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IKANO PRESS RELEASES

IKANO Press Releases:

Title: IKANO Introduces Industry's First "Fraud Protection System" - System to Help Curb Industry-wide Network Abuse Epidemic Among Internet Service Providers (ISPs)
Date: May 1, 2002
For Release: IMMEDIATE


SALT LAKE CITY - IKANO Communications, the market-leading provider of private-label Internet services and IP network infrastructure, developed the ISP industry's first tool to protect against network abuse, simultaneous logins and spamming. IKANO's "Fraud Protection System" was designed to help modify the behavior of ISP subscribers, thus saving IKANO's ISP clients thousands of dollars every month.

IKANO provides private-label Internet services and outsourced ISP services to more than 250 clients. Since implementing the Fraud Protection System, IKANO and its ISP clients have collectively saved nearly $300,000 per month. Network abuse is rampant among ISPs, causing rising operating costs and eating away at profitability. According to a recent survey from ISP Planet, profitability is the greatest challenge facing their business today.

"Network abuse is an increasingly serious problem for Internet Service Providers," said Henry Smith, IKANO CEO. "We developed the Fraud Protection System to save our clients money and inform ISPs that there is a solution. By educating subscribers and modifying their behavior, we can curb this epidemic."

IKANO's Fraud Protection System features a profile of abusive behavior, which automatically places subscribers in the "abusive" category based on several qualifications. The Fraud Protection System detects three types of abusive behavior: 1) Subscribers that illegally distribute their username and password to other people, causing simultaneous logins; 2) Subscribers that use a dial-up account as a dedicated connection; 3) Subscribers that spam the network and violate IKANO's spam policy, causing network congestion for other users.

The Fraud Protection System monitors network behavior on a daily basis. The system creates a daily list of subscribers who fit the profile and automatically suspends the service of the abusers. The next time the subscriber tries to log in, he/she will receive an authentication error and be required to contact the call center to receive a new username and password along with user education to help prevent the problem from occurring in the future.

IKANO's Fraud Protection System is a breakthrough for the ISP industry because it modifies subscriber behavior through education. For example, the difference between a dedicated, 24-hour per day connection and an unlimited dial-up connection is considerable. Subscribers that purchase a dial-up connection and configure their computer to avoid the network timeout for continuous Internet access are utilizing a dedicated connection, not the "unlimited attended access" allowed for in the standard user agreement. These individuals will be flagged via the Fraud Protection System and informed about the boundaries of dial-up access. IKANO recommends Digital Subscriber Line (DSL) to subscribers that require a dedicated connection. This is one example of the way the Fraud Protection System educates subscribers and modifies behavior.

"At the end of the day, ISPs need to provide quality service to subscribers while maintaining profitability," said Smith. "The Fraud Protection System is a big step forward to ensure this happens."

About IKANO Communications

IKANO is a market-leading Full Service Provider (FSP) of Internet networking infrastructure and private-label Internet services. IKANO provides turnkey processes for businesses and organizations wishing to leverage the Internet to enhance communications with customers, employees or members. IKANO served as the Official Data Networking Services Provider for the 2002 Olympic and Paralympic Winter Games. IKANO is the parent company of SISNA, one of the nation's original Internet Service Providers, and Interhop/auracom, offering ISP franchises and consumer Internet services throughout Canada. For more information visit www.ikano.com.



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