Mastercard is making a strategic acquisition of Recorded Future for $2.65 billion to strengthen its cybersecurity and threat intelligence capabilities in response to the growing challenges of the digital economy.
Financial Cyber Defense
Deal of the Century
Mastercard, the global payments giant, has announced its intention to acquire Recorded Future, a leading cyber threat intelligence company, from investment firm Insight Partners for $2.65 billion. The deal is expected to close by the end of the first quarter of 2025, as reported on Mastercard's official website.
Challenges of the digital age
Mastercard emphasizes the urgent need for comprehensive and global cyber protection. Experts predict that in 2024 alone, economic losses from cybercrime will reach an astronomical amount of $9.2 trillion.
Synergy of technologies
This acquisition will significantly expand Mastercard's threat detection arsenal. Recorded Future is expected to organically complement the corporation's existing services, in particular in the areas of identity verification, fraud prevention, instant decision making and cyber security, providing advanced threat intelligence capabilities for network merchants and financial institutions.
AI on guard
“Jointly, Recorded Future and Mastercard have developed an AI-based service that allows financial institutions to receive faster and more accurate alerts about potential card compromises. Since its launch at the beginning of the year, the effectiveness of detecting compromised cards has doubled compared to the same period last year," the corporation said, describing the results of the collaboration.
Threat Intelligence Leader
Recorded Future is one of the leading players in the field of collecting, analyzing and providing cyber security information. The company uses artificial intelligence to process vast arrays of data from a variety of sources to detect and predict cyber threats.
Global influence
It is noted that the client base of RF includes more than 1,900 organizations in 75 countries, including government structures of 45 states and more than half of Fortune 100 companies. In 2019, Insight Partners acquired a majority stake in Recorded Future for an amount exceeding $780 million.
Support for Ukraine
Last year, the Ministry of Digital Transformation of Ukraine announced that Recorded Future will allocate more than $23 million to protect Ukraine from Russian cyber attack in 2024. In total, for 2023, the company invested more than $20 million in aid to Ukraine.
Mastercard innovations
It is worth recalling that in February of this year, Mastercard presented its own artificial intelligence system, which, according to the company , capable of increasing the effectiveness of fraud detection by 300%. As a representative of the company told CNBC, the model, called Decision Intelligence Pro, will allow Mastercard network partner banks to more effectively evaluate suspicious transactions in real time.
Glossary
- Mastercard is an American multinational financial corporation specializing in payment systems
- Recorded Future - a leading cyber threat intelligence company, uses AI for data analysis
- Insight Partners - a private investment company specializing in technology sector
- Fortune 100 - annual ranking of the 100 largest American corporations by revenue
- Decision Intelligence Pro - Mastercard's AI system for fraud detection
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Discussion of the topic – Mastercard buys Recorded Future: $2.65 billion for the cybersecurity of the future
Mastercard will acquire cybersecurity company Recorded Future for $2.65 billion, strengthening its position in threat intelligence and data protection.
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Oleksandr
Wow, this is incredible news! Mastercard is taking a major step in cyber security. $2.65 billion is a huge amount. Wondering how this will affect regular card users? 🤔
Sophia
Yes, Oleksandr, that's really impressive. I think this can greatly improve the protection of our data. It is especially interesting about the AI system, which increases the effectiveness of fraud detection by 300%! It's just incredible! 😮
Maximilian
I agree with you both. But I'm more interested in how it will affect the speed of transactions. I hope the extra security doesn't slow down the checkout process. 🏃♂️💨
Isabelle
Interestingly, Recorded Future has customers in 75 countries! This shows how global the issue of cyber security is. And the fact that they help Ukraine is very commendable. 🌍🇺🇦
Giuseppe
This is all very well, but will it make Mastercard more expensive? We know that such large investments are usually reflected on the end consumer. 💸
Oleksandr
Giuseppe, you are right, this is an important question. But I think that competition in the market of payment systems will not allow Mastercard to raise prices much. They are more likely to see it as a long-term investment in customer security and loyalty. 🤝
Heinrich
Eh, those newfangled things again. Why all this? Previously, we lived without all these AI and cyber security, and nothing, the world did not collapse. Only money is thrown to the wind and makes life difficult for ordinary people. 😒
Sophia
Heinrich, I understand your concern, but the world is changing and the threats are becoming more complex. Such technology can protect us from large financial losses. Imagine how you would feel if someone stole all your savings through cybercrime? 🛡️💰