CRIME Information from Versacheck

From: SNYDER Jeff (jeff.snyder@private)
Date: Wed Mar 19 2003 - 14:11:12 PST

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    I recently asked if anyone could assist regarding password breaking on a
    Versacheck program being used in an identity theft case.  Thanks for the
    feedback from those who responded.  If anyone's interested, the attached is
    a response I received from G7 Productivity Systems that produces Versacheck.
    They've been very supportive and have provided the resources needed to solve
    our problem.  By the way - my apologies for not adding a political
    commentary.
    
    Jeff, 
    In my position I see unfortunately that VersaCheck is quite popular with the
    bad guys, but at the same time, its probably beneficial 
    that you all know what they are using because you learn how to corner
    them... its clear that our current checking systems using pre-printed checks
    can only attempt to thwart fraud using fancy paper or ink because it fails
    miserably in keeping data private, since its all visible right there on the
    check. 
    Those methods will continue to fail because they are too easy to copy in
    this world. With the VersaCheck model, we have implemented the means in
    products that are currently shipping, the ability to encrypt sensitive
    personal and financial data that is on a check, and provide the ability to
    verify in real time the data on the paper with a record on the servers
    created by an "underwritten" payor (ie...we have vouched their identity).
    With our Qchex.com system, we've created and implemented the ability to
    deliver checks "person to person" with no prying eyes.. 
    These systems VersaCheck, Qchex, Checkscape, are in place, and many people
    are adopting them, for the speed, and the security and the lower cost. We
    are sure that the benefits to society of making our checking system more
    secure outweigh the costs of the changeover from the old system, and we will
    continue to work towards a VersaCheck solution that is so compelling that
    the changeover will be bought into and pushed by those at the very highest
    level of government. 
    The only favor we would need to ask is to forward my email up the chain, so
    people can talk about it. Many people don't view Versacheck as a solution
    until they really look closely at what we are doing. In the meantime, we
    will continue to refine our productivity based products and work hard. 
    Thanks 
    James Danforth, EVP/CFO 
    G7 Productivity Systems 
    



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