We had a conversation with Frederik Mennes, the Director of Product Management and Business Strategy at OneSpan, at MoneyLIVE Summit 2024, about the significance of businesses focusing on cybersecurity in light of upcoming regulations that will enforce more stringent security measures throughout Europe.

Global cybersecurity firm OneSpan specializes in providing customers of digital banking apps with robust authentication.

OneSpan concentrates its cybersecurity efforts not only on banking solutions but also on other businesses. But OneSpan's primary market is banking, a sector that is now plagued by several security and regulatory issues.

OneSpan: Meeting the regulatory requirements for banks
As per Mennes, "banks will need to invest in inclusive authentication across their customer base in the European Union due to the impending regulatory update, PSD3."

PSD3 will mandate other kinds of authentication in addition to the usage of mobile devices by banks. Therefore, it is crucial that banks scale this up to comply.

Additional laws pertaining to a wide range of industries—not just banks—are also going into effect. Two examples of the strict requirements that are being implemented throughout the EU and will require many businesses to scale back their security efforts are NIS2 and DORA.

In spite of rules, banks must fulfill today's cybersecurity standards since fraud is, in fact, becoming more common.

Among the most common forms of fraud that occur nowadays are account takeovers, in which a con artist tries to obtain your login information in order to enter your account and steal your money. Mennes continues, "This type of fraud is the most prevalent and the main problem we attempt to resolve at OneSpan.

As Mennes demonstrates, new forms of fraud are also on the horizon. "One major increasing issue is authorized push payment fraud, in which con artists deceive you into sending money over. Scams involving impersonation, investments, and romance all fit into that category.

OneSpan's multi-factor authentication solutions can assist solve these very important problems for banks and businesses today. It gives its clients dynamic password tools that have a short validity period, significantly lowering the risk of fraud.

"We also offer MFA technology based on mobile apps that you can install on your phone or based on hardware tokens that you can carry in your pockets," Mennes continues.

OneSpan: Prospects for expansion

OneSpan's aims to increase the scope of its offerings and security features align with the growing demand for services like these and the impending introduction of new legislation.

Mennes states, "We're heavily focused on workforce authentication right now." "This involves verifying the identity of workers for businesses, contractors, and employees, particularly in vital industries.

"Therefore, we hope this can be a significant area of growth for us as we scale our clientele in these sectors where we've made significant investments and where we've developed specific products to address needs."

As was already mentioned, OneSpan is expanding at a time when fraud is increasing at frightening rates. It is currently a major concern for businesses and institutions.

Mennes ends by saying, "Authorized push payment fraud is out of control, according to data from authorities in a number of different countries today.

It's growing quickly. Fortunately, though, regulations are compelling banks to take action. The Contingent Reimbursement Model, which went into effect in the UK last year, mandates that banks implement countermeasures to lower fraud.

"More regulations are about to take effect, and OneSpan is going to be there to help banks and businesses combat the threats of fraud right now."