SmartMetric, the Developer of the Biometric Secured Credit Card, Says the Continued Blow Out in the Cost of Fraud for United States Merchants, Now Estimated at More Than $39 Billion, Is Unsustainable

Rhea-AI Summary

SmartMetric, Inc. (OTC-PINK: SMME) highlights the growing fraud crisis according to LexisNexis' 2021 report, showing that each $1 of fraud costs U.S. merchants $3.60, a 15% increase since pre-COVID-19. Total U.S. credit card fraud losses reached $11 billion in 2020, with a potential real-life loss of over $39.6 billion when considering the multiplier effect of fraud. SmartMetric is advancing biometric technology in credit cards, incorporating a fingerprint scanner for secure transactions, aiming for adoption by major banks in 2022.

Positive

• SmartMetric is a leader in biometric credit card technology with patented innovations.
• The biometric card is designed with an internal power source, allowing use before insertion in ATMs.
• Enhanced security features could lead to lower fraud rates, benefiting both SmartMetric and its partners.

Negative

• The market faces a significant challenge with a 15% increase in fraud costs since pre-COVID-19.
• SmartMetric operates in a highly competitive sector, facing risks from other financial technologies.

NEW YORK--(BUSINESS WIRE)-- SmartMetric, Inc. (OTCQB: SMME): The LexisNexis cost of fraud report for 2021 has shown a significant increase since just before COVID-19. Every $1 of fraud costs U.S. merchants $3.60 compared to $3.13 in the pre-COVID time period (+15.0%). The significant percent of identity-related fraud continues to be at the point of sale. ¹

According to the Merchant Risk Council estimates that by the end of 2020, the US saw $11 Billion in credit card fraud losses. The US is responsible for one-third of the world’s credit card fraud, and 2020 saw even higher figures than previously.² Using the Lexis Nexis true cost of fraud multiplier that takes into account the total losses experienced by a merchant this $11 Billion in credit card fraud would result in an actual real-life loss to United States merchants of over $39.6 Billion.

The multiplier effect of fraud takes into account the cost of restocking lost merchandise, staff hours, shipping costs etc. It estimates the total amount of loss a firm incurs based on the actual dollar value of a fraudulent transaction

As the leader in fingerprint activated biometric credit cards SmartMetric sees 2022 as the year that major credit card issuing Banks around the world will move forward with the adoption of advanced biometric technology-based cards. “Biometric fingerprint activated credit cards is a powerful new weapon in fighting the ongoing war against fraudsters said today, Chaya Hendrick, President and CEO of SmartMetric.

SmartMetric has created a credit card that has built inside, a fingerprint reader that when you touch a sensor on the surface of the card, scans your fingerprint in less than a second. Your fingerprint is then matched with your pre-stored fingerprint inside of the card and when a match occurs your card is turned on. Instant secure user validation that goes beyond the use of a PIN in protecting the use of a credit or debit card making a transaction.

What sets the SmartMetric Biometric card solution apart from others is that it is designed with its own internal power source. This enables the card to function and perform the fingerprint scan prior to the card being inserted in a reader. This allows the card to be used at regular ATM’s and in situations where the card is used in places like a restaurant where the card is taken away from the dinning table to be processed.

The SmartMetric in-the-card fingerprint scanner allows for the cards chip to only work following a successful scan and match of the card users fingerprint. Unlike other biometric cards, the SmartMetric card does not need the card user to go into a bank branch to have their fingerprint stored on their new biometric card. Instead, the SmartMetric Biometric Card allows the card user to enroll their fingerprint when they first receive it at home as simply as it is when enrolling your fingerprint on a smartphone.

Touch and store read once technology developed by SmartMetric for its biometric card allows mass card issuing financial institutions to issue their cards direct to the consumers as they normally do without the need for consumers to come into a bank branch to activate their new biometric card.

SmartMetric is a USA based company with sales and marketing partnerships in Latin America, Europe and United States. Engineering of the biometric card electronics is done in-house and is the owned intellectual property of SmartMetric.

SmartMetric has issued patents and patents pending surrounding its biometric card technology.

To view the SmartMetric Biometric Card please follow this link - Video of the SmartMetric Biometric Card. To view the company website: www.smartmetric.com

¹ The True cost of Fraud™ Study | LexisNexis Risk Solutions
² https://www.definefinancial.com/blog/identity-theft-credit-card-fraud-statistics/

Safe Harbor Statement: Forward-Looking Statements in this press release, which are not historical facts, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Also such forward-looking statements are within the meaning of that term in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Our actual results, performance or achievements may differ materially from those expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by the use of words such as "may," "could," "expect," "intend," "plan," "seek," "anticipate," "believe," "estimate," "predict," "potential," "continue," "likely," "will," "would" and variations of these terms and similar expressions, or the negative of these terms or similar expressions. Such forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable by us and our management, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, among others, if we are unable to access the capital necessary to fund current operations or implement our plans for growth; changes in the competitive environment in our industry and the markets where we operate; our ability to access the capital markets; and other risks discussed in the Company's filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K, which filings are available from the SEC. We caution you not to place undue reliance on any forward-looking statements, which are made as of the date of this press release. We undertake no obligation to update publicly any of these forward-looking statements to reflect actual results, new information or future events, changes in assumptions or changes in other factors affecting forward-looking statements, except to the extent required by applicable laws. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements. Investors and security holders are urged to carefully review and consider each of SmartMetric Inc. public filings with the SEC, including but not limited to, if applicable, Annual Reports on Form 10-K, proxy statements, Current Reports on Form 8-K and Quarterly Reports on Form 10-Q.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211227005099/en/

SmartMetric, Inc.

Chaya Hendrick

Tel: (702) 990-3687 or (305) 607-3910

ceo@smartmetric.com

www.smartmetric.com

Source: SmartMetric

FAQ

What does the LexisNexis report say about the cost of fraud for SMME?

The report indicates that each $1 of fraud costs U.S. merchants $3.60, a 15% increase from pre-COVID levels.

How much credit card fraud did the U.S. experience in 2020 according to SmartMetric?

The U.S. experienced $11 billion in credit card fraud losses in 2020.

What technological advancements is SmartMetric making in 2022?

SmartMetric is focusing on the adoption of fingerprint activated biometric credit cards by major banks.

What is unique about SmartMetric's biometric credit card?

It has a built-in fingerprint reader and an internal power source, allowing it to function without being inserted into a reader.

How does biometric technology benefit SmartMetric in the fight against fraud?

Biometric technology enhances transaction security, potentially reducing fraud rates for users and merchants.