MasterCard Chip Authentication Programme Now Supported by Eracom Technologies Extended Hardware Security Module (HSM) Product Line

Krefeld, Germany – 1 November 2004 – Eracom Technologies, a leading developer and global supplier of cryptographic technologies and solutions, today announced that its ProtectHost White and ProtectServer Orange Hardware Security Modules (HSM’s) have been enhanced to provide support for MasterCard’s Chip Authentication Programme.

MasterCard’s Chip Authentication Programme leverages the technology and widespread deployment of EMV smart cards to create a highly secure and cost effective method of authenticating cardholders for a wide range of applications. Such applications include online shopping and multi-channel banking services, thereby helping to reduce the potential risks traditionally associated with online shopping.

Eracom’s ProtectHost White and ProtectServer Orange HSM technology now delivers the “back end” capability of approving or denying authentication requests in line with the requirements of MasterCard’s Chip Authentication Programme. Deployment can be undertaken either as discrete elements of a “in house” system, or can be integrated into a market ready solution such as ASPACE Solutions’ 4TRESS system. By integrating the necessary functions into both product sets, Eracom Technologies can address the full range of platform, performance and cost requirements that enterprises demand within a MasterCard Chip Authentication Programme implementation.

Chip authentication technology delivers significant advantage to cardholders, such as easy and highly secure sign-on to web banking applications. Using the combination of an EMV card and a highly portable, pocket or wallet sized card reader, a personal “one-time password’ or a one-time ‘challenge and response’ process is generated to strongly authenticate both the card and the cardholder to the application. The fact that the password changes every time a transaction occurs means the system offers levels of security much higher than systems using a static User ID and password. This simple process is convenient for users, highly cost-effective and creates a solution that helps overcome many of the problems associated with ‘traditional’ authentication systems and the risks of password capture, ‘phishing’ scams and unauthorized ‘card not present’ usage.

“The introduction of smart cards is already having a significant impact on the payments market, improving consumer confidence, creating new applications and delivering greater value to cardholders and banks,” said Fikret Ates, Vice President, Chip Product Management, MasterCard International. “By involving Eracom Technologies in MasterCard’s Chip Authentication Programme, we can offer a greater breadth of choice and value to our customer financial institutions, who can leverage their existing EMV investments into new areas, such as strong authentication for online multi-channel payment and financial services.”

“The strong relationship and long history of working closely with MasterCard is extremely important for Eracom Technologies, and we are excited to contribute a supporting technology solution to the Chip Authentication Program”, added Ansgar Dodt, COO of Eracom technologies EMEA. “Eracom Technologies has a 25 year history of pioneering cryptographic hardware security module solutions to EFT, card payments and the e-banking markets. This history positions our in-house skill-set and culture to rapidly respond and support new market innovations such as the MasterCard Chip Authentication Programme. We consider this program to be a key industry initiative strengthening the future of card security and we are looking forward to working with MasterCard customers and the vendor community to help realize the value of the program.”

About Eracom

Celebrating 25 years (1979-2004) of excellence in cryptography, Eracom Technologies is a leading developer and global supplier of cryptographic hardware and software products. As a true pioneer in the IT security industry, Eracom offers proven cryptographic security solutions to a wide range of industries including banking, finance, government and technology sectors. In the last two decades alone, Eracom has successfully developed and deployed several generations of Hardware Security Modules (HSMs) to the market as well as a range of advanced cryptographic APIs and privacy of information products.

Eracom provides 24×7 worldwide customer support with guaranteed response times as well as access to free updates and documentation via the Eracom Website. Eracom is represented by a worldwide network of wholly owned subsidiaries and distribution channels with offices in 11 countries.

Eracom is proud to have served and supported the ever increasing and most stringent IT security needs with its Electronic Transaction Security and Privacy of Information portfolios. Together with its worldwide partners, Eracom is here to protect the future. www.eracom-tech.com

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