midPhase Services Selects Authentify to Prevent
e-Payment Fraud

Web Hosting Firm Eliminates Credit Card Charge Backs and Phishing/ Spam Accounts using Synchronized Internet/Telephone Security System

CHICAGO, Dec. 7, 2004—Authentify, the Internet identity company, announced today that midPhase Services, Inc., one of North America’s leading web site hosting companies for Small-Medium Businesses (SMB), has selected Authentify to eliminate
e-payment fraud and automate online order confirmation. Authentify has enabled midPhase Services to reduce credit card charge backs and block criminals from activating e-mail accounts to launch Phishing attacks and distribute spam.

midPhase Services selected Authentify for its ability to prevent users from setting up web sites and e-mail accounts using stolen credit card numbers. This practice is commonly used by criminals to launch e-mail phishing attacks that attempt to steal privacy data, such as credit card numbers, social security numbers, passwords, etc., from unsuspecting consumers. The Authentify service defeats fraudulent transactions by placing an automated telephone call to users when they attempt to purchase web hosting and/or e-mail accounts on the midPhase web site using a credit card. To complete the transaction, users are required to speak confirmation details that are simultaneously being presented in their web browser.

“Credit card fraud as a percentage of our incoming orders was skyrocketing, and the process of manually confirming hundreds of orders was killing us. Using a stolen credit card number Spammers would set-up web hosting accounts by the dozens and flood our network with spam or phishing messages. When we caught them they would simply open a new account using another name and credit card and start the cycle over again,” said Dan Ushman, President and Co-founder of midPhase Services. “Since we started using Authentify, we have virtually eliminated credit card fraud and spamming/phishing activities. Criminals are simply not willing to provide their real phone number, much less answer the phone call necessary to validate the transaction. Authentify is a powerful deterrent.”

“midPhase Services provides another real-world example of how Authentify enables online businesses to prevent fraud and offer secure internet transactions without the need for any hardware, software, or training,” said Peter Tapling, president and CEO of Authentify. “The Authentify service enables companies to offer customers and consumers higher levels of online service and convenience, without assuming the risk of password-only security or the high cost and complexity of hardware-based identity technologies.”

About the Authentify Service
Authentify uses the most ubiquitous and reliable technology in the world, the telephone network, as an authentication tool for Internet transactions. Authentify has developed a patented process that enables Web sites or other network access points to place a real-time automated telephone call to the person who is attempting to conduct an online transaction. Once the person answers the call, he/she is prompted for information being displayed on their computer screen. This two-factor authentication process ensures that the person on the phone is in control of the web session, and provides a legally recognized audit trail that binds the transaction.

About midPhase Services, Inc.
midPhase Services, Inc. is a web hosting and Internet presence provider based out of Chicago, IL. midPhase Services, Inc. is a privately owned, debt-free Illinois corporation serving thousands of customers in almost every part of the globe. midPhase offers a variety of web hosting and managed solutions options to consumers and businesses with a focus on the SMB and reseller markets. To contact midPhase Services, Inc. please call 1-312-386-1640 or, visit www.midphase.com.

About Authentify
Authentify provides companies and government agencies with authentication services for online enrollment and account activation, e-payment, e-signature and identity management applications. The Authentify service tightly binds a telephone call to an Internet session using existing infrastructure that requires no additional software, hardware, or user training. Authentify customers include Hewlett Packard, Associated Bank, Verisign, PaymentOne, and the Department of Defense. Authentify is privately held and based in Chicago, Illinois. To contact Authentify call 773-243-0300 or visit http://www.authentify.com.

Editorial contacts:

John Zurawski
Authentify, Inc.
773.243.0328
john.zurawski@authentify.com

©1999-2004 Authentify, Inc. Authentify, the Authentify logo, and Authentify|Register are trademarks of Authentify, Inc. All other product names, service marks, and trademarks mentioned herein are trademarks of their respective owners.

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