INTELLICHECK ANNOUNCES THE RELEASE OF RETAIL ID ONLINE TO CURB FRAUDULENT ONLINE PURCHASES

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Innovative Technology Solution Will Help StopCriminal Use Of Stolen IDs

JERICHO,NEW YORK – November 16, 2016 – Intellicheck Mobilisa, Inc. (NYSEMKT:IDN), a leader in threat identification, identity authentication,verification and validation technology solutions, today announced a newtechnology solution that delivers online threat identification and fraudprevention to the retail market. Retail ID Online presentsa new level of card-not-present transaction safety for consumers and retailers,preventing a variety of fraudulent online retail purchases. At the same time,this new technology solution will provide a more engaging customer experience withan easy, quick process that provides a new level of consumer confidence.

“In a way, RetailID Online was designed for retailers, by retailers. We designed and produced RetailID Online with extensive input from our retail customers who include some ofthe nation’s most successful, highly recognized brands,” said IntellicheckCEO Dr. William Roof. “As a result, Retail ID Online is simple to deployand to use, and especially effective given high personnel turnover rates oftenseen in the retail industry.” Roof noted, “We believe our technologyfor identifying counterfeit IDs is superior. We are confident retailers will embracethe advanced protection and the unique features reflected in its design. Unlikeother anti-counterfeit technologies, the efficacy of all our Retail ID productsis not degraded by the ID card’s exposure to effects of sunlight, washingmachine cycles or the ID card’s normal, daily wear and tear.”

Retail ID Onlineintegrates with the retailer’s online purchasing website and seamlessly checkspurchasers’ driver licenses for authenticity. When the purchaser visits theretailer’s website, the website will prompt the purchaser to snap an image ofthe back side of their driver license, using either a smartphone camera, laptopcamera or other camera attached to the purchaser’s computer. Running in thebackground, Intellicheck encrypts the driver license image to strict militarystandards and matches the image against authentic driver license formats fromIntellicheck’s proprietary “ID Check” database. Intellicheck has developed andcontinuously enhanced ID Check over the past 20 years while working closelywith state departments of motor vehicles and other jurisdictional authorities.Once the ID is authenticated, the purchase can proceed and Intellicheck deletesthe driver license image and associated data. If the driver license is taggedas counterfeit, the purchase process terminates and Intellicheck maintains thecounterfeit image for law enforcement and product enhancement purposes.

The payments industry and retail merchants have beenexpecting a substantial rise in online fraud. According to the Javelinconsulting firm, the total value of fraudulent e-commerce transactions willjump from $10 billion in 2014 to nearly $19 billion in 2018. This presents acostly problem for retailers who are faced with a significant impact on theirbottom line and for their customers. LexusNexus reports thatfraudulent transactions account for 1.47% of a retailer’s revenues, which meansa retailer reporting $40B in revenues, for example, may see losses due to fraudapproaching $600M. Consumers are callingfor an increase in protection as reflected in a recent consumer impact study,which found 78% of online shoppers want more protection for their payment cardswhen shopping online.

Dr. Roof said therollout of Retail ID Online represents another important milestone for theCompany. “In our very first investor presentation from our 2015 capitalraise, we identified emerging markets that we pledged to analyze andpotentially include in our use-of-funds plan. One of those emerging markets wasthe curtailment of fraud in online retail. We have followed-through, and theresult is Retail ID Online.” Retail pilots of the newtechnology solution will begin this month.

Inaddition to nine patents pending, Intellicheck holds 25 patents including many pertainingto threat identification and identification technology. The Company’s real-timeidentity authentication and validation solutions support customers in theretail, hospitality, national defense, law enforcement, and financial markets.Intellicheck’s products scan, authenticate and analyze components ofidentity documents including driver licenses, military identification cards andother government forms of identification containing magnetic stripe, barcodeand smart chip information. Once extracted from the identity card, theinformation can be used to provide safety, security and efficiencies throughoutthese markets.