VASCO Integrates Strong Host Authentication Into DIGIPASS Pin-Pad Authenticators

PRESS RELEASE

OAKBROOK TERRACE, Ill. and ZURICH, May 26 /PRNewswire-FirstCall/ -- VASCO Data Security International, Inc. (Nasdaq: VDSI) (www.vasco.com), a leading software security company specializing in authentication products, announces that it will be integrating strong host authentication into DIGIPASS(R) 250, 260 and 270 and available in the 3rd quarter of this year. Strong host authentication is VASCO's patent pending technology offering an enhanced One-Time Password (OTP) solution on the market today. Strong host authentication combined with e-signature offers an effective solution against identity theft and Man-in-the-Middle attacks.

The advantage of strong host authentication is that the end-user can ensure himself that the bank or organisation he is connecting to is actively involved in the communication process. For banks and other organisations it offers the possibility toknow real-time whether their customers or users might have been the victim of online identity theft. Strong host authentication makes it even more difficult for hackers to intercept end-user credentials without first contacting the bank or other organisation real-time and attempting to obtain user credentials on a one-to-one basis.

Strong host authentication works as follows:

-- When the user wants to access a secure website, he will provide his claimed identity using his username. -- The server from the bank or other organisation will provide the user with a time-based host One-Time Password (OTP). This host OTP is unique for the DIGIPASS authenticator the end-user is using and is only valid for a limited time. -- The user will enter the host OTP on his DIGIPASS authenticator. -- The DIGIPASS will verify the host OTP -- When it is correct, the DIGIPASS will generate a user OTP -- The user will use this user OTP to log on to the application.

If the host-OTP verification fails, the DIGIPASS will refuse to generate a user OTP.

DIGIPASS 250, 260 and 270 are pin-pad authenticators offering two-factor authentication and e-signature capability. With DIGIPASS 250, 260 and 270 customers can secure the access to applications and digitally sign financial transactions. End-users have a PIN-code to activate the DIGIPASS, once the PIN-code is entered onto the device and the host OTP is verified by the authenticator, a dynamic password will be generated.

"Online fraud constantly evolves; as a result our R&D team continuously looks at developing new technologies and products which make existing security solutions even stronger and even more effective in combating new fraud schemes. Our patent pending strong host authentication is the result of our ongoing investment in new technologies," says Jan Valcke, President and COO at VASCO Data Security.

About VASCO

VASCO is a leading supplier of strong authentication and e-signature solutions and services specializing in Internet Security applications and transactions. VASCO has positioned itself as global software company for Internet Security serving a customer base of approximately 8,500 companies in more than 100 countries, including more than 1,250 international financial institutions. VASCO's prime markets are the financial sector, enterprise security, e-commerce and e-government.