Newly Patented Technology Prevents Identity Theft

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Boulder Colorado Firm Authenticol Systems has today announced a new high tech solution to stop identity theft worldwide.

Authenticol Systems, LLC, a Boulder-based risk management solution provider, has created the only system of its kind to help banks and brokerage houses prevent identity theft online. The company’s newly patented product, called the “Authenticol System” includes the C.O.B.R.A Card, (Commercial Online Banking Restricted Access Card). The C.O.B.R.A. Card is the size of a mini disk, (with squared off edges to fit in wallet or purse) and is inserted into a computer’s disk drive. The new technology allows consumers conducting online banking/brokerage house sessions to access the Web sites of those groups with seven levels of security, not just a user name and password.

Currently there is only an insecure user name and password between an identity thief and an individual’s money. Now with the C.O.B.R.A. Card, for the first time ever, only authorized customers will be able to access the login boxes of their banks or brokerage house through the security inherent in the system, thereby protecting against phishing and algorithmic hacking.

The Authenticol System integrates an “invisible Web” solution along with other sophisticated technology such as a 70,000-bit encryption system designed for the U.S. Department of Defense, to secure the user’s identity from perpetrators of identity theft.

“It’s time Internet security took a giant leap forward and we stopped ourselves from being at the mercy of identity thieves,” said Paul Gerstenberger, CEO of Authenticol Systems.

Over the last twenty years, with the advent of the Internet, the average person has established accounts with numerous credit cards, banks, Internet registrations and wire transfer systems. Each of these accounts has created innumerable code words, passwords, log in names, past and present individual information, etc. that have made consumers vulnerable to a myriad of attacks through what is known as "Identity Theft."

This prolific form of stealing has quickly become the most profitable system ever invented netting over 53 billion dollars during 2003 and over 60 billion dollars during 2004 not including the skyrocketing costs of liability insurance, according to the Federal Trade Commission, which is projecting a double-digit increase for 2005 thereby increasing the costs again. It’s estimated that more than eight million people are victims of identity theft each year, according to the Identity Theft Resource Center. That equals approximately 20,000 people per day, 800 per hour and 14 per minute.

Banks and online retailers are losing customers who fear they will become victims of identity theft, according to a new study conducted by Financial Insights, of Framingham, Mass. The study indicated that nearly six percent of consumers have changed banks and about 18 percent have stopped shopping online due to concerns that their personal information will be stolen. Overall it’s an estimated that12 million U.S. consumers have likely switched banks and 39 million have ceased online shopping, because of identity theft fears.

Although banks often purchase liability insurance to protect their customers by the time a consumer has been victimized, it can be too late to undue the damage leading to years of inconvenience.

“Many companies are working to create solutions to identity theft. However, no one is taking an ‘out of the Internet’ approach like the one we’ve developed. We believe anything contained fully within the Internet will eventually be hacked,” said Gerstenberger. The C.O.B.R.A. card, coupled with the Authenticol system, is the solution that will revolutionize the way people use the Internet for financial services.”

Authenticol Systems is currently finalizing contracts with various partners to provide secure data storage services as well as with providers of financial transaction applications to integrate Authenticol into many of the nation’s largest banking systems by early 2006.

Media Contact:

Paul Gerstenberger CEO


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Paul Gerstenberger