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Marriott says data for up to 500 million customers compromised in breach

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Category: Mobile News
30 November 2018

Nov. 30, 2018

Marriott International Inc.  said it is investigating a massive data breach that has compromised the personal information of up to 500 million customers of its parent company, Starwood Hotels, in a press release. The breach is one of the largest in U.S. history, 

The hotel chain said that for more than 327 million guests, the compromised data includes their names, mailing addresses, phone numbers, emails, passport numbers, Starwood Preferred Guest accounts, birth dates, gender, arrival and departure information, reservation date and communication preferences.

Some guests may have had their credit card data compromised, but the company said it used Advanced Encryption Standards (AES-128) to encrypt the card information. Marriott said two components are needed to decrypt that information, but it cannot rule out some of the data was compromised.

"We deeply regret this incident happened," Arne Sorenson, president and chief executive of Marriott, said in the announcement. "We fell short of what our guests deserve and what we expect of ourselves."

Marriott said on Sept. 8 an internal security tool indicated an attempt to access the reservations system. The company brought in security experts and determined that there was unauthorized access to the system since 2014, and that the attackers copied and encrypted data and tried to remove it from the system.

Marriott said an investigation launched Nov. 19 discovered that the information involved reservations at Starwood Hotels on or before Sept. 10, 2018.  

The company has notified law enforcement and has begun to inform regulators, and filed a copy of the press release and other information on form 8-K with the Securities and Exchange Commission.

New York Attorney General Barbara Underwood said in a tweet that her office is investigating the incident. FBI officials said they are monitoring the situation. 

"The FBI is aware of the reporting and tracking the situation as appropriate," an FBI spokesperson told Mobile Payments Today via email. "Individuals contacted by the company should take steps to monitor and safeguard their personally identifiable information and report any suspected incidences of identity theft to the FBI's Internet Crime Complaint Center at www.ic3.gov. 

Symantec, the cybersecurity firm behind Norton Utilities, warned consumers to be wary of emails purporting to contact them about the breach, as phishing attacks tend to go up after large breaches. A spokesperson for the company also warned about websites that claim to help people track if their identity has been compromised. 

A website, info.StarwoodHotels.com, has been set up to provide additional information. The company also plans to begin notifying guests on a rolling basis immediately based on the emails in the Starwood database.

The company is offering guests free enrollment in WebWatcher.com, a service that monitors whether information on sites has been compromised. Guests who enroll will get fraud consultation and reimbursement coverage, the company said.

Marriott completed the acquisition of Starwood in 2016. Starwood brands include W Hotels, St. Regis, Sheraton Hotels & Resorts, Westin Hotels & Resorts, Element Hotels, Aloft Hotels, Le Meridien and others. Marriott has a total of 6,700 hotel rooms under various brands in 129 different countries.

Topics: Loyalty Programs, Security

Companies: Marriott International

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Smartwatch, bracelets help broaden mobile payment options amid competition

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Category: Mobile News
30 November 2018

Nov. 30, 2018 | by David Jones

Smartwatch, bracelets help broaden mobile payment options amid competition

Infineon developed several wearable payment options including a smart ring.

As the competition for digital wallets and contactless payments has accelerated in recent years, much of the innovation has centered around the mobile phone, but an increasingly important, yet often overlooked, category is the wearables category.

Wearables have largely been dominated by smart watches, led by Apple, which has dominated a brutally competitive space that includes iconic watch maker Timex as well as fitness oriented products from Fitbit, Garmin and other manufacturers.

Apple in October announced plans to add support for student identifications built into its digital wallet, allowing students at Duke University, University of Alabama and other campus to use their watch and iPhones for laundry, books and other school related payments.

Timex just this week announced an agreement with Beijing-based Huami to develop smartwatch technology that includes digital payments. Meanwhile Google in September announced an update to its wearable operating platform that it renamed Wear OS, which provides for payment and other technology on smartwatches and other wearable devices.

Data from research firm IDC shows consumer interest in the general wearables space has begin to slow as demand is growing for more sophisticated applications to be included in the category. Global shipments of wearables rose only 1.2 percent during the first quarter to about 25 million, far down from the 18 percent year-over-year growth in the same period in 2017, according to a report released in June

A growing number of players are looking to expand the category beyond watches and embed smart chip technology into a wider range of devices.

Stay fit

Inamo, a startup based in Australia, launched in early November a pilot program to test watches, key chains and other wearables in the U.S. Users can slip a passive micro-card into the Inamo curl, which is waterproof durable silicone and slips into most watches and fitness bands, according to company officials.

Users can load up the Inamo prepaid debit card using most banks and make payments anywhere that accepts contactless payments including locations that accept Google or Apple Pay. Locations with the contactless MasterCard PayPass and Square symbols can also accept Inamo Pay.

"Inamo wearable are designed for people of all ages that are on the go, where standard chip cards and traditional magnetic stripe cards just slow the whole payment process down," Fiona Whitaker, head of payments and business at Inamo, told Mobile Payments Today in an email.

Most transactions are geared toward coffee, gasoline, fast food or trips to a local pharmacy she said. However users wanting to make a purchase greater than $100 can just tap their wearable at the point of sale and then enter a four-digit PIN code, she added.

Bank rollout

After completing successful internal tests in 2017, Amsterdam-based bank ABN Amro teamed up with Mastercard and Digiseq in January 2018 and launched a four-month pilot program where 500 customers signed up to test a range of contactless payment using wearables, including rings, bracelets and key rings.

The wearables had embedded NFC technology that met the same security standards as regular plastic cards and users responded with a great deal of enthusiasm to the technology, according to ABN Amro spokesman Geer van der Varst.

He said almost 80 percent of the user group preferred paying with the wearable devices rather than using the standard card and the average user used the chip payment about six times a week for transactions under 25 euros, as price limits were placed on individual transactions.

"The feature that was most asked for was to make payments possible over EUR 25," he said in an email.

The bank is working on expanding those limits and is looking to open the wearable contactless payment system to all customers in 2019.

Wireless spectators

On Nov. 25th, Infineon Technologies announced a program called the Secora Pay W for Smart Payment Accessories, which offers  wearable contactless payment technology, with ENV enabled bracelets, watches, key chains and rings.

Wirecard along with exceet Card Group AG and German online bank Comdirect recently used the technology during the 2018 German Beach Volleyball Championships in Timmendorfer Strand in from Aug. 31-Sept. 2, where up to 5,000 fans were given wristbands embedded with contactless tap and go technology that allowed them to pay for items during the event.

"The convenience of a wearable for small purchase transactions makes a case for this being the most typical use," said an Infineon spokesman. "This is particularly true if the payment wearable is linked to prepaid and debit card accounts with restricted funds availability."

Topics: Contactless / NFC, EMV, Mobile/Digital Wallet, Region: Americas, Region: APAC, Region: EMEA

Companies: Apple, Wirecard, Timex, Garmin

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David Jones

David Jones is a veteran business and technology journalist, with three decades of experience writing about business travel, real estate and technology.

Since 2015 he covered a range of technology stories for the ECT News Network, which includes the E-Commerce Times, TechNewsWorld, LinuxInsider and CRM Buyer, writing about cybersecurity, artificial intelligence, machine learning, open source computing and privacy issues among others,. He recently covered FinTech issues for PYMNTS.com.

He worked as a staff writer for Bloomberg Business News and an online reporter for Crain’s New York Business. He has written for numerous media organizations, including Reuters, The New York Times, The Real Deal, Continental, City Limits and The Nation.

He was previously awarded the George Washington Williams Fellowship for Journalists of Color by the Independent Press Association.

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Conext plans nationwide rollout of B2B mobile funds transfer service

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Category: Mobile News
30 November 2018

Nov. 30, 2018

Conext, a Happauge, N.Y.-based business-to-business mobile payment platform, is launching a service that allows businesses to make direct fund transfers to other vendors backed by a prepaid Visa.

The company is rolling out a platform that allows businesses to make direct transfers of $50,000 and in some cases up to $100,000, using a mobile payment app, Michael Casalini, president of Conext said in a phone interview.

The service is designed for small to medium-sized businesses that need real-time access to funds that bypasses traditional hold periods that can lock up funds for three to five business days in many cases, he said.

"What were trying to do is get people to rethink how they interact with their business’ money," he said.

The service allows companies to take a photo of their check and upload the document and those funds can be instantly transferred to other vendors in the network in order to make necessary payments.

The service has already been tested in New York, Georgia and Florida and the firm is planning to expand into major markets across the U.S.  

 

Topics: Mobile Apps, Mobile Payments, Money Transfer / P2P, Transaction Processing

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Mobile terminal supplier Smit Holdings makes additional $5M investment in Sensel

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Category: Mobile News
30 November 2018

Nov. 30, 2018

Smit Holdings Ltd., a Hong Kong-based maker of mobile payment terminals and security devices for pay television, has increased its investment in U.S.-based startup firm Sensel Inc. by $5 million through a purchase of preferred stock.

Following the new stock purchase, Smit Holdings owns about 9.22 percent of Sensel, according to a press release. At the same time a $2 million promissory note issued by Sensel, and subscribed by Smit in February, was deemed converted into preferred shares of the company.

Sensel is a U.S. startup specializing in next-generation touch technology and is developing a system, called PressureGrid, with plans to incorporate the technology into smartphones and laptops, according to the release.

Smit president Shuai Hongyu said the new investment will "consolidate the group’s leading position in the IC-based security industry" adding that Sensel's technology "is in line with the group’s development and expansion strategy,"  according to the release.

 

Topics: Financial News, POS, Region: APAC, Technology Providers

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Sirin Labs launches Finney blockchain phone with crytpo wallet

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Category: Mobile News
30 November 2018
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