Biometrics: Payments at Your Fingertips

Tuesday March 28, 02:23 PM

By Alex Halperin

In the future, no one will need pockets. That stuff jingling around in there -- keys, credit cards, checkbooks -- will be replaced by something closer to the body. When you need to open a door or make a purchase, chances are you'll do it with a fingerprint, a voice command, or a computer scan of your eyeball.

That is, if companies like Pay By Touch have anything to say about it. Pay By Touch, a closely held San Francisco outfit, specializes in biometrics, or the technology of identifying people by unique biologic traits -- not just fingerprints, but also irises, palms, and voices. And increasingly, those traits are being used in place of keys, credit cards, and even computer passwords.

Founded in 2002, Pay By Touch has signed up more than 2 million people willing to have their fingerprints used as a surrogate for checks and credit cards at more than 2,000 stores, including several large grocery chains. When making a purchase, a customer presses his pointer finger to a pad and then keys in an identifying number as an added security measure before his purchase is deducted from a checking account or added to a credit-card bill. On Mar. 21, Pay By Touch said its device would be installed in all of Albertson's (ABS) Jewel-Osco stores, a chain of more than 200 outlets that combine supermarkets and pharmacies.

KEEP OUT.

It's not just stores that are using biometrics. Elementary schools have installed iris scanners to keep out intruders. Companies increasingly use fingerprint scanners to authenticate computer users. And fingerprint readers have also been installed on locks for house and office doors.

But many consider Pay By Touch to be among the companies most effectively harnessing the rising demand for biometrics. Pay By Touch charges a set fee for each positively identified fingerprint that can run in the neighbourhood of 15 cents for a big retailer, according to Pay By Touch President and Chief Operating Officer John Morris.

What's in it for the store? Using fingerprint scanners can accelerate purchase times by minimizing the checkout lane "fumble factor." Because a customer's Pay By Touch account can be linked to several payment devices, retailers can also save money by encouraging people to use accounts that incur lower fees, such as a checking account accessed by debit card. A recent report by Bernstein Research noted that systems like Pay By Touch could increase pressure on credit-card companies to reduce their charges to retailers so they don't lose market share.

BARGAIN ALERT.

Supermarket owners by and large say they're pleased with Pay By Touch's results. "We'd like to encourage anybody who has a checking account to enroll in Pay By Touch," says Trisha Belisle, manager of retail technology at Cub Foods, a Midwest supermarket chain owned by Supervalu (SVU). Cub Foods is also experimenting with the system to highlight bargains for individual shoppers based on past purchases, a trick the Sunday circular could never manage. She declined to comment on whether it saves the stores money, however.

Advocates say biometrics is a better safeguard against identity theft than current methods. It's easier, after all, to obtain a credit-card number than a fingerprint or voice pattern. But because biometrics relies on a person's biological data, it's apt to make some users even more nervous than other technologies do.

Pay By Touch and partner retailers are aware of the obstacle. The company takes pains to explain that it takes and stores an algorithm of a fingerprint, "a description," rather than the print itself, Morris says. Even so, paying with a fingerprint can inspire the jitters.

PRIVACY PERIL.

Jay Stanley, communications director for the American Civil Liberties Union's Technology & Liberty Project, says that information obtained by a biometrics company could threaten consumer privacy, though he doesn't single out Pay By Touch. "The main problem with the situation we're in right now is that the technology is really ahead of the law," Stanley says.

The ACLU does not object to biometrics technology itself. "We need a law to prevent against the dark side of new tech to make sure they are not used against us" by the government mandating it or companies selling it, Stanley says.

Yet for many, paying with a fingerprint is becoming as routine as a trip to the ATM. Pay By Touch hopes to ride the wave as far as it can. In January it acquired rival BioPay for $82 million and recently closed on $60 million in capital from hedge funds and private investors. This came about three months after the company announced raising an additional $130 million.

Morris declined to discuss sales or any plans the company might have to go public. But Pay By Touch expects to double sales this year from 2005, in part due to acquisitions.

ONLINE AMBITIONS.

Morris says the company hopes to expand its services to include health insurance information. It also has an initiative that would let customers use fingerprints to make online purchases using the sensors available on some laptops. It plans to announce a participating online store later this year [see BW Online, "Promising Pitches at Demo 2006"].

"I believe it's going to ramp up," Frost & Sullivan analyst Sapna Capoor says of biometrics. "It's only a question of time before the Wal-Marts (WMT) of this world take it on." She expects more mega-retailers to adopt the technology within 18 months.

Fingerprinting is by no means perfect. Philip Youn, a senior consultant with the International Biometric Group, says prints don't register as well with certain groups such as construction workers whose fingerprints have been effaced.

PALM READING.

However, Capoor says that for most existing consumer needs, a fingerprint is adequate and cost effective. Youn agrees. Alternative biometric methods are less well-suited to the checkout line. Iris scanning is expensive and could intimidate customers, he says, and voice recognition would not work in noisy stores.

Capoor also sees consumer biometrics' potential extending far beyond groceries. Looking forward, fingerprints could be used to make purchases through sensor-equipped cell phones, or replace keys as a way to enter homes.

Though fingerprints are seen as most versatile, other biometrics will likely emerge to compete. Fujitsu (FUJ.IL - news) produces a palm recognition device that identifies customers by using "near-infrared rays" to identify the vasculature of a palm. It's already widely used in ATMs in Japan, and Fujitsu expects to introduce the method in the U.S. in the second quarter, though the company won't say how it will be used. It has the potential for use in areas like access to buildings and electronic devices like computers.

HAND IT OVER.

Among its advantages, Fujitsu's method doesn't require contact between the user and the machine, providing at least the illusion that it's more hygienic. PalmSecure only approves palms in which it can detect active blood flow, a way to thwart those who would attempt to scan an approved, but detached, hand.

Pay By Touch uses a heat detector to prevent similarly macabre schemes. And it's working to overcome other would-be obstacles to the wider use of biometrics, envisioning a future when you can leave home without those rectangular pieces of plastic, and a lot else.

 

Finger food

Fingerprint Identification Technology proudly presents this new article

 

 

Fingerprint scanners offer a new way to pay at Jewel-Osco

By KATHRYN REM
FOOD EDITOR

Published Tuesday, March 28, 2006

Don't bother bringing your checkbook, debit card, loyalty card or Alexander Hamiltons the next time you shop at Springfield's Jewel-Osco stores.

You can pay with your fingerprint.

The two stores, at 1903 W. Monroe St. and 2777 S. Sixth St., have joined a growing number of retailers using a fingerprint-scanning technology called Pay By Touch. For those who choose to sign up, it allows payment for purchases by entering a seven-digit code (usually a phone number) and pressing a finger into a small scanner at the checkout counter.

If you are who you say you are, the cost of your purchase automatically will be withdrawn from your bank account, like a debit card. Once you're registered, you can use the technology at any store using Pay By Touch.

"We started rolling it out in January. We're doing it in waves so personnel can be trained," said Juanita Kocanda, manager of public affairs for Jewel-Osco.

Using the technology is voluntary and free. If you do register, you don't have to use it every time; you choose your method of payment.

"You can start using it the same day that you sign up," Kocanda said.

The primary benefit, she said, is convenience.

"Let's say you're driving past the Jewel and you need to pick up butter, milk and eggs. You can run through the store and then check out. You don't need to fumble with a check or money or get change back," Kocanda said.

If the shopper has a Jewel-Osco Preferred Savings Card, the digit scan will activate it.

Benefits to the retailer are faster checkouts and, ideally, more repeat-customer business.

"I'm not afraid of technology," said Sheila McFadden after registering at the kiosk next to the service desk at the Fairhills Mall store. "I won't have to carry checks or cash. And it's better than a debit card because there's no plastic to lose."

The Springfield woman plans to pay by touch on her next visit to Jewel-Osco.

But not all shoppers feel comfortable giving up a fingerprint to the great unknown.

"I'm not sure about it," said Fred Hinds of Springfield. "What are they going to do with my fingerprint?"

Pay By Touch stresses that it doesn't record actual fingerprints. Rather, the biometric system collects a series of data points on a fingerprint that are unique to every individual. These tiny measurements are converted into a mathematical equation, encrypted and stored at IBM data centers under industry security standards.

No image of the full fingerprint is actually stored, so even if unscrupulous hackers ever got into the system, they would only have elements of a shopper's whorled digit.

To sign up, bring your driver's license or state ID, a personal check and - duh - your finger to the service desk at either Springfield store.

Although most users choose to scan an index finger, any finger or a thumb can be used.

Piggly Wiggly, Cub Foods, Thriftway and Bigg's stores are using the technology in some states. At Kroger, it's used to clock in employees. Disney World scans visitors for security purposes.

Jewel-Osco - the Midwest division of Boise, Idaho-based Albertson's, which has 2,500 stores - is using Pay By Touch in more than 200 stores in Wisconsin, Indiana, Iowa and Illinois. Kocanda said several thousand shoppers have registered.

 

Dutch coffee shops introduce fingerprint ID

By Jan Libbenga

Published Tuesday 21st March 2006 10:36 GMT

Some Dutch coffee shops, which sell marijuana in small quantities for personal use, are introducing fingerprinting technology to check the age of customers.

The shops are not allowed to sell to anyone under the age of 18. Coffee shops currently require photographic ID for proof of age.

The first coffee shops to use turnstiles with built-in fingerprint sensors are Inpetto in Rotterdam, Birdy in Haarlem, and 't Rotterdammertje in Doetinchem in the east of the country. Customers must first register with the shops, but personal details will not be stored.

The technology has been developed by FingerIdent (http://www.fingerident.com/), a company owned by Gerrie Mansur, one of the members of legendary Dutch hacking group Hit2000. According to Mansur, the system can match 35,000 fingerprints in less than a second. ®

FW: You Say Fingerprint, We Say "Tiny Measurements From Your Finger Which Are Unique to You"

Fingerprint Identification Technology presents:

 

Area Jewel shoppers don't need to bring a wallet to buy groceries anymore, just a fingerprint. Excuse us, not a fingerprint, just their finger, and its "hundreds of characteristics in the grooves at the end of the index finger--like spacing, size and curvature," that can identify them in seconds. Okay, that sounds a lot like a fingerprint.

On Tuesday, Jewel announced that it had rolled out the Pay By Touch system in all 204 area Jewel and Jewel-Osco stores. Customers who sign up for the service can press their finger to a terminal, enter their phone number, and the system will debit a checking account associated with the account. Pay By Touch is already in use at 24 area Cub Foods stores, and almost 10,000 people have signed up since Jewel began testing in January.

The makers of Pay By Touch insist that the system doesn't pose a privacy concern (or any more than a store affinity program or auto-debit system does) because it doesn't store an actual image of a fingerprint. The software captures unique elements of fingerprints and converts them into a proprietary mathematical equation that is encrypted and stored on a central server in Colorado. Pay By Touch says that even in the worst-case scenario in which a hacker steals this data, they couldn't do anything with it because it's not tied to a full fingerprint. Privacy advocates say that customers should still be wary of any system that uses a single piece of data to authorize access to your bank accounts.

Chicagoist is always the first person to give cool new technology a whirl, but we're not sure this system, ahem, buys us anything other than a few seconds of convenience. We don't mind taking a debit card out of our wallet and swiping it in lieu of letting Jewel store our fingerprint--sorry, our fingerprint's groove-spacing, size, and curvature--mainly because we like to limit the number of places that have our checking account information on file. The Tribune article cherrypicked quotations from a few skeptical customers, and their web poll shows that about three in four people aren't comfortable with the Pay By Touch system. People are afraid to use those self-checkout lanes at Walgreen's and Home Depot, so we wonder why people would suddenly be willing to set aside reasonable privacy concerns to use a system that maybe cuts 10 seconds off their checkout time. Have any of you signed up for Pay By Touch, and what made you decide to do it (or not)?

Posted by Matt Wood in News: Chicago

Digital Persona sells fingerprint ID to Mexican bank

Fingerprint Identification Presents:

 

 

San Francisco Business Times - 2:52 PM PST Wednesday

Digital Persona Inc. said Wednesday it sold its biometric identification system, which uses fingerprints, to Banco Azteca, a Mexican bank.

Redwood City-based Digital Persona didn't say how much Banco Azteca, owned by Latin American giant Grupo Elektra SA, paid for the system.

Banco Azteca sells financial services to Mexico's mass market. The use of the fingerprint scan eliminates the need for customers, many of whom are poor, to show other forms of ID.

Digital Persona, which was founded in 1996, has about 80 employees and pulled in about $10 million in revenue last year.

Up to 3m people not ready for midnight shift to chip and PIN
By Ben Hoyle

NI_MPU('middle');

WAITERS, disabled and elderly people are likely to be hardest hit when the chip and PIN switchover happens at midnight tonight.
New rules obliging all chip and PIN card users to enter a four-digit code to verify a purchase come into force tomorrow, despite forecasts of chaos at checkout tills.
The banks and retail groups that are driving the change argue that chip and PIN transactions are faster and more secure than signing for a purchase, which has been phased out over the past three years.
But one in ten businesses will fail to meet the deadline for adapting their tills, and yesterday Gordon Brown cast doubt on the technology’s effectiveness, suggesting that biometric measures such as fingerprint recognition were cheaper and safer. The Chancellor told the Royal United Services Institute, London, that finger-scanning devices had already replaced PIN numbers in Californian supermarkets and on Japanese cash machines.
“They are more secure against fraud and theft. And across the world in very different cultures most people seem happy to use biometric schemes when they see direct value in greater security, greater convenience and lower cost.”
From midnight tonight, retailers will be able to refuse to accept payment from people using chip and PIN cards if they do not know their number.
The British Retail Consortium said yesterday that the technology had reduced counterfeit card fraud in the first six months of 2005 by 31 per cent compared with the same period in 2004, and cut lost or stolen card fraud by 27 per cent.
A spokeswoman said that the transition should be smooth because 80 per cent of high street transactions were already conducted in this way.
However, consumer groups fear that vulnerable individuals have not been made aware they will be eligible for other methods of payment after the changeover. Customers with a legitimate problem with chip and PIN, such as poor eyesight, arthritis or memory and mobility problems, qualify for a new chip and signature card.
The National Consumer Council estimates that up to three million Britons could have difficulties with PINs. “Many vulnerable consumers are being told that they will have to use their PINs,” the NCC said. There is also concern that the face-to-face nature of chip and PIN payments is reducing tips in restaurants and hotels. Martin Couchman, of the British Hospitality Association, said: “In some parts of the country . . . people simply weren’t getting tips.”
Apacs, the trade association for the payments industry, said yesterday that 10 per cent of Britain’s 860,000 tills had still not been updated to process chip and PIN technology. If they accept a signature as proof of identity then they, rather than the bank supporting the card, will be liable for any subsequent fraud.
PLAYING THE NUMBERS GAME
How can I come up with a memorable number?
· Choose a year — but not the year of your birthday — that has some significance. For example, the date of a famous historical battle or the day your football team won the FA Cup
· Substitute the letters of the alphabet for numbers, so A is 1, D is 4 and I is 9. However, the word you use must only have letters between A and I in it, e.g. fade, which would be 6145
· Use the numbers from the car registration of your neighbour
· Use the last four digits of your old telephone number or that of a close relative/friend
· The exact time of your birth in the 24-hour clock format
· The exact personal best time of your favourite 100 metre sprinter
How many chances do I get to remember my PIN?
As with cash machines, you have three goes to get the numbers right. If your third attempt fails the card is automatically “frozen”. You will then have to contact your bank.

National Identification System for Ghana; House Takes 2nd Reading

Fingerprint Identification Technologies Presents:

Ghanaian Chronicle (Accra)
NEWS
March 17, 2006
Posted to the web March 17, 2006

By Linda Akrasi

Parliament has unanimously approved the report on the bill that will establish a national identification system and provide a central database of all Ghanaians as well as foreign nationals permanently resident in Ghana.

This would enable Ghanaians to be uniquely linked to a proven biometric identifier and automated fingerprint identification mechanism for the issuance of national identification cards.

Taking the bill through the second reading, members admitted the need for the country to have a national identification system to make it easier for identification purposes.

Moving the motion for the adoption of the report, the minister for Public Sector Reforms, Paa Kwesi Ndoum, said the national identification system was a significant step in the history of the country.

He said the actualization of the system would allow the nation to move a step forward in this democratic era.

Seconding the motion, the chairman for the joint committee on constitutional, local government and rural development, defence and interior, Kwame Osei Prempeh, said there was the need for the development of a multi purpose identification system.

He said the report observed that the system was a very crucial tool for planning to ensure sustainable growth and development of all sectors of the economy.

The report stated that it was more crucial to establish a credible source of authentic database to guide the provision and delivery of relevant social, economic and political services in the country.

The report noted with satisfaction that the operationalisation of the system would constitute a key infrastructure for the integration of public and private sector business transactions.

The committee took note of the fact that an operationalised multi purpose identification system would serve as a basis for improving and increasing public access to social services by increasing more of such services.

When given the floor, deputy minority leader, Doe Adjaho, said registration of Ghanaian citizens abroad was a very dangerous exercise because one had to determine who qualified as a Ghanaian.

He noted the need to fine-tune the bill so it could become an acceptable data and ensure that the identification process was transparent.

Minister for education and sports, Yaw Osafo Maafo, in his contribution admitted that the Electoral Commission (EC) should be independent in the implementation so that the system would be credible.

He said if the implementation were done, it would save the nation the billions of cedis it spent in registration processes prior to elections, thereby cutting down cost entirely.

"It is long overdue," he declared, advising that the bill be done without a bi-partisan approach.

Minority leader, Alban Bagbin said there was a difficulty in identifying Ghanaian nationals because of the provisions of our law on citizenship.

He said as a country we should build consensus on the identification system to produce a credible data.

"Lets create some consensus and agree on modalities," he called on his colleagues and Ghanaians in general.

Rounding off the debate, Minister for Presidential Affairs, Kwadwo Mpiani, assured members of the independence of the EC and asked that the issue be looked at passionately.

He added that the concern of the minority leader be taken into consideration so that the nation can have a credible database.

The implementation of the bill was to establish a National Identification System. The system provides a central database of individuals uniquely linked to a proven biometric identifier, based on advances in biometric technology.

The system is meant to address the issues of national concern and will have some interconnectivity between the national data center, regional sites, some ministries, departments, and agencies, national security agencies and private organizations.

Based on this national database system and the biometric identifier - the automated fingerprint identification system -, secure national identify cards will be issued to all citizens of Ghana and foreign nationals permanently resident in Ghana.

Discussions on the issue of identification for citizens began during the Busia Administration. The Identity Cards Decree 1972 (NRCD129) required citizens of Ghana aged sixteen years and above to be issued with identity cards.

The decree further stipulated that the card was to be accepted as evidence of the identity of the holder in cases where the identity of the holder may be an issue. A person who was required to hold an identity card was not to be employed unless the person produced the identity card.

Public and private employers would be required to enter the identity card number of each employee in the personal records of that employee, and each person responsible for social security scheme was to use the allocated identity number instead of the registration number allotted to contributions under the scheme.

In 1973, national identity cards were issued to citizens in five border regions of the country including parts of Western region, the Volta, Northern, Upper and Brong Ahafo regions. The project was however discontinued three years later due to lack of financial and logistical support.

In 1987, the government of the Provisional National Defense Council, through the National Commission for Democracy, revisited the national identity card concept by establishing several committees, including a technical implementation committee, to examine and propose a unique numbering system.

It was also to work out the modalities of the national identification system, determine the computer-based equipment required and the cost involved, and advise on funding. Due to economic difficulties, the process was not pursued.

FINGERPRINT SYSTEM COULD MEAN END TO PAYING WITH CHIP-AND-PIN CARDS

Fingerprint Identification Technology presents:

FINGERPRINT SYSTEM COULD MEAN END TO PAYING WITH CHIP-AND-PIN CARDS

By Ruki Sayid, Consumer Editor

A NEW fingerprint system could make the new chip-and-pin cards obsolete.

It links people's "dabs" to their bank details so they can pay by just touching a scanner.

There is no need to carry cards or cash or remember pin numbers.

Three supermarkets in Britain are testing the system, thought to be the first in Europe.

It is popular in the US, where 2.3million people have signed up in 2,000 shops.

The system is free for customers to use. They can sign up on the internet or at the stores.

They then have their fingerprint recorded by an in-store scanner.

An "electronic wallet" is created by swiping their bank cards.

When they want to pay, the scanner checks their identity before taking the money from their accounts.

The system is being piloted in three Midcounties Co-op supermarkets in Oxford. Bill Laird, the group's retail manager, said: "Initial response from our customers is very encouraging.

"They are embracing Pay By Touch because it helps them get through the checkout faster without having to hunt for cards, cheques, wallets or purses."

He added: "The whole UK retail market is currently focused upon the introduction of chip-and-pin technology to improve service and reduce fraud.

"Pay By Touch offers additional benefits and challenges existing thinking on card transactions."

Fingerprint recognition is seen as generally very reliable but it is unclear whether many retailers will want to pay so soon for the new technology.

The introduction of chip-and-pin to combat fraud became compulsory only last month.

And there are drawbacks for people without clear prints.

Builders and labourers could have problems because the constant manual work wears down their fingerprints.

And surgeons face similar difficulties because of frequent handwashing.

Mr Laird promised: "We will carefully evaluate customer and operator reactions to the system throughout the period."

r.sayid@mirror.co.uk

Fingerprints 'point' to anti-ID theft safeguard

Fingerprint Identification technologies Present:

Publisher: Keith Hall
Published: 08/03/2006 - 11:13:35 AM

Fingerprints - anti ID theft solution?

Identity fraud remains the fastest rising crime in the UK but fingerprints could point the way towards prevention.

The Co-Operative supermarket chain has today launched trials of a fingerprint scanning process designed to check a customers identity whilst they pay at the check-out till.

Three stores in Oxford are offering a 'Pay & Touch' system similar to a payment option that is already in use throughout the United States where almost 2.5 million customers rely on the process.

Each customers account database contains a fingerprint profile which is linked to their bank account details so users no longer need to carry cash or cards to their Co-Op store, nor are they required to remember their chip-and-pin numbers.

A Co-operative supermarket spokesman claims the free system will be of benefit to its customers.

"It offers us a slight edge over the competition.

"It's a very tough retail world and anything we can do to encourage more people to shop with us gives us a commercial benefit."

Co-Op customers can register for the service at home via the internet, or directly at the three Oxford stores concerned, and if the trials prove to be a success it is understood the ID method could be rolled out across the UK.

However, it appears unlikely that other retailers will follow the Co-op lead and install additional technology at their check-out tills because of cost implications.

It is also felt that many UK retail customers are still coming to terms with the introduction of chip-and-pin.

The use of fingerprints is not a new idea in the fight against identity theft. Indeed, Scotsman Jamie Jamieson has spent much of the last four years trying to convince financial institutions in this country that people can protect themselves from ID theft - without the extra expense of electronic scanners - as he carries an ink pad around in his pocket!

He claims customers can help protect themselves by literally taking the matter into their own hands.

Mr Jamieson was inspired by a 2001 anti-fraud scheme which ran in several towns across the country which was set up to protect shops from fraudulent use of credit and debit cards. Customers were asked to submit a fingerprint to authorise each transaction.

This fingerprint was kept by the shop in paper form for up to 6 months, and if a fraud was attempted the police had access to the offenders fingerprint as each transaction could be matched against their national database of known criminals fingerprints.

Mr Jamieson realised that people in the UK have the legal right to examine their financial records (for a small fee) and can challenge them if they feel they are incorrect - but crucially - customers can also amend their records with a 200-word special notice.

He decided to use this element of the record to specify that all major financial transactions carried out in his name can only be authenticated with a copy of his thumbprint. Therefore, anyone attempting to impersonate him would have to be prepared to do this to gain approval - effectively handing the police a valuable piece of evidence.

Mr Jamieson is convinced his system, unlike the Co-Operative initiative, will deter criminals because they are forced to use their print if they attempt to make fraudulent transactions, and his instructions have to be adhered to by the banks and financial companies he uses: "If someone has stolen my identity, basically I can hold that lender responsible. I can say ' is there a print on it?' If the answer is no, then that product should not have been granted. And if there is, I can say it is not mine."

He says for £6 he is protected against any liability and he insists any thumbprint which was present could be given to the police to help them track down the fraudster.

"The total cost of it to myself was three letters, three stamps and a little ink pad that I carry around with me permanently. I can think of nothing more effective, or as simple, or as cheap."

After hearing of the Co-Operative trials this morning, Mr Jamieson said his method remains a more useful anti-ID theft solution.

"I would say that my system forces crooks to use their print if they wish to steal my ID.

"The advantages of my system are:

* It protects individuals

* It deters

* It aids identification of perpetrators

* It works where electronic systems fail

* It's a system that doesn't say no to the genuine individual (Real rejection rates)

* It's easy to enrol into, and unlike a password or PIN based system it can't be compromised, stolen or lost."

Sagem Morpho Enters FIPS 201 Pre-Certification

Fingerprint Identification Technology Presents:

Sagem Morpho Enters FIPS 201 Pre-Certification

ALEXANDRIA, VA -- (MARKET WIRE) -- 02/27/2006 -- Sagem Morpho Inc., an industry leader in fingerprint and smart card technology, is pleased to announce on January 31, 2006 the submittal of the JD-ID Mark 64 v.1 card with PIV Applet and the Sagem Morpho PIV Client API v.1 to InfoGard Laboratories for FIPS 201 certification (link: http://csrc.nist.gov/npivp/, select Pre-Validation List to the left). The JD-ID Mark 64 v.1 card also recently completed FIPS 140-2 certification testing through the same laboratory. The secure and verified identification credentials as established in PIV are the outcome of the NIST FIPS 201 standard prompted by the Homeland Security Presidential Directive 12 (HSPD-12). In addition to providing a PIV compliant smart card, Sagem Morpho also provides PIV compliant middleware capable of personalizing and managing the contents of the card, including: -- Applicant's personal data (e.g., name, DOB, Social Security number, etc.) -- Applicant's CHUID (Card Holder Unique Identifier) -- Applicant's biometric templates and facial image on the contact chip of the card -- Applicant's PIN, required to unlock the biometric templates and other data objects from the contact chip on the card -- Symmetric and asymmetric keys: PIV Authentication key, Card Management key, Digital Signature key, Key Management key, and Card Authentication key. With these tools Sagem Morpho is furthermore pleased to announce their registration to participate in the NIST PIV Demonstration Project, known as CRADA (http://csrc.nist.gov/piv-program/CRADA, click on Participating Vendors). Sagem Morpho is best known as a top provider of Automated Fingerprint Identification Systems (AFIS) supporting many state, local, and federal law enforcement agencies throughout the United States, including the FBI. Sagem Morpho also provides states with live-scan systems for driver's license issuance and welfare service card issuance to prevent duplicate enrollment. Presently, Sagem Morpho manages a debit card program for the New York State Office of Temporary Disability Agency, to identify individuals applying for medical, financial, or physical needs assistance. Sagem Morpho produces 8,000 cards daily at two mailed Card Production sites and two 1-hour service Over-the-Counter sites. In addition, Sagem Morpho provides smartcards with fingerprint templates as well as smart card and biometric readers to a medical benefits pilot program in a Southwestern State. This pilot demonstrates the capabilities of biometric and smartcard technology to eliminate fraud. Should an individual attempt to enroll under a different name, the duplication will be caught during the biometric enrollment process. Thereafter, applicant fingerprint data is stored on a contact chip for 1 to 1 verification when medical services are required. As an access control solutions provider, Sagem Morpho implements both indoor and outdoor biometric access control terminals that enable three-factor authentication by way of card, pin number, and biometric verification. Sagem Morpho, sub-contracting for a nationwide Access Control Company, provided over 600 access control terminals for portal control at a major U.S. airport. These terminals have been in use for roughly 18 months. In the logical access arena, Sagem Morpho is the technology partner of choice to various solution providers for single sign-on in hospital environments, and point of sale in various markets. For More Information on Sagem Morpho's PIV capabilities contact: James Conniff 703.797.2668 About Sagem Morpho, Inc. (www.morpho.com) Sagem Morpho, the industry leading biometrics company, develops, manufactures, and integrates multiple biometric technologies including fingerprint, palmprint, iris scan and facial recognition products and services. SAGEM Morpho applies more than twenty-five years of global experience in biometric identification. It delivers trusted and reliable biometric solutions to address a wide variety of markets that include the Federal Government, homeland security, law enforcement, drivers' licenses, civil identification, as well as commercial and consumer applications. SAGEM Morpho's solutions are in use by government administrations including the FBI and many other Federal, State and local agencies. Sagem Morpho is a wholly owned subsidiary of the European group SAFRAN.