Published 04 Jan 2020

Mastercard Incorporated, the American-based multinational financial services giant, has acquired RiskReckon in a bid to bolster its cybersecurity and mitigate the risks faced by the firm.

The security and risk-management offerings of RiskRecon are based on data analytics and artificial intelligence (AI) solutions, and it is a leading player in this area.

Cybercriminals are becoming increasingly sophisticated in the methods they employ, and AI is one of the technologies they will increasingly use in future to breach systems. Fortunately, in addition to being part of the problem, it can represent part of the solution. AI-based techniques can be used to accelerate certain areas of cybersecurity, such as analysing large volumes of data to detect possible intrusions or highlighting weak spots in a network. This is especially pertinent given the possible long-term consequences beyond the immediate cost of a breach. There can, for example, be a loss of consumer trust, a need for IT restructuring, and possible regulatory fines down the road.

Mastercard’s president of cyber and intelligence, Ajay Bhalla, detailed the organisation’s reasoning for the acquisition:

“The innovations from the talented team at RiskRecon will further accelerate our suite of cyber solutions designed to help financial institutions, merchants and governments secure their digital assets. Through a powerful combination of AI and data-driven advanced technology, RiskRecon offers an exciting opportunity to complement our existing strategy and technology to secure the cyber space.”

Speaking for RiskRecon, CEO and Co-Founder Kelly White, praised Mastercard’s outstanding history of innovation that focuses on genuine problems that businesses face. He added:

“By becoming part of their team, we have an opportunity to scale our solution and help companies in new industries and geographies take steps to better manage their cybersecurity risk.”

The payment services of Mastercard are offered almost everywhere in the world in some way, and the acquisition appears a good fit for the firm’s broad strategy towards cybersecurity. The cutting-edge scanning and evaluation technologies developed by RiskRecon help organisations to more actively manage the risks they face from cyberspace, thus achieving better protection for sensitive data, such as personal consumer data and privileged internal information.

The exact details and terms have not yet been disclosed by Mastercard, with the first few months of 2020 likely to see the actual acquisition, subject of course to the usual closing conditions. While RiskRecon will likely be heavily involved in assisting Mastercard in developing cybersecurity solutions, it will also continue its existing operations. It currently provides cybersecurity solutions to a wide range of industries, such as the manufacturing and healthcare sectors.

The acquisition of RiskRecon by a prominent player like Mastercard represents the growing relevance of data analytics and IT for mitigating the threat of cybercrime. It’s certainly challenging to stay informed about a complex topic like cybersecurity, but this is something we specialise in at Pro-Networks. We can help you to understand the potential threats your organisation faces and suggest a suitable combination of technology and other interventions, such as employee training, to achieve optimal cybersecurity.

 

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