Arcot And Ncipher Partner To Enable Secure Online Payment Transactions

EDP Weekly's IT Monitor, April 22, 2002

nCipher plc (LSE:NCH), a provider of cryptographic IT security solutions, and Arcot Systems, a leading provider of solutions for securing e-business, has announced a development partnership which combines nCipher's nShield Hardware Security Modules (HSMs) with Arcot's TransFort payment authentication solution.

Providing secure payment authentication to financial service institutions, issuing banks, and a wide range of credit card and payment processor companies, the integrated products will provide Federal Information Processing Standard (FIPS) 140 approved security for sensitive cardholder data and online payment authentication processes.

In order to meet the new levels of security that customers, credit card associations and financial institutions require, online payment services are required to comply with best practice security standards and address a wide range of threat scenarios. To service this need, the integration of Arcot and nCipher products provides an additional level of security to Arcot's TransFort payment authentication solution. As a security application, TransFort uses cryptography in a variety of ways to encrypt sensitive information and to create digital signatures to provide a record of authenticity for transactions and payment authorization. The integration of the nShield HSM establishes a safe, tamper-resistant environment that overcomes the inherent security flaws associated with handling sensitive information or performing secure processes on unprotected server platforms.

Typical of payment systems requiring this enhanced level of security are those that support the "Verified by Visa" initiative, Visa's Internet payer authentication process. For example, the ability to secure smart card and conventional magnetic swipe credit card authentication data to the FIPS security standard enables Visa card issuers to protect the sensitive information and authentication processes upon which Verified by Visa is built.

Under the terms of the agreement Arcot's TransFort solution will be integrated with nCipher's FIPS 140 level 3 nShield HSM technology. This will allow the processing of encrypted customer data to be performed by Arcot's software but take place within the boundaries of the nShield HSM, ensuring that sensitive data is never exposed to potential attackers.

"For issuing banks and credit card processors the protection of consumer cardholder data is paramount," said Chet Silvestri, president and CEO of Arcot. "With nCipher's validated security solution and Arcot's powerful TransFort payment authentication platform, these financial institutions are assured that they are getting a best-of-breed solution for protection against online card fraud."

"Minimizing the exposure of sensitive, cryptographic authentication data from both internal and external threats is a critical requirement of a secure online payment solution. We are excited to be able to partner with Arcot to provide a solution that delivers the level of security our joint customers require," said Greg Dunne, senior vice president of North American sales for nCipher.