iPhone App for Reading Currency Denominations

An iPhone app that recognizes US currency denominations and announces the results on the iPhone speaker. Yes this is the latest from the Bureau of Engraving and Printing and is aimed at helping the visually impaired better recognize note denominations. Euros and notes from many countries have differing sizes making it easier to differentiate the denominations. The US has been under pressure to find ways to differentiate it’s notes and are seeking ways to solve it.

While the app isn’t the end-all, it’s interesting to see how technology can be employed to solve a problem such as reading notes printed all the way back to 1996. If you have an iPhone or iPAD its a fun and free way to experiment with the technology. Give it a shot, it’s available in the Apple App Store. Read the BEP press release here      http://www.moneyfactory.gov/images/EyeNote_Press_Release_4_4-19_2_4.pdf

~Bob Walters

BEWARE OF SOCIAL NETWORKS

Social networking is an idea that few people living in the modern world are unfamiliar with.  Facebook, Linkedin, and Myspace, to name a few, enjoy hundreds of millions of members who use their sites to keep in touch with friends, exchange ideas, and gather information.  To be sure, the widespread use of the internet has created new and exciting opportunities for sharing in a global community.  However, despite its recent spike in popularity and general awareness, “social newtoworking” is anything but a new concept.  In fact, loss prevention professionals around the world have been dealing with the darker side of social networking for decades or longer.

In much the same way online social networkers share information about consumer products, movies, and music, criminals and thieves share information about vulnerable retailers and security conditions in an underground social network.  While they don’t employ the use of modern technology or operate in the public purview, they are effective none the less.  When one criminal successfully breaches a retailer’s security and escapes with cash in hand, it is safe to assume that other potential offenders within their social network will learn of their approach to the robbery.

In a recent discussion with a law enforcement professional, I was told that in the first seven days after a robbery it is estimated that 20-25 individuals will learn how the crime was committed and the value of the cash stolen from the retailer.  So how do retailers protect themselves against nefarious social networking?  Simple: send a message.  Instead of broadcasting vulnerability, retailers must send a message of strength and security.  Using the latest in intelligent safe technology and surveillance equipment, the same social network that broadcasts opportunities to potential offenders will transmit a warning.  Avoid retailers with secure-steel safes and corresponding camera equipment.  Don’t pick a fight with an opponent that is prepared.

Many retailers today are wisely using online social networks to reach new customers and inform existing clients.  However, few consider what message they are sending to criminal networks.  The question remains: if you are a retailer, what message are you sending to underground social networks?  A warning or an invitation?

 

~Jeff Hauser

In an emergency, it’s always cash

Ever notice, when we are worried about the unknown, there’s a run on cash and ATMs? We all know that when the chips are down, cash is the one commodity we know will work. Big snowstorms, Y2K, civil unrest, whatever the threat, people around the world get back into cash so they know they can travel, eat and survive. No one brings extra credit or debit cards or checks when they head to the bunker, it’s cash.

There’s something about cash that makes you feel secure, mobile, and empowered. Thats why I know cash will never go away.
~Bob Walters

The New Electronic Currency?

No I’m not talking about a debit card, I am referring to a fascinating article on Fast Company that hypothesizes the technology is here to embed thin-film electronics on currency. Benefits would include greatly reduced counterfeiting and an ability to embed circuits on a bill for simple computations such as encryption. How fun.

Currency has been around since 2000 BC, and the beauty of it is currency evolves to meet the times – it has to be easy to carry, simple to exchange and universally acceptable. Even though card payment mechanisms have their benefits, the ease of cold hard cash is tough to replace. You can read the whole article here: http://www.fastcompany.com/1711656/invisible-printed-transistors-the-next-weapon-against-banknote-fakers
~Bob Walters

Cash Around the World

I had the opportunity to visit some Asian countries recently, and of course needed to have some cash. Initially I thought I’ll just use my credit card everywhere, thats the way to go. It is the way for most things – hotel bill, fancy restaurants, higher end purchases. But I discovered, like here in the U.S., you need some “walkin’ around money”, cash of course! Short taxi rides, a coffee or soda while out, a quick lunch.

Cash usage around the world seems to be the same everywhere – larger purchases are handled with alternative payment mechanisms – credit/debit card, check, but the under $20 transaction is still cash. Thats where the volume is. The world economies consist of an awful lot of coffees and sodas and lunches and socks. Outdoor markets. Cash is faster and flows with less friction.

It’s also interesting to note that many countries are perfectly comfortable with rounding cash up and down, unlike the U.S. where we seem to hate pennies but everyone feels compelled to wait for their one penny in change, or the cashier demanding that last cent. The “penny cup” is our way to balance the transaction so we still see the penny, even if we leave it behind. Other places aren’t so particular about those pennies. when something is 3.98 they take the 4.00 and expect you to walk away. If it’s 4.02 they take the 4.00 and get on to the next customer. Maybe we should try that in the U.S. Abe Lincoln was a nice enough guy, but maybe it’s time to give him a break from posing for all those pennies.

~Bob Walters

Tis the Season to be Cautious…

In the few short weeks between Thanksgiving and Christmas, Americans will spend billions of dollars shopping for holiday bargains.  While increasing numbers of shoppers choose to take their business to the worldwide web, old-fashioned brick and mortar retail stores are predicted to hit record sales figures this holiday season.  However, with increased foot traffic and cash on hand, sales figures aren’t the only numbers on the rise.  In an economic climate characterized by unemployment and financial uncertainty, the risk of fraud or robbery increases for retailers across the United States.

Keeping employees and customers safe is a primary concern for retailers during the busy holiday season.  Proper cash-handling procedures, secure storage, and discrete cash pick-ups and deliveries are just a few practical strategies for mitigating risk.  By limiting cash exposure within the store, retailers restrict the number of opportunities for robbery or internal fraud.  Furthermore, by analyzing sales data, traffic patterns, and cash volumes, retailers are able to adjust staffing and security measures in accordance with customer behavior.

With so much riding on holiday performance, retailers must focus on security measures and best practices that provide protection without compromising customer experience.  Tighter inventory controls and increased staff size are traditional, costly methods for achieving enhanced store security.  Clearly, in a market where more and more consumers are taking their business online, retailers need the help of cutting edge technology to remain relevant and safe during the holidays.

http://www.atmmarketplace.com/whitepapers/2284/Three-Benefits-of-Intelligent-Cash-Vaults

 

~Jeff Hauser

What Nobody Knows, Can’t Hurt You

When internet titan Google speaks, the marketplace tends to listen.  Thus far, Web 2.0 Summit in San Francisco has been no exception.  During his forty-five minute conversation with conference moderators, Google CEO Eric Schmidt discussed the vast array of technological innovations his organization has been hard at work developing.  While the list was long and undoubtedly interesting, Google’s foray into the world of wireless payments was of particular interest to me.

As a payments expert, working for a technology firm focused on making payments more efficient, secure, and cost-effective, I am well acquainted with pairing greater efficiency and enhanced security.  This balancing act was on display at the Web 2.0 Summit as well, as Mr. Schmidt carefully navigated questions related to Google user’s privacy while sharing that Android-enabled Smartphones (using an OS created by Google) will soon come equipped with “tap-and-pay” functionality.  Now, rather than being bogged down with numerous credit cards, Android owners are able to use their cell phones for common, everyday purchases.  While convenient and rife with potential, how much information, as well as what type of information, are individuals comfortable sharing with internet companies like Google, or Facebook?

For years, consumers have been told that they days of paper-based currency are numbered.  Gone are the days of Ben Franklin’s and Andrew Jackson’s; the age of the debit card has arrived.  However, as debit cards are being replaced by data collecting devices like Smartphones, are the days of consumer privacy gone as well?

As we approach the holiday season, I am reminded that the benefits of cash reach beyond often-assumed clandestine purposes.  Rather than making attempts to hide the countless “recommended product” spam messages, forwarded to my email inbox via online retailers after purchasing Christmas gifts for my wife, cash enables me to guard my privacy and thereby deliver holiday surprise.  Couple the advantages of anonymity with the growing unbanked population in the United States and its plain to see why cash is here to stay.  However, the question remains: how can consumers and retailers alike enjoy the benefits of cash (anonymity, funds availability, etc.) while lowering the cost of handling and securing the physical currency?

http://money.cnn.com/2010/11/15/technology/google_schmidt_web2/index.htm

~Jeff Hauser

Counterfeiting Doubles Year Over Year

It used to be really hard to create a counterfeit banknote. Like in the movies there were engravers and plates and cloak and dagger shenanigans. Todays technology makes it relatively easy – high tech scanners, high quality color printers and “tada”: near perfect notes, at least to the naked eye. According to the Detroit Free Press www.freep.com/apps/pbcs.dll/article?AID=201011060417 the amount of counterfeit notes removed from circulation in 2009 was $182 million, about double the $79 million the year before. 62% came from digital printers.

It used to be that the easy way to identify fake money was to use a detection pen, which only verifies that the paper is actual Bureau of Engraving and Printing paper. Today criminals are using low value note paper to make high value notes, such as $100 bills, skirting the test of the detection pen.

The hard part of being a recipient of phony money is it’s a bit like musical chairs: the last one standing is out of the game. Send your bank bogus bucks and they’ll keep the notes (and send them to the Secret Service) and debit your account. The smart money figures out how NOT to accept bad bills.

So if you want to avoid being part of the doubling of the counterfeit money business, employ some detection technology that keep counterfeits out of the system.

~Bob Walters

Keep an Eye on Inventory

In a recent CNN.com article, it was estimated that retail theft added $423.00 to the average American family’s shopping bills this year.  In 2010, retailers lost approximately $40 billion due to stolen inventory; roughly 1.5% of the total retail sales in the United States.  However, despite the staggering numbers, these figures are a 6.8% improvement over 2009, thanks in large part to a 12.5% increase in security spending in 2010.

Being in the cash management business, I routinely encourage clients to manage currency on hand (cash) the same way they manage other inventory items.  Like retail goods, much of the loss experienced when handling currency comes from within.  Consider this, if relatively illiquid products like beauty care items or clothing are targeted for theft and resale, how much more attractive is cash for a potential thief?

As a former small business owner myself, I look back with surprise over the way I routinely handled cash.  Whereas I could accurately measure my finished-goods inventory thanks to real-time inventory controls, I could rarely do the same with my cash inventory.  Now, thanks to heightened awareness about cash “shrink”, retailers across the country are becoming more sophisticated in managing cash inventory.  Advances in intelligent safe technology and point of sale systems enable retailers to collect vital cash position data.  This data enables retailers to identify important trends, establish best practices, and keep a closer watch on potential theft.  After all, retailers want to provide value to their customers, not the bill for theft.

http://money.cnn.com/2010/10/18/news/economy/store_theft_drain_on_your_wallet/

 

~Jeff Hauser

Life Without Data

I’m traveling outside the country, and took the advice of my cell phone carrier to set my smartphone option to “turn off data roaming”. I’m addicted to my smartphone and love to keep on up news, stocks, scores, maps, all the little icons beckoning to “click me for data”.

At breakfast alone this morning I longed for my data, heeding the advice not to roam, lest I go broke as my phone soaks up data.

Being in the business of cash counting networked safes, data is what we offer. Sure you get security and loss prevention, but today most companies run their business on data for a competitive edge. When you become accustomed to the data and the data isn’t there, you realize how important it is to you. When I was a kid, while really, really young (& I’m not dating myself here) I remember shopkeepers writing down your purchase amounts on the side of your shopping bag, adding it up, and that was your total and your receipt – don’t ask me how they paid their taxes.

I wouldn’t trade that for my data rich smartphone, and I think our clients wouldn’t trade their cash data for the days of brown bag receipts. But who knows about those taxes…

~Bob Walters