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August 2008 • Volume 13 Number 8 |
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Executive Director's Letter Dear members and friends of the Alliance, Has the time come for smart payment cards in the U.S. to address fraud? On August 5, 2008, the U.S. Department of Justice announced the indictments of 11 people for allegedly stealing more than 40 million credit and debit card numbers by hacking into the wireless computer networks of retailers including TJX Companies, whose stores include Marshall's and T.J. Maxx, BJ's Wholesale Club, OfficeMax, Barnes and Noble, and Sports Authority, among others. This resulted in extensive media coverage in most major news and television outlets. This breach was not a new story since the actual theft was reported in January, but the details about how the theft occurred and how an international criminal gang was involved in the case opened my eyes to how serious this case is to the global card payments industry. It awakened in me a strong desire to understand the current state of security in the payments industry and the potential for this theft to stimulate debate among U.S. payments industry stakeholders about getting serious about migrating to chip payment cards. The payments industry has already fully migrated to chip payment cards in France, Germany, and the United Kingdom, and the migration is already underway in North America in Mexico and Canada.
Member Profile: HIRSCH Electronics
Recognized as a physical access control system (PACS) subject matter leader, he is a frequent speaker and an active member and officer of the Smart Card Alliance Physical Access Council. Mr. Suneborn is actively involved in industry groups developing open standards for smart card and related system components. He is actively promoting smart card, biometric and PKI cryptographic technologies as vital components in overall system designs for high-risk, high-security facilities nationally and internationally. He is guiding U.S. agencies in their efforts to achieve HSPD-12 and FIPS 201 PIV compliance. His clients include U.S., British and Canadian government agencies. His experience includes system design, deployment and long term sustainability programs for government facilities world wide. Mr. Suneborn has developed and conducted agency specific week-long training courses for a variety of U.S., Canadian and British security agencies.
Feature of the Month Proximity Mobile Payments Business Scenarios: Stakeholder Perspectives
In 2007, the Smart Card Alliance Contactless Payment Council published its white paper on proximity mobile payments in which the opening statement was, "The convergence of payments and mobile communications is not just logical—it is inevitable." [1] The Council has now conducted industry research that looks further at the journey towards the “inevitable” by examining the progress that is being made to define a sustainable business model. While the logic behind proximity mobile payments is generally accepted, precisely when they will become widely available and how the industry will get there are still being debated. This article summarizes the results of research. Research Overview The convergence of mobile and payment is extremely complex, requiring the cooperation of many players and stakeholders. As a result, the mobile payments landscape continues to evolve with various business models emerging worldwide.
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This month, Smart Card Talk spoke with Lars Suneborn, Director, Government Program, HIRSCH Electronics. During his 30+ year career in the security industry, Mr. Suneborn has served in a variety of roles. Currently he is leading HIRSCH development of FIPS 201 compliant products and related system enhancements. 
The smart card industry and media alike continue to focus on mobile payments, regularly reporting on interest being shown in the new payment method.
Executive Director's Letter
