Standard Chartered backs passwordless tech startup Secret Double Octopus

In this news, we discuss the Standard Chartered backs passwordless tech startup Secret Double Octopus.

LONDON (Reuters) – SC Ventures, the venture capital arm of Standard Chartered Plc, has made a strategic investment in Secret Double Octopus, a Tel Aviv-based startup providing authentication technology that eliminates the need for passwords, the companies announced Thursday.

Financial terms of the transaction were not disclosed.

Secret Double Octopus, which already has Sony Financial Ventures and Japanese telecommunications provider KDDI as investors, said it would use the funding to grow the business.

Startup helps large organizations replace passwords that employees use to log into corporate systems with passwordless multi-factor authentication. He says his technology can help make systems more secure, while reducing the significant costs associated with managing passwords.

“On average, a corporate user forgets their password three times a year,” said Raz Rafaeli, co-founder and CEO of Secret Double Octopus. “The cost of resetting the password is a minimum of $ 25.”

This could run into millions of dollars a year for companies with thousands of employees, he added.

The technology could also be deployed to suppress passwords in systems intended for customers, Rafaeli said.

Standard Chartered’s involvement comes as banks and other financial institutions continue to increase their investments in cybersecurity, as they seek to protect their organizations and customers from a multitude of online threats.

Financial institutions spent an average of around $ 2,700 per full-time employee on cybersecurity in 2020, up from around $ 2,300 last year, according to a recent Deloitte study. This represented 10.9% of their overall IT budget, up from 10.1% in 2019.

Reporting by Anna Irrera; Editing by Kirsten Donovan

Original © Thomson Reuters Corporation

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