Payfone, a specialist in mobile identity authentication for digital channels, has nailed another funding round of $23.5 million. Among new investors is Transaction Network Services. American Express Ventures remains an initial investor.
BlueCross BlueShield Venture Partners and Andrew Prozes led the round with new investors Strauss Zelnick, Maclab Development Group and Transaction Network Services, and with participation from current investors RRE Ventures, Opus Capital, Relay Ventures, Early Warning Services, American Express Ventures, Verizon Ventures and Rogers Venture Partners.
“Years ago, we made a contrarian bet that the way in which mobile phones instantly authenticated themselves would solve fundamental issues with validating digital transactions. The web and mobile channels continue to suffer through the historical struggle with the trade-off between security and convenience. And now the days of protecting sensitive data and securing high-value transactions with text messages, one-time passcodes, and knowledge-based questions, are numbered,” said Rodger Desai, CEO of Payfone.
Payfone’s patented mobile authentication technology is the first and leading solution to provide protection against these attacks, curbing fraud losses and authentication related expenses while driving engagement and customer lifetime value.
The National Institute of Standards and Technology (NIST) recently warned of the vulnerabilities of two factor SMS as an authenticator. Additionally, the Chief Technologist at the Federal Trade Commission (FTC), Lorrie Cranor, was hacked with simple techniques that showcased the issues with current authentication standards.
The financing reinforces Payfone’s leadership in the high-growth authentication market. Enterprises harnessing the power of digital channels to transform and grow their businesses are burdened with the increasing cost and complexity of authentication to fight identity theft and social engineering attacks from professional attackers.
Payfone has figured out how to determine whether the phone you are using is actually your phone, using unique data, sophisticated patented algorithms and technology to not only identify and authenticate the caller, but to dramatically increase the rescue of transactions which previously would have been declined.
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