Fintech & Ecommerce

Token Raises $30 Million for Biometric Wearable

The Token company announced that it has managed to attract additional funding for $ 30 million, which will be used to expand the company’s offer for wearable authentication.

Token Raises $30 Million for Biometric Wearable

Source: motionarray.com

This financing, which became known last Monday, April 24, is carried out in the form of a secured bill for $ 20 million and a convertible bill for $ 10 million from Grand Oaks Capital. The company’s press release indicates that these funds will help support the development of Token’s smart ring, a biometric wearable device without a password compatible with FIDO 2. This device prevents phishing attacks and data leakage.

Token CEO John Gunn stated that the main reason for the leaks of confidential information is the actions of people. He also noted that such incidents occur almost every day and stressed that ransomware attacks are usually the result of human flaws inherent in multi-factor authentication (MFA).

MFA is a common anti-fraud tool. The disadvantage of this verification method is that it provides additional measures that require the user to enter passwords several times. The MFA provides a certain level of protection, but the content of the verification procedures entails unnecessary risk. Experts say that this tool is useful, but it needs to be used in the right context because otherwise there is a high probability of unnecessary failures.

Many methods of fraud, such as phishing, are based on deceiving victims to voluntarily transfer important information. It is precisely because of this circumstance that the effectiveness of MFA as a security tool is reduced.

The record level of phishing attacks was recorded in 2021. In December of this year, more than 100 thousand such incidents were registered. The efforts of financial services companies and e-commerce firms to inform customers about the threat of fraud did not bring the desired result.

Special surveys indicate that many users do not consider logging in with a password to be the best authentication solution, but this method is still the most common.

As we have reported earlier, AI-Focused Blockchain CryptoGPT Raises $10 Million Funding at $250 Million Valuation.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.