Authentication Security Without Communication... "Infinite Applications in Fintech, Autonomous Driving, and More"

Use of IoT and 4th Industrial Revolution Technologies... Strengthening Security for Unmanned Drones Vulnerable to Air Hijacking
Global Financial Firms like Citibank 'Love Call'... Middle East Expansion This Year
161 Patents in Authentication Security... Applied to Domestic Fintech Platforms

A prototype credit card with one-time authentication code (OTAC) technology independently developed by the authentication security startup SensTone. Swidch is the name of SensTone's UK subsidiary.
[Photo by SensTone]

[Asia Economy Reporter Junhyung Lee] The One-Time Password generator (OTP), primarily used for electronic payments, can be used even when communication is disconnected. It has the advantage of low hacking risk since authentication occurs without communication. However, if the OTP is lost, the password is exposed as is. Additionally, since user identification is impossible with just the authentication code, an additional authentication process is required, which is inconvenient.

SenseTone, an authentication security startup, independently developed the One-Time Authentication Code (OTAC), which retains the advantages of existing authentication methods while improving their drawbacks. OTAC is a technology that randomly generates and authenticates a unique code whenever user identification is needed in a non-communication zone separate from the server. Authentication is possible anytime and anywhere without a network. Users can be identified solely by the dynamically changing real-time code, eliminating the need for IDs and passwords.

Utilized Across the 4th Industrial Revolution... Global Companies ‘Calling’

Yoo Chang-hoon, CEO of SenseTone, recently explained at a private meeting with financial and security industry officials, "OTAC is an innovative technology that helps companies innovate," adding, "It does not require communication and ensures optimal security, making its applications limitless." Yoo said, "It can be used not only in core areas of the 4th Industrial Revolution such as connected cars and the Internet of Things (IoT) but also in defense sectors," and added, "Unmanned drones, which are vulnerable to hijacking through hacking, can also enhance security by applying OTAC." According to Yoo, there is currently no authentication security technology that can replace OTAC in situations where communication is unstable.

The global market recognized the potential of this technology first. Unlike Korea, many countries do not have unrestricted internet access regardless of location. Following prominent global financial institutions such as Citibank and Bank of America, Indonesia’s Mint and National Tax Service, and the German automotive technology company Continental Automotive have expressed strong interest. Citibank reportedly sought SenseTone after attempting to develop a technology similar to OTAC. Recently, two Brazilian banks have also expressed their intention to use the technology. SenseTone plans to expand into the Middle East this year.

As a financial services powerhouse, the United Kingdom actively supported SenseTone’s business operations in the country. In 2018, SenseTone established its global business base in London with support from the UK government, including visa issuance and office leasing. The UK is actively fostering the fintech industry by easing financial regulations and attracting foreign startups. Yoo said, "It seems the UK highly values the potential of OTAC for fintech applications," adding, "It was also introduced as a success case at a Korean startup invitation event held recently at the British Embassy in Korea."

Yoo Chang-hoon, CEO of Senstone.
Photo by Senstone

Applied to Domestic Fintech Platforms... Secured 161 Patents

Following these achievements, contracts with domestic companies have continued. OTAC has been applied to a domestic fintech platform preparing to launch services this year. This platform also showed interest in developing credit cards without fixed numbers. Yoo stated, "In the financial payment sector, OTAC enables innovations such as eliminating fixed numbers on credit cards, which are vulnerable to information leaks," adding, "We have already developed a prototype of a credit card equipped with a display." The display shows randomly changing numbers, addressing the shortcomings of existing credit cards that were vulnerable to personal information leaks.

SenseTone has secured 161 patents related to authentication security, demonstrating solid technological capabilities. The Small and Medium Business Corporation participated in SenseTone’s Series A investment completed last year. Yoo said, "Receiving the highest score in the Ministry of SMEs and Startups’ ‘Baby Unicorn 200 Nurturing Project’ last year greatly helped in attracting investment," adding, "We are currently preparing for an initial public offering (IPO), keeping both domestic and international listing options open."