HK Leading Banks Are Adopting ACS Smart ID Card Reader For 2-Factor Authentication In Secure E-Banking Services

February 3, 2006 — Advanced Card Systems Ltd. (HKGEM: 8210), Asia Pacific’s number one in PC-linked smart card readers industry, is happy to announce that ACS has successfully secured orders for over 60,000 ACR30 Smart ID card readers for 2-factor authentication in HK secure e-banking project.

Following the guidelines of the Hong Kong Monetary Authority (HKMA), starting from July 2005, local banks will employ two-factor authentication tools like e-Cert for high-risk online banking transactions. Two-factor authentication strengthens the security of e-banking by offering stronger online identity authentication.

Hong Kong Post e-Cert embedded in smart ID card and ACS ACR30 smart ID card reader are readily available two-factor authentication tool. It uses a combination of two different factors to verify a user’s identity. The first factor is “something the user knows” the e-Cert password, and the second factor is “something the user has” the e-Cert embedded in the smart ID card.

The e-Cert password (first factor) is used to generate a digital signature for identity verification and the password does not need to be transmitted over the Internet. The e-Cert embedded HK smart ID card (second factor) is physically held by the user and thus it cannot be stolen by fraudsters over the Internet. Therefore, the identity of e-banking user can be securely protected against theft and fraud over the Internet.

The following banks have already accepted ACR30 smart ID card reader and the e-Cert embedded in smart ID card in their e-banking services:

• Bank of America (Asia)
• BOC Credit Card (International) Limited
• Bank of China (Hong Kong)
• Chiyu Banking Corporation Limited
• Nanyang Commercial Bank
• Bank of Communications (Hong Kong Branch)
• The Bank of East Asia
• CITIC Ka Wah Bank
• Dah Sing Bank

About Advanced Card Systems Ltd.

Advanced Card Systems Ltd. (ACS), Founded in 1995, Asia Pacific’s number one supplier of PC-linked smart card readers (Source: research report issued by Frost & Sullivan) is one of a select group of global companies at the forefront of the smart card revolution. ACS develops and distributes a wide range of high quality smart card reading/writing devices, smart cards, and related products to over 80 countries worldwide, facilitating an easier adoption of smart card applications in different industries.

As one of the world’s leading suppliers of PC-linked smart card readers, ACS has the technology, expertise, and global resources to develop and offer the next generation in smart card versatility to satisfy the needs of its customers worldwide.