OneSpan’s Strategic Investment in ThreatFabric: A Game Changer in Cyber Fraud Prevention
Introduction to the Collaboration
In a decisive move to bolster its cybersecurity measures, electronic signature and cloud authentication firm OneSpan Inc. has announced a strategic investment and partnership with ThreatFabric B.V., a Dutch leader specializing in proactive fraud detection, mobile threat intelligence, and malware defense solutions. This collaboration marks a significant step toward expanding OneSpan’s capabilities in combatting cyber fraud within the rapidly evolving financial services sector.
The Rising Threat of Cyber Fraud
Over the past few years, the financial services industry has witnessed a dramatic increase in authorized push payment fraud, posing challenges for organizations attempting to safeguard their customers’ assets. This type of fraud, where criminals deceive customers into approving transactions through social engineering techniques, has emerged as a wide-reaching issue, impacting consumers and institutions alike. OneSpan’s partnership with ThreatFabric aims to address these vulnerabilities by integrating advanced protective measures that proactively counteract digital threats.
ThreatFabric: A Specialized Approach to Fraud Detection
Founded in 2015, ThreatFabric has carved a niche in mobile and online fraud detection tailored specifically for financial institutions and digital banking services. The company’s flagship product, the Fraud Risk Suite, offers a robust software development kit (SDK) that enables real-time integration of various risk assessments, including device risk, behavioral risk, identity risk, and threat intelligence. This multipronged approach allows financial entities to effectively identify a broad spectrum of fraud activities, such as account takeovers, device compromise, and malware-assisted attacks.
Innovative Solutions for a Mobile-First World
With mobile devices becoming the primary access point for consumers engaging in financial transactions, the necessity of a comprehensive mobile threat strategy cannot be overstated. ThreatFabric excels in delivering critical insights into the dynamic mobile threat landscape, actively tracking and analyzing threats like banking Trojans, spyware, keyloggers, and various malware types. By providing actionable indicators, ThreatFabric empowers banks to anticipate and mitigate attacks before they can escalate, enhancing overall digital security.
Layered Risk Scoring and Signal Fusion
At the heart of ThreatFabric’s offerings lies a sophisticated risk scoring and signal fusion framework. This platform amalgamates insights from device-level risks, behavioral signals, and external threat intelligence feeds. When these insights feed into a bank’s fraud detection systems, they facilitate automated and low-friction responses, ranging from blocking suspicious activities to triggering additional verification steps or flagging transactions for further review. This efficiency not only protects customers but also streamlines the user experience, minimizing friction in legitimate transactions.
A Vision for the Future of Digital Banking
OneSpan’s Chief Executive, Victor Limongelli, articulates the company’s vision succinctly: “Mobile devices are the dominant access point for consumer financial services, leading to the rise in device compromise, malware, and cyber fraud.” The partnership with ThreatFabric enhances OneSpan’s offerings and sets a new benchmark for safeguarding customer trust and security in a mobile-centric financial environment.
Investment and Future Prospects
While the exact amount OneSpan invested in ThreatFabric has not been disclosed, it is noteworthy that ThreatFabric has recently attracted a total of $12.6 million in funding through multiple investment rounds. Previous stakeholders in the company include esteemed firms like Motive Partners Management, Rabo Investments B.V., and ABN AMRO Bank N.V., indicating a solid foundation and belief in ThreatFabric’s mission.
This collaboration between OneSpan and ThreatFabric not only signals a proactive approach toward cybersecurity in the financial sector but also represents a critical evolution in addressing the challenges posed by an increasingly sophisticated landscape of digital threats. By blending their strengths, these two companies are trailblazing a path toward a more secure digital banking experience for consumers and institutions alike.
