Fingerprinting's big business
for Cross Match
By Chris Woodyard, USA TODAY
A Florida company is making a first impression on millions of
foreign visitors to the USA. Cross Match Technologies made all of
the more than 2,000 electronic fingerprint readers that the
Department of Homeland Security rolled out in 115 airports and 14
seaports last week.
The readers are being used to capture foreign
travelers' fingerprints so they can be checked against a government
database of terrorism suspects and criminals.
The airport installations represent a
breakthrough for biometrics, which is a way of positively
identifying people from their unique characteristics, such as
fingerprints and retinas. "It's the highest-profile biometric
implementation to date," says Maureen Stevens, a Cross Match vice
president. "It's basically making biometrics mainstream."
Federal officials say they think the use of
biometrics could set world standards. The new program "will serve as
a catalyst in the growing international use of biometrics to
expedite processing of travelers," says Homeland Security Secretary
Tom Ridge.
An estimated 24 million foreign visitors to
the USA a year will be fingerprinted, Homeland Security officials
say. Travelers from 27 countries who don't need visas to enter the
USA for short trips are exempt from the fingerprint checks.
The Cross Match reader, which costs about
$400, records the images of two fingers and produces a match in less
than a minute.
The government's demand for fingerprint
readers has been a big lift for Cross Match, which started with
three employees in 1996.
The Palm Beach Gardens, Fla., company joined
a handful of others in developing technology that permits
fingerprints to be captured electronically at a time when the FBI
was switching its databases away from the traditional paper and ink
systems. The new system has dramatically cut the time it takes law
enforcement to receive answers on detailed background checks and
suspect inquiries. It used to take as long as a week. Now it's a day
or less.
As result, Cross Match has grown quickly.
Inc. magazine listed it as the fifth-fastest-growing privately
owned company in 2002. Its revenue that year was $24.5 million, up
11,517% in five years. The firm is not releasing 2003 revenue.
Sales increased as the company improved its
product. Early models were the size of refrigerators. Today's most
sophisticated portable model, which weighs 23 pounds and can capture
prints from all 10 fingers instead of just two, is used by the
military in Iraq and Afghanistan. It's being used to fingerprint
prisoners and suspected terrorists, says Robert Bucknam, a senior
vice president of Cross Match.
Cross Match's machines are also used by
immigration authorities outside the USA. The Singapore government is
using an earlier version of Cross Match's new airport machine to
fingerprint border crossers from Malaysia.
The terrorism threat is boosting not only
Cross Match, but the entire biometrics industry.
"It's immensely important," says Jay Meier,
senior technology analyst for Miller Johnson Steichen Kinnard, a
brokerage based in Minneapolis. Biometrics "has been talked about as
a potential monster industry for a couple of decades, but without
that sense of urgency there was no catalyst to invest in that
technology."
Electronic fingerprinting has been gaining in
popularity with the military, law enforcement and the banking
industry. A few states electronically fingerprint driver's license
applicants. Having the systems in airports is one of the most
visible installations yet.
"It's not going to make the industry rich,
but it shows we're seeing early signs of mass adoption by government
entities," says Joel Fishbein Jr., technology analyst for Janney
Montgomery Scott. "This is the tip of the iceberg in terms of
biometric adoption."
While the war on terrorism has been garnering
all the attention, "The big news is going to be as this moves into
the commercial world," says Ted Johnson, Cross Match's CEO. Banks
and other financial institutions are using electronic fingerprinting
for background checks of employees.
Other companies are also making digital
fingerprinting equipment. Fishbein says the other major domestic
provider is Minneapolis-based Identix.
Identix says it's working with Homeland
Security on later phases of the airport project, which will include
the ability to digitally match photographs.
Despite the privacy implications of
fingerprinting travelers, experts say they think visitors won't find
the new process too intrusive.
"I think it's going to be more reassuring" to
visitors to know the U.S. is trying to make itself more secure, says
Noel Irwin Hentschel, CEO of AmericanTours International, which
hosts more than 1 million tourists to the USA a year.
"I don't think it will change visitation to
the United States one iota," says John Marks, president of the San
Francisco Convention & Visitor Bureau. "If they (handle the
procedure) in a friendly manner, an expeditious manner, I don't
think it will be an issue." |