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Supermarket gets to grip with biometric payment
NEWS ...continued from front page Editorial Office: Elsevier Ltd The Boulevard Langford Lane Kidlington Oxford OX5 1GB, UK Tel: +44 (0) 2920 560458 Fax: +44 (0) 1865 843971 E-mail: [email protected] Website: www.biometrics-today.com Editor: Mark Lockie Programme Editor: Steve Barrett Production Editor: Alan Stubley Subscription Information An annual subscription to Biometric Technology Today includes 10 printed issues and online access for up to 5 users. Prices: 935 for all European countries & Iran US$1011 for all countries except Europe and Japan ¥124 200 for Japan (Prices valid until 31 December 2008) To subscribe send payment to the address above. Tel: +44 (0)1865 843687/Fax: +44 (0)1865 834971 E-mail: [email protected], or via www.biometrics-today.com. Subscriptions run for 12 months, from the date payment is received. Periodicals postage is paid at Rahway, NJ 07065, USA. Postmaster send all USA address corrections to: Biometric Technology Today, 365 Blair Road, Avenel, NJ 07001, USA This newsletter and the individual contributions contained in it are protected under copyright by Elsevier Ltd, and the following terms and conditions apply to their use: Permissions may be sought directly from Elsevier Global Rights Department, PO Box 800, Oxford OX5 1DX, UK; phone: +44 1865 843830, fax: +44 1865 853333, e-mail: [email protected]. You may also contact Global Rights directly through Elsevier’s home page (www.elsevier.com), selecting first ‘Support & contact’, then ‘Copyright & permission’. In the USA, users may clear permissions and make payments through the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, USA; phone: +1 978 750 8400, fax: +1 978 750 4744, and in the UK through the Copyright Licensing Agency Rapid Clearance Service (CLARCS), 90 Tottenham Court Road, London W1P 0LP, UK; phone: +44 (0)20 7631 5555; fax: +44 (0)20 7631 5500. Other countries may have a local reprographic rights agency for payments. Derivative Works Subscribers may reproduce tables of contents or prepare lists of articles including abstracts for internal circulation within their institutions. Permission of the Publisher is required for resale or distribution outside the institution. Permission of the Publisher is required for all other derivative works, including compilations and translations. Electronic Storage or Usage Permission of the Publisher is required to store or use electronically any material contained in this journal, including any article or part of an article. Except as outlined above, no part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior written permission of the Publisher. Address permissions requests to: Elsevier Science Global Rights Department, at the mail, fax and e-mail addresses noted above. Notice No responsibility is assumed by the Publisher for any injury and/or damage to persons or property as a matter of products liability, negligence or otherwise, or from any use or operation of any methods, products, instructions or ideas contained in the material herein. Because of rapid advances in the medical sciences, in particular, independent verification of diagnoses and drug dosages should be made. Although all advertising material is expected to conform to ethical (medical) standards, inclusion in this publication does not constitute a guarantee or endorsement of the quality or value of such product or of the claims made of it by its manufacturer.
02265 Printed by Mayfield Press (Oxford) Ltd.
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Biometric Technology Today
as he and Economic Secretary to the Treasury, Kitty Ussher, met with City representatives. The new scheme would benefit trusted travellers who travel frequently between the two countries. The Statement sets out the shared determination to develop a swift channel across the two borders for trusted travellers, which uses fingerprint, iris or facial recognition technology to speed-up border controls while maintaining their security. According to Byrne, this builds on the success of the UKBA’s IRIS scheme for trusted travellers, which enables registered passengers to enter the UK without queuing, following an iris scan. Already over 200 000 people have enrolled and over 1 million crossings have taken place since its launch in March 2006. IRIS enrolment stations and gates are available at all five Heathrow terminals and at Gatwick, Manchester and Birmingham airports. “Speedy travel between the UK and the US is crucial to large financial organisations. That is why today I was delighted to meet representatives of large City employers, including foreign banks, to announce an agreement made with the US to speed up movement between the US and the UK for trusted people who regularly travel between the two countries,” says Byrne.
acquisition
Digimarc’s ID business in corporate tug of war
F
ollowing bids and counter bids by two of the world’s most powerful biometric companies, Digimarc Corporation finally rejected an unsolicited offer from Safran in favour of its original suitor L-1 Identity Solutions. Consequently Digimarc has signed a merger agreement with L-1 Identity Solutions, valuing its ID Systems Business at US$310 million, an increase of approximately $50 million over the purchase price provided in the existing merger agreement between the parties. The news will be a blow to the French biometric company, tempered only by Safran’s announcement in recent weeks of its acquisition of the Netherlands-based passport and secure ID document maker Sdu-Identification (see page 6). Digimarc Corporation, based in Beaverton, Oregon, is a leading supplier of secure identity and media management solutions. The company provides products and services that enable the annual production of more than 60 million
personal identification documents, including driver licenses and ID solutions for more than 25 countries. The Secure ID business reported revenues of $97 million for the year ended 31 December 2007. The revised transaction between L-1 and Digimarc will be effected through a tender offer, followed by a merger of Digimarc with a wholly owned subsidiary of L-1. The Digimarc Board of Directors unanimously approved the new offer from L-1 and is recommending that Digimarc’s stockholders tender into the offer. The company has terminated its discussions with Safran regarding their interest in acquiring the ID Systems business. According to Bruce Davis, Digimarc Chairman and CEO, Digimarc’s best interests are served by proceeding with L-1 under the terms of the revised agreement. He noted that, “The L-1 proposal provides shareholders with a higher, all-cash price than indicated by Safran and that the tender offer approach proposed by L-1 should expedite closing of the transaction.” Regarding customer and employee interests Davis said, “L-1 CEO Bob La Penta has a clear and convincing vision of global needs for improved identity management. The combination of our ID Systems Business with L-1 positions L-1 as a world leader in providing identity management solutions, with an unrivalled portfolio of technologies, expertise, experience, and relationships. This comes at a very opportune time as many of our customers are considering significant security upgrades, and the US government has awarded tens of millions of dollars of grant monies to improving America’s driver license issuance systems.” Under the terms of the amended merger agreement, the tender offer is expected to commence no later than 7 July 2008 and to remain open for 20 business days. The spin-off of Digimarc’s digital watermarking business will occur prior to the expiration date of the tender offer.
retail
Supermarket gets to grip with biometric payment
D
utch supermarket chain Albert Heijn has begun a trial with payment processor Equens which allows shoppers to pay using their fingerprints. The Tip2Pay – pay with your fingertip – project will last for a period of six months. Its objective is to investigate the potential of this biometric as a new payment method and establish whether it is received positively by consumers. This is the first pilot of its kind in the Netherlands, the companies claim.
July/August 2008
NEWS Tip2Pay enables consumers to pay quickly and securely by placing their fingertip on the reader at the checkout. After they have provided proof of identification and a debit card, a scan will be made of the unique parts of their fingertip. Their name and address details, bank account number and − if required − their customer loyalty card will be registered in accordance with Netherlands privacy laws. Equens will process all fingertip payments. According to Equens’ general manager for New Business, Dave Rietveld: “Recent developments in technology facilitate new and improved payment methods. Equens therefore operates an innovative policy geared towards the development of new payment products based on market requirements.” In addition to this pilot, Equens is currently also developing solutions such as mobile payments and electronic invoicing or ‘e-invoicing’. Albert Heijn is currently also testing a variety of innovative payment methods at local level. These include mobile payments, mobile scanning and contactless payments. Albert Heijn and Equens will be conducting the pilot in consultation with IT-Werke, a company that specialises in integrating biometric technology in retail and consumer applications. The IT-Werke system has already been successfully tested at the German supermarket chain Edeka, which now offers fingertip payment services at 120 of its stores.
Latest news: Hacker shops using rubber finger Press reports are claiming that within weeks of its introduction, a security researcher has cracked the Tip2Pay fingerprint payment system for Dutch supermarket chain Albert Heijn. The researcher succeeded at paying for groceries by using a fake fingerprint. Ton van der Putte, a biometric security enthusiast and one of the first people to spoof fingerprints (having demonstrated this many years ago at one of this newsletter’s biometric shows in London), crafted a copy of a fingerprint out of rubber that was accepted by the Tip2Pay system. Staff members for the grocery store failed to detect the fraud, press reports claim. In its defence Albert Heijn argued that a registered user of the payment system had voluntarily provided his fingerprint to the hacker, thereby making the attack much easier. Meanwhile, the system has a daily spending limit and will compensate consumers if fraud is detected.
July/August 2008
epassport/visa
Sagem wins two highprofile ID contracts
S
agem Sécurité has announced two major contracts in the last month, both in the area of identity credentials underpinned by biometric technology. First came the company’s joint announcement with IT technology services company, Atos Origin, that it has been selected by France’s National Secure Credentials Agency (ANTS), following an international tender, to manage implementation and deployment of the biometric passport system throughout France. The new passport, which is the result of a European Union directive, will reinforce passport reliability and personal security while helping to more effectively combat the fraudulent use of passports. Nearly 5000 data acquisition and processing systems will be deployed in 2000 French town halls and 350 prefectures and sub-prefectures before June 2009, making it possible to include fingerprints on passports, the supplier said. “We’re very pleased to have been chosen for this project, which provides us with national recognition of our global leadership in managing identity credentials solutions and also supports our strategic commitment to expanding in this market,” said Jean-Paul Jainsky, chairman and CEO of Sagem Sécurité. Under the terms of the contract, Sagem Sécurité will provide identity data acquisition systems that comply with ICAO standards. This project includes system deployment in town halls, consulates and prefectures, change management, training for more than 13 000 agents and the development and implementation of remote, paperless payment solutions. Sagem Sécurité’s second win came from the UK’s Home Office, where the company has supplied the biometric management system for visa applicants and the biometric management subsystem for the Biometric Residents Permit (BRP) project. These systems will provide the means to track the immigration status for Third Country Nationals, through the production of biometric cards. According to Sagem, the Automated Fingerprint Identification Systems are designed
APPLICATION NEWS • German facial recognition technology provider Cognitec Systems has announced that its FaceVACS technology was selected by the Bureau of Consular Affairs (BOCA) of Taiwan as the core face recognition software for its ePassports Initiative. The biometric software is integrated within the CryptoMetrics VisMatch solution that is being used to confirm the identity of passport applicants. These biometric solutions use scanned passport applicant photos, processed to International Civil Aviation Organization (ICAO) specifications for facial recognition, to combat the use of forged or tampered travel documents. HP, as the prime systems integrator for the project, is providing the overall ePassport solution that includes design, development, integration and implementation of chip personalization, PKI information security technology and the integration of the CryptoMetrics-supplied image processing, image quality checking and face recognition systems. • On Track Innovations has signed a contract with the Electoral Commission of an unnamed African country to implement the upgrade of the country’s Permanent Voter Registry, including new biometric-based voter cards. The value of the initial contract is over US$2 million, with more than US$1 million expected to be realized in 2008, the company claims. The project’s objectives are to verify the voter identity, detect and avoid double registration attempts, and issue a new Voter ID card bearing advanced security features, which will be used in the next elections. The system will ensure “one person − one vote”. OTI will also provide mobile enrolment stations, and will incorporate a biometric Automatic Fingerprint Identification System (AFIS). The solution supports both online and offline communication, thereby allowing every citizen, from cities to rural areas, to vote. • Clear, a biometric fast pass programme in the USA, has announced a broad partnership with Delta Air Lines that includes the operation of fast lanes in Delta terminals at New York’s JFK and LaGuardia airports, and Los Angeles International, starting this summer.
Biometric Technology Today
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02265 Printed by Mayfield Press (Oxford) Ltd.
2
Biometric Technology Today
as he and Economic Secretary to the Treasury, Kitty Ussher, met with City representatives. The new scheme would benefit trusted travellers who travel frequently between the two countries. The Statement sets out the shared determination to develop a swift channel across the two borders for trusted travellers, which uses fingerprint, iris or facial recognition technology to speed-up border controls while maintaining their security. According to Byrne, this builds on the success of the UKBA’s IRIS scheme for trusted travellers, which enables registered passengers to enter the UK without queuing, following an iris scan. Already over 200 000 people have enrolled and over 1 million crossings have taken place since its launch in March 2006. IRIS enrolment stations and gates are available at all five Heathrow terminals and at Gatwick, Manchester and Birmingham airports. “Speedy travel between the UK and the US is crucial to large financial organisations. That is why today I was delighted to meet representatives of large City employers, including foreign banks, to announce an agreement made with the US to speed up movement between the US and the UK for trusted people who regularly travel between the two countries,” says Byrne.
acquisition
Digimarc’s ID business in corporate tug of war
F
ollowing bids and counter bids by two of the world’s most powerful biometric companies, Digimarc Corporation finally rejected an unsolicited offer from Safran in favour of its original suitor L-1 Identity Solutions. Consequently Digimarc has signed a merger agreement with L-1 Identity Solutions, valuing its ID Systems Business at US$310 million, an increase of approximately $50 million over the purchase price provided in the existing merger agreement between the parties. The news will be a blow to the French biometric company, tempered only by Safran’s announcement in recent weeks of its acquisition of the Netherlands-based passport and secure ID document maker Sdu-Identification (see page 6). Digimarc Corporation, based in Beaverton, Oregon, is a leading supplier of secure identity and media management solutions. The company provides products and services that enable the annual production of more than 60 million
personal identification documents, including driver licenses and ID solutions for more than 25 countries. The Secure ID business reported revenues of $97 million for the year ended 31 December 2007. The revised transaction between L-1 and Digimarc will be effected through a tender offer, followed by a merger of Digimarc with a wholly owned subsidiary of L-1. The Digimarc Board of Directors unanimously approved the new offer from L-1 and is recommending that Digimarc’s stockholders tender into the offer. The company has terminated its discussions with Safran regarding their interest in acquiring the ID Systems business. According to Bruce Davis, Digimarc Chairman and CEO, Digimarc’s best interests are served by proceeding with L-1 under the terms of the revised agreement. He noted that, “The L-1 proposal provides shareholders with a higher, all-cash price than indicated by Safran and that the tender offer approach proposed by L-1 should expedite closing of the transaction.” Regarding customer and employee interests Davis said, “L-1 CEO Bob La Penta has a clear and convincing vision of global needs for improved identity management. The combination of our ID Systems Business with L-1 positions L-1 as a world leader in providing identity management solutions, with an unrivalled portfolio of technologies, expertise, experience, and relationships. This comes at a very opportune time as many of our customers are considering significant security upgrades, and the US government has awarded tens of millions of dollars of grant monies to improving America’s driver license issuance systems.” Under the terms of the amended merger agreement, the tender offer is expected to commence no later than 7 July 2008 and to remain open for 20 business days. The spin-off of Digimarc’s digital watermarking business will occur prior to the expiration date of the tender offer.
retail
Supermarket gets to grip with biometric payment
D
utch supermarket chain Albert Heijn has begun a trial with payment processor Equens which allows shoppers to pay using their fingerprints. The Tip2Pay – pay with your fingertip – project will last for a period of six months. Its objective is to investigate the potential of this biometric as a new payment method and establish whether it is received positively by consumers. This is the first pilot of its kind in the Netherlands, the companies claim.
July/August 2008
NEWS Tip2Pay enables consumers to pay quickly and securely by placing their fingertip on the reader at the checkout. After they have provided proof of identification and a debit card, a scan will be made of the unique parts of their fingertip. Their name and address details, bank account number and − if required − their customer loyalty card will be registered in accordance with Netherlands privacy laws. Equens will process all fingertip payments. According to Equens’ general manager for New Business, Dave Rietveld: “Recent developments in technology facilitate new and improved payment methods. Equens therefore operates an innovative policy geared towards the development of new payment products based on market requirements.” In addition to this pilot, Equens is currently also developing solutions such as mobile payments and electronic invoicing or ‘e-invoicing’. Albert Heijn is currently also testing a variety of innovative payment methods at local level. These include mobile payments, mobile scanning and contactless payments. Albert Heijn and Equens will be conducting the pilot in consultation with IT-Werke, a company that specialises in integrating biometric technology in retail and consumer applications. The IT-Werke system has already been successfully tested at the German supermarket chain Edeka, which now offers fingertip payment services at 120 of its stores.
Latest news: Hacker shops using rubber finger Press reports are claiming that within weeks of its introduction, a security researcher has cracked the Tip2Pay fingerprint payment system for Dutch supermarket chain Albert Heijn. The researcher succeeded at paying for groceries by using a fake fingerprint. Ton van der Putte, a biometric security enthusiast and one of the first people to spoof fingerprints (having demonstrated this many years ago at one of this newsletter’s biometric shows in London), crafted a copy of a fingerprint out of rubber that was accepted by the Tip2Pay system. Staff members for the grocery store failed to detect the fraud, press reports claim. In its defence Albert Heijn argued that a registered user of the payment system had voluntarily provided his fingerprint to the hacker, thereby making the attack much easier. Meanwhile, the system has a daily spending limit and will compensate consumers if fraud is detected.
July/August 2008
epassport/visa
Sagem wins two highprofile ID contracts
S
agem Sécurité has announced two major contracts in the last month, both in the area of identity credentials underpinned by biometric technology. First came the company’s joint announcement with IT technology services company, Atos Origin, that it has been selected by France’s National Secure Credentials Agency (ANTS), following an international tender, to manage implementation and deployment of the biometric passport system throughout France. The new passport, which is the result of a European Union directive, will reinforce passport reliability and personal security while helping to more effectively combat the fraudulent use of passports. Nearly 5000 data acquisition and processing systems will be deployed in 2000 French town halls and 350 prefectures and sub-prefectures before June 2009, making it possible to include fingerprints on passports, the supplier said. “We’re very pleased to have been chosen for this project, which provides us with national recognition of our global leadership in managing identity credentials solutions and also supports our strategic commitment to expanding in this market,” said Jean-Paul Jainsky, chairman and CEO of Sagem Sécurité. Under the terms of the contract, Sagem Sécurité will provide identity data acquisition systems that comply with ICAO standards. This project includes system deployment in town halls, consulates and prefectures, change management, training for more than 13 000 agents and the development and implementation of remote, paperless payment solutions. Sagem Sécurité’s second win came from the UK’s Home Office, where the company has supplied the biometric management system for visa applicants and the biometric management subsystem for the Biometric Residents Permit (BRP) project. These systems will provide the means to track the immigration status for Third Country Nationals, through the production of biometric cards. According to Sagem, the Automated Fingerprint Identification Systems are designed
APPLICATION NEWS • German facial recognition technology provider Cognitec Systems has announced that its FaceVACS technology was selected by the Bureau of Consular Affairs (BOCA) of Taiwan as the core face recognition software for its ePassports Initiative. The biometric software is integrated within the CryptoMetrics VisMatch solution that is being used to confirm the identity of passport applicants. These biometric solutions use scanned passport applicant photos, processed to International Civil Aviation Organization (ICAO) specifications for facial recognition, to combat the use of forged or tampered travel documents. HP, as the prime systems integrator for the project, is providing the overall ePassport solution that includes design, development, integration and implementation of chip personalization, PKI information security technology and the integration of the CryptoMetrics-supplied image processing, image quality checking and face recognition systems. • On Track Innovations has signed a contract with the Electoral Commission of an unnamed African country to implement the upgrade of the country’s Permanent Voter Registry, including new biometric-based voter cards. The value of the initial contract is over US$2 million, with more than US$1 million expected to be realized in 2008, the company claims. The project’s objectives are to verify the voter identity, detect and avoid double registration attempts, and issue a new Voter ID card bearing advanced security features, which will be used in the next elections. The system will ensure “one person − one vote”. OTI will also provide mobile enrolment stations, and will incorporate a biometric Automatic Fingerprint Identification System (AFIS). The solution supports both online and offline communication, thereby allowing every citizen, from cities to rural areas, to vote. • Clear, a biometric fast pass programme in the USA, has announced a broad partnership with Delta Air Lines that includes the operation of fast lanes in Delta terminals at New York’s JFK and LaGuardia airports, and Los Angeles International, starting this summer.
Biometric Technology Today
3