Cyota Offers Financial Institutions Complete FFIEC Compliant Authentication Package; PSECU Implements Cyota's Risk-Based Authentication Solution to Further Protect its Online Banking Members.

NEW YORK -- Proven Solutions Provide Real-Time Transaction Monitoring and Risk Analysis, Risk-Based Two-Factor and Reverse Authentication, and Global Fraud Tracking Services

In wake of the new guidance issued last week by The Federal Financial Institutions Examination Council (FFIEC), the Pennsylvania State Employees Credit Union (PSECU), the 24th largest credit union in the US, announced today that is has selected Cyota's eSphinx(TM) risk-based two-factor authentication solution for its online banking application. The FFIEC Guidance states that, by itself, passwords and other forms of single-factor authentication are inadequate for high-risk transactions, and all US banks will be expected to implement stronger authentication processes by the end of 2006.

Cyota's risk-based eSphinx, two-factor authentication solution provides financial institutions with a complete FFIEC compliance package that protects the online banking channel without compromising consumer usability or changing the way users transact online. Cyota's proprietary, patent pending Risk- Based Authentication was conceptualized and developed by Cyota over two years ago. The technology provides a more secure and consumer friendly alternative to hardware based two-factor solutions at a lower cost, and interfaces with Cyota's optional eStamp(TM) reverse authentication graphical watermark solution for added consumer confidence. Over the past 12 months, Cyota's Risk Based Authentication technology reduced the instance of online fraud attacks at five major US- and UK-based banks by up to 80 percent, with a low rate of false positives.

"With the continuous evolution of phishing attacks, and the increasing frequency of Trojan-based attacks, banks and credit unions need to increase security to both protect accountholders against tomorrow's threats while preserving customer confidence in their online channels today," said Amir Orad, Cyota executive vice president. "The Risk-Based Authentication technology in Cyota's eSphinx provides financial institutions with the strongest, yet most consumer friendly form of two-factor authentication available, and banks have already seen major reductions in fraud after using our solutions."

Cyota's Risk Based Authentication process analyzes every online transaction and scores the potential fraud risk based on a broad range of criteria, including the user's computer, IP address, geographic location, prior transaction behaviors. It leverages Cyota's eFraudNetwork(TM), a cross-bank, real-time fraud repository where over 40 major banks and thousands of smaller institutions share fraudster profiles. If eSphinx detects a potential risky transaction, typically less than one percent of transactions, it invokes stronger authentication methods, including optional phone authentication. If the transaction is deemed authentic, eSphinx will "learn" this new user behavior, and will not trigger similar alerts in the future.

PSECU has been a fast mover in deploying anti-fraud solutions to proactively protect its members and maintain its high online banking adoption rates. In June, PSECU selected Cyota to provide its market leading anti-phishing and anti-pharming solution - FraudAction(TM). With the implementation of eSphinx, PSECU will meet the FFIEC guidance and benefit from a quick and simple deployment and a smooth non intrusive user experience.

"We researched different authentication technologies and vendors for months. After learning more about Cyota's risk based authentication and speaking with actual customers, the decision to move forward with Cyota was an easy one," said Kevin Doyle, Information Security Officer at PSECU. "More than half of our members have signed up for online banking, and it's vital that they be protected with the strongest measures available while not impacting their user experience. With eSphinx, PSECU customers won't notice any difference in the way they bank online, but they can sleep at night knowing they're secure."

Cyota's other products Cyota eVision(TM), the company's online banking risk management solution, and Cyota SecureSuite(TM), an e-commerce fraud solution supporting Verified by Visa and MasterCard SecureCode.

About PSECU

PSECU is one of the nation's largest credit unions, serving more than 300,000 members. PSECU members include State Employees, faculty, staff, students and alumni of the Universities within the State System of Higher Education and Harrisburg Area Community College, employees of local governments, participants in the Public School Employees Retirement System (PSERS), State Employees Retirement System (SERS), approved school districts, approved employee and associational groups and immediate family members of all of the above groups. PSECU is a full-service, not-for-profit institution that provides a multitude of convenient electronic delivery services at no or low-cost.

About Cyota

Cyota, Inc. is the leading provider of online security and anti-fraud solutions for financial institutions. Cyota's solutions include fraud reduction tools for e-commerce and online banking as well as anti-phishing services. Cyota operates in North America, Europe and Asia-Pacific with systems in use by thousands of global financial institutions, including nine of the world's top 12 banks. Over 430 million accountholders are protected by Cyota's systems. Founded in 1999, Cyota is headquartered in New York with offices worldwide. For more information please visit www.cyota.com.