Covr Security, a Swedish cybersecurity company, is ready to disrupt the global market for a broad range of heavily regulated digital industries that rely on fail-safe strong customer authentication and privacy. “Due to the big demand for bullet-proof security solutions there is an opportunity for us to become leaders in the cybersecurity space,” explains Patrik Malmberg, co-founder and COO at Covr Security.
Making Passwords a Thing of the Past
The decades-old authentication method of using passwords presents a huge problem in today’s security landscape. "Passwords have essentially overstayed their welcome being an unsecure method of authentication and authorization of transactions, and this is a universal pain point—passwords are basically useless today,” says Malmberg.
Covr Security has solved the password conundrum by completely removing them from the equation. In the Covr app, secure customer authentication (SCA) is achieved by sending sensitive data out-of-band, i.e., in an independent second channel, the smartphone, which makes it impossible for hackers to get access. This keeps people protected from identity theft, credit card hijacking, phishing, and skimming—even when their transactions are done via open, unknown or public Wi-Fi connections.
Putting the End-User in Command
In addition to the standard 2FA used by tech giants like Google and Microsoft, Covr has added additional security layers. The app automatically verifies who the user is with authentication factors including a 6-digit access code and/or biometric data like fingerprints or facial recognition.
We have developed an app that truly provides this necessary balance between security and usability
“Covr is not the only company to use a two-channel solution with multi-factor authentication, but the technology that handles what happens between the security server and the mobile device is our secret sauce,” says Peter Alexanderson, founder and CEO of Covr Security.
The Importance of PSD2
The effectuation of the Second Payment Services Directive (PSD2) this year requires stronger identity checks, so-called strong customer authentication (SCA), to be performed by the users themselves when they pay online. The transition from passwords to a combination of login codes and biometrics or tokens can be troublesome—and expensive—for banks and payment services, and this is where Covr is the ultimate solution.
Customer Convenience by Usability
Despite being in the business of highly advanced technology development, one of the strongest differentiators—and an explicit focus for Covr Security—is to build a product that people will actually use. Exceptional user convenience on the smartphone may be the term of the day as it stands, but without up-to-date security tech behind it, it could be good for nothing.
“We have developed an app that truly provides this necessary balance between security and usability,” says Malmberg. “The more popular mobile platforms become for money transactions and secure authentication, the more important the security aspect becomes.”
The past six months, the company has signed several global bank partnerships and entered new industries and customer groups like online retail, third-party payment service providers, medical technology, and cloud service providers. The company has recently entered a pilot project in Singapore for a security protocol to prevent fraud in transactions with credit and debit cards online called 3D Secure (3-domain secure). 3D Secure is at the moment provided by Visa, MasterCard, and American Express under the name Verified by Visa, MasterCard SecureCode, and American Express SafeKey.
Recently, Covr also released a comprehensive new version of the Covr app that, among other things, simplifies the customer login process and ease of use of the app through adding QR codes for both on-boarding and authorizing transactions.