Newsletters
News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Click for more information, or
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
GET RECOGNIZED.
Let an ISACA® certification
elevate your career.

Register today and save
Computing
24/7/365 Network Uptime
Average Rating:
Rate this article:  
Samsung Not Buying Fingerprint Cards: News Is Fake
Samsung Not Buying Fingerprint Cards: News Is Fake

By Nancy Owano
October 11, 2013 12:03PM

    Bookmark and Share
Swedish biometrics company Fingerprint Cards AB issued a statement: "The news in today's media that Fingerprint Cards AB has been acquired by Samsung is incorrect. The previous press release was not sent by Fingerprint Cards AB. Trading in the share has been suspended. What has happened will be reported to the police and to the Swedish Financial Supervisory Authority."
 



Call it one Freaky Friday in Sweden. A press release went out announcing that Gothenburg-based Fingerprint Cards, a biometric technology company, and Samsung Electronics had entered into a definitive agreement for Samsung to acquire Fingerprint Cards for $650 million in cash. No way. Johan Carlström, CEO of Fingerprint Cards, subsequently said it was not true and that the release was fake. Samsung said the release was fake too.

Then where did the release come from? The press release distributors say they were hit by a sophisticated fraud. So whodunit? Nobody knows, and that is why the biometric sensor company is calling for a police probe. Likewise, Cision, the press release distributors, said they were turning the case over to the police "for investigation of criminal offense."

Fingerprint Cards is actually reporting the Friday incident both to the police and to the Swedish Financial Supervisory Authority. In its Friday statement after the phony release made its way around the Internet, the company issued a formal statement on its site: "The news in today's media that Fingerprint Cards AB has been acquired by Samsung is incorrect. The previous press release was not sent by Fingerprint Cards AB. Trading in the share has been suspended. What has happened will be reported to the police and to the Swedish Financial Supervisory Authority."

Distributor Sends Apologies

Stock activity tells a story about why calling in financial watchdogs would be in order. The fake news that Samsung would buy the biometrics firm sent Fingerprint Cards shares up 51 percent before the word was sent out from Sweden and Seoul that the story was untrue. The volatility was subsequently reined in and suspended by the Stockholm exchange.

Cision said in its "preliminary investigation" of the event, the company had followed procedures but had been subject to a fraud. Cision said it "apologizes to Fingerprint Cards AB and other stake holders for this error."

As for Samsung, the message was that no such deal had taken place; the release was simply not true.

While nobody knows who generated the fake announcement, the event triggered media and business awareness of two contemporary headaches: (1) Internet-generated rumors about technology companies in hot business areas can easily spread like wildfire; and (2) stock market trading can reflect false rumor-mongering with unsettling volatility.

Tantalizing Tech

Fingerprint Cards produces biometric components and technologies for matching an individual's unique fingerprint to verify identity. The technology consists of biometric sensors, processors, algorithms and modules that can be used separately or in combination with each other. Now that Apple has added a fingerprint reader to its latest iPhone, market watchers are looking to see what other vendors of smartphones will do in adding fingerprint-reading technologies. In turn, any story about a consumer electronics giant looking to buy a fingerprint technology business that could add components for mobile phones and computers would be plausible.

Some industry watchers raised the possibility that this may have been an instance of market manipulation, not by any of the parties involved but by sophisticated mischief makers on the outside.

This would not be a first in market manipulation mayhem. Last year, a fake press release said Google purchased ICOA, a Wi-Fi provider, for $400 million. Stocks quickly reacted, and ICOA shares jumped, before the company's CEO and Google said the story was not true.

A troubling wakeup call for media watchers was the way established outlets and sites grabbed on to the news emanating from the press release, only to learn that the release was fake.
 

Tell Us What You Think
Comment:

Name:



Salesforce.com is the market and technology leader in Software-as-a-Service. Its award-winning CRM solution helps 82,400 customers worldwide manage and share business information over the Internet. Experience CRM success. Click here for a FREE 30-day trial.


 Computing
1.   Microsoft Takes CRM to Gov't Cloud
2.   'Reinvent Productivity,' Nadella Urges
3.   Microsoft Revamps Office 365 Plans
4.   New OpenStack Release Available
5.   Windows 7 Ends Mainstream Support


advertisement
Review: Microsoft's Surface Pro 3
Is it a tablet and laptop replacement?
Average Rating:
Microsoft Takes CRM to Gov't Cloud
With Dynamics CRM in early 2015.
Average Rating:
New OpenStack Release Available
Red Hat touts VMware integration.
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Charges: Russian Stole Data from U.S. Restaurants, Zoo
A Russian man arrested on bank fraud and other charges hacked into computers at restaurants in Washington, hundreds of other retail businesses, and even the Phoenix Zoo, authorities say.
 
Another Month, Another IE-Focused Patch Tuesday
Microsoft rolled out 59 vulnerabilities for Internet Explorer in June. But the IE-patching party is not over yet. Redmond published six new security bulletins on Tuesday; two, critical; three, important.
 
Russian Arrested in Hacking Case Filed in Seattle
The U.S. Secret Service has arrested a Russian man who is accused of hacking store computers to steal thousands of credit card numbers, charging him with bank fraud, identity theft and more.
 

Enterprise Hardware Spotlight
Another Day, Another Internet of Things Consortium Is Born
In the emerging Internet of Things, zillions of devices will be talking to each other. Samsung, Intel and Dell just formed a consortium to ensure each thing can understand what others are saying.
 
Gartner Sales Study Sees Tablets Up, PCs Down but Recovering
Are PCs on the comeback trail? That depends on how you define "comeback." While tablet sales remain strong, Gartner's latest study found PC shipments aren't dropping as fast as they did last year.
 
Review: Warming Up to Tablets with Keyboard Covers
If you've ever thought tablets with keyboard covers were just a poor excuse for a laptop, think again. Nokia's Lumia 2520 comes with an optional keyboard cover that just may change your mind.
 

Navigation
NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | Data Storage | Small Business | Microsoft/Windows | Apple/Mac | Linux/Open Source | Personal Tech
Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters | XML/RSS Feed

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.