SAFLINK and Microsoft are developing repeatable enterprise solutions targeted to border control and identity management projects by leveraging their combined strengths in biometric technologies and enterprise application software. Based on Microsoft enterprise software, these solutions are designed to help the Department of Homeland Security, along with the other government agencies and private enterprises it impacts, to increase security and operational efficiency, improve service to citizens, and reduce costs.

The contract is for the development and operation of a Biometrics (Face and Fingerprint) Authentication Center (“BAC”) for credit card payments in Thailand, Brunei, Indonesia and Hong Kong. The objective is to achieve zero-fraud in credit card transactions. Customers targeted for the project include credit card issuers such as banks and other financial institutions, plus merchants accepting credit card payments. Revenues will be generated from sales and/or rental of Point-of-Sales (POS) terminals equipped with a USB camera and fingerprint reader and from transaction charges.

Secured Digital Applications, based in Malaysia, is a leading developer of security applications using redundant biometric information retrieved from facial recognition and fingerprint technologies. The company has been engaged to install such biometric-based security systems at various government and private facilities and has recently begun development of an online payment portal utilizing redundant biometrics. The company is also involved in developing and maintaining databases of biometric information. The combination of fingerprint and facial recognition provides accuracy similar to DNA studies.

The verification system being developed for SNC will use biometric data stored in computerized systems that will permit credit card issuers to verify the identity of a credit card user with a high degree of accuracy. Credit card users will register their face and fingerprint details when applying for a new card or upon renewal of their current cards. Merchants will enrol biometric data when users register and sign up for new cards or renew merchants’ loyalty cards.
The system protects clients through a series of authentications, certifications and authorizations. Once the user has been authenticated, details of the purchases and a certification by BAC will be forwarded to the bank’s verification and authentication server (VAS) to process credit card details (credit limit, validity, outstanding balances, etc.). Once all details have been verified, the authorization of the transaction will be transmitted back to the POS. There is no need for the customer’s signature. At the same time, the VAS will update the banking system so that payment will be made to the merchant and charged to the user’s account in real time.

“In the second quarter, all 4 Honeywell businesses saw increases in sales and improving end markets,” said Honeywell chairman and chief executive officer Dave Cote. “Double digit net income growth was driven by strong conversion on higher volume. We are benefiting from the depth and breadth of our technology, our strong customer relationships and the actions taken to prepare for the market turnaround we are now experiencing. We continue to fund growth initiatives that will translate into future opportunities across our businesses.”

The company’s net income increased to $US361 million for the quarter, with volume-driven profitability partially offset by the impact of higher non-cash pension expense. Free cash flow of $US357 million equals approximately 100% of net income. Net debt (total debt minus cash and cash equivalents) was $US1.9 billion, or 15 per cent of net capital (shareowners’ equity plus net debt).
“Order rates continue to be strong in all of our businesses,” Cote said.

“Automation and Control Solutions introduced a new touch screen programmable thermostat and won significant new contracts in its Building and Process Solutions businesses…In Specialty Materials, our Spectra bullet-resistant fiber and our broad fluorines product offerings continue to experience double digit orders growth.”

During the quarter the company continued to make progress divesting non-core businesses and improving its cost base. Divestitures (principally Security Monitoring) resulted in gains of $US233 million.

The National Institute of Standards and Technology computer scientists tested 34 commercially available systems provided by 18 companies from around the world. NIST conducted the study to fulfill requirements of the USA PATRIOT Act and the Enhanced Border Security and Visa Entry Reform Act. The test used operational fingerprints from a variety of U.S. and state government sources. A total of 48,105 sets of fingerprints from 25,309 people, with a total of 393,370 distinct fingerprint images, were used to enable thorough testing.

The most accurate systems were from NEC of Japan, SAGEM of France and Cogent of the United States. The performance of these three systems was comparable. The performance varied depending on how many fingerprints from a given individual were being matched. The best system was accurate 98.6 percent of the time on single-finger tests, 99.6 percent of the time on two-finger tests, and 99.9 percent of the time for tests involving four or more fingers. These accuracies were obtained for a false positive rate of 0.01 percent.

The Justice Management Division of the U.S. Department of Justice funded the study in connection with its efforts to integrate the fingerprint systems operated by the Federal Bureau of Investigation and the Department of Homeland Security.