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15July/August 2009 Card Technology Today
FEATURE
to review their online security strategies fol-lowing a huge rise in eCommerce fraud. In France, remote payments represent five per-cent of all transactions each year but makes up forty-four percent of transaction fraud. In 2007, the amount lost to e-commerce fraud in France was said to E50m, with half com-ing from eCommerce purchases at the fastest growing rate.
A survey conducted by XIRING earlier in 2009 of French consumers reiterated the need for tighter eCommerce security. Twenty three percent of respondents indi-cated they would shop more online if securi-ty were improved. Increased security would also encourage the use of online shopping services including those who had never shopped online, or had stopped shopping online because they did not feel secure.
Banque Populaire is the first French bank to roll out remote card authentication solu-
tions for both eCommerce and eBanking concurrently. The Home Chip and PIN solu-tion (known as ‘Vericode’ in France) works by the same premise as it does for securing eBanking in the UK. When making an elec-tronic transaction online consumers insert their bank card into the reader, type in their PIN to be validated by the card chip that generates an eight digit one-time password displayed on the LCD reader. The user then types in the one-time password onto the web page to confirm the validity of the transac-tion. In short, the internet operation is the same as that carried out at the till in a face to face transaction and subsequently instils confidence in the customer, the retailer and ultimately the bank.
Home Chip and PIN card readers have proved to be highly successful in securing online operations across Europe, and nota-bly France is now following in the same
footsteps as the UK by creating a means for stronger online authentication and reduc-ing the opportunity for fraud. However, with EMV bank cards currently issued to more than one hundred million Europeans and ever changing banking regulations and initiatives coming to the fore, the busi-ness case for expanding the use of these solutions to secure both online banking and e-commerce payments concurrently is a strong one being considered by major banks. Forecasts suggest that in the coming two years 60 million European consumers will be equipped with card-based strong authentication solutions, from twenty million at the end of 2008.
This article was provided by Laurent Maitre, marketing
director, XIRING. Tel: +33 1 46 25 80 55,
email: [email protected]
RFID – where are we now?
A report by IDTechEx - RFID Forecasts, Players, Opportunities 2009-2019 – shows that there has been a surge in orders for RFID in 2009, despite the loss of the $6 billion China National ID card scheme. According to the consulting group, the global RFID market is rising 5% this year to $5.56 billion. This is in the face of the global financial meltdown which has caused some car production, for example, to plummet by 50%.
RFID by territoryMost of the action has been in the USA, where the largest orders continue to be placed, in the UK, China, Germany and Japan. The largest expenditure on RFID is currently in the USA followed by China and Japan. CSC and IBM have landed an order for $570 million to upgrade the UK ePassport applications and enrolment sys-tem. Meanwhile, Unisys was one of four companies selected by the US Army Program Executive Office-Enterprise Information Systems for a contract for the Radio Frequency Identification III (RFID III)
program. This contract has a total ceiling value of $428 million.
Currently, RFID tags are attached to approx-imately 125,000 shipments of US military sup-plies each week.
Transcore landed $63 million for RFID based non-stop tolling in Florida. In addi-tion, the USA has seen many multimil-lion dollar RFID orders placed recently, one example being a $2 million order for Awarepoint to provide a Real Time Locating System for Jackson Health System, continu-ously tracking 12,000 key assets. For most of these suppliers, the new orders are their larg-est orders ever.
IDTechEx says that, this year, the Chinese are putting RFID where it is not encountered in the West such as in cheques and on fast fishing boats to prevent collisions. However, China is also making the world’s largest invest-ment in installing RFID throughout its facto-ries and supply chain in order to underpin the nation’s pre-eminence in manufacturing. An order for $8 million of RFID enabled casino chips has been placed by establishments in Macao and the Philippines.
However, there is increased activity else-where as well, including Gemalto servicing an order for 900,000 RFID National ID cards for Lithuania, probably valued at more than $6 million. Infineon received a $24 million order for passport RFID chips in India and Axcess clocked $3.5 million for a port security infrastructure RFID system in Trinidad. Moscow Metro has ordered about $10 million of RFID tickets.
TechnologyOn the technology front, IDTechEx says that Wireless Sensor Networks – so-called Third Generation Active RFID – are being newly offered by a large number of companies. They have taken many fairly modest sized orders initially but enough to make the market for WSN overtake the market for RTLS - Second Generation RFID –though the two do not yet compete with each other. RTLS first took off one year earlier when over 100 US hospitals adopted it.
For more information on the topic please contact
the author Peter Harrop at [email protected]
or visit www.IDTechEx.com/research. To find out
more about the RFID Europe 2009 conference please
contact the Event Manager Corinne Jennings at
Despite the world’s largest RFID project – the $6 billion China National ID card scheme – being finished in 2008 there has been a surge in orders for RFID in 2009. This article, based on a release from Peter Harrop, Chairman, IDTechEx, assesses where the RFID market now stands.
