By Type: News

By: Mila Milosavljević

The article below is the result of an interview conducted by  Mila Milosavljević, a writer for Serbian publication Pečat, of Tim Driscoll, Authentix Senior Vice President and General Manager, Currency and Tax Stamp. This content has been edited and translated to English for use on authentix.com. You can find the original copy on the publication’s website http://www.pecat.co.rs/2019/11/tim-driskol-borba-protiv-ilegalnog-trzista/

Tim Driscoll is the Senior Vice President and General Manager of Currency and Tax Stamp at Authentix, a US-based company committed to helping government officials and business leaders thrive in supply and distribution chain complexity with innovative authentication solutions. With offices in Europe, the Middle East and Africa in addition to the US, Authentix provides global support to central banks to protect their banknotes, helping tax authorities collect excise taxes and helping governments and national oil companies maintain fuel quality and fight fuel smugglers. Authentix also works with brand owners to protect the health of their customers and protect revenue that they’re losing due to diversion and counterfeiting.

Authentix partners with organizations in several countries to best serve their customers. Authentix’ partner in Serbia is Nanoinspekt, which is Authentix’ official representative and distributor in Serbia and the surrounding countries. As our interlocutor points out, these two companies are intensively working on expanding their business and cooperation in the future.

Can you tell us more about your background?

I have been in the product authentication industry for almost 25 years and have spent the last 14 years at Authentix.  I have used my physics background and experience in the industry to serve as a trusted partner to government clients as we help them address their counterfeiting and tax recovery challenges.

Undoubtedly Authentix is ​​pushing the boundaries in this business? How do they do that?

The solutions we apply are very complex and involve a wide variety of innovative technologies. Authentix is ​​developing new security measures to enhance these programs. We are raising these programs to a higher level by implementing new and enhanced software systems to collect and analyze the data gathered from program operations. Part of our mission is to protect the integrity of the global marketplace through innovative authentication solutions. We are constantly improving the way we process operational data that we provide to clients. Those clients who successfully implement the program use data analytics as a basis for prioritizing and adopting appropriate measures to ensure product authenticity in the market.

How was Authentix founded?

The creation of Authentix started with two companies, one based in the US, and the other based in the United Kingdom. The foundation of the US company was based on technologies derived from Los Alamos National Laboratory, which later turned into fuel marking technology. The British company was based on a completely different technology derived from the University of York, which also found application in the fight against smuggling. In 2003, the two companies merged to form Authentix.

What would you define as the greatest achievement of Authentix so far?

In general, the programs we are most proud of are those that pay back taxes evaded by illegal acts to the state and its citizens. Also, one of the programs we are most proud of is the program in Serbia. This program illustrates what a strong partnership looks like when the right technology is implemented, when quality operational data is provided, and when authorities are willing to leverage that data to combat the illegal fuel market.

Tell us more about the programs in the field of excise stamps and protection of banknotes?

As far as the excise stamp program is concerned, we are very proud of the program we have introduced in Ghana. In this program, we have created a technology solution that allows the state to collect the full amount of excise duty on tobacco, alcohol and other beverages including beer, as well as water and sodas.

How have these programs been implemented before Authentix, and how are they done now, using the analogy of how fuel was once marked with solvent (yellow) and now molecular nanomarker?

All of these programs are essentially a game of cat and mouse. When we find a solution to one problem and apply it, those involved in the illegal fuel trade immediately try to circumvent security solutions. To address this problem, Authentix focuses on being flexible. We are flexible in the technology selected, how it’s implemented and how it is supported. The banknote security industry has historically been reduced to a very small number of companies. Authentix, as one of these companies, has created innovative products for central banks that will solve their problems. The current trend of this industry is that central banks are trying to reduce dependency on one company. They are less likely to procure all protection measures from one or a small number of suppliers and want to be free to choose different offers from different suppliers. This is not the easiest way to keep the security level at a high level, but Authentix solutions are tailored to how central banks operate. For example, our features are seamlessly added into the banknotes and our sensors are easily integrated into the existing equipment used by most central banks.

How do you evaluate cooperation with Nanoinspekt, your partner in Serbia?

The collaboration so far has been fantastic. We collaborate with many partners around the world, but one thing that is special about Nanoinspekt is that we do not perceive it as a collaboration, but feel as if we are part of the same company with the same purpose.

 

By: Mila Milosavljević

The article below is the result of an interview conducted by writer Mila Milosavljević and Chad Crouch, Authentix Vice President of Sales for Serbian publication Pečat. This content has been edited and translated to English for use on authentix.com. You can find the original copy on the publication’s website http://www.pecat.co.rs/2019/11/ced-krauc-tajna-nevidljive-akcizne-markice/.

Chad Crouch is Vice President of Sales at Authentix, responsible for the global sale of oil and gas market protection programs as well as brand protection. During his five-year tenure, he has overseen project management, program establishment and contributed to the efficient program delivery to many Authentix clients. In his current position, he is focused on developing and securing new clients for the company’s programs.

Authentix’ partner in Serbia is Nanoinspekt, which according to Crouch is known as a very reliable partner and is Authentix’ official representative and distributor in Serbia and the surrounding countries. As our interlocutor points out, these two companies are intensively working on expanding their business and cooperation in the future.

How does Authentix push the boundaries in the oil and gas domain?
Authentix’ mission is to safeguard the integrity of global commerce, and we do this by delivering advanced authentication solutions. In our oil and gas business, we deliver world-class technology to create solutions for governments and oil and gas companies to counter the illegal trade in fuels, crude oil and liquid gas. The programs we provide for state governments aim to instill confidence in the national fuel market to combat illegal trade, increase excise taxes and improve fuel quality throughout the distribution chain.

Authentix is ​​unique because of our advanced level of innovation that allows us to connect the real world with the digital through our AXIS® management platform. Our users can collect, store and analyze data from multiple sources and then report on it.  Through our software, clients receive an annotation from the operations performed in the programs to enable proactive combating of fuel fraud. We use our twenty-five years of experience to provide our customers with a turnkey solution, while on the other hand we work closely with governments and partners to provide them with technology in a timely manner to effectively run the program. We use state-of-the-art field-testing technologies as well as lab-based authentication that provide measurable results. Our unique markers are added to the fuel in very small quantities and our technology allow users to accurately determine the level of blending or illegal substances in the fuel. We are the global leader in this market with over two trillion branded liters of fuel so far, as well as the most active programs, with 12 national governments.

“Authentix’ mission is to safeguard the integrity of global commerce by delivering innovative authentication solutions. In our oil and gas business, we deliver world-class technology to create solutions for governments and oil and gas companies to counter the illegal trade in fuels, crude oil and liquid gas.”

As far as oil companies are concerned, our fuel authentication program enables them to protect branded fuels through the distribution line by ensuring that end customers get the quality fuel they intended to buy. In many cases, oil companies have a diluted distribution chain where they license their brand and hand it over to franchised retail gas stations. The oil marketing companies use our technology to validate the integrity of their supply chain and to confirm that they are selling the proper additized fuel at the specified octane levels.

How did Authentix revolutionize this field of business, both scientifically and economically? How are the programs set up and how do they function, for example in the Serbian program?
I will mention two examples. The first has many similarities to the excise stamp program. Obviously, you can’t paste an excise stamp on a liquid, but our excise markers do just that. With our technology and analytical equipment, we authenticate that our invisible “excise stamp” is in the fuel. For example, you may have two diesel products that are exactly the same quality and specification, but the customer may need to differentiate the products based on a different tax status. Our markers provide the ability to differentiate between these products and also detect, quantitively, if the products have been mixed. Another example would be a fingerprint. By using a marker, you give the fuel a fingerprint that allows the user to detect changes in the fuel such as “diluting” with illegal fuel or mixing other substances in the fuel.

Huge money can be made through illegal activities in the oil and gas industry such as fuel smuggling. Accordingly, we come across many advanced ways of conducting illegal activities that our technology combats. Some short examples: in some countries, fuel such as kerosene is subsidized for cooking. We find that wherever there is a difference in excise fuel prices, subsidized fuel appears where it should not be in the regular sales chain. The state loses on the difference between these specific taxes while entities engaged in illegal activities fill their pockets. You can also take the example of neighboring countries where fuel prices vary. Fuel smuggling occurs most often across borders where illegal activity makes a difference in prices. Our programs provide a great return on state taxes, but in addition, as has happened in Serbia, they make the market operate on fair terms for everyone. The state collects the revenue it has prescribed, and the oil companies get higher sales revenue because the distribution chain has integrity while making it impossible for distributors to work illegally.

What would you single out as the greatest achievement of Authentix?
One of the programs we are most proud of and that we always emphasize in case studies is the program in Serbia. The only way we evaluate our success is if we produce tangible results for our clients. We refer to the program in Serbia because we know that the user was very satisfied with the results generated by the fuel marking program, which is also the success of Authentix. In the first five years of this program, the Serbian government repaid about 720 million euros, which resulted in the extension of the contract for another five years. We are very proud of this achievement and the positive impact this program has in Serbia. Other programs around the world are also proving to be successful and have generated billions of dollars in profit for clients. All of this has resulted in long-term customer retention in more than 95 percent of cases.

 

ADDISON, Texas, July 29, 2019 /PRNewswire/ — Authentix, Inc., a U.S.-based technology solutions provider specializing in supply chain security and authentication programs, was selected as one of the top 20 most promising solutions providers in the oil and gas industry by leading enterprise technology publication, CIOReview.

Every year, CIOReview analyzes the growing marketplace of service providers and awards the best-in-class with this prestigious award. This is done as a service to chief information officers with the difficult task of choosing the right partners to leverage the significant technological innovations to boost prosperity in their long-term growth and digital transformations. The exclusive list of vendors was selected by a distinguished panel of CEOs, CIOs and VCs, industry analysts and the editorial board of CIOReview after exhibiting excellence in offering efficient solutions and expertise in the oil and gas industry.

“Authentix secures the integrity of global commerce by verifying the authenticity of physical products through advanced technology solutions and connecting the output of that information to a robust, digital information platform. This provides our clients with insightful analytics to ensure the integrity of their fuels, minimize fraud, and increase market share or tax collections. We are honored to have CIOReview recognize Authentix for our proactive innovation in these complex environments, our proven sector expertise and the ability to help our clients gain a distinct competitive advantage,” states Kevin McKenna, CEO of Authentix.

Authentix operates fuel marking programs on five continents helping governments protect fuel tax revenues and leading branded fuel owners protect the integrity of their products. These programs consist of proprietary markers in refined fuels that can detect and prevent grade swapping, adulteration, and tax avoidance from the introduction of illicit fuels. Also, the company offers an information and data management platform to aggregate operational data, provide field test results and reporting tools for insights into potential issues within the supply chain and what types of actions need to be taken and when. Additionally, Authentix supplies marking programs for crude oil pipelines, fuel quality inspection services, and remote sensor monitoring of measurement devices in the fuel supply chain.

About Authentix
As the authority in authentication solutions, Authentix helps customers thrive in supply and distribution chain complexity. Authentix provides advanced authentication solutions for governments, central banks and commercial products, ensuring local economies grow, banknote security remains intact and commercial  products have robust market opportunities. The Authentix partnership approach and proven sector expertise inspires proactive innovation, helping customers mitigate risks to promote revenue growth and gain competitive advantage.

Headquartered in Addison, Texas USA, Authentix, Inc. has offices in North America, Europe, Middle East, and Africa serving clients worldwide. Authentix® is a registered trademark of Authentix, Inc. For more information, visit https://www.authentix.com.

Contact: info@authentix.com