Glitch in HBSC online banking system

It was reported that on Monday the online banking system of HSBC broke down causing problems and losses to its customers. This was the second time Hongkong and Shanghai Banking Corporation clients suffered from an incident like this in the last 3 months. The previous one was on April 15.

There is still no official statement about the reasons of the breakdown. Neither have any offers of compensation been made. However one of the banks clients has reported that he was offered HK$8,000 reimbursement to cover an HK$11,000 loss.

HSBC has officially acknowledged the problem and confirmed that it lasted or 15 minutes between 10am and 10:15am. During that period customers were not able to access their accounts as the system did not respond to instructions. As a result many clients were unable to sell shares right at a specific time resulting in the losses.

Currently the bank has 1.6 million internet banking users.

eBay being sued for $3.8bn - infringement of 6 patents and theft of a business idea alleged

XPRT Ventures LLC based in Connecticut has filed a complaint in a federal court in Delaware against a popular online auction eBay. According to the company eBay has infringed six patents to develop its online payment system PayPal.

According to the plaintiff in April of 2003 eBay (currently Bill Me Later, Shopping.com, StubHub and PayPal), has held out its familiarity with XPRT’s patent application when it submitted an application for its proposed technology (Method and System to Automate Payment for a Commerce Transaction)to the US Patent and Trademark Office.

"EBay's familiarity with the confidential information provided by the Inventors allowed eBay to recognize the advantages it would realize by acquiring, modifying and integrating PayPal's payment platform with eBay's own e-commerce payment platform. EBay also knew or should have known that such modification and combination would violate Inventors' patent application claims should they issue as patents," says XPRT.

"The inventors listed on XPRT's patents shared their patent applications and ideas on how to implement such concepts taught therein, with eBay in confidence. eBay incorporated such inventive concepts and ideas into its auction payment process during current California gubernatorial candidate Meg Whitman's tenure as eBay's CEO. eBay's unauthorized incorporation was a misuse of inventors' confidential and proprietary material,” said Kelley Drye and Warren, the law firm representing XPRT.

XPRT Ventures LLC is claiming a minimum award of $3.8 billion in damages. The representatives of eBay told that they are reviewing the complaint however they believe that “it is without merit, and intend to defend ourselves vigorously.”

Kuwait ‘launches’ e-payment of fines

The Kuwait Ministry of Justice has launched an electronic payment system for misdemeanor fines related to violations of regulations specified by the Ministry of Social Affairs and State Ministry for Municipality Affairs. In a recent press statement Assistant Undersecretary Dr Mohammad Abdullah Al-Ansari disclosed the public can pay these fines by logging on to the ministry’s website www.moi.gov.kw. He said the service was launched on July 1 to ease procedures for citizens and expatriates, adding that the service is free. He advised the public to obtain a receipt to ensure completion of the payment process.

Al-Ansari attributed the successful implementation of the system to the concerted efforts of the technical and financial teams, which worked under the direct supervision of Financial Affairs Department head Khaled Al-Dakheel. He added the teams developed the system, in coordination with the Information Technology Department and K-Net Company.

Microsoft's fake bank shows just how gullible the public is

Microsoft has set up a fake bank branch in New York and tricked members of the public into handing over huge amounts of personal information.

The tech giant built its “Greater Offshore Bank & Trust” branch in a bid to demonstrate how vulnerable people are to scams and promote their Internet Explorer 8, which it says blocks three million online threats a day.

In two videos posted on YouTube, actors playing bank staff members convince members of the public to reveal highly sensitive information in order to open accounts and receive $500.


Duped "customers" were willing to hand over their mothers' maiden names, social security numbers, credit card numbers, strands of hair for DNA tests and details on whether they wear boxers or briefs.

Chase adds cheque deposit and P2P payments to iPhone app

US bank Chase has updated its iPhone app, adding remote cheque deposit and person-to-person payment features.

To make a deposit using the app, customers enter the account details and payment amount before adding photos of the front and back of the cheque taken with their iPhone or iPod camera. USAA bank introduced a similar feature last year.

Chase has also added P2P QuickPay to the latest version of its free app, enabling payments to be made to anyone as long as the customer has their e-mail address.

European Payments Council publishes White Paper on Mobile Payments

The European Payments Council (EPC), the coordination and decision-making body of the European payments industry, has published their White Paper on Mobile Payments. The White Paper highlights the EPC's initiatives for mobile payments in the Single Euro Payments Area (SEPA) designed to facilitate implementation and interoperability of user-friendly mobile payment solutions across the 32 SEPA countries. The white paper explores how mobile payment services can be delivered through cooperation between service providers active in the banking industry and the new players emerging in the mobile ecosystem.

The EPC White Paper on Mobile Payments offers an informative read to anyone interested in mobile payments, and aims to foster a common understanding between payment service providers and bank customers by using non-technical language. The document predominantly focuses on mobile contactless card payments, where the mobile device needs to be in close proximity to a point-of-sale terminal, while also addressing some aspects of mobile remote payments, where two parties are able to send and receive funds irrespective of where they are located.

Given the proliferation of mobile phones and related service levels throughout the European Union (EU), the EPC recognizes that the mobile channel is an ideal launch pad for SEPA payment instruments. Many consumers are already using mobile phones for services beyond the traditional voice calls and short messaging services due to the introduction of packaged offers, including internet access provided by the mobile network operators. As a result, consumer expectations with regard to mobile phone functionality have increased dramatically, with many users eager to embrace new service solutions based on this delivery platform, such as payments. The availability of practical SEPA mobile payments, either account or card-based, would provide a realistic alternative to cash and cheques.

At the same time, merchants demand that new technology translates into cost savings, increased business volume and reduced exposure to security threats such as cash thefts or illicit payments, as well as enhanced marketing opportunities and brand recognition. Mobile phone initiated payments, in particular those using the contactless approach, are very well positioned to generate these benefits for merchants and other stakeholders who are directly providing services to consumers.

Gerard Hartsink, Chairman of the EPC, comments: “The EPC, working together with other stakeholders such as, for example, GSMA, the organization representing the interests of the worldwide mobile communications industry, is in the process of establishing the necessary standards and business rules with regard to the initiation and receipt of SEPA payments by mobile. The aim is to develop proposals that support collaboration and standardization and which form the basis for interoperability. Our intention is to establish a service framework sufficient to reach potentially all payers and payees in the European Economic Area and to create a trusted and secure environment for the multiple stakeholders active in the field.”

Dag-Inge Flatraaker, Chairman of the EPC M-Channel Working Group, adds: “The EPC White Paper on Mobile Payments responds to changing customer requirements in the payments market and demonstrates how mobile payments can increase efficiency, effectiveness and convenience. This paper creates awareness on how to best combine the benefits of state-of-the art SEPA payment instruments for credit transfers, direct debits and card payments handled through one of the most popular and versatile devices introduced in the past two decades – the mobile phone.”

The EPC plans to publish a second edition of the white paper in 2011 that will focus further on mobile remote payments.

To download the EPC White Paper on Mobile Payments CLICK HERE

Mobile payments – Cellcom Israel and Citi to offer cash transfer services

Cellcom Israel is entering the financial services market with Citigroup and the Bank Hapoalim’s credit card subsidiary Isracard.

Cellcom and Citibank are to launch a service which will allow remittance transfers from Israel by clients of all local domestic mobile carriers, through Citi's platform and worldwide distribution channels.

Cellcom CEO Amos Shapira said that global remittances, including to and from Israel, are expected to grow by billions of dollars over the coming years. He said that Cellcom saw a potential growth market and decided to enter it. Cellcom only plans to launch the service by the end of 2010. Under the deal Isracard will issue mobile wallets to Cellcom subscribers.