U.S. Validates Codercard Computer-Security Device
After three years of trying to find a niche in the computer-security field, Irvine-based Codercard Inc. has received government validation for an anti-hacker device that could save the government and financial institutions millions of dollars a year in electronic funds transactions and lead the company into a profitable market.
The Codercard device prevents hackers from getting into electronic fund-transfer systems, which are used frequently by the federal government and financial institutions for the transference of money and information. Electronic funds transfer, or EFT, systems encompass wire transfers, letters of credit, security transfers, loan agreements and foreign exchange contracts.
The Treasury Department had mandated that all electronic funds transfer systems used within the federal government have secured communications that comply with standards to be set by the National Bureau of Standards before June 1, 1988. The NBS is a government agency that establishes physical standards for the nation’s system of measurement.
The adapter, which would cost about $750 per personal computer, also features an access card that enables only authorized users to code messages.
Codercard entered into a pact with Interstate Electronics Corp., a wholly owned, Anaheim-based subsidiary of Figgie International Inc., earlier this month to jointly submit the device to the National Bureau of Standards for validation.
Codercard, which has lost $3 million since its start in 1983, agreed to team up with Interstate Electronics Corp., which has electronic monitoring contracts with the U.S. Navy, for more recognition and presence in Washington, said Robert Gray, Codercard vice president of marketing.
Under their agreement, both companies would develop computer security devices and also market them.
Interstate would concentrate on the federal market while Codercard would pursue financial institutions. However, the two companies will not pool the profits, Gray said. The potential market for the device is expected to be in the millions and sales will probably become heavy in the summer, Gray said.
