S.W, MRTO - By now all of you have probably read about the "Hacker Attack" on
Yahoo, Ebay, and CNBC. In addition other hackers have recently stolen
credit card holder data from Thai E-commerce servers and others. (story
attached).
Listening to Greenspan we note that the World is no longer on a "Gold
Standard".......we are now on an "Internet Standard". That "standard" was
severely threatened this week. Now......the hackers didn't do more than
overload the servers and cause them to momentarily crash.....but the
perception in the market place goes much deeper.
Internet security will become the prime focus on Wall St.
We have researched MerchantOnline.com and their proposed applications for
enhanced security on the net. If these guys can actually pull it off...our
findings are "signifigant". In short here's what they have and why we think
it will work;
The Threat:
1.Anyone sending their credit card number over the internet risks the
chance of "piracy" catching the card number and PIN numbers.
2. Hackers can attach "cookies" while you are online.....and actually see
what you are typing....scary thought!
3. Even on a secure server....anyone registering their card number, and
personal data risks the chance of a "hacker", or unethical employee
entering the server and removing the information.
4. We have seen cases lately of secure servers being physically stolen from
the premises and credit information taken and utilized.
5. Even on ligitimate transactions the process is complicated as there is
no proof that the card holder is actually sending the data.
6. E-commerce retailers have received multiple online orders and shipped
them, only to find 3 days later the card authorization has been rescinded.
This effects both the card issuers as well as the merchants.
MerchantOnline's Solution:
1. A credit card swiper which will plug into your key board. All card
information is sent "encrypted" in the swiper so it is already encoded
before entering your computor.......right through to the credit card
processer (MerchantOnline) then on to Visa, Mastercard, Amex, etc.
2. No Online Merchant or his server ever sees your personal credit card
data or stores it.....whatever he does see is all encryted.
3. Card holder verification is instantaneous as the purchaser must be in
physical pocession of the card in order to swipe it.
Here's the really neat part:
4. Further cardholder verification can be made.....as the card swiper will
also read the cardholders license and send that data encryted as well.
5. The process will allow for ATM transactions on a B2B transaction where
normal credit card fees would be too high. Settlement is "instantaneous",
no holding period.....wouldn't the online Casinos love that feature!
Here's another bonus:
6. The card swipe device is also a "writer". Daddy can issue a separate
debit card to Jr. in colledge. When Jr. runs out of money, Daddy can
transfer it over the net......Jr. can download it onto his card at his
computer and be "financially recharged" without having exhausted Daddy's
credit card. When we heard this one.....our immediate reaction was to
"Short" Western Union.....those expensive money transfers will be
obsolete.
The BIG BONUS.........
What happens when EBAY, AMAZON, etc, Can now run transactions with the
millions of "credit impaired" Americans over the net? What about the
juvenile market which doesn't qualify for a credit card....but is the
market leader for Online Music purchases?
What happens when "spontaneous" E-traders can now buy stock on "Impulse"
despite insufficient funds in their e-trade account. SWIPE-IT!
MerchantOnline says the card-swiper will sell for around $25....and cost
less than $10 to produce. We expect Online Brokerage Firms will "give them
away" with every new account". Not to mention the top e-retailers. Remember
MRTO also gets a percentage of every transaction.
There is no doubt in our minds that this is why MRTO was invited by NACHA
(125 member Internet council)to help set the standards for Internet
security via an E-Payment Pilot project.
We encourage everyone to do your research. Remember DELL, the internet's
top performer......up a whopping 73,000% (hard to believe).
If MerchantOnline does get the "good housekeeping seal" from the market
leaders...........it would be very difficult to predict
evaluations.....guess we'll leave that up to Wall Street.
Current $16.50
Here's the Hacker article.
US Hacker Lifts Thai Credit Card Data
Section: 80. International News
A US-based hacker has extracted credit card information from a Thai
e-commerce web site and posted it on two US sites, according to the Bangkok
Post. The paper said hacking into the site had been made easy for the
intruder, who calls himself Curador, the credit card details had been
stored in a mail server by Loxley Information Services, the operator of the
www.shoppingthailand.com site. It quoted a local expert as saying card data
should be kept on bank computers protected by double firewalls. All credit
card holders who have made purchases via the site have been advised to
check monthly statements for incorrect charges.
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