CertaPIN - Making Security Profitable

CertaPIN™

Making Security Tangible

Debit & Credit Card Statistics in Canada

· 50% of Canadians are concerned about information theft with debit card use (Ipsos-Reid)

· There have been over 20,000 cases of identity fraud this year in Canada (Jan-Aug 2003, Equifax Canada)

· Identity fraud is growing at greater than 100% (Equifax Canada)

· 40,000 ABM/ATM’s processed 333 Million transactions in Canada in 2002 (Interac)

· 2.4 Billion Interac Direct Payments totaling $104.9 Billion in Canada in 2002 (Interac)

The Problem

Banks have invested large amounts of money for security systems and are quite secure already, but they are unable to pass the cost of security back to the consumer. They lack something tangible to rationalize the expenditure.

Canadians believe that identity and debit card fraud are significant and growing problems, because third party ABM and POS terminal scams are regularly in the news. This perception of insecurity could reduce debit/credit card usage in favor of alternate financial transaction methods.

The Solution

Make security tangible & chargeable

CertaPIN gives consumers a tangible solution to protecting their identity. As an example, stickers can be applied to bankcards to provide consumers with a single-use PIN, making the theft of that PIN traceable.

The consumer decides when to use CertaPIN to protect themselves. Consumers use CertaPIN when they do not trust of the system they are using (3^rd party ABM anywhere worldwide). CertaPIN is extremely secure and simple to use.

1. Peel off the sticker with the CertaPIN code

2. Punch in their PIN along with the CertaPIN digits (“*” indicates where to input their PIN)

3. Withdraw their cash

4. Dispose the CertaPIN Sticker (self-destructs)

5. Absolute confidence that their PIN is protected

Go To Market Strategy

SecurePIN’s patented technology (pending) can be implemented without any investment in new readers, or expensive smart card chips.

Adoption rates will increase as more reports of ABM and identity fraud appear in the news, and advertising can take advantage of the fear of identity fraud. Here are examples of a launch campaign, promotion, and loyalty program for CertaPIN.

SPIN your PIN Educate users about securing their PIN with CertaPIN.

PEEL your PIN and WIN! Random CertaPIN Sticker numbers will win prizes!

PIN Points Each time a CertaPIN Sticker is used, customers accumulate points to be redeemed for…whatever!

Competitive Advantages

· Protect 3^rd party POS systems without their support or knowledge

· Exact PIN theft traceability

· No change required to existing infrastructure

· Stops internal fraud

· Chargeable consumer driven solution

· No new security holes

Revenue Model

Per use charge:

Each time consumers make a transaction away from their own bank’s ABM and feel they need additional protection they can use a CertaPIN Sticker. Assume that 25% of transactions will need to be secured with CertaPIN.