By Peter Ettinger
In a world where counterfeiting is a $500 billion a year problem, there is little thought given to dangers that exist within enterprise-based systems. To most, counterfeiting is associated with currency or consumer goods. But to those people who manage the systems, the protection of documents once they are printed on the desktop has taken on new importance.
In industries throughout the world the protection and security of the printed version of electronically distributed data is as important, if not more important than the protection and security of the initial electronic data itself. The concern surrounding protection of these distributed documents has become so great that web sites like www.Authenticate-360.com are being developed with the goal of educating industries on counterfeiting, its impact on global finance, as well as methods of prevention.
Managing Security of Data from Electronic Transfer to Desktop Output
From highly secure records, temporary identifications, and valuable financial documents, the world is shifting towards online management of commerce. Governments and businesses worldwide are focusing on implementing online systems to deliver vital documentation and other negotiable instruments.
But this shift to the online business creates vulnerabilities as individuals worldwide print or use the electronic documents in their day-to-day work flow. As a result, there is a growing need for the development of solutions that offer secure desktop delivery of variable digital information transmitted over the Internet or through enterprise systems. Important forms like vital records, credentials, and certifications require a sophisticated secure printing solution.
To date, the challenge has been creating an advanced, yet cost-effective anti-counterfeiting security solution that can produce variable data documents to a desktop printer without a massive Internet connection, preprinted secure paper stock, or the use of specialized equipment or inks.
As computers and imaging devices become more refined it becomes easier every year for counterfeiters to duplicate vital documents. The document security industry, for the most part, has been layering features such as holograms, RFID, and metallics (inks) to protect originals and to make it easier for end-users to determine fakes. These technologies are easy to identify (after the fact), but aren’t feasible options for secure electronic data delivery to numerous remote locations or for security on-a-budget projects.
Applying print-on-demand security technology to this problem and utilizing familiar security features such the VOID pantograph or authentication technology may be the best solution for this problem.
Certain versions of this concept are currently on the market or in development allowing for mass distribution of secure documents. For example, there is a web-based application that allows a user to enter unique content into a simple HTML form-based template, and upload the form to a dedicated server running the application.
At the server, the HTML data – some of which is designated by the user for encryption – is embedded/hidden in an online-delivered variant of optical deterrent technology. Both the visible content and hidden content can be rendered at the server, and returned to the user within seconds as a ready-to-print HTML document. Information can also be pushed through a server and dynamically ripped into a PDF.
The beauty of this technology is that it allows many global industries to deliver highly encrypted data over an Internet connection throughout the world and then through a server for secure digital output, marrying electronic and paper-based security technology in one location.For many industries, this may be just what the doctor ordered.
Industries at Risk
Banking has been driven by an upsurge of global growth as giant national and global bank holding companies continue to expand through acquisitions. Consumers and businesses are becoming increasingly more reliant on online management of their accounts. Check forgery accounted for $20.6 billion in losses in 2006. Approximately 42% of credit card fraud reported to the Federal Trade Commission database involved some form of identity theft as well. Employees account for 33% of information security breaches. Former employees and partners are responsible for 28%. Banks are investing heavily in IT and HR to combat fraud.
Local, State and Federal Government also have a stake in issuing and authenticating foundational documents of identity and securing borders and critical areas. Forging of identity credentials allow immigration fraud, drug trafficking, growth of organized crime and terrorism. Counterfeiting of all types of government issued identity documents, including breeder documents such as birth certificates and driver’s licenses.
Homeland security measures after 9/11 are at an all time high. Any security application that can truly provide heightened security in a world threatened by terrorists would be looked upon favorably. In Iraq , in the area of identity verification, papers are routinely forged to gain access to secure areas, and cultural/religious sensibilities do not allow fingerprinting of the population. An on-demand solution would allow for authentication and verification even in remote areas where appropriate technology is not readily available.
Finally, the healthcare industry is another prime candidate for a web application that provides on-demand delivery of desktop security solutions. An estimated $2.2 trillion industry, healthcare organizations of all kinds are records and paper-laden, and require secure mass data transfer of patient records, prescriptions and forms—all of which are prone to counterfeiting and all of which would benefit from a secure solution.
Adding Up the Losses
According to the Association of Certified Fraud Examiners, U.S. companies lose more than $440 billion to counterfeiting and document fraud every year . Advancements in fraud technique and the proliferation of sophisticated counterfeiting technology continue to open up even more opportunities for criminal behavior. The negative consequences of these actions – damaged reputations, lost revenue and regulatory violations - can easily exceed pure monetary damages.
Printed materials of all shapes and sizes are at risk: from checks and identification cards, to real estate titles, prescriptions and certificates of authenticity. Though some governmental attention is paid to the problem through regulatory measures, most law enforcement resources are concentrated on violent crime and homeland security. Individual companies and organizations (including certain governmental divisions) must assume the challenge of reducing fraud and its associated losses themselves.
So as the world gets smaller and smaller, the exchange of information in a timely secure manner becomes more important for the operation of companies worldwide. But that rapid-fire exchange of information also allows for greater vulnerabilities to counterfeiting and brand fraud. The only way to cure or alleviate these issues is by the use of an optical deterrent product that allows for cost-effective printing on the desktop and also incorporates many of the same technologies that are being used in currencies today. The dual principles of prevention and protection must be enforced continuously if companies are to secure documents from both current threats and future abuse.
Peter Ettinger is president of Document Security Systems
www.documentsecurity.com |
