The Charlotte, N.C.-based Virtual StrongBox, Inc. announced aU.S. patent for its secure storage system and file encryptionmethod; in addition, the company announced the Grand Rapids,Mich.-based data processor CU*Answersis investing in Virtual StrongBox.

The technology behind Virtual StrongBox's patent (U.S. PatentNo. 9,003,183) allows the encryption of all data at rest in everydatabase that stores personally identifiable information (PII).

“At Virtual StrongBox, we felt it was time to take actionagainst the ongoing theft of consumer data,” President/CEO Ron Dalysaid. “I mean, our industry is supposed to be the best of the bunchin protecting PII, yet the breaches continue – and not just atcredit card companies and retailers. So, we took our combined 175years of financial institution experience and knowledge of theregulations and financial institution security needs and designed abetter system.”

Daly stated the result is Virtual StrongBox's unprecedentedlevel of security through a proprietary file system usingdedicated, redundant storage devices.

“Encryption at rest can make a huge difference in security, andwe believe it should be the industry standard,” Daly said. “Whenyou think about these cyber crimes, it adds up to a phenomenalamount of money to recover from lost business, reputation damage,regulatory bear down and customer claims – not to mention the tollon victims. With the right security protocol, it very likely couldhave prevented or mitigated much of the damage at retailers.”

Daly said the firm, along with some of its collaborationpartners, is starting discussions with financial institutions andother companies that handle PII, as well as trade groups andregulators, to urge adoption of encryption-at-rest practices,either independently or through Virtual StrongBox.

“The reality is that the old way of storing data, especiallyPII, is simply unacceptable,” Daly said. “As an industry, we haveto make changes. Financial institutions that sit back are going tolose because their customers will learn about competitors thatoffer this higher level of security and they'll demand it. They maywant an assurance similar to the 'Good Housekeeping Seal ofApproval.'”

CU*Answers recognized that secure online storage controlled bythe member created a new opportunity to help its 200+ clientsautomate processes, reduce manual intervention, enhance memberservices, and achieve significant cost reductions.

As a first step, the two companies are creating a directinterface between CU*Answers' Imaging Solutions products andVirtual StrongBox to automate the exchange of documents andinformation between the core system, credit union and its members,delivered securely to and from each other via their individual MyVirtual Strongbox space.

“Virtual secure mailboxes are a pending new core competency forcredit union operations. They can modernize technology, workflow,and automate document transfer and exchanges that will one day bethe mandate of the consumer experience, not just an option for thefringe,” Randy Karnes, president/CEO of CU*Answers, said. “Theembedded capability to meet this expectation in software solutionswill only increase in a mobile technology world driven by youngermembers.”

Daly added, “We look forward to delivering on the combinedvision of the CU*Answers' network and Virtual StrongBox technologyto find new ways to modernize banking technology and imageworkflow.”

Virtual StrongBox's flagship product, My Virtual StrongBox,safeguards the personal documents of more than 3.5 million people.Through customers' relationships with nearly 260 financialinstitutions, wealth management firms and insurance companies, MyVirtual StrongBox protects their deeds, wills, trusts, tax files,insurance policies and other important papers.

“It's energizing to think about what we'll accomplish workingtogether: Offering client credit unions a tangible, much-neededbenefit for their consumer-owners that was conceived and built fromwithin our own industry. I think it may transform how sensitiveinformation is stored,” Karnes added.