TrustDefender scores $16m on the back of bank wins

By Charis Palmer on Mar 18, 2010 2:56 PM
Filed under Security

Deal with large Australian bank in the works.

Australian security start-up TrustDefender has secured $16 million in investment capital from ASX-listed identity verification company Nexbis.

The landmark deal follows the signing of contracts with two tier one banks in the UK, as well as four other institutions in Europe.

The deal gives Nexbis a 50.08 per cent stake in TrustDefender, valuing the company at more than $30 million.

TrustDefender chief executive officer Ted Egan told the valuation was justified on the back of new deals.

"Some of the contracts we've got are larger than the money we've raised," he said.

TrustDefender's client base in Australia is limited to a group of around 15 credit unions, but Egan expects "some very large Australian banks" will roll out TrustDefender "in the next three months".

Established in 2005, TrustDefender offers a real-time security authentication solution that scans for malware the machine a bank customer is using to conduct online banking, and alerts them to potential security threats before they make transactions.

TrustDefender says its solution goes beyond traditional two factor authentication options such as tokens or one-time passwords sent via SMS, because it is independent of web browsers where 'man-in-the-middle' attacks can occur due to weaknesses in browser technology.

Egan says the company had interest from investors in the US and UK, but decided to work with an Australian company in order to remain headquartered in Australia.

"I have one personal bugbear, and it's watching every company run off overseas and get bought out."

Egan says Nexbis also has technology which could be further developed for the banking sector. "We think we can potentially take that into the digital world and the credit card space."

TrustDefender will use the injection of funds to incorporate in the US, an exercise Egan says will cost around $2 million. The company will also invest in hiring new sales, delivery and support staff in the US and UK, and will beef up its research and development operations in Australia.

TrustDefender scores $16m on the back of bank wins

2 comments in this discussion

"Read this comment and checked the blog on the front page - the link works and takes you to trustdefender.com/blog as you'd expect. I read through TrustDefender's site, and they explain that it's ..."

By gadgetopia

Tags

trustdefender, banking, security, twofactor, authentication, sms, passwords

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Comments: 2

funkyg

Mar 19, 2010 7:45 AM

This looked too good to be true, so I went to their website to see exactly what it protects against. Questions included, how can it protect against malware already in the system which would almost always be the case.

Well the home page makes a lot of big claims, but when you go to the tech blog linked to from the home page, it is down!

I have to say this really worries me! Making big claims is fine if you can back them up. However just claiming that you offer protection against virtually everything seems to me to very unlikely to be true.

If there's one thing you can be sure of in security it's that you need to be very specific in waht you are protecting against and that if your software running on an operating system, then it is easily got around.

gadgetopia

Mar 22, 2010 12:27 AM

Read this comment and checked the blog on the front page - the link works and takes you to trustdefender.com/blog as you'd expect.

I read through TrustDefender's site, and they explain that it's software isn't a replacement for your existing Internet security software, but complements it - and can definitely immunise you from malware's effects while you are transacting with your bank - even if you are already infected with malware/crimeware.

The blog makes for fascinating reading and shows that, with the latest super-sophisticated and military-encryption-strength malware, TrustDefender easily detects those malware programs and stops them from working when TrustDefender is in action and you are transacting at your bank.

TrustDefender's claims will no doubt be heavily tested by the banks that are set to roll it out, and those with an understanding of how malware works and what information it captures and transmits will easily be able to install TrustDefender, infect their test computer with malware and then see what happens.

TrustDefender will either work as advertised or it won't, and as noted the banks will undoubtedly be testing it to the nth degree, so it will be interesting to see which banks in Australia and worldwide take it up and offer it to their customers.

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