a march networks whitepaper solutions for financial...

A MARCH NETWORKS WHITEPAPER

Solutions for Financial InstitutionsDelivering Superior Benefits and Measurable Returns

Executive Summary ..................................................................................1

Physical Security Costs ..............................................................................2

IT and Infrastructure Costs ........................................................................4

Network/Equipment Utilization ..........................................................4

System and Network Security .............................................................4

System Maintenance ..........................................................................5

Fraud and Loss Prevention Costs ...............................................................5

Other Costs ..............................................................................................8

Conclusions ..............................................................................................9

About March Networks ............................................................................9

Table of Contents

March Networks Solutions for Financial Institutions

1

Executive SummaryThe total cost of video security for fi nancial institutions was traditionally focused on the purchase, operation and maintenance of CCTV surveillance equipment. As digital surveillance systems became the industry standard, budgets had to be expanded to include IT infrastructure costs such as user and management PCs, network equipment, bandwidth usage and network storage. Today, March Networks encourages banks and credit unions to broaden this assessment of investment versus returns even further, to include the teams fi ghting some of the most damaging banking exposures today — the fraud investigation and loss prevention teams.

March Networks prides itself on providing real returns on investment to its customers. This paper outlines the positive cost-of-ownership characteristics provided by our Financial Solutions. Table 1 shows the multi-layered view we encourage customers to take in order to gain a full competitive assessment, including all equipment and infrastructure costs, as well as fraud investigation costs versus recoveries, and more.

Table 1 - Value of March Networks Financial Solutions

Security Investment

March Networks Benefi ts and ROI

Physical Security

• Advanced hybrid recorders • Bank-centric IP cameras

• Task-oriented software • Unmatched reliability, service features

➔ market-leading performance, scalability without added cost➔ megapixel video for marginally more than analog

(~20% per camera)➔ enhanced user productivity at no additional cost➔ lowest cost of ownership (up to 75% less)

IT and Infrastructure

• Network-centric design • Advanced encryption• Embedded Linux OS

• Unmatched central management

➔ effi cient local and remote operation regardless of IT budget➔ tamper-proof video capture and transmission at no added cost➔ highest protection against hacking, viruses, video loss at no

added cost➔ optimized resources, budgets, plus constant video availability

Fraud Defenses

• Advanced video/data search• Forensic video/data analytics• Integrated case management• Stronger evidence

➔ ~50%+ improvement in investigator effi ciency, productivity➔ faster identifi cation of crimes, reduced losses, improved service➔ reduced investigation time and cost (~50% less)➔ more successful prosecutions and increased recoveries

Other

• Certifi ed local, national integrators • Robust APIs

• Managed Services• Solid warranties and product evolution

➔ best-in-class installation, ongoing service at no extra cost➔ unifi ed security environment, equipment reuse, reduced training

and operations costs➔ outsourcing to system experts for fi xed costs, peace of mind➔ investment protection, from a valued partner

In short, March Networks solutions provide banks and credit unions with important and sometimes unique hard and soft returns. The specifi c numbers will vary by fi nancial institution size and structure, but these solutions can improve cost avoidance and recovery by 50 percent or more. This can save thousands of dollars per retail branch and can double or even triple a fraud team’s cost effi ciencies and recoveries.

To elaborate, the details behind Table 1 are in the following pages. The product comparisons are meant to be generic but representative. The benefi ts are those experienced across the more than 450 satisfi ed fi nancial customers already using March Networks solutions. These institutions have increased the quality of their video surveillance, enhanced the protection of their customers or members, employees and assets, and dramatically improved the productivity and cost-per-investigation of their fraud teams.


2

Physical Security CostsFrom installation to expansion to ongoing maintenance, March Networks hybrid surveillance systems are among the most reliable, scalable and cost-effective systems in the industry. They can help a bank or credit union save or avoid signifi cant dollars per retail branch annually. For example, one major U.S. fi nancial institution has deployed more than 800 units, and in four years, has needed to repair only two systems. Other customers have extended their storage capabilities by weeks or even months without a reduction in video quality or the expense of external archiving. Some have cut maintenance costs by thousands of dollars annually. The following Table details these and other returns that can be experienced.

Table 2 - Physical Security Costs and Savings

Security Investment

Typical Hard or Soft Cost

March NetworksFinancial Solution

Benefi t / Return on Investment

Video Recording Platform

• 16-camera analog recorder❏ $5,000 - $10,000 per retail

branch

• Video storage❏ 30 – 60 day storage typical❏ Reduce video quality to extend❏ Add extra capacity externally at

$5,000+

• Best-in-Class 24-camera hybrid recorder❏ $8,000 - $9,000

• High-capacity internal archiving❏ 4.0TB standard/8.0TB optional,

120 days+ retention❏ Internal disk mirroring for reliability❏ External RAID for back-up

• 2 x 8-camera hybrid unit = ‘virtual’ sys-tem with 16 analog, 16 IP, 16TB storage ❏ $9,000 - $10,000

• Market-leading scalability, reliability and performance without added cost

• Save $5,000 or more by avoiding external storage

• Set longer retention standards, have option to increase video quality without compromising those targets

• 32-camera hybrid recorder at sizable cost savings

Surveillance Cameras

• Analog video capture❏ Cost effective, proven cameras

with established feature set❏ Limited resolution, zoom clarity

• IP video capture❏ Limited support in current DVR❏ Costly @ $750+ per camera

• Complete analog support❏ Higher frame rates if desired❏ No removing analog to add IP

cameras• Innovative IP camera family

❏ HD, WDR units @ $550 - $750❏ Megapixel clarity on zoom❏ Same GUI for analog and IP

• Keep existing investment in analog cameras, but also leverage latest technologies

• Easy to add HD video selectively❏ Models with features, price to

match banking requirements

System Operation

• Video search and retrieval❏ Key is time and effort required

to fi nd relevant video, provide to law enforcement

• Live video monitoring when needed

• Task-oriented software with time-saving, user-friendly features❏ Motion histograms, integrated

calendar, JPEG previews❏ Local or remote video control, live

viewing, evidence export❏ One-button/all camera download for

panic scenarios❏ integrated case management, with

multiple clips/notes per fi le

• User effi ciency, even when under duress

• Advanced performance without needing advanced network infrastructure

• All at no extra charge

One major U.S. fi nancial institution has deployed more than 800 units, and in four years, has needed to repair only two systems.


3

“In nearly 4 years of supporting the March Networks systems, we have had to change one hard drive. That is it! I have never worked with a product as bullet-proof as that …”

— Lead Technician, Canadian security integrator

Average System Servicing Time/Cost

Cable labeling, disconnect

Cable labeling, disconnect

System dismounting(rack installation)

System dismounting(rack installation)

Hard drivereplacement

Hard drivereplacement

Systemremounting

Systemremounting

Cablereconnect

Cablereconnect

System reboot,reconfiguraion

System reboot,reconfiguraion 4 minutes

15 minutes

15 minutes

5 minutes

5 minutes

10 minutes

5minutes

10 minutes

5 minutes 20 40 60 80

5 minutes 20 40 60 80

n/a(dockingstation)

15 minutes

total=

45 minutessavings

60+ minutes

total

3 minutes

3 minutes

n/a

March Networks

Competitor

Table 2 - Physical Security Costs and Savings (cont’d)

Security Investment




System Maint.

• System administration, health monitoring❏ Hourly staff rate to ensure

programming compliance, video availability per branch

• System reliability and servicing❏ Outsourced hourly-rate or

annual service fees to ensure fault-free operation

• The leading central management and health monitoring software ❏ Full remote programming❏ Monitor systems, network, cameras❏ User, software control also

• Designed for maximum up-time❏ H/w, s/w watchdogs for health❏ Back-up battery for reliability❏ Docking station for service

• Unmatched central management, health monitoring ❏ Manage 1000’s of recorders

from single desktop, in near real-time

❏ All included with system

• No video lost, and annual maintenance costs reduced up to 75%


4

IT and Infrastructure Costs Digital surveillance systems add IT resource and infrastructure costs to overall security budgets. Setting aside ubiquitous user PCs or laptops for running application software, the amount and type of network equipment, bandwidth usage, maintenance and other cost items required by these surveillance systems varies considerably. March Networks is a leader in optimizing these aspects of their systems and minimizing the resulting costs for its customers. Here are some of the ways this is achieved.

Network/Equipment Utilization

March Networks systems are network-friendly by design, with features and capabilities that enable them to adapt to almost any customer IT environment without increasing cost or compromising performance:

• As part of the video search process, March Networks Investigator software provides users with a series of lightweight, JPEG thumbnail images (approx. 8 KB of data), evenly spaced across the video timeframe selected, providing highly effi cient previews of all video instead of forcing full reviews to fi nd desired clips. This increases video search effi ciency and reduces network requirements.

• Authorized users can access and play video from any March Networks recorder on the network without the need to download that video to their desktop. Only desired evidence clips are downloaded, which again reduces network requirements for obtaining video evidence.

• Once desired evidence video is determined, March Networks recorders also offer robust bandwidth throttling controls that ensure downloads adapt to the network infrastructure available or stipulated. Settings can be varied automatically by time and day to accommodate changing network traffi c patterns, or a preset change can be triggered by an event, for example pressing a ‘hold-up’ or panic button, which provides full bandwidth to investigators temporarily in order to help generate time-critical evidence. There is no need for separate video networks, and operation is highly effi cient regardless of the IT budget available.

System and Network Security

March Networks takes system and network security seriously. Our recorders use a robust Linux operating system, embedded in fl ash memory. This makes them impervious to the hacking attempts, worms, viruses and other malware that plague Windows-based systems, and eliminates the need to install fi rewall software on these platforms.

Because no operating instructions are stored on the hard drives, no system can ever fail due to a hard drive issue. The system will continue recording its video to the other drives in the unit (up to four high-capacity drives per recorder). The drives themselves offer a mirroring feature to protect the video they store, and if they do fail, they can be replaced in the fi eld in a matter of minutes.

Advanced encryption in our video transmission streams, and tamper-proof seals on all exported video evidence provide additional security. March Networks recorders and software have been subjected to “ethical hacks’ by prospective customer IT teams in an effort to test their defenses. The hackers have never succeeded in compromising our systems, and those IT teams are now among the many on our satisfi ed customers list. They are convinced March Networks recorders offer them the highest protection against hacking, viruses and video loss, at no added cost.

“Our recorders and software have been subjected to “ethical hacks’ by prospective customer IT teams in an effort to test their defenses. The hackers have never succeeded in compromising our systems”

— Steve Langford, Director, March Networks Financial Solutions


5

System Maintenance

Where IT teams are responsible for the programming and maintenance of the video surveillance infrastructure, as is becoming more common in our converging industry, staff will benefi t from the features highlighted earlier under Physical Security Costs. March Networks leads the industry in cost-effective, enterprise-class system management and maintenance capabilities. A single, centrally located workstation can be used to program, control and maintain any number of dispersed recorders and their user community. System health is not merely checked once a day, but is monitored automatically, continually, in near real-time, to more rapidly detect and enable reaction to real or potential faults in network connections, system components, even cameras. These features provide a tangible return on the investment, in short order, by optimizing the efforts of support staff, minimizing system outages, reducing associated costs and preventing loss of video recording.

Fraud and Loss Prevention CostsThe fi nancial industry is losing billions of dollars annually to incidents of bank card and check fraud, perpetrated by individuals and organized crime rings at teller stations and local or remote ATMs around the world. All banks and credit unions, and their customers and members, are potential victims.


6

Losses can range from several hundred dollars to many thousands in a single fraud incident. Depending on the amount and bank policy, customer accounts may simply be credited for disputed transactions, leaving the bank to absorb the losses, legitimate or not. In many cases, disputes below a certain threshold are not referred to an investigation team due to the time and cost of correlating the necessary video and data evidence. Increasing workloads for these teams also strains their responsiveness. And speed of detection and resolution are critical in order to stem losses more rapidly and protect customer loyalty.

Experienced criminals can install a bank-card skimming system – a card reader and pin-hole camera, readily available over the internet today – in 60 seconds or less. They can extract valuable card data wirelessly to their laptops. Some have even replaced the entire façade of an ATM without being caught. Then they produce dozens of fraudulent bank cards using this skimmed data and harvest cash from the accounts of those unsuspecting bank customers. Such sophisticated criminal measures call for equally tough defenses. March Networks provides some of the most advanced surveillance and detection tools to help customers in this fi ght.

Table 3 – Fraud Prevention Costs versus Returns

Security Investment




FraudDefenses

• Investigator tools for evidence search, packaging❏ $1,000 - $2,000 per investigator

• Video/transaction data synchroni-zation❏ $1,500 - $2,000 per branch or

kiosk (plus maintenance), using local integration hardware

❏ Otherwise, manual process associating IT data fi les with standard surveillance video

• ATM skimming detection❏ Manual or reactionary process❏ $1000’s of losses per incident❏ Risk of damage to corporate

reputation/brand❏ Risk of further client litigation

• Integrated investigation and case management software ❏ No charge for basic; $500 for

advanced (included with FTI)

• Synchronized ATM (and/or Teller) video, transaction data, case notes, all packaged easily for law enforce-ment❏ Unique, centralized integration❏ Remote search by video, data

event, across entire enterprise ❏ $100’s per branch, not $1,000’s

• Automated video/data analytics detect skimming, harvesting ❏ Customizable rules engine for

forensic analysis❏ Enterprise-wide reach❏ Full solution for much less cost

than one incident per branch

• Increased investigator effi ciency, productivity, at less than half the cost

• 50% - 75% less solution cost• Ease of use, process refi nement

dramatically reduce time/cost per investigation (~50% less)

• Stronger, more compelling case evidence increases prosecution, recovery success

• More rapid identifi cation and resolution of crime reduces losses, improves customer service and loyalty


7

“Before we had the March Networks system, our fraud investigators would fi rst have to access our mainframe and pull reports for each suspicious transaction, one at a time. Then we would access our DVRs and search for video one location at a time. This would take at least 15 minutes for each search. Now, we simply type in an account number, for example, and a date range, and get all the information we need from all locations, within seconds. This has allowed us to nearly triple our fraud recoveries, and the team is very proud of that …”

— Investigation Director,major U.S. fi nancial institution

Average Incident Investigation Time/Cost (3 incident example)

Access mainframefor transaction data

Access mainframefor transaction data

Access DVRfor video record

Access DVRfor video record

Repeat processfor 2 more incidents

Repeat processfor 2 more incidents

Assemble case evidence

Assemblecase evidence

Add customcase notes

Add customcase notes

Package evidence for law enforcement

Package evidencefor law enforcement 3 minutes

n/a

10 minutesper

incident

5 minutesper incident

30 minutes

15 minutesstand-alone

5 minutesstand-alone

10 minutes

5 minutes 20 40 60 80

5 minutes 20 40 60 80

Secondsfor all 3

occurrences

15 minutes

total=

60 minutessavings

75+ minutes

total

Automatic,for all 3

occurrences

5 minutesintegrated

5 minutesintegrated

March Networks

Competitor


8

Other CostsNo discussion on total cost of ownership or ROI would be complete without the following. March Networks provides highly scalable video recording and management platforms tailored to the needs of bank or credit union retail branches, cash vaults, lock-box operations, remote kiosks, corporate offi ces and IT/data centers.

All these systems use the same powerful yet easy-to-use software, and the same enterprise-class management and maintenance application. They all support the migration to IP cameras if and when desired, but they also ensure you can continue to leverage your current analog camera investments. All these systems are manufactured by March Networks, not simply private-labeled from another high-volume producer who retains control over product features, evolution and timing. This includes our video analytics applications, which we own, refi ne and enhance as necessary.

The net effect of this is investment protection, highlighted by the fact that customers who have owned our recording platforms for more than six years now can, through the process of a simple, automated upgrade, bring those systems up to the features and performance of our very latest software release, including megapixel IP camera support. By contrast, many customers are installing our systems to replace other vendors’ fi rst- or second-generation digital recorders that after only a few years are either failing already or are no longer available.

Table 4 – Other Costs and Returns

Security Investment




Other

• Local, regional, national support

• Third-party equipment integration

• 7/24 system health monitoring

• 5-year or greater equipment amortization

• Certifi ed, trained system integrators located where you are

• APIs and existing integrations with ATMs, Teller systems, cameras, other equipment

• Managed Video Network Services option using internal 7/24 NOC

• Up to 3-year system warranty, 5-year camera warranty, history of product non-obsolescence

• Best-in-class installation and ongoing service

• Unifi ed security environment, with equipment reuse, reduced training and operations costs

• Peace of mind via cost-effective outsourcing to system experts

• Investment protection, from a surveillance partner to migrate forward with


9

ConclusionsFinancial institutions have no shortage of choices when it comes to selecting a video surveillance system. But as forward-thinking banks and credit unions examine the multilayered costs and benefi ts of those systems, a clear leader emerges. It is hard to fi nd a hybrid IP/analog video surveillance system better targeted at the needs of fi nancial institutions of all sizes than that offered by March Networks. These systems provide superior recording, storage, camera, value-added applications and management features. And they do so with the highest reliability and investment protection, and the lowest cost-of-ownership in the industry.

About March NetworksMarch Networks® (TSX:MN) is a global provider of intelligent IP video solutions. For nearly a decade, the company has helped banks and credit unions around the globe enhance security, reduce losses from fraud and operate more effi ciently. March Networks Financial Solutions are recognized for providing speed, precision and stability, and include enterprise-class hybrid video recording and management platforms, high-defi nition IP cameras, video analytics, fraud detection and prevention applications, and outstanding professional and managed services. These solutions are delivered through an extensive partner network and are currently used by well over 450 fi nancial institutions in more than 50 countries. www.marchnetworks.com

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© 2011 . A March Networks Company . All rights reserved . Information in this document is subject to change without notice . MARCH NETWORKS, March Networks Command, VideoSphere, Shadow Archive and the MARCH NETWORKS and VideoSphere logos are trademarks of March Networks Corporation . All other trademarks are the property of their respective owners . 060-3082-00-B

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