U.S. based Token has begun production of its biometric authentication smart ring, designed to stop data breaches and ransomware caused by phishing attacks.
The ring, which is said to be the first-of-its kind, promises to give its wearers a chance to make mobile payments and unlock doors with an enhanced level of security protecting their identity. All whilst consigning password protection to the history books. The company announced that almost 200 organisations are already on the waitlist for the biometric wearable which is aiming to counteract a notable rise in successful cyberattacks in recent years.
Costs due to the average data breach are estimated to have now reached $9.4 million for U.S. companies. According to the firm, an expectation commonly put on users of legacy solutions is that they will recognise and overcome each new and sophisticated hacking attack they receive via emails, text messages, and malicious webpages. However, next-generation tools like Token’s smart ring are passwordless and remove the human element from the login process.
The first key factor of the smart ring’s authentication is its biometric reading in the form of a fingerprint scan via a sensor on the inside of the ring. After activation, the sensor identifies when the user is wearing the ring and shuts down when it is taken off. Additionally, there is another form of identification when the ring is put in range of an NFC reader or Bluetooth enable device, like a computer. This is similar to the type of near field communication (NFC) technology found in credit cards and hotel keys to make purchases.
“Starting production is a major milestone for Token, reflecting the hard work and dedication of a very talented team, and marking a critical step toward stopping the cyberattacks that are devastating so many businesses. We are seeing incredible demand from the market, with a significant portion of our first production run already committed,” said Token CEO, John Gunn.
Token has already secured $43 million in funding and financing to deliver its multifactor authentication technology. Production of the ring, which easily integrates with all IAM solutions, follows a recent Cost of a Data Breach Report from IBM which found that in 2022, 83 percent of organisations experienced two or more data breaches.
John Horn, Director of Cybersecurity at leading analyst firm Datos Insights, said: “As cyber risk continues to elevate, legacy MFA solutions are being defeated regularly by sophisticated phishing attacks. Many enterprises are left with heightened business risk and interruption, needing to move to phishing-resistant MFA solutions.”