Author: authentix

Republic of Zambia seeing significant return on investment after beginning to enforce its fuel authentication program.

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Author: authentix

In recent years, the government of Zambia became aware they had a problem with illegal fuel dumping and/or adulteration. In fact, Zambia’s Energy Regulation Board (ERB) estimated that these activities were depriving the government of 81 million dollars USD per year in fuel tax revenue. To determine what fuel products were being manipulated, and where in the country the illicit activities were most rampant, the ERB implemented an ongoing fuel authentication program.

In February of this year, fuel from all government depots and certain national-oil-company depots intended for the Zambian domestic market were marked with a small quantity of a biochemical substance that acts as an identifiable “fingerprint” for the fuel. With more than six months of significant data from this authentication program, the ERB is initiating enforcement actions.

Baseline sampling and testing of Zambia’s fuel supply chain have answered the “what and where” questions about fuel manipulation that had previously eluded the ERB. They reveal that 1) there is a high incidence of tax avoidance through dilution of domestic fuel with unmarked products and/or kerosene; and 2) fuel manipulation is most prevalent along the country’s North/South transit corridor.

Based on these findings, the ERB has undertaken targeted enforcement actions. But they are also conducting continuous, impromptu sampling and testing of fuel at all filling stations, bulk fuel storage facilities, fuel tankers, and retail facilities for domestic consumption. The consumers of this fuel include mining and allied industries, construction, transport and logistics, general commerce, and the agricultural sector.

In addition, those who are suspected of conducting illegal fuel manipulation activities have been warned that the ERB working with Zambia Revenue Authority (ZRA), Zambia Environmental Management Agency (ZEMA), Drug Enforcement Commission (DEC), and the Zambia Police (ZP) are dealing firmly with fuel manipulators.

If an entity is found in possession of, selling, distributing, and/or transporting non-conforming petroleum products, ERB enforcement actions and penalties include license suspension or revocation, and the imposition of considerable fines and/or imprisonment (once convicted) for a period not exceeding two years.

The ERB and other cooperating government agencies are all enthusiastically undertaking appropriate enforcement actions to end fuel manipulation in Zambia. The ERB is optimistic that the effectiveness of the fuel authentication program will help ensure that fuel quality is guaranteed, and that maximum tax revenue can be realized from fuel sales in Zambia.

The impressive progress of the Zambian fuel authentication program is yet another example that fuel authentication programs such as theirs demonstrate a return on investment that is well-documented and compelling.

In addition, they provide other associated benefits—not the least of which is that they can help
governments ensure authentic products are sold in-country to benefit law abiding citizens – not criminals. Fuel marking solutions enable governments to collect more excise taxes without raising taxes for the benefit of citizens and legitimate industries

SLAM the counterfeiters and become your company’s Authentication Hero!

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Author: authentix

Batman’s a guy with some pretty awesome super powers. And, without doubt, a very cool ride. But maybe you didn’t know that he never learned how to tune up the Batmobile. So until his trusted partner Robin came along, the Batmobile spent most of its time gathering dust in the Batcave. Public transit is no way for a superhero to make a quick appearance when a villain is on the loose.

You’re expected to be your company’s authentication hero. You’ve already got awesome powers, to be sure, but maybe you need a resourceful partner to maximize them, just like Batman did.

Because time is the villain you’ve got to wrestle into submission. When you’re waiting to authenticate suspicious products in the field, every hour that ticks by is a threat to patient safety, to your supply chain, and to your brand reputation. And that ticking clock leads directly to lost revenue, too. It’s mighty hard to beat the counterfeiters by yourself. You need the right partner.

Team up to SLAP the bad guys silly.

Authentix can be that trusted partner (seven of the top global pharmaceutical organizations already trust us). We know your company is counting on you to stop the counterfeiters anyway you can, and we can help with our industry-proven program to halt illicit trade anywhere in your supply chain—with just the click of a button.

In other words, we can be Robin to your Batman and help you instantly authenticate a product in the field. Our end-to-end custom solution ensures your organization is protected against counterfeit activities when it happens, when it matters most.

WHAM! All the tools you need are right here.

We offer a comprehensive set of tools to make sure your authentication vehicle is running right:

  • Consultative services
  • Customized solution
  • Third-party certification and support
  • Implementation
  • Training and enablement
  • Ongoing support

With the right partner, you’re on your way to becoming an authentication superhero. You’ll be able to:

  • Instantly identify real drugs from fake ones
  • Digitally capture authentication data
  • Identify lost revenue in order to drive legitimate sales throughout the supply chain

Watch our video and see how you can save the day by getting answers in seconds, not days or weeks!

Download Blog PDF Here

 

6 tips for Selecting the Right Brand Protection Authentication Partner

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Author: authentix

If your pharmaceutical products haven’t been counterfeited yet, someone will probably try to soon. That’s why you need the right authentication partner.

By: Cheryl Smith-Johnson, Brand Marketing Manager, Authentix, Inc.

2012: The makers of the cancer-fighting medication Avastin notify physicians that a counterfeit version of the medication has been discovered that does not contain the active ingredient of the drug.1

2008: A counterfeit version of the blood thinner heparin appears. The active ingredient was replaced with a cheaper substance that was suspected to be the cause of up to 81 deaths and resulted in a nationwide recall of the medication. The U.S.-based firm that sold heparin was subjected to 740 lawsuits, and eventually was compelled to sell off the division that marketed the drug.2

Those are the big cases that you are undoubtedly familiar with, and they demonstrate without a doubt that counterfeit medications are a big problem. They cost pharmaceutical companies billions and make people sick, prevent them from getting better, or even kill them. Counterfeits are a pervasive problem. The World Health Organization estimates that up to 30% of the pharmaceuticals sold in parts of Asia, Africa, and Latin America are counterfeit. In 2011, 64% of antimalarial drugs in Nigeria were discovered to be counterfeit. In fact, an estimated 10% of all medicines worldwide are counterfeit.
In most counterfeiting cases, the pharmaceutical companies involved have reacted timely and decisively. But, as with any crime, prevention is infinitely preferable to even the swiftest reaction. That’s not to say that prevention is easy. Keeping counterfeits out of the market is hard. For example, in the U.S., almost 40% of our pharmaceuticals are manufactured elsewhere, and about 80% of their active ingredients are imported. The rise of internet pharmacies, where many consumers turn for lower prices, makes regulation of drug safety more difficult. Many pharmaceutical products pass through a complex, globally-dispersed distribution network, making it easier for counterfeits to enter the legitimate supply chain. What makes counterfeit prevention more difficult than anything else is the fact that drug counterfeiting, due to its high profitability, attracts some very smart people. The “bad guys” can match your product packaging in a blink of an eye, and they’re always looking for new ways to stay one step ahead of you.

As your company’s brand protector, you’re the one standing between the counterfeiters, patient safety and your brand’s reputation. Don’t go it alone. You need a reputable authentication partner to help get you out of “reaction mode” and develop a proactive process that includes instant authentication. Here are six tips for finding the right authentication partner:

1. Pharmaceutical expertise, knowledge and experience are essential

Choose an authentication partner that offers consultative services—it’s critical that your partner has experience with pharmaceutical products and understands your industry inside and out. Your partner should fully understand your challenges, articulate your exact problems, and work with you to set goals for your program. In this way, a trusted relationship can be established that will provide:

  • Common vision for the goals, resources and time management of your authentication plan
  • Knowledge transfer on key topics such as global regulations and advanced technologies
  • Development of a realistic risk assessment matrix
  • Proactive approach to managing your supply chain and preventing problems

2. “Off-the-shelf” won’t work

Select an authentication partner who can fully customize a solution to fit not only the unique challenges of the pharmaceutical industry, but also the needs of your specific organization. Your partner should have the necessary expertise on what types of security features are needed for different types of medical packaging, such as tamper-evidence seals, blister foils, vials, etc. This will allow you to take a proactive approach to combating counterfeit medicines. Look for a partner who offers:

  • State-of-the-art color marking systems
  • Multi-layered security features
  • Monitoring and enforcement plan
  • Ability to function properly in a multi-channel distribution environment

3. Expect outstanding business intelligence

Your ideal authentication partner should provide, in addition to the physical layer, a data analytics platform that can adapt as needed and employs the highest data quality standards. Actionable insights will allow you to make proactive decisions that will protect patients and your brand reputation—and give you the ability to reinvest dollars into other areas. The platform should be able to:

  • Aggregate and analyze data
  • Deliver insights directly to interested parties via their smartphones, tablets, and computers
  • Utilize the M3 (Mark, Monitor and Measure) process

4. Look for an enabler

More than likely, your current supply chain is complicated and has lots of moving parts. A good authentication partner should be able to instantly integrate within that chain. In addition, the partner should be a “third-party agnostic” solution integrator without any prejudice towards other links in your supply chain. This partner will be able to objectively analyze your supply chain, identify where potential problems lay, and make recommendations on correcting them. Look for the following attributes:

  • Third-party printer, logistic partner certification and support
  • Integration with existing systems and manufacturers
  • Trial runs that provide actual samples for testing purposes/quality assurance

5. Remember that implementation is everything

A smart authentication plan is great, but some potential partners are great at planning and not-so-great at implementing their plan. It’s important to link up with a partner with extensive, and documented, experience in implementing a strategy. They should have a resume consisting of several multi-year relationships with their customers. In addition, your partner must understand your business inside out, become an integrated part of your team, and extend that support to your third-party vendors. You need a partner who is flexible enough to adapt to your culture, your challenges, and processes. A good implementation strategy should encompass:

  • Execution across your entire global supply chain
  • Training and enablement for all involved parties
  • Flexibility to expand and grow with your changing needs

6. Build an ongoing relationship

If you think you can find a partner, develop an effective authentication strategy, implement it, and then abandon that partner, think again. The counterfeiters will always be devising new ways of beating you. You need an ongoing relationship with your partner to stay one step ahead of the bad guys. It’s absolutely critical to work with a partner who offers ongoing customer support after the initial deal is done. An established, trusted customer support strategy is the only way for your program to succeed long-term. It should include:

  • Dedicated project manager to handle programs
  • Security features testing
  • Ability to retain sample programs to ensure consistency
  • Ongoing reports and result interpretation that provide actionable insights
  • Regular auditing of third-party vendors for proper use of security materials

Regardless of who you select as your authentication partner, remember to discuss everything of importance up front and in detail. To help you do that, we have developed a downloadable checklist that will help you select the most compatible authentication partner for your pharmaceutical company.

Reducing the availability of counterfeit medicines is not easy—but it is necessary. The only way to get a grip on the pharmaceutical counterfeiting problem is for all the stakeholders involved— those within your company, third-party supply chain vendors, and of course your authentication partner—to cooperate fully in designing and implementing effective authentication methods. As always, timing is everything. Instant authentication can save you precious time when a possible counterfeiting incident occurs. And the time to find your best authentication partner is now. Contact us today.

  1. NCBI/American Health & Drug Benefits, The Health and Economic Effects of Counterfeit Drugs, 2014 Jun
  2. NCBI/American Health & Drug Benefits, The Health and Economic Effects of Counterfeit Drugs, 2014 Jun

Download PDF Here

Two Trillion Liters of Insight- Preventing Illicit Fuel Trade

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Author: authentix

Illicit fuel trade is a major, global challenge within the oil and gas industry, the consequences of these unlawful actions being pervasive, from environmental damage to depriving governments of customs and tax revenues and actively supporting illegal activities.

The first Oil & Fuel Theft Summit was held in Geneva in April 2018 which helped to create discourse between high-level stakeholders within the hydrocarbons industry on how we can fight this revenue depriving delinquency. Authentix was a corporate sponsor of the event, where our team provided understandings on the issue, encouraging collaboration and drawing attention to this subject, we sought to deepen awareness.

Authentix insights into combatting fuel trade spans our experience over the last 20 years protecting more than two trillion liters of product in that time.

As the authority in authentication since 1998, Authentix’s extensive, proven experience in public and private sector authentication solutions ensures the programs implemented for our customers are comprehensive, technologically advanced and professionally executed.

We believe a system of fair and open commerce is an agent for good in the world, when that system is compromised civil society is weakened. We feel our company’s beliefs and mission help to ultimately combat illicit fuel trade.

Illicit operators go to where the money can be made. The mechanics of fuel fraud allows for this since price arbitrage drives the opportunity for offenders. In Mexico for example, taking stolen product and selling it approximates to USD4B industry per annum. In Ireland, criminals take subsidized diesel remove dye markers and transport it across neighboring borders to be sold as fully taxed diesel and pocket the price difference. Selling unbranded fuel as branded fuel, dilution or adulteration the possibilities are abundant for criminals to profit. The problem is huge, and the typical illicit trade rate which we have seen in serving our customers is usually about 30%.

In the European Union lubricating oils can be moved without being monitored by Excise Movement and Control System because they are not subject to excise tax in the EU and only a few States apply national taxation on these products. Fraudsters manufacture and transport lubricating oil throughout the EU and then introduce it in the mainstream network and sell it as automotive diesel fuel with the consequential evasion of excise duties.

Technology alone is not the solution. Understanding the job to be done, the desired outcomes to be achieved and how we apply technology to realize those outcomes is the way Authentix helps customers be the heroes.

Customers want to understand where their problems are and what they need to do to solve them.

Fuel markers and field analyzers are a part of the solution but translating data into actionable insights to combat illicit trade is key. Our Authentix Information System (AXIS) is an integrated set of software applications that collects data from testing performed on fuel samples, combined with fuel volume and pricing and other information which allows for intelligent analysis to be done which deliver those actionable insights.

Authentix Services and Support is available to our customers throughout the program and includes advisory services, design services, implementation services, and operational support.

Subsidized fuel looks exactly like full priced fuel, branded fuel looks exactly like unbranded fuel. So, marking fuels is important, since it enables the efficient determination of the identity of fuel products. Fuel marking as a tool within a program is cost effective and makes sense. The proper application of this technology lends to the idea of – its less of what you have but more of what you know from it.

Authentix’s roots are as an analytical chemistry company. Our core capability in developing robust molecular markers, purpose built to withstand adulteration and illicit filtering methods, has earned us the reputation as the premier covert marker developer.

Understanding the desired outcome of a program is significant to our goal at Authentix whether it be protection of a subsidized product, ensuring quality throughout the supply chain, trying to increase the collection of excise taxes or trying to stop smuggling, we focus on devising solutions that address our customer’s needs.

It may sound complicated and customers may seem overwhelmed with available technology solutions on the market, various types of programs being offered but our advice at Authentix is – Do Something!

There are simple approaches to begin deterring illicit activity. Making the issue more visible and having offenders understand the consequences involved in being complicit in this behavior is a preventive move and minimizes the problem. This menace is not going away till we do something.

Board Names Kevin McKenna as Next CEO

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Author: authentix

ADDISON, Texas, May 24, 2018 – Authentix® announced today that Kevin McKenna will become its next President and Chief Executive Officer effective May 29, 2018. Kevin succeeds Bernard C. Bailey who will continue to serve Authentix as Chairman of the Board. McKenna joined the Company’s executive team in 2012 and has served in various capacities touching all Authentix markets as President of Oil and Gas as well as General Manager of the Brand and Currency and Tax Stamp businesses. He most recently served as the Chief Sales and Services Officer responsible for global sales and all customer engagements. He has been a key contributor to the successful growth and subsequent sale of Authentix to Blue Water Energy, a London-based private equity firm, in September 2017.
“For more than 20 years, Authentix has provided advanced solutions to combat illicit trade across the globe. It is a great honor to now lead Authentix in the next phase of our growth as we look to advance our world-class authentication solutions into new markets and next generation technologies,” said Kevin McKenna. “We have an exceptionally talented team at Authentix that is focused on unlocking future growth opportunities while being committed to our existing customers’ success. I am incredibly optimistic about our future.”

Prior to Authentix, McKenna held executive management roles within the information technology and security industries at HID Global and L-1 Identity Solutions. He began his career with IBM Global Services, serving in a variety of consulting and program management positions.

Bailey commented, “Kevin’s breadth of experience, coupled with his deep understanding of our global customers and markets make him a superb choice for leading Authentix moving forward. His vision, strategic insights and execution track record are exactly what Authentix needs as we enter into our next chapter, which I am confident will be even more impactful and exciting than our last.”

After earning his undergraduate degree in engineering from the U.S. Military Academy at West Point, McKenna served as an officer in the U.S. Army as a helicopter pilot. He also holds an advanced degree in engineering from the University of Missouri at Rolla.
“I am honored to lead Authentix as CEO and advance our growth strategy into new geographic markets, market sectors, and next generation technologies,” said Kevin McKenna. “I would like to thank the board of directors, Blue Water Energy, and the Authentix employees for their confidence and trust. We have an exceptionally talented team at Authentix that is focused on unlocking future growth opportunities and committed to our customers’ success. I am incredibly optimistic about our future.”

About Authentix:
Authentix, a leading global authentication and information services company, assists customers in combating illicit trade and managing the integrity of their global supply chains. With comprehensive end-to-end authentication solutions we help safeguard customers in refined fuels (e.g., gasoline, diesel, lubes, and LPG) and branded products (e.g., pharmaceuticals, agrochemicals, and spirits industries) from counterfeiting, product theft, product diversion, and adulteration. In addition, we help protect currencies for many leading central banks.

Headquartered in Addison, Texas USA, Authentix, Inc. has offices in the US, UK, UAE, and Africa serving clients worldwide. For more information, visit http://www.authentix.com

Authentix® Selected by Zambia as Technology & Services Partner to Combat Illicit Fuels

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Author: authentix

ADDISON, Texas, Feb. 12, 2018 — Authentix, a leading global authentication and information services company, announces The Energy Regulation Board (ERB) of Zambia has selected, after a public procurement tender process, Authentix as its technology and services partner to combat the illicit trade of refined fuels. The program is scheduled to commence February 15, 2018.

The Authentix covert fuel marking program will support the Zambian government’s fuel integrity program and the government’s commitment to ensure a clean and high quality fuel supply to support local commerce. Illicit fuels smuggled into the country or fuel adulterated with inferior products, do not meet the ERB’s high quality standards for fuels and may also include harmful substances that can pose a threat to public health and the environment.

In addition to the positive environmental and societal impact, the Authentix fuel marking program will return positive economic results. “In our experience operating nine fuel marking programs across Africa, the return-on-investment measured by recovered excise taxes far outweighs the operational costs of the program,” stated Kevin McKenna, Chief Sales and Services Officer, Authentix, Inc. “In twenty years of designing and operating covert fuel marking programs, we estimate to have recovered over USD 1 billion to governments.”

Authentix assisted the ERB in assessing the current supply chain, designing a program to meet their goals –including enforcement, and selecting from Authentix portfolio of covert chemical markers and analyzers, to deliver the most effective program tailored to Zambia’s unique needs.

To learn more about Authentix’s fuel supply integrity offering, visit http://www.authentix.com/offerings/vigilant/.

About Authentix:
Authentix assists customers in combating illicit trade and managing the integrity of their global supply chains. With comprehensive end-to-end authentication solutions we help safeguard customers in refined fuels (e.g., gasoline, diesel, lubes, and LPG) and branded products (e.g., pharmaceuticals, agrochemicals, and spirits industries) from counterfeiting, product theft, product diversion, and adulteration. In addition, we help protect currencies for many leading central banks.

Headquartered in Addison, Texas USA, Authentix, Inc. has offices in the US, UK, UAE, and Africa serving clients worldwide. For more information, visit http://www.authentix.com.

Frost & Sullivan Awards Authentix with the Authentication Solutions Technology Leadership Award

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Author: authentix

By: Mohamed Lazzouni, COO, Authentix

Remember as kids the excitement you felt upon receiving a blue ribbon or trophy from sports or an art or science project? Your parents would post it on the refrigerator and tell everyone how proud they are of you. That’s how I felt upon learning that the prestigious Frost & Sullivan research firm presented Authentix with the North American Authentication Solutions Technology Leadership Award. In that excitement, I immediately recognized that the award itself takes on a different meaning.

For more than 20 years, Authentix has proudly supported a global customer base in combating illicit trade and counterfeit practices. Frost & Sullivan is diligent in their research to identify those companies exemplifying best practices in the development and delivery of technology. The technology leadership award recognizes the transition Authentix is leading toward incorporating more IoT and Big Data analytics within authentication technologies.

According to Frost & Sullivan, “The company’s solutions capitalize on the evolution of Mega Trends such as Internet of Things, Big Data analytics and supply chain integration to thwart counterfeiting measures. This integration enables the company to build and implement robust, end-to-end authentication solutions to help each customer recover lost revenues and protect brand equity.”

Full transparency, it is rewarding to know that the hard work of all Authentixians is front and center for others to witness. Just as relevant is the spotlight being shined on a greater cause – the charge against illicit trade.

The Core of Authentix Comes to Life

Like many organizations, we have our core values that drive how we engage internally and externally. I am most proud of this team because those values come to life with such recognition. This Frost & Sullivan technology award symbolizes validation of our strategy in the authentications market.

All employees seek to focus on the following core values:
Teaming and Collaboration
Advancing Science
Dedication to Client Success
Competing and Winning

This third party validation imparts depth to those value statements that demonstrate more than words on paper. We are laser focused on creating a path where our clients have visibility to their supply chain to efficiently address illicit activity. While the Authentication Solutions Technology Leadership Award speaks to how we are advancing science to create successful outcomes for our clients around the world, I know that this award also demonstrates a group of people who respect and trust each other enough to innovate for a greater good.

Recognition for a Greater Cause

To have Frost & Sullivan acknowledge that Authentix offers leading authentication technology touching across multiple industries is one thing. To also have confirmation that our strategy and execution in the marketplace is meaningful toward a social good is even better.
Oftentimes, this activity is funding organized crime or terrorist groups. In the oil and gas market, we are helping companies fight against fuel smuggling, adulteration or dilution, which can impact the environment and ultimately people’s health. So, this award also confirms that our focus on innovation is contributing to a larger platform that encompasses protection for the health and well-being of the environment and all who inhabit it.

Thank you to Employees and Customers

Yes, our employees carry the brunt of this accomplishment. But, we can’t ignore the greatest collaboration effort with existing customers. Illicit trade is a huge and sometimes dangerous global problem eating away at billions of dollars of lost revenue for many governments and companies. We are very grateful to have a customer voice moving our technology forward because they too recognize a bigger issue.

Every day we enter our doors with the intent to make a difference. We want to make a difference for our customers. We want to make a difference in the lives of our fellow employees. More importantly, we want our solutions to make a difference within the communities around the world.

The North American Authentication Solutions Technology Leadership Award from Frost & Sullivan is one more proof point that our suite of authentication solutions protecting fuel quality for national governments or oil marketing companies, banknotes and commercial brand products is making a difference to stop illicit trade.

The Harmful Implications of Illicit Fuel Trade—the economy, the people, the environment

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Author: authentix

Written by: Kevin McKenna, President, Oil & Gas, Authentix
Stop Fuel Fraud Series

People often ask me what I do for a living. When I state that I manage a business that helps detect and deter illicit fuel trade, most of the time the response is a confused look and the question, “What is illicit fuel trade, and is that really a problem?” My quick answer is that illicit fuel trade is likely the biggest problem that you have never heard of. The first step in tackling this menace is to shed light on its existence and the harm it inflicts on society.

For the past couple of weeks, we’ve produced some different blog posts discussing illicit fuel trade, a major worldwide problem stealing billions of dollars from governments, legitimate businesses, and consumers. “Illicit trade” can be the simple case of outright theft, which is very prevalent in Mexico today, where the state oil company, Pemex, says it lost about $1.6B in 2016 from fuel stolen from over 6,800 pipeline taps across the country. Another scheme of illicit trade is made possible by exploiting the differences in price between fuels or other petroleum products because of tax differences, subsidies, different grades, or product types (e.g., adulteration with non-fuel products such as solvents or waste oils).

Why fuel fraud is hard to detect

In both cases of illicit trade, the execution of the crime is simple – take a lower price (or stolen) product and either mix it with a higher priced product or replace it outright – sell the fuel at full price and pocket the difference. Even small differences in product prices can generate massive returns for criminals due to the sheer volume of petroleum products consumed every day. The crime is further enabled by the difficulty in detecting when it is perpetrated.

What does this mean to you?

Most consumers never see the road fuels that they purchase, and even if they did, an illicit product may look the same as legitimate product. If as a consumer, I unwittingly buy adulterated fuel at the premium price, obviously, I don’t get what I paid for; but it can also damage the engine of my car, reduce my fuel economy, and increase air pollution. The government doesn’t collect the taxes it needs, legitimate businesses suffer from unfair competition, and the reputation of oil marketing company brands may be unfairly tarnished.

At Authentix we believe that a system of fair and open commerce serves as a powerful agent for good throughout the world. When this system is compromised by illicit trade, civil society is weakened. The scope and scale of illicit fuel trade is particularly damaging in this regard – diverting money to organized crime and, in some cases, terrorist organizations, while defrauding governments of tax revenue necessary to fund programs in the service of their citizens. In many cases these taxes are a significant portion of the country’s total tax revenue – any shortfall in collection may necessitate higher taxes in other areas, placing an even larger tax burden on the populace.

The only people benefiting are the criminals perpetuating the crime – and it is BIG business. Our experience in several countries is that the illicit trade rate in the fuel supply chain was over 30% – translating into hundreds of millions of dollars each year lost to criminals in each of these countries.

Time to disrupt the business of illicit fuel trade

Fuel Marking Programs (FMPs) are a highly effective means to redistribute illicit gains away from organized crime and savings toward legitimate businesses and Government, while ensuring consumers get the quality products for which they have paid. In weeks to come, we will dive into FMPs and how we have seen FMPs assist governments in enforcement of policies prohibiting illicit fuel trade. Many of these programs deliver a significant return on investment of usually five to 10x the cost of the program.

I hope you recognize the lasting implications illicit fuel trade has on all of us. Usually after an awakening to how people’s everyday lives are affected, the next question is typically, “Why isn’t every government doing an FMP?” My personal opinion, it’s the same reason that most citizens aren’t aware of the problem and the harm it brings to their community – something we at Authentix are working diligently to change.

Click here to learn more about how Authentix’s Vigilant® offering is helping governments prevent fuel fraud. You can also learn more about Assure™, our brand protection fuel marking program for oil marketing companies.

A Product Owner’s Journey to Release the LSX 3000 Field Analyzer

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Author: authentix

It was over a year ago now that I was tasked with taking up the role Product Owner for Authentix’s newest analyzer for our Fuel Marking Programs, christened the LSX 3000 Field Analyzer. At the beginning of my involvement in the project, I was looking up quite a steep hill and had some reservations; it was my first time acting as a Product Owner of a project that had been in motion for a few months. What’s more, both the engineering team and software team weren’t working with clear instructions of what exactly they were supposed to build (in product development lingo, they didn’t have all of the “requirements”).

I quickly came to realize that both teams had done a spectacular job of coming very close to meeting the base requirements while developing their separate parts of the project. However, both teams were missing some key information. We in the Product Group knew that when we launch LSX 3000, we didn’t want to just be close, we wanted LSX 3000 to be the fastest, most accurate, and most reliable field analyzer on the market.

In my experience, the best way to tackle a problem is by facing the challenge head on. We started by reviewing the list of requirements by team and identifying the issues that each were facing. Once those missing requirements were identified, we further dissected them into their smallest components. This ensured that each issue was fully understood and could be addressed by the right individuals, and in the right order of precedence. Fast forward a few months, glossing over all of the inevitable growing pains that come with new processes (everybody just loves change!), we finally had a prototype unit that was ready for its first field test!
We looked for the best location for a field test that would ensure that we would really put the prototype LSX 3000 through its paces. After some discussion, one of our partners in Africa agreed to participate in a trial of LSX 3000.

So, after a brief, refreshing 23-hour flight, my colleagues and I stepped onto the tarmac in Accra, Ghana to begin our two-week field trial.
As it turns out, we chose a “perfect” location for the test. Temperatures in the sub-Saharan northern part of the country flirted with 50°C / 122°F (heat stress, check) while in the southern regions of the country, we faced near 100% humidity, if not outright drenching rainfall (humidity/water resistance, check). During this trial, we collected data, more data, just a bit more data, and some invaluable feedback on usability and functionality. At the end of two weeks, I had a great tan and a stack of information that would help our teams refine and improve the already amazingly tough prototype design.

The development process continued throughout the summer and fall, including several more trips abroad to test each new and improved version of the analyzer. Each time we returned, our stack of needed “improvements” grew shorter. The whole team knew we were getting close to a product that reflects customer and market needs, but we made the decision to do one final trial, only this time as observers. This trial tested the premise that a user with minimal training could operate the instrument and address any problem. Users were presented with different situations (uncharged/no power state, no wireless connection, etc.) and asked if they could resolve the situation themselves. The users were able to quickly and easily correct the problems on their own – positively reinforcing our premise and demonstrating that our new analyzer would be user friendly and simple to operate, one of the key requirements.

Additionally, the sampling data was a great resource for Chemometrics team members here in Texas. They used the insight to make changes to the analyzer’s mathematical models and the analytics processes of each successive prototype, making each version better and more accurate. All of the team’s work paid off. With a little over 18 months under our belt, LSX 3000 launched on 22 June 2017, under our Vigilant offering as the fastest, most accurate, and most reliable field analyzer available today.

Click here to learn more about Vigilant. You can also contact Authentix at info@authentix.com.

Frost & Sullivan Applauds Authentix’s Impressive Authentication Technology Portfolio that Combats Illicit Trade

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Author: authentix

Authentix harnesses the latest technological trends to present market-focused, adaptable authentication solutions for a customer’s specific market

SANTA CLARA, Calif. — July 11, 2017 — Based on its recent analysis of the authentication solutions market, Frost & Sullivan recognizes Authentix, Inc. with the 2017 North American Technology Leadership Award. Authentix’s portfolio of advanced authentication solutions supports companies in combating illicit trade and counterfeiting practices. The company’s solutions capitalize on the evolution of Mega Trends such as Internet of Things (IoT), Big Data analytics, and supply chain integration technologies to thwart counterfeiting measures. Authentix employs a lock-and-key approach, wherein physical devices are paired with proprietary chemical markers, creating offerings that deliver robust, data-driven authentication solutions helping customers recover lost revenues and protect brand equity.

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“Authentix seeks to aid customers with their transition to more IoT-based operations by capturing data at each point in the authentication process to ensure that any enforcement actions are based on secure and accurate information. This starts when authentication markers are applied to products and continues when markers are tested for or scanned in the field or at a laboratory as the product moves through a supply chain. The results of these tests and scans aggregate into a single data platform for easy verification,” said Frost & Sullivan Research Analyst Danielle VanZandt. “With Authentix’s solutions, customers can monitor their supply chain interactions, identify potential areas of vulnerability, and receive actionable insights, facilitating proactive decision-making to mitigate illicit trade.”

Authentix remains the only end-to-end authentication solution provider for fuel supply protection, combining the devices and covert markers with the Authentix Information System (AXIS®) and comprehensive Authentix services and support. The company also has a robust portfolio of proprietary authentication solutions for major industry verticals:

• Vigilant™: Authentix’s flagship, this authentication solution protects national fuel supplies globally. The solution helps governments and in-country fuel suppliers fight fuel dilution, smuggling, tax evasion, and illicit trade. Vigilant recaptures valuable fuel excise tax revenues for government customers, ensures top fuel quality for citizens and the environment, and creates a level playing field for all participants in a country’s fuel market.

• Jewel™: This solution allows Authentix to partner with global central banks to protect and authenticate banknotes. The Jewel optical markers, read with its high-speed sensor technology, can be easily integrated with any banknote design and deployed on high-speed note sorters to validate the authenticity of individual banknotes. Additionally, Authentix provides implementation services in tandem with banks to ensure a seamless transition.

• Sherlox™: Sherlox is Authentix’s brand protection solution. Validated with a proprietary handheld reader and cloud technology, Sherlox utilizes covert markers to enable in-field authentication instantaneously through smart mobile devices during brand audits.

• Assure™: Assure is the company’s proprietary fuel brand marking solution. Assure helps major, global oil marketing companies provide consumers with the fuel product quality they pay for and to guarantee that specific fuel additive treat rates are accurate.

“With the success of its solutions, Authentix continues to grow within mature markets. Its deep and rich experience and industry knowledge allow it to showcase the value of its authentication solutions and the ways in which they can generate a rapid return on investment,” noted VanZandt. “Leveraging trusted customer relationships and continuously focusing on the customer’s needs will win Authentix significant customer and revenue growth over the long-term.”

Each year, Frost & Sullivan presents the technology leadership award to the company that has demonstrated uniqueness in developing and leveraging new technologies that significantly impact both the functionality and the customer value of the new products and applications. The award lauds the large R&D spend toward innovation, its relevance to the industry, and the positive impact on combatting illicit trade.

Frost & Sullivan Best Practices Awards recognize companies in a variety of regional and global markets for demonstrating outstanding achievement and superior performance in areas such as leadership, technological innovation, customer service, and strategic product development. Industry analysts compare market participants and measure performance through in-depth interviews, analysis, and extensive secondary research to identify best practices in the industry.

About Authentix

Authentix, a leading global authentication and information services company, assists customers in combating illicit trade and managing the integrity of their global supply chains. With comprehensive end-to-end authentication solutions, we help safeguard customers in refined fuels (e.g., gasoline, diesel, lubes, and LPG) and branded products (e.g., pharmaceuticals, agrochemicals, and spirits industries) from counterfeiting, product theft, product diversion, and adulteration. In addition, we help protect currencies for many leading central banks.

Headquartered in Addison, Texas USA, Authentix, Inc. has offices in the US, UK, UAE, Saudi Arabia and Africa serving clients worldwide. For more information, visit http://www.authentix.com.

About Frost & Sullivan
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Contact:
Claudia Toscano
P: 210.477.8417
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E: Claudia.Toscao@frost.com

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