mk group participates in the conference · mk group participates in the conference “promoting the...

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Certificates & Industry membership

Internal Newsletter of MK Group

MK WORLD OF CARDS Editor-in-chief: Ms. Phan Thi Quynh Hoa – MD of MK Group

Note: All information and images in this internal magazine were collected and edited from various reputed sources by MK Group and used for knowledge -sharing purposes only.

| Email: [email protected]

Headlines:

❖ MK Group participates in the

conference “Promoting the application

of cryptography products and services

for socio-economic development”

❖ Banks apply free on-net money

withdrawal, account transfer

❖ Brits prefer biometrics for banking

❖ EAST issues 2nd update on ATM-

related crime in 2017

❖ Segmenting US banks: Focus on card

issuing and presence of acquiring

Issue #20 | August 2017

MK Group participates in the conference

“Promoting the application of cryptography products

and services for socio-economic development”



MK NEWS

many others from organizations, enterprises trading & applying

cryptography products, i.e. IBM, Oracle, HPE, Bitdefender,

Samsung, Sonicwall, Netvision, MK Group, etc.

At the conference, Mr. Le Minh Quoc – CTO of MK Smart

presented the All-in-one MK smart customization security solution

and Mr. Vu Minh Vu – Solution Manager of MK Group presented

the Prim’X high-grade encryption solution.

The All-in-one MK smart customization security solution is highly

recommended for its flexibility and applicability of the

implementation in practice. This is a high security solution

implemented on the basis of the card and USB reader applied

security algorithms and updated standards today. By mastering

the smart card operating system, MK Smart can provide multi-

factor authentication applications, such as: OTP, PKI and

biometrics on smart card, token or USB reader. The All-in-one MK

solution is designed to make it easy for updating and changing

authentication methods or algorithms or biometric identification.

The All-in-one MK is a great choice for security devices for e-

government, enterprises, banks, personal and organizations.

Meanwhile, with the motto “Encrypt everything, everywhere

and always”, the Prim’X high-grade encryption solution

provided and presented at the event by MK Group is a new

encryption method for greater protection of sensitive data

against loss, theft, disclosure and economic espionage. The

Prim’X high-grade encryption solution will enable these

processes to be all-embracing, simple & transparent, automatic

and security policy-driven. This solution is easy to implement

for enterprises or government agencies. The Prim’X high-grade

encryption solution has been provided for multiple major

clients, such as EU, BNP Bank, Thales, the French Interior

Ministry, etc.

As the trusted partner in Authentication and Security solutions,

MK Group, via the conference “Promoting the application of

cryptography products for socio-economic development”, hopes

to introduce and provide organizations with efficient encryption

methods enhancing data security in daily operations and

production.

MK GROUP PARTICIPATES IN THE CONFERENCE “PROMOTING THE APPLICATION OF CRYPTOGRAPHY PRODUCTS AND SERVICES FOR SOCIO-ECONOMIC DEVELOPMENT”

On August 8th, 2017 at JW Marriott hotel, the conference

“Promoting the application of civil encryption products and

services for socio-economic development” was held by

Department of Civil Cryptography Management and

Cryptographic Product Testing, Government Cipher

Committee.

This was the discussion forum on research, development

and application of cryptography products, contributing to

the improvement of state management mechanism and

policies on cryptography products. It also was the

opportunity for leading technology companies to introduce

technical solutions, technologies and security products,

promoting the application of cryptography to information

security in socio-economic field.

The conference was attended by key stakeholders

representing the Government office, Ministry of Information

and Communications, Government Cipher Committee,

departments for managing and applying information

technology and information security of the ministries and



Entrust Datacard, a leading provider of trusted identity and secure transaction technology solutions, announced

the launch of IntelliTrust authentication service – its new authentication cloud service with Mobile Smart

Credential technology. This powerful, advanced adaptive authentication solution leverages the low touch

deployment aspects of the cloud with new levels of intelligent identity capabilities to provide for a better user

experience with stronger security in an easy-to-deploy model.

Entrust Datacard is shaping the next generation of authentication through the seamless experience of intelligent

identity across users and devices through a single unified experience across platforms. As organizations

accelerate mobile and cloud deployment and introduce new digital transformation initiatives, the risk of cyber

intrusion and the need for transparent, secure access have never been higher. Employees and customers around

the world expect simple security that transforms as they move from one device to another. Now, advanced

authentication that was once too complex to be used outside of federal governments, global banks and large

corporations is available to organizations as a lightweight cloud service, eliminating the need for specialized

security skills and sophisticated IT develops programs.

Mobile solutions are fundamentally changing the way we live and the way in which both consumers and

employees behave. Employees are no longer tethered to desktop computers, instead, transitioning between

desktop, laptop and mobile devices within a single session. To achieve a secure environment without hampering

productivity, organizations must enable access to mobile while protecting the extended enterprise beyond just

SaaS apps.

With IntelliTrust authentication service, organizations can rapidly secure access to cloud, mobile and legacy

applications using a unified authentication platform that will extend beyond their current needs by delivering

transparent security and broad use case enablement across the organization.

Additionally, IntelliTrust features intuitive graphical interfaces and point-and-click provisioning equips IT teams

with tools to build sophisticated, customized risk policies with ease. Coupling the most comprehensive suite of

security features with highly configurable parameters provides the flexibility to tailor and quickly deploy

authentication solutions and meet evolving business requirements.

(Entrust Datacard)

Entrust Datacard Creates the Modern Authentication Solution with the Introduction of IntelliTrust Authentication Service

PARTNER NEWS



VIETNAM NEWS

Banks apply free on-net money withdrawal, account transfer

Despite being allowed to charge on-net fees for automatic telling machine (ATM) transactions, some commercial banks have

recently applied the exemption to on-net money withdrawal and account transfer to attract new customers and develop the

retail banking segment.

ACB is offering a programme on exemption of money withdrawal fee for international platinum debit cards, while Viet

Capital Bank and SCB have exempt money withdrawal fee for international and domestic debit cards.

The exemption of money withdrawal fee at all ATMs nationwide is also being offered by other banks such as TPBank and

BaoVietbank.

Talking about the move, Viet Capital Bank said free money withdrawal via ATM will encourage people to make non-cash

payments. This policy is being implemented with great support from banks.

A representative from another bank said State Bank of Vietnam approved commercial banks to charge on-net fees for ATM

transaction since March 2013 to offset the cost of purchasing machines and periodic maintenance, however, some banks are

now willing to offset the losses to increase customers.

According to the representative, the bank having cardholders still has to pay VND3,300 to their partner for each external

money withdrawal. Therefore, ATM operations of the bank have never been profitable.

Industry insiders admitted that ATM card service companies often incur losses because an ATM costs tens of thousands of

US dollars besides large annual maintenance fees. In addition, the cost of renting sites to install ATMs is becoming more and

more expensive. Interest from non-term deposits of ATM cardholders therefore is not enough to offset the costs.

To offset the costs, the money withdrawal fee charged at other banks averages VND1,000-3,000 per transaction and the fee

for inter-bank money transfer is VND11,000.

According to banking experts, the fee exemption policy at some banks is within the banks’ retail banking development plan,

and is also a way for banks develop individual customers as well as products and services for the customers.

This is also the premise based on which banks can promote other products and services, such as Mobile Banking and

Internet Banking, they said.

The country currently has more than 17,000 ATMs nationwide.

(Bizhub)

❖ To welcome the National Day on September 2, Vietcombank

will offer its card holders free-of-charge services relating to

debit cards and credit cards from August 1 to September 30. If

clients have newly issued or reissued credit cards, they do not

have to pay annual fee in the first year as long as they conduct

payment transaction of minimum value of VNĐ100,000

(US$4.4), excluding cash withdrawal transactions.

❖ PVcomBank has made great efforts to expand its service

networks nationwide which allow their customers to make

online payments such as electricity, water, cable TV, air ticket,

etc.

❖ Sacombank is launching the program “Welcome autumn with

thousands gifts” from now until 14th October 2017 with the

total value of 1.3 billion VND for individual customers using

Sacombank eBanking services such as Internet Banking,

Mobile Banking application and Mobile Banking web.

❖ Petrolimex in collaboration with National Payment

Corporation of Vietnam (NAPAS) and PG Bank signed a

cooperation agreement on July 26 in Hanoi. The parties also

announced the successful connection of payment services by

ATM card at POS of PG Bank located at Petrolimex’s petrol

station systems. From August 1st, ATM cardholders of 41

Napas bank members can make payments for goods and

services of Petrolimex at 2,361 stores nationwide.

(Collected on the Internet)

VIETNAM NEWS IN BRIEF



BIOMETRIC NEWS

British people look to security measures more than

rates when choosing banks, and biometrics is their

preferred authentication method, finds a new survey.

In the survey by specialist lender and savings bank

Aldermore, 88% of those surveyed say interest rates

are important when choosing a savings provider,

slightly ahead of the amount of people who say good

customer service is important, 86%.

When it comes to seeking higher returns in a low

interest rate environment, nearly one in five (19%) 18-

34 year olds would consider riskier savings and

investment products which offer higher rates of

returns but less protection, compared to only 5% of

over-55s.

Across the UK, two thirds (66%) of respondents

would not consider using a savings provider that is

not covered by the Financial Services Compensation

Scheme (FSCS), despite the opportunity to benefit

from higher interest rates on their savings.

According to the research, the biggest concern for over

a third (35%) of people is the threat of direct theft

through online hacking.

Brits prefer biometrics for banking

When asked what would help consumers trust their

bank or savings provider more when it comes to

security, nearly nine in ten (89%) say they want to see

further investment in security technology and 88%

want their bank or savings provider to regularly

update its security procedures. In addition to this,

nearly six in ten (57%) would trust their bank or

savings provider more if it offered biometric

authentication.

(Planetbiometrics)



SECURITY NEWS

EAST has published its second European Fraud Update for 2017,

based on country crime updates from representatives of 21

countries in the Single Euro Payments Area and five non-SEPA

countries.

Ten countries reported payment fraud issues. One country

reported a new type of fraud in which the card primary account

number is compromised in China, leading to fraud in that

country. In these cases the CPP is sometimes detected, but most

of the time it is not. Another country reported data compromise

due to voice phishing (aka "vishing") attacks, "phishing" websites

and "SMiShing" (i.e., attack via SMS phishing). Fifteen countries

reported ATM malware and logical security attacks. So far in

2017, EAST has published 10 related fraud alerts.

Two of the 15 countries reported ATM malware and 14 reported

the use (or attempted use) of black box devices to allow the

unauthorized dispensing of cash. Five countries reported black

box attacks for the first time, further indication that this type of

attack is continuing to spread.

Nineteen countries reported skimming at ATMs. The use of M3

category (card reader internal skimming) devices continues to

spread. This type of device can be placed at various locations

inside the motorized card reader behind the shutter. Nine

countries reported such attacks; in 2017, EAST has published six

M3-related fraud alerts.

International skimming-related losses were reported in 49

countries and territories outside of the Single Euro Payment Area

EAST issues 2nd update on ATM-related crime in 2017

and in 9 countries within SEPA. The top three locations for

such losses were are the U.S., Indonesia and the Philippines.

Ten countries reported skimming attacks on other terminal

types and five countries reported such attacks on

unattended payment terminals at petrol stations. Two

countries reported the use of card reader internal shimming

devices at POS terminals.

Eight countries reported incidents of transaction reversal

fraud. One country reported a significant increase in TRF

attacks and two countries reported attacks for the first time.

Ram raids and ATM burglaries were each reported by nine

countries. This year, EAST has published nine related ATM

physical attack alerts.

Six countries reported the use of solid in attacks. The spread

of this type of attack is a matter of growing concern to the

industry due to the risk it poses to life and to the significant

amount of collateral damage to equipment and buildings.

(ATMmarketplace)



CARD & PAYMENT NEWS

Cards have overtaken cash as the primary method for

consumer payments in Australia, according to data released

by the country's central bank.

The Reserve Bank's triennial Consumer Payments Survey

(CPS) recorded information on around 17,000 day-to-day

payments made by over 1500 participants during a week.

Cards were the most frequently used means of payment in the

2016 survey, overtaking cash for the first time, driven by the

growing popularity of contactless tap-and-go transactions.

In 2013, cash was used in 47% of payments, compared to 43%

for cards. Three years on, this outcome has now flipped so that

52% of payments are now via card, compared to just 37% by

cash.

Commenting on the results, Fintech Australia CEO Danielle

Szetho, says: “This outcome isn’t surprising, given the

digitally savvy nature of Australian consumers and the fact

that penetration of digital point-of-sale terminals and

contactless card payments in Australia are among the highest

in the world."

Despite these trends, cash still accounts for a material share of

consumer payments and is "intensively used" by some

segments of the population, says the RBA. Fintech Australia is

putting its faith in the incoming New Payments Platform to

further drive out cash and lay the foundations for future

innovation.

Cards overtake cash for

consumer payments in Australia

An American company is inviting employees to get RFID

chips that can be used to buy food in the office break room

implanted in their hands.

Three Square Market, which makes self-service micro markets

for office break rooms, says it expects over 50 staffers to

volunteer for the free chips, which it is working with Sweden's

BioHax on.

The employees will get chipped at a 'chip party' on 1 August,

after which they will not only be able to make contactless

purchases at the firm's micro market but also open doors and

log into their computers.

Todd Westby, CEO, three Square Market, says: "We foresee the

use of RFID technology to drive everything from making

purchases in our office break room market, opening doors, use

of copy machines, logging into our office computers,

unlocking phones, sharing business cards, storing

medical/health information, and used as payment at other

RFID terminals.

"Eventually, this technology will become standardized

allowing you to use this as your passport, public transit, all

purchasing opportunities, etc."

(Finextra)

US firm to implant employees

with RFID chips



Within the US, 660 bank holding companies associated with regulated depository commercial

banks and savings banks exist with $1 billion or more in assets according to data sourced

from SNL.

These banks engage in a wide spectrum of banking and related services including issuing

consumer credit cards and enabling business and commercial banking clients to accept cards

(i.e., “acquiring”), writes Frank Martien, Managing Director, specializing in Commercial

Payments and Bankcard Issuing at First Annapolis.

These banks were segmented by total assets as of March 31, 2017. Figure 1 depicts prevalence

of consumer credit card programs and merchant acquiring programs among these segments.

Figure 1: U.S. Bank Holding Companies Segmented by Total Asset Range

1 Includes eight banks with reported 1Q 2017 acquiring volume: BB&T, Capital One, Citi, Chase,

PNC, TD, U.S. Bank, and Wells Fargo. 2 Includes Amex, Barclays, and Discover. 3 Includes ADS

and First National of Omaha.

Segmenting US banks: Focus on card issuing and presence of acquiring

These banks were further segmented in Figure 2 by (a) those that issue consumer credit

cards and acquire; versus (b) those that issue but do NOT acquire to assess any observed

differences in growth rates in credit card balances.

Figure 2: Growth Rate in Consumer Credit Card Balances (1Q 2016 to 1Q 2017)

1 Excludes Amex, Barclays, Discover, ADS, BMW, CardWorks (Merrick), TIB, and World’s

Foremost Bank (Cabela’s). 2 Excludes Huntington, which did not report acquiring volume in 1Q

2017; but experienced close to a doubling in reported consumer credit card balances year over year.

For banks that issued cards and acquired, growth in credit card balances was observed to

be significantly higher overall (+8% versus -7%) and within three of the bank segments:

>$200 billion, $100 to 200 billion, and $10 to 30 billion.

One may speculate that banks that issue and acquire may be more strategically focused on

card payments generally and that certain synergies may exist or be possible between

issuing and acquiring lines of business. Looking forward, these synergies could become

more prominent as broader forces, such as e-commerce and FinTech, have an increasingly

pronounced impact on traditional models heretofore deployed for cards-related

businesses.

(Paymentscardsandmobile)



Copyright© 2017 by MK Group www.mk.com.vn | [email protected] | www.facebook.com.vn/mkgroup1999 Hanoi: F11th, TTC Tower, 19 Duy Tan Str., Cau Giay Dist., Hanoi, Vietnam | Contact: (84-24) 6266 2703 Ho Chi Minh City: F7th, Thien Son Building, 5 Nguyen Gia Thieu Str., District 3, HCMC, Vietnam | Contact: (84-28) 3930 5023

mk group participates in the conference · mk group participates in the conference “promoting the...

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