For Immediate Release - October 9, 2001
Integrated Information Systems, Inc.
Investor Relations Counsel
The Equity Group, Inc.
Executive Vice President
Scruggs Consulting and IIS Ally with Fraud-Check to Deliver Solution for the $20 Billion eCommerce Fraud Epidemic
Tempe, AZ (October 9, 2001) - Integrated Information Systems, Inc. ("IIS") (NASDAQ: IISX), an innovative technology and business consultancy, and Fraud-Check, Inc., an online eCommerce fraud protection company, today announced the launch of an advanced online fraud detection service for eCommerce merchants. IIS collaborated with Scruggs Consulting, Fraud-Check’s actuarial consulting firm, to design and develop this superior second-generation solution, which is the first of its kind to be built on new risk exposure concepts and algorithms unique to eCommerce fraud protection.
According to industry sources, eCommerce merchants collectively lose an estimated $20 billion annually to fraudulent credit card use. Unlike traditional brick and mortar transactions where physical credit card verification is the financial responsibility of the banking institutions, eMerchants generally bear the burden of online credit card fraud.
"Fraud costs eMerchants an average of five percent of their gross sales, severely eroding profit margins and potentially causing business failures. This variety of fraudulent activity is electronically enabled, and it therefore requires an equally powerful electronic response service," said George Candella, Fraud-Check Chief Executive Officer. "Integrated Information Systems worked seamlessly with Fraud-Check and Scruggs Consulting to develop and host the solution capabilities for the Fraud-Check service, which will powerfully enable eBusiness to combat fraud in the global online marketplace."
"IIS quickly deployed an A+ team that truly understood both the eMerchants` dilemma and our business objectives to resolve this problem," added Candella. "IIS rapidly designed and developed this market-critical application for Fraud-Check, and IIS Application Outsourcing Services is providing its fully redundant, 24x7, high performance infrastructure, application support services and data center, which are critical to our delivery of the highest-quality service to clients."
"The IIS-developed Fraud-Check system will preserve eMerchants` bottom-line by protecting them against credit card fraud that, until now, has gone unchecked and has resulted in an eCommerce crisis of epidemic proportions," said Jim Garvey, Chairman, President & Chief Executive Officer of Integrated Information Systems. "We are excited to be developing and managing such an advanced service solution which is so mission-critical for healthy online commerce."
Fraud-Check provides effective fraud prevention services for e-commerce and security applications. The state-of-the-art, proprietary and patent-pending solutions authenticate the identity of the individuals involved in a transaction, vital in both e-commerce and security environments. It then evaluates the fraud risk inherent to any specific “ship to” location, identifying the likelihood of valid receipt. Fraud-Check’s unique approaches to fraud patterning and identity theft detection have led to Fraud-Check’s recognition as the innovative leader in these overlapping fields.
Founded in 1998, Fraud-Check, a privately funded company, is headquartered in White Plains, New York, and operates internationally with offices in the US and the UK. For more information about Fraud-Check services, please visit its web site at www.fraud-check.com.
About Scruggs Consulting
Scruggs Consulting is a boutique actuarial and information consulting firm that specializes in the construction, evaluation, and effective deployment of information and information systems within a property and casualty insurance environment. It offers highly-skilled expertise in the analysis and evaluation of the financial implications of contingent events with respect to property, casualty, and similar risk exposures. Scruggs Consulting`s client list includes many of the largest and most complex organizations in the industry. For more information about Scruggs Consulting please visit its website at www.scruggs.com.
Integrated Information SystemsTM is an innovative technology and business consultancy providing extensive experience and insight to create a sustainable competitive edge for clients. For companies who seek measurable results from business and technology investments, IIS offers cost-conscious, productive, profit-minded solutions across the entire service value chain with single provider accountability.
Founded in 1988, IIS employs approximately 356 professionals in offices in Atlanta, Boston, Denver, Jacksonville, Las Vegas, Los Angeles, New York City, Phoenix, Portland (OR) and Bangalore, India. Integrated Information Systems stock is traded on the NASDAQ exchange under IISX.
For more information on Integrated Information Systems, please visit our web site at www.iis.com.
This press release contains forward-looking statements about IIS as that term is defined under the Private Securities Litigation Reform Act of 1995, including statements concerning IIS’ ability to successfully develop and market the fraud detection technologies and services described in this release, and its ability to deliver advanced solutions for its clients and to create demand for its services. These forward-looking statements involve a number of risks and uncertainties which could cause actual events to differ materially from those expressed by such forward-looking statements and could cause the company’s stock price to decline. Factors that could cause actual events to differ from such forward-looking statements include lower demand for the company’s services including the Fraud-Check fraud detection technologies and services, reductions in pricing for the company’s services, the company’s inability to execute its business plan, obtain new clients or retain existing clients, the company’s ability to attract, retain and effectively utilize its personnel, the potential loss of client projects, increased competition, the company’s ability to maintain and enhance technology alliances, such as those with Microsoft, and its ability to stay at the forefront of technology changes, and other factors identified in documents filed by IIS with the Securities and Exchange Commission and in other public statements, including those set forth under the caption "Risk Factors" in the company’s Form 10-K for the year ended December 31, 2000 and in its Form 10-Q for the quarter ended June 30, 2001. All forward-looking statements included in this document are made as of the date hereof, based on information available to IIS on the date hereof, and IIS assumes no obligation to update any forward-looking statements.