or requiring major changes to existing business processes. The key
benefit for banks, processors and large retailers: provides the technology to
protect cardholder data throughout the enterprise.
* Protection for Data During Operation and Maintenance: Protecting the
operational procedures and maintenance of payment terminals is just as important
as protecting cardholder data. Hypercom`s HyperSafe suite of security products
defends terminals from rogue applications and malware, protects the terminal
management system from communicating with fraudulent terminals and provides the
industry`s only remote key management system. The key benefit for banks,
processors and large retailers: protects their investment in the point of sale
estate, reduces the potential for fraudulent use of terminals and ensures the
secure transport of cryptographic keys.
* Virtual Terminals: Segmenting a merchant`s point of sale system data from
payment data is one method of reducing the scope of PCI DSS compliance for
merchants. Virtual terminals are web-based secure platforms which easily
integrate payment processing and business critical processes with ubiquitous
client side applications and devices. Byutilizing advanced server capabilities
such as Hypercom`s SmartPayments and Wynid product suites, data segmentation can
be easily achieved, enabling "large store functionality" for mid-size business
environments. The key benefit for small and mid-size retailers: provides
top-level security for sensitive cardholder data, reduces PCI DSS compliance
costs.
* Card Authentication: In addition to complete enterprise-wide end-to-end
payment data protection, Hypercom supports the strengthening of card
authentication as an important tool to prevent card skimming. Hypercom supports
a number of technologies that, if broadly adopted, would significantly reduce
fraud through card skimming. Technologies include contact and contactless chip
cards, and Magnetic Stripe Image Authentication. Magnetic Stripe Image
Authentication is an innovative dynamic digital authentication solution that
detects counterfeit magnetic stripe credit, debit, gift and ATM cards. Whenever
a card is used at a payment terminal, magnetic stripe security imaging
authenticates the card`s legitimacy in real time by matching each magnetic
stripe`s unique `noise fingerprint` against the `fingerprint` originally
obtained from the legitimate card. The key benefit to retailers: protects the
cardholder against credit card `skimming` fraud wherein criminals copy the data
encoded on a legitimate card and produce a fraudulent card.
"Hypercom is setting a new global card protection standard by bringing to market
the payment industry`s widest choice of protection options to protect businesses
and simplify implementation," said Mark Bower, Vice President, Product
Management, Voltage Security, Inc. "Hypercom has long been recognized as the
leader in payment security and we are delighted to team with them to help
businesses worldwide."
Forms Data Card Protection Business Unit
Hypercom`s new Global Data Protection Business Unit will consult with customers
to determine individual system configurations, security threats and the best
security solutions to address their specific needs, and then direct the
implementation. TK Cheung, Hypercom`s Vice President, Global Quality and
Security, heads the new business unit. He also serves as Vice Chairman and Chief
Technical Officer of The Secure POS Vendor Alliance (SVPA).
"One solution does not fit all when it comes to payment card data protection.
The payment industry is highly complex and requires a range of solutions each of
which can protect the various elements that comprise an end-to-end solution. To
that end, we are making available the smartest array of security approaches
providing choices for businesses of all types to fortify their defenses and
protect cardholder data against current and future threats. The addition of
Voltage Security`s end-to-end encryption to our arsenal of crime-fighting
technologies together with EFTSec and HyperSafe suite of security products
allows us to deliver the industry`s most comprehensive selection of security
solutions," said Mr. Cheung.
Mr. Cheung has more than 30 years of experience in the telecommunications and
electronic payment industries. Prior to his current positions, Mr. Cheung was
Managing Director for Hypercom`s Asia-Pacific region, where he successfully
launched the hardware and software based EFTSec security products to combat
increasing levels of credit card fraud prevalent to this region and to satisfy
stringent customer requirements.
For information on EFTSec, visit: http://www.hypercom.com/products/eftsec.asp.
For additional information on Voltage Security, visit: http://www.voltage.com.
About Hypercom (www.hypercom.com)
Global payment technology leader Hypercom Corporation delivers a full suite of
high security, end-to-end electronic payment products and services. The
Company's solutions address the high security electronic transaction needs of
banks and other financial institutions, processors, large scale retailers,
smaller merchants, quick service restaurants, and users in the transportation,
petroleum, healthcare, prepaid, unattended and many other markets. Hypercom
solutions enable businesses in more than 100 countries to securely expand their
revenues and profits. Hypercom is a founding member of the Secure POS Vendor
Alliance (SPVA) and is the second largest provider of electronic payment
solutions and services in Western Europe and third largest provider globally.
Hypercom, HyperSafe, Optimum & Design and Wynid are registered trademarks of
Hypercom Corporation. SmartPayments, HyperSafe Secure and EFTSec Server are
trademarks of Hypercom Corporation. All other products or services mentioned in
this document are trademarks, service marks, registered trademarks or registered
service marks of their respective owners. This press release includes statements
that may constitute forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995, including statements regarding market
acceptance of new products, product capability and performance, product
competitiveness, product sales, revenues and profits, market share, and expected
acquisition results and benefits. These forward-looking statements are based on
management`s current expectations and beliefs and are subject to risks and
uncertainties that could cause actual results to differ materially from those
described in the forward-looking statements. In particular, factors that could
cause actual results to differ materially from those in forward-looking
statements include: industry, competitive and technological changes; the loss
of, and failure to replace any significant customers; the composition, timing
and size of orders from and shipments to major customers; inventory
obsolescence; market acceptance of new products and services; compliance with
industry standards, certifications and government regulations; the performance
of suppliers, contract manufacturers and subcontractors; the ability to
successfully integrate the technologies, operations and personnel of acquired
businesses in a timely manner; the ability to obtain the expected strategic and
financial benefits from acquisitions; risks associated with international
operations and foreign currency fluctuations, the state of the U.S. and global
economies in general and other risks detailed in our filings with the Securities
and Exchange Commission, including the Company's most recent 10-K and subsequent
10-Qs and 8-Ks. Forward-looking statements speak only as of the date made and
are not guarantees of future performance. We undertake no obligation to publicly
update or revise any forward-looking statements. HYCP
Hypercom Corporation
Pete Schuddekopf, 480-642-5383
pschuddekopf@hypercom.com
Copyright Business Wire 2009
