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Token begins production of its biometric authentication smart ring

Tuesday 8 August 2023 09:35 CET | News

Wearable authentication solutions supplier Token has announced the start of production for its smart ring in the US. 

Token has developed its wearable biometric authentication solution to be easily implementable on a large scale, while also being passwordless and FIDO 2-compliant. The product aims to prevent phishing attacks, therefore leading to less occurring data breaches which could result in damages and financial losses. Moreover, the biometric ring works towards enhancing protection against the risk of lost or stolen credentials, SMS one-time passcodes, and weak passwords.

Wearable authentication solutions supplier Token has announced the start of production for its smart ring in the US.

Wearable biometric authentication solutions may prevent ransomware and data manipulation attacks, by providing user confidence, secure authentication, and access without the need of a password. Also, the product aims to forestall account takeover, credential stuffing, and MITM attacks, as the Near Field Communication technology included validates the ring’s proximity. The Token ring must be activated through the user’s fingerprint and no other user can access it, hence creating a more secure environment with minimal effort.

The US-based company first pitched the authentication ring in 2017, offering a secure ID product, equipped with a chip element, and both optical and fingerprint sensors embedded in it. In addition, the smart ring uses Near Field Communication technology and Bluetooth. The ring has been designed for contactless transactions, as well as login and access control. Since then, the demand from the market has increased, with approximately 200 organisations joining the waiting list for the product.


Investment in the product

In 2022, Token secured its first funding in a USD 13 million financing round. Its plans were to invest in its solution development and continue to generate demand for its new technology. Only one year later, in April 2023, Token has declared a USD 30 million financial raise, which aimed to support the progression of the biometric authentication smart ring. Private investment firm Grand Oaks Capital’s funding has been intended to provide financial assistance for Token’s working capital and inventory, as well as to support future product development. 

According to Token officials, starting the production represents a critical step in cessing the cyberattacks that have widely affected businesses recently. 

Multi-factor authentication global market

As per the ‘Multi-Factor Authentication (MFA): Global Strategic Business Report’, the multi-factor authentication market has been an ever-growing area, and it is predicted to reach a size of USD 53 billion by 2023, compared to USD 17.9 billion in 2022. The growth will not only extend to the US, as both Asian countries, including China and Japan, and countries within the European area, such as Germany, are anticipated to reach a Compound Annual Growth Rate between 8.3% and 20.7%.

Due to the rise and frequency of successful cyberattacks, organisations are inclined to implement additional security measures, find advanced solutions, as well as use tools that do not require a human element login. The current methods, including password protection and SMS one-time passcodes, do not offer guaranteed safety and are more likely to lead to a heightened risk of data breaches. 

The Verizon Data Breach Incident Report has listed lost/stolen passwords and compromised user credentials as the #1 contributing factor to data breaches for six straight years. Token's smart ring aims to solve the problems of existing authentication solutions. The additional layer of protection offered by the multi-factor authentication rose the necessity for products that offer easily accessible solutions. Companies are trying to distance themselves from legacy services, moving towards tools that can offer increased security, that are also able to decrease the risk of data breaches. 

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Keywords: multi-factor authentication, biometric authentication, NFC, biometrics, digital identity
Categories: Fraud & Financial Crime
Companies: Token
Countries: United States
This article is part of category

Fraud & Financial Crime

Token

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