TEL AVIV, Israel, March 13, 2019 /PRNewswire/ -- 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."
Founded in 2016 by Alon Cohen – founder and former Chairman and CEO of CyberArk (NASDAQ: CYBR) – nsKnox is a fintech-security (FinSec) company which invented the field of Cooperative Cyber Security (CCS) to offer a new approach to protecting corporate payment systems against insider threats, cyber-fraud and data manipulation attempts. nsKnox's solution provides real-time verified payment protection and fraud detection, specifically designed to prevent financial losses due to fraudulent payments. nsKnox safeguards the payment process seamlessly across every point of the transaction journey, while enforcing payment policies and increasing Accounts Payable operational efficiency and Sarbanes-Oxley Act (SOX) compliance. nsKnox is based in Boston, MA and in Tel Aviv, Israel. For more information, visit https://nsknox.net/.
About Israel Discount Bank
Israel Discount Bank is a leading financial group in Israel.
With nation-wide coverage and a strong domestic franchise, the Bank provides a full spectrum of corporate and retail financial products and services to its clients, both in Israel and in key financial centers around the world.
The Discount Group is comprised of commercial banks and financial services companies, active in credit cards, investment banking, portfolio management and trustee services. Together with Mercantile Discount Bank, the Group operates over 200 branches throughout Israel, servicing the retail and corporate sectors.
Abroad, the bank operates through a network of subsidiaries, branches and representative offices in North America, Europe and Latin America, with a focus on commercial and private banking. Israel Discount Bank New York (IDBNY) is the largest Israeli-owned bank operating outside of Israel.
In terms of corporate, social and environmental responsibility, Discount Bank is among the leading Israeli corporations and is recognized among the top ten companies by the Maala Business for Social Responsibility Index. The bank is also included in the FTSE4GOOD Index and in the UN Global Compact.
Discount Bank is a member of the Tel-Aviv Stock Exchange (TASE: DSCT).