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American Express Cuts Travelers Cheque
Counterfeits-Case Study
The introduction of a hologram as the main security feature
on its travelers cheques helped American Express (AMEX)
cut their counterfeiting problems dramatically.
In the 1990s the company faced an explosion in counterfeiting
attacks due to the availability of ink jet copiers, scanners
and color copiers. In the mid-1980s, American Express found
six to 10 counterfeit attempts a year, but by 1994 and 1995
the numbers increased dramatically and cheque acceptors
were
taking some $50,000 to $100,000 a day in fakes. In the first
half of 1995 the problem increased 57% and in 1996 the problem
increased 95%.
The company undertook a basic review of its cheque security
and decided to add a foil hologram and to encourage acceptors
to examine cheques for fakes. This hologram (Excelgram)
device can be seen in normal light, it includes a color
shifting image of the AMEX Centurion, the check denomination
and the words 'American Express.' The color shifting, multi-channel
images make it impossible to replicate on a copier or desktop
printing system. As a part of the redesign, the company
eliminated the use of intaglio print but included several
other security features including microtext, UV fluorescing
ink and UV-dull paper, fine-line printing, ink smear test,
a framed and registered watermark, a security thread and
screen angle modulation.
The redesign was a risk, taking time and money, but the
results were worth it. American Express initiated the use
of holograms on its United States Travelers Checks in 1997.
The addition of the holograms and other changes decreased
the amount of counterfeit tremendously. In 1997 actual occurrence
of counterfeit was 45% lower than the company had projected
and in 1998 actual occurrence was 44% lower than projected.
Similar security changes have been made to the Euro and
other American Express Travelers Cheques.
In this case like many others, the use of
a hologram increased the security of a document. Despite
the risks and despite attempts to simulate these documents
American Express and others continue to reap security benefits
from the hologram.
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| CATEGORY
-HOLOGRAM WITH VARIABLE INFORMATION
BHARTIYA VIDYAPEETH- PUNE
PROBLEM
BHARTIYA VIDYAPEETH IS A
DEEMED UNIVERSITY AND HAS OVER 100INSTITUTIONS AFFILIATED
TO IT. IT IS ONE OF THE MAJOR UNIVERSITY IN THE MAHARASTRA
REGION AND WAS FACING SERIOUS PROBLEMS OF COUNTERFEITING
WITH THEIR DOCUMENTS AND MARKS SHEETS AND WAS NOT ABLE TO
STOP THE DUPLICACY TRADE WITH PRESS REPORTS AND STERN WARNINGS,
IT WAS TIME FOR THE OFFICIALS TO RE-STRUCTURE THEIR STRATEGIES
TO STOP THIS MENACE OF COUNTERFEITING OF THEIR DEGREES AND
DOCUMENTS WHICH COULD ACT AS A BIGGEST THREAT TO THE UNIVERSITY.
METHOD/SOLUTION
TO OVERCOME THIS THREAT OF
COUNTERFEITING BHARTIYA VIDYAPEETH APPROACHED US TO PROVIDE
THEM WITH A WEAPON TO COMBAT THIS MENACE AND WE SUGGESTED
THEM TO USE HOLOGRAMS WITH VARIABLE INFORMATION (WHICH HAD
HIDDEN TEXT AND LASER READABLE UV FEATURES IN THE HOLOGRAMS),
WHICH PROVIDED UNIQUE SECURITY TO THE DOCUMENTS OF THE UNIVERSITY.
RESULT
THE RESULT AFTER THE UNIVERSITY
STARTED USING HOLOGRAMS FROM US, WERE TREMENDOUS PEOPLE
COULD EASILY IDENTIFY THE ORIGINAL DEGREE CERTIFICATES AND
DOCUMENTS AND THE MANAGEMENT OF THE UNIVERSITY HAD OVERCOME
A SERIOUS ISSUE BY USING HOLOGRAMS WITH VARIABLE INFORMATION
AND WERE VERY SUCCESSFUL IN ELIMINATING THE DUPLICATORS AND
THE COUNTERFEITERS. THEY HAD FOUND A WEAPON TO SAFEGUARD
THEIR INTERESTS.
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1) CONA INDUSTRIES LTD.
THE PROBLEM
A LEADING MANUFACTURER AND
EXPORTER OF ELECTRICAL SWITCHES AND ACCESSORIES IN INDIA
AND THE FIRST IN TRADE TO BE HONOURED WITH THE ISO 9001-2000
CERTIFICATION WAS FACING SERIOUS PROBLEMS WITH COUNTERFEIT
AND FAKE PRODUCT AND SALES SPURGED BY A HIGH 50%. THEY WERE
LOOKING FOR A SOLUTION AND APPROACHED HOLOGRAM SOLUTIONS
TO HELP THEM OVERCOME THIS OBSTACLE
THE METHOD/SOLUTION
AS THE COUNTERFEITERS WERE
USING THE SAME PACKING STYLE OF THE ORIGINAL BRAND IT WAS
DIFFICULT FOR THE CONSUMERS TO DIFFERENTIATE BETWEEN THE
GENUINE AND THE FAKE ONE. SO THE ONLY SOLUTION WAS SECURITY
HOLOGRAMS, WE RECOMMENDED THE USE OF HIGH SECURITY HOLOGRAMS,
WHICH WOULD ENABLE THE END CONSUMER TO DIFFERENTIATE BETWEEN
THE FAKE AND THE ORIGINAL.
THE RESULT
AFTER CONA INDUSTRIES STARTED
USING HOLOGRAMS THERE SALES INCREASED BY A HUGE PERCENTAGE
AND THEY REALISED THE IMPORTANCE OF SECURITY HOLOGRAMS,
WHICH SAFEGUARDED THEIR BRAND AND HELPED THEM IN INCREASE
IN SALES WITHOUT ANY ADDITIONAL PROMOTIONAL EXPENSES.
THEY ARE NOW USING AND BUYING
HOLOGRAMS FROM US FOR ALL THEIR PRODUCTS AND HAVE SEEN A
GREAT INCREASE IN SALES.
THUS THE IMPORTANCE
OF HOLOGRAMS CAN BE ASSESSED BY HEAVY INCREASE IN SALES OF
CONA PRODUCTS.
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| EXIDE
INDUSTRIES LTD.
EXIDE INDUSTRIES LTD. IS THE LEADING MANUFACTURER
OF AUTOMOTIVE BATTERIES IN THE COUNTRY AND ITS FLAGSHIP
BRAND EXIDE IS THE MARKET LEADER IN THE CATEGORY.
IT WAS FACING SERIOUS PROBLEMS BECAUSE OF
COUNTERFEITERS WHO USED THE SAME BRAND NAME AND FOOLED THE
END CONSUMER DUE TO WHICH SALES OF EXIDE fell down BY A
shocking 40% AND THIS HAD BECOME A GREAT CAUSE OF WORRY
FOR THE MANAGEMENT OF EXIDE INDUSTRIES.
FINDING IT DIFFICULT TO SAFEGUARD ITS BRAND
AGAINST COUNTERFEITERS THE COMPANY APPROACHED US TO PROVIDE
THEM WITH A SOLUTION THAT REALLY WORKS AND WHICH ENSURED
SECURITY SO THAT THEIR CUSTOMERS WERE NOT FOOLED BY THE
FAKE ONE.
WE PROVIDED THEM WITH A HIGH SECURITY
LABEL TO COMMUNICATE THE AUTHENTICITY OF THEIR PRODUCTS
TO THE END USER, THEY HAVE BEEN USING OUR HOLOGRAMS AND
ARE SUCCESSFUL IN COMBATING THE SALES OF FAKE PRODUCTS AND
ARE ABLE TO INCREASE THEIR SALES AND BRAND EQUITY BY USING
HOLOGRAMS AND NOT BY ADDITIONAL PROMOTIONAL EXPENSES.
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