CompoSecure has teamed up with Nok Nok Labs to deliver a new authentication and fraud prevention solution for the financial sector. The Arculus solution is compliant with the latest FIDO authentication standards, and acts as a virtual key to allow people to gain access to digital services like banking apps and social media platforms.
According to CompoSecure, Arculus can be integrated into a legacy payment system to strengthen its data protection and fraud prevention capabilities. The solution essentially links the user to a universal digital identity, and businesses can check that identity to make sure that the person completing a transaction is in fact authorized to do so. CompoSecure believes that the technology will have applications in a number of different industries, including retail, gaming, and online banking.
“Every business that has a digital interaction with a customer would benefit from a strong customer identity and authentication platform,” said CompoSecure CEO Jon Wilk. “Imagine a world in the not-so-distant future where businesses can verify that purchases were actually made by the authorized user using a personalized digital identity.”
Wilk went on to suggest that Arculus can reduce chargebacks and prevent identity theft, which is appealing given the recent surge in e-commerce activity. CompoSecure indicated that payment fraud will be responsible for $40.62 billion in merchant losses by 2027, but multi-factor authentication solutions like Arculus could ultimately help mitigate that figure by securing card-not-present transactions. Arculus can also do that while delivering a better user experience, since it eliminates the need for text codes and can enable a faster onboarding process.
Arculus arrives shortly after the September debut of the Arculus Key, a standalone cold storage device for cryptocurrencies that can communicate with the Arculus mobile app through an NFC connection. CompoSecure has now unveiled a white-labeled version of the wallet that will allow cryptocurrency exchanges and other stakeholders to create custom-branded storage solutions for their customers. The Arculus SDK can support both custodial and non-custodial offerings, with a custodial solution being one in which the exchange hangs on to the keys for the user. A non-custodial solution, on the other hand, leaves the keys with the owner.
CompoSecure is in the midst of a merger with Roman DBDR Tech Acquisition. The company has previously partnered with IDEMIA and Citibank to bring a dual interface metal payment card to customers in the Middle East.