Cyota

About Cyota

Cyota was a cybersecurity company established in 1999 with a focus on mitigating online banking and e-commerce fraud. The company was founded in New York City by Naftali Bennett, Lior Golan, Michal Tzur, and Amir Orad. One of its co-founders, Naftali Bennett, who served as CEO, later entered Israeli politics and became Prime Minister of Israel. His background includes service in the Sayeret Matkal and Maglan special forces units of the Israel Defense Forces and a subsequent career as a software entrepreneur. Co-founder Lior Golan, who acted as the company's CTO, brought experience from his time in Israeli intelligence and a strong background in machine learning and internet security. Amit Klein, another key figure, served as the company's Chief Scientist, contributing with his extensive expertise in information security.

The firm catered primarily to the financial sector, providing anti-fraud solutions to banks, insurance providers, and brokerages. Cyota's business model revolved around delivering online security and fraud prevention services to safeguard financial institutions against digital threats. Initially, the company struggled with a payment solutions concept but pivoted to become a significant player in anti-fraud technology for financial institutions. Its product suite included tools for phishing detection, transaction monitoring, and robust authentication platforms. A notable product was eSphinx, which created a risk assessment by analyzing a user's device and login patterns to detect suspicious activity without requiring a physical token.

Over its lifetime, Cyota raised a total of $15.2 million in funding across several rounds, with investors like Bessemer Venture Partners, Giza Venture Capital, and RRE Ventures. The company achieved considerable market penetration, reportedly holding over 80% of the e-commerce authentication market in the US and over 90% in the UK at the time of its acquisition. In December 2005, Cyota was acquired by RSA Security for $145 million. This acquisition was a strategic move for RSA to enhance its authentication offerings with Cyota's token-less systems and anti-phishing services, expanding its capabilities in protecting consumer identities and online transactions.