nsKnox Establishes First Cooperative Network to Bolster Cyber Security and Prevent Fraud
Israel Discount Bank has signed an agreement with nsKnox in which the bank will take part in its cooperative network to defend against corporate fraud and embezzlement
[Tel Aviv, Israel – March 11, 2019] – Israel Discount Bank has announced in its annual report a unique new agreement with nsKnox, a leading provider of data security and corporate payment protection solutions, in which the bank will utilize nsKnox’s breakthrough Cooperative Cyber Security (CCS) technology.
As part of the agreement and of nsKnox’s new Cooperative Cyber Security paradigm, Discount Bank will take part in the network created by nsKnox for organizational customers. This is a unique, innovative step towards leveraging the bank’s existing security capabilities as part of its efforts towards expanding customer services via innovative Fintech models.
The partnership comes in response to the dramatic rise in the scope and sophistication of cybercrime. According to McKinsey in 2018, losses to banks alone are conservatively estimated to exceed $31 billion globally. A recent report by the Association for Financial Professionals found that 78% of companies were victims of payment fraud in 2017.
nsKnox, founded by Alon Cohen – founder and former Chairman and CEO of CyberArk (NASDAQ:CYBR) – invented the field of Cooperative Cyber Security (CCS) to offer an innovative approach to protecting corporate payments and data. The technology is based on a new model which combines the individual cyber security capabilities of a number of secured organizations and networks, making hacks significantly more challenging than just penetrating a single organization.
Last month, nsKnox announced the completion of a $15 million Series A funding round with the participation of Discount Capital, the investment arm of Israel Discount Bank. The round was led by Viola Ventures and M12, Microsoft’s venture fund and included other private investors.
The agreement with Israel Discount Bank represents a significant milestone for nsKnox in its efforts to create a line of defense preventing cyber-attacks and corporate payment fraud.
“This groundbreaking initiative is the first of its kind in the world. For the first time ever, a significant financial institution is providing Cooperative Cyber Security services. Starting now, banks won’t only be protecting their clients’ money, they will also be helping protect their key digital assets, bolstering security in the market in general, and broadening their financial models,” said nsKnox CEO Nir Tenzer. “I am thrilled to enter this agreement with Discount and believe it will be a springboard to other such agreements in Israel and throughout the world.”
“In my many years in the cyber arena, I’ve witnessed again and again how organizations’ defensive systems have failed and been penetrated due to a bug or human error,” said nsKnox Founder & Executive Chairman Alon Cohen. “This led me to the conclusion that only a Cooperative Cyber Security network, utilizing the strength of a number of independent organizations, can maximize cyber security to necessary levels. We live in an age where cyber-threats from state actors or organized crime are forcing governmental organizations and businesses to face unprecedented challenges. Herein lies the critical importance of creating cyber defenses together with significant financial institutions such as Discount Bank.”
“Our goal at Discount Bank is to leverage existing assets such as our financial expertise and IT infrastructure, so we are excited to harness these capabilities to help protect corporate entities and other organizations from payment fraud,” said Yaki Zano, Executive Vice President, CIOO Head of Technologies & Operation Divisions, Israel Discount Bank. “Our cooperation with nsKnox’s industry-leading team has created a win-win situation as we offer advanced fin-sec technology to the general public to prevent fraud and embezzlement.”