VASCO Procures 2 Government Contracts & Major Client - Analyst Blog
Leading security software firm VASCO Data Security International Inc. VDSI received Trusted Authentication Provider certification from the Belgian Government, for providing services to Belgian citizens accessing any eGov application. Earlier this week, it also won another government certification and a major client for its two-factor authentication and electronic signature technologies.
The government awarded the certification via Fedict, its Federal Public Service for Information and Communication Technology. Soon, VASCO will offer unconnected eID authentication services for Government applications, leveraging its MYDIGIPASS Trusted Digital Identity Platform and DIGIPASS 870 card reader. VASCO's MYDIGIPASS is a cloud-based, two-factor authentication service that allows application providers to deliver a single and secure login experience for their users over multiple web and mobile applications.
The service will be available for use in either the connected (via USB) or unconnected mode on the Federal Authentication Service of Fedict. The use of an unconnected card reader will enable citizens to use the application to access eGov and third party applications even on mobile devices such as smart phones and tablets that do not have a USB connection.
Recent Developments
Earlier this week, the Singapore government chose VASCO’s two-factor authentication system to secure citizen access to online government services. Assurity Trusted Solutions will strengthen security for e-government transactions with the OneKey authenticator based on VASCO’s DIGIPASS 275, adding a proven extra layer of protection against hackers.
VASCO also won a major client recently as Mizuho Bank, Ltd. selected VASCO’s DIGIPASS 275 Authenticator with electronic transaction signing to secure their online retail banking services. The solution will secure the bank's Mizuho Direct online and mobile banking services against hackers’ attempts at fraud. It will safeguard Mizuho Direct users against latest fraud schemes such as man-in-the-middle and man-in-the-browser attacks.
Products in the Pipeline
VDSI recently launched a new technology – CrontoSign, through which a QR image can be sent to a smartphone and matched with an image on a computer screen, thus offering an additional level of security apart from password protection. This innovative application of mobile technology for cyber security holds great potential and could be a major growth driver for the company in the coming times.
Additionally, per media reports, VDSI will soon be launching a real-time software solution for banks to prevent fraud and cyber attacks even before they get into the system. With the recent high-profile data breaches at major financial institutions, there is a huge market for this kind of cyber security solution.
Need for Cyber Security
From millions of passwords stolen at eBay Inc. EBAY to the JPMorgan Chase & Co. JPM breach where hackers got away with information on 76 million customers, it is evident that cyber security is a critical issue in today’s world. Also, as digital-based information and data transfer like cloud computing gains more ground, we will need even more stringent security measures to safeguard our data.
In the backdrop of such robust demand for cyber security driven by increasingly sophisticated data breaches, VASCO is positioned exceptionally well to capitalize on the same. Investors have been riding on the VASCO growth bandwagon as well, as evidenced by the company’s share price performance, which has appreciated an astounding 208% over the past one year.
With rising cyber crime as a strong tailwind and transition to the cloud as a major potential growth driver, this Zacks Rank #1 (Strong Buy) stock is our favoured pick in the cyber security space.
Another stock in the space that could be worth a look is CyberArk Software, Ltd. CYBR, sporting a Zacks Rank #2 (Buy).
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