Mastercard Acquires Recorded Future for $2.65 Billion to Enhance Cybersecurity Capabilities

Mastercard buys Recorded Future for $2.65 billion and strengthens its Threat Intelligence capabilities

The move is expected to lead to percentage growth in value-added services in fiscal 2025. strengthened its threat intelligence by acquiring Recorded Future for . The move is in response to the increased risk of cyber threats due to rapid technological advances. The acquisition expands threat intelligence capability, which processed about in gross volumes last year. Recorded Future uses AI analytics to identify potential threats and proactively alert financial institutions when cards are compromised. Since its inception, this collaboration has led to a doubling of compromised card identifications from the previous year. Expanding Threat Intelligence Capabilities strategic focus on value-added services, including cyber security solutions, aligns perfectly with the acquisition of Recorded Future. This strengthening of their cyber security offerings reinforces their commitment to encompassing transactions through both network and non-network channels. The transaction, which is expected to close in the first quarter of 2025, increases the likelihood that will achieve percentage growth in value-added services from mid- to high-10s in fiscal 2025. already offers its customers cybersecurity services such as identity fraud prevention and real-time decision making. Global reach and engagement , which previously acquired Recorded Future for more than in 2019, still holds a majority stake in the company. Recorded Future serves more than 1,900 customers in 75 countries, including governments in 45 countries. If you want access to all articles, enjoy our promo temporarily and subscribe here!

Mastercard Boosts Cyber Resilience By Acquiring Recorded Future For $2.65 Billion

Mastercard has signed a $2.65 billion deal with private equity firm Insight Partners to acquire Recorded Future, a leader in threat intelligence. The acquisition marks a significant step for Mastercard in leveraging generative AI technology to enhance security in the payment ecosystem. Recorded Future has been supporting Mastercard with its AI-powered analytics to spot potential threats since the beginning of this year, Reuters reported. The collaboration has helped the payments company detect compromised cards at double the rate compared to last year, Mastercard stated. In 2023, the payments company handled transactions worth $9 trillion. According to a TD Cowen report, Mastercard's decision to acquire Recorded Future aligns with its strategy to enhance its value-added services (VAS) with a focus on cybersecurity solutions. It also provides the company with an additional resource to bolster both network-based and non-network-based transactions. The deal is anticipated to close by the first quarter of 2025 and raise Mastercard's percentage growth in VAS in fiscal year 2025. The rise of new technology has heightened the risk of cyberattacks, exposing more companies to hacking or ransomware attacks. Cybercrime is estimated to cost $9.2 trillion globally in the year 2024. Recorded Future, considered to be a pioneer in the use of AI-powered analytics, is recognized as the world's largest threat intelligence company. Headquartered in Massachusetts, Recorded Future has its presence across 75 countries, catering to 1,900 clients, including governments from 45 nations and more than half of the Fortune 100 companies. Founded in 2009, Recorded Future is currently valued at more than $780 million. "Fifteen years ago, we created Recorded Future with a simple goal to secure the world with intelligence. By joining Mastercard, we see an opportunity to help more businesses and governments determine the steps to realize their full potential - and to enable everyone to feel safer in their daily lives," said Christopher Ahlberg, CEO of Recorded Future. With its emphasis in offering real-time insights into potential cyber threats by analyzing extensive data sources, Recorded Future's AI technology is expected to value add to Mastercard's services by expanding its threat intelligence capabilities and bolstering fraud detection. While, engaging with Mastercard's customer base could impact the growth of Recorded Future. "Trust is the foundation of any relationship. Recorded Future adds to how we deliver that greater peace of mind before, during and after the payment transaction. Together we will innovate faster, create smarter models and anticipate emerging threats before cyberattacks can take place - in payments and beyond," said Craig Vosburg, Chief Services Officer at Mastercard.

Mastercard to Acquire Insight Partners' Recorded Future for $2.65 Billion

Mastercard agreed to acquire threat-intelligence company Recorded Future from Insight Partners for $2.65 billion, in an effort to expand its cybersecurity services. The credit-card company said Recorded Future's use of artificial intelligence and other technologies will add to its identity, fraud-prevention and cybersecurity services. "Together we will innovate faster, create smarter models and anticipate emerging threats before cyberattacks can take place--in payments and beyond," Mastercard Chief Services Officer Craig Vosburg said. Privately held Recorded Future and Mastercard currently collaborate on an AI-supported service that alerts financial institutions when a card is likely to have been compromised, the companies said. The deal is expected to close by the first quarter of 2025. Recorded Future has over 1,800 clients and over 1,000 employees, according to its website.

Mastercard agrees $2.65bn deal to buy threat intelligence giant Recorded Future

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community. Mastercard says the acquisition will boost its fraud prevention, real-time decisioning and cybersecurity services in the payments ecosystem and beyond. Boston-based Recorded Future claims to be the world's largest threat intelligence company, with more than 1900 clients across 75 countries, including the governments of 45 countries and over 50% of the Fortune 100. The firm provides real-time visibility into potential threats by analysing a broad set of data sources, enabling customers to take action to mitigate risks. It relies on artificial intelligence to analyse billions of data points to identify potential threats and already works with Mastercard on an AI-supported service that alerts financial institutions when a card is likely to have been compromised. Since its launch earlier this year, the service has doubled the rate in which compromised cards are identified, as compared to the same time period last year, says Mastercard. "Trust is the foundation of any relationship. Recorded Future adds to how we deliver that greater peace of mind before, during and after the payment transaction. Together we will innovate faster, create smarter models and anticipate emerging threats before cyberattacks can take place - in payments and beyond," says Craig Vosburg, chief services officer, Mastercard. The transaction is slated to close by the first quarter of 2025, subject to regulatory review.

Mastercard buying global threat intelligence company Recorded Future for $2.65 billion

Mastercard is buying global threat intelligence company Recorded Future for $2.65 billion to strengthen its cybersecurity services. The card issuer has been attempting to enhance fraud protections for customers and in May it rolled out a software update that integrated artificial intelligence into its fraud-prediction technology. The company believes it will help it to see patterns in stolen cards faster and allow banks to react more quickly. Recorded Future and Mastercard already collaborate on an AI-supported service that alerts financial institutions more rapidly and with greater accuracy when a card is compromised. Since its launch earlier this year, the service has doubled the rate in which compromised cards are identified when compared with the year-ago period. Recorded Future has more than 1,900 clients across 75 countries, including the governments of 45 countries. It had been owned by the venture capital firm Insight Partners. The deal is expected to close by the first quarter of next year.

Mastercard buying global threat intelligence company Recorded Future for $2.65 billion

Mastercard is buying global threat intelligence company Recorded Future for $2.65 billion to strengthen its cybersecurity services. The card issuer has been attempting to enhance fraud protections for customers and in May it rolled out a software update that integrated artificial intelligence into its fraud-prediction technology. The company believes it will help it to see patterns in stolen cards faster and allow banks to react more quickly. Recorded Future and Mastercard already collaborate on an AI-supported service that alerts financial institutions more rapidly and with greater accuracy when a card is compromised. Since its launch earlier this year, the service has doubled the rate in which compromised cards are identified when compared with the year-ago period. Recorded Future has more than 1,900 clients across 75 countries, including the governments of 45 countries. It had been owned by the venture capital firm Insight Partners. The deal is expected to close by the first quarter of next year.

Mastercard buying global threat intelligence company Recorded Future for $2.65 billion

Mastercard is buying global threat intelligence company Recorded Future for $2.65 billion to strengthen its cybersecurity services. The card issuer has been attempting to enhance fraud protections for customers and in May it rolled out a software update that integrated artificial intelligence into its fraud-prediction technology. The company believes it will help it to see patterns in stolen cards faster and allow banks to react more quickly. Recorded Future and Mastercard already collaborate on an AI-supported service that alerts financial institutions more rapidly and with greater accuracy when a card is compromised. Since its launch earlier this year, the service has doubled the rate in which compromised cards are identified when compared with the year-ago period. Recorded Future has more than 1,900 clients across 75 countries, including the governments of 45 countries. It had been owned by the venture capital firm Insight Partners. The deal is expected to close by the first quarter of next year.

Mastercard pays $2.65B for threat intel biz Recorded Future

The startup is already the go-to intel shop for 45 govs and half the Fortune 100 Mastercard has added another security asset to its growing portfolio, laying down $2.65 billion for threat intelligence giant Recorded Future. It's a blue chip buy for Mastercard - it claims the security analysis platform is used by government agencies in 45 countries and over 50 percent of the Fortune 100. The startup was initially funded by In-Q-Tel, the CIA's venture capital arm, and is increasingly blending AI into its product offering, according to Recorded Future's CEO Christopher Ahlberg. "We've built Recorded Future to be by far the largest independent intelligence business in the world, used by top intelligence agencies, cyber defense agencies, militaries, as well as thousands of companies ranging from the very largest to the very small," he said. "We will continue on this mission. Same company, new owner, massive scale. Recorded Future will continue to generate intelligence at global scale, using the most advanced AI methods to turn it into gold, allowing our analysts and customers to produce the most exquisite analysis." The two companies are already working together on using AI to identify fraudulent credit card use. Mastercard claims this has doubled the effectiveness of its systems for spotting fraud in the last year and now the duo will be able to share data points freely, although Ahlberg insisted his business would remain as "an independent & open intelligence platform." "Our identity, fraud prevention and cybersecurity services combined with Recorded Future's ability to gather high-value threat intelligence data will strengthen our efforts to protect trust in the digital economy as well as enhance the products and services we provide to customers globally - in the payments ecosystem and beyond," Johan Gerber, Mastercard's EVP of security and cyber innovation, told The Register. Mastercard has now spent over $3 billion over the last three years buying in security talent. While Recorded Future might be its biggest recent purchase, the payment processor spent $850 million in 2021 for identity management business Ekata, and the same year purchased crypto-fraud spotting biz CipherTrace for an undisclosed sum. The Financial service giant has since used that technology in its Crypto Secure service, which checks cryptocurrency and the exchanges that trade it for security and fraud. The deal is expected to be finalized by the first quarter of 2025, subject to regulatory approval.®

Mastercard Buys AI Cybersecurity Firm Recorded Future For $2.65B

Mastercard said that both companies use artificial intelligence to analyze data to seek out potential cyber threats. Mastercard (MA) moved to boost its cybersecurity infrastructure by purchasing global threat intelligence company Recorded Future from private equity firm Insight Partners for $2.65 billion. The credit card issuer said Thursday that the acquisition "bolsters the insights and intelligence used to secure today's digital economy -- in the payments ecosystem and beyond." The company said that the need for a holistic and global cyber defense "has never been greater." The transaction is expected to close in the first quarter of next year. Mastercard said that both it and Recorded Future use artificial intelligence (AI) to analyze billions of data points to identify potential threats. It added that the combination "will enable the development of even more robust practices and drive greater synergies in cybersecurity and intelligence, reinforcing the Mastercard brand as a trust mark." Shares of Mastercard were slightly higher Thursday afternoon, sending them to an all-time highs above $490.

Mastercard Enhances Real-Time Threat Visibility With Recorded Future Purchase | PYMNTS.com

Looking to expand security and threat intelligence beyond a completed transaction, Mastercard on Thursday (Sept. 12) announced it is acquiring Recorded Future for $2.7 billion. At a high level, Recorded Future analyzes a broad set of data sources to provide visibility into potential threats to help customers take action to prevent risks and create models that anticipate new attacks. The company boasts a roster of 1,900 clients internationally across 75 countries, including 45 governments, and counts more than half of the Fortune 500 companies as clients. "No one wakes up in the morning and says: 'Today, I'm going to use my payment card,'" Johan Gerber, executive vice president of security solutions at Mastercard, told PYMNTS after the announcement. "If you think about our hyperconnected and interdependent digital world ... almost every day that goes by sees the expansion of the digital footprint. You wake up and you get a coffee, maybe you fill up your car -- or you read something online, and your payment is integrated into the digital experience." That expansion has given rise to a continuum of activities that create commerce ecosystems, tied to ubiquitous mobile devices where payments are in the background. That means the fraud and attack vectors are also expanding. Fraudsters are swarming everything from account openings to how and when consumers use apps, and where their credentials are stored. Along the way, Gerber said, the lines between cybercrime and fraud are collapsing, as stolen credentials are harvested when a website is breached. The stolen credentials are used for scams and social engineering, and card and other types of fraud are rampant. According to Gerber, the key to safeguarding trust in the future of the rapidly expanding digital environment lies in thinking about security and real-time visibility into the digital economy well beyond the payment itself. Gerber said one of the attractions of the acquisition is the insight into consumer behaviors and potential threats that Recorded Future will bring. "By the time you get to the payment, you're almost at the last part of that digital interaction you're having as a consumer," Gerber said. "So for us to go beyond the payment really means in this specific instance, how do we look broadly across the entire digital interaction rather than specifically the payment. Now, if you think about the services that Mastercard offers today, we often talk about things that we do before the transaction, like account opening, biometrics authentication and so forth." "We will continue to operate as the same company, but now with a new owner and an even greater capacity to scale," said Recorded Future CEO Christopher Ahlberg in a blog post. "As an independent subsidiary of Mastercard, we will leverage advanced AI tools and techniques to deliver threat intelligence on a global scale, empowering our analysts and clients to better protect their organizations." The payments network has made billions of dollars worth of acquisitions through the years. Within the security solutions segment of Mastercard, key focal points center on examining and protecting digital identities, protecting transactions and using insights from 143 billion annual payments to fashion real-time intelligence that can be used by merchants and FIs to anticipate new threats. By way of example, the firm acquired Ekarta in 2021 to score transactions for the likelihood of fraud through robust identity verification. All told, Mastercard has invested more than $7 billion over the past five years in its efforts to protect the digital economy. Artificial intelligence (AI) is a key ingredient here, and Gerber detailed to PYMNTS that the company has been a pioneer in harnessing generative AI to extract trends from huge swaths of data to create "identity graphs" that provide immediate value to any merchant or FI that wants to understand more about the individuals that's interacting with them in the digital realm. The use of other "intelligence graphs" connects the dots across data points to turn threat-related data into actionable insights. "We already see a tremendous number of attacks and different attack vectors that we can combine with what Recorded Future sees, which means the inputs can help Mastercard clients, including governments, insurance companies, manufacturers" and critical infrastructure providers, Gerber said. The new acquisition, he said, will complement and strengthen Mastercard's efforts to combat card-related fraud, scams and account-to-account fraud across the globe. "This is a real investment in safeguarding trust," he told PYMNTS, "so that consumers can go about their business with ease ... the digital ecosystem just continues to grow, and so this will be a very important part of the defenses that we have in place to secure the future."

Mastercard to buy Recorded Future for $2.65B (NYSE:MA)

The transaction, which is anticipated to close by the first quarter of 2025, is subject to regulatory review and other customary closing conditions. Headquartered in Boston with offices and employees around the world, Recorded Future works with over 1,900 businesses and government organizations across more than 75 countries to provide visibility into potential threats. This ability, coupled with Recorded Future's use of AI and other advanced technologies, will add to Mastercard's (MA) identity, fraud prevention, real-time decisioning and cybersecurity services, bringing expanded threat intelligence capabilities to its network of merchants and financial institutions.

Mastercard Buys Insight Partners' Recorded Future For $2.65B

Credit card giant Mastercard has agreed to buy threat intelligence company Recorded Future from Insight Partners for $2.65 billion. The deal represents a nice return for the private equity firm, which bought the startup in 2019 for $780 million. The deal could be the first of many by large financial services companies looking to add threat detection and fraud-related cybersecurity features with the rise of new technologies like AI upping the risk of cyber threats. While Insight bought Recorded Future in 2019, before that it had received several rounds of venture funding from the likes of IA Ventures, MassMutual Ventures and Google Ventures, per Crunchbase. The deal is one of the largest in cyber this year, and represents the largest for any private, VC-backed (or at least at one-time VC-backed) cyber startup this year -- topping CyberArk Software's purchase of machine identity company Venafi for $1.5 billion in May. So far this year there have been 64 M&A deals for VC-backed cybersecurity startups, well ahead of last year's pace which saw a total of only 71 deals completed for startups, per Crunchbase data. The current pace, however, is just shy of 2022, which saw 96 deals consummated. Perhaps the Mastercard deal will recharge the deal-making industry.

Mastercard Expands Cyber Defense With $2.65B Deal For Recorded Future - What's On The Cards? - Mastercard (NYSE:MA)

The acquisition will leverage AI to boost fraud prevention, decision-making, and threat detection for payments and beyond. Mastercard Incorporated MA disclosed that it will acquire global threat intelligence company Recorded Future from Insight Partners for $2.65 billion. This acquisition enhances Mastercard's cybersecurity services, strengthening the insights and intelligence crucial for securing the digital economy, including the payments ecosystem. Also Read: Mastercard Plans To Eliminate About 1,000 Jobs: Report Recorded Future, which has more than 1,900 clients, offers real-time threat visibility by analyzing extensive data sources, helping customers mitigate risks. Recorded Future's use of AI and advanced technologies will enhance Mastercard's identity, fraud prevention, decision-making, and cybersecurity services, expanding threat intelligence capabilities for merchants and financial institutions. Mastercard and Recorded Future both expect to use AI to analyze billions of data points to identify potential threats and protect people and businesses. Craig Vosburg, Chief Services Officer at Mastercard, said, "Recorded Future adds to how we deliver that greater peace of mind before, during and after the payment transaction. Together we will innovate faster, create smarter models and anticipate emerging threats before cyberattacks can take place - in payments and beyond." The transaction is expected to close by first-quarter 2025, subject to regulatory review and other customary closing conditions. With the introduction and adoption of new technologies, the risk of cyber threats is increasing. Notably, as per Statista, cybercrime is projected to cost $9.2 trillion globally in 2024. Last week, Mastercard launched Payment Passkey Service globally to boost online security using tokenized transactions and biometrics. The service aims to reduce fraud and enhance approval rates, expanding from its initial pilot in India to a global rollout. As of June 30, 2024, Mastercard's cash and cash equivalents stood at $9.13 billion. Investors can gain exposure to the stock via iShares U.S. Financial Services ETF IYG and BlackRock Long-Term U.S. Equity ETF BELT. Price Action: MA shares are up 0.20% at $489.14 premarket at the last check Thursday. Photo via Shutterstock Read Next: Alibaba and Mastercard Team Up To Offer New Perks for US Business Owners Market News and Data brought to you by Benzinga APIs

5 Things To Know About Mastercard Acquiring Recorded Future

The credit card firm is getting into the threat intelligence business with the $2.65 billion acquisition. Credit card firm Mastercard announced Thursday it is getting into the threat intelligence business with the planned acquisition of Recorded Future. The acquisition price for the 15-year-old company is $2.65 billion, Mastercard disclosed. [Related: 5 Major Security Vendors That Could Be Acquired By Private Equity] What follows are five things to know about Mastercard's planned acquisition of Recorded Future. In a news release announcing the acquisition deal, Mastercard called Somerville, Mass.-based Recorded Future the "world's largest threat intelligence company." Recorded Future currently has more than 1,900 clients, which span 75 countries, according to Mastercard. Those customers include 45 national governments as well as more than half of the companies in the Fortune 100, the payments firm said. In addition to tapping into Recorded Future's technologies for analyzing threats across numerous data sources, Mastercard also noted that the vendor's capabilities will assist with key priorities for the payments firm including fraud prevention. Being able to utilize Recorded Future's technologies "will add to Mastercard's identity, fraud prevention, real-time decisioning and cybersecurity services," the credit card giant said. Ultimately, this will bring "expanded threat intelligence capabilities to [Mastercard's] network of merchants and financial institutions," the company said. Another key aspect of the acquisition is the joint focus on AI across both companies, Mastercard said. Already, the two companies "collaborate on an AI-supported service that alerts financial institutions more quickly and with greater accuracy when a card is likely to have been compromised," Mastercard said. Notably, Recorded Future "has been a pioneer in using AI-powered analytics to generate insights that are easily accessible to and understood by customers," the credit card firm said. Mastercard reached the acquisition agreement with Insight Partners, which has owned a controlling interest in Recorded Future since 2019. The $2.65 billion acquisition is expected to close by the first quarter of 2025, Mastercard said. Recorded Future will operate as an "independent subsidiary of Mastercard," the co-founder and CEO of Recorded Future, Christopher Ahlberg, wrote in a post Thursday. In the post, Ahlberg wrote that "with Mastercard, we are embarking on the next phase of our growth, broadening our threat intelligence strategy and expanding our global reach." "This mission remains unchanged: We will continue to operate as the same company, but now with a new owner and an even greater capacity to scale," he wrote. Ultimately, "we remain dedicated to operating as an independent and open intelligence platform," Ahlberg said.

Mastercard Agrees to Buy Cyber-Defense Firm for $2.65 Billion

Mastercard Inc. agreed to buy cyber-defense firm Recorded Future for $2.65 billion to boost its ability to protect the card company's massive global-payments system. The purchase from private equity firm Insight Partners will expand Mastercard's ability to use artificial intelligence in protecting customers from cyber threats and fraud, according to a statement Thursday.

Mastercard to buy Recorded Future for $2.65 bn to bolster intelligence

Mastercard has agreed to buy threat intelligence company Recorded Future from private equity firm Insight Partners for $2.65 billion, the payments company said on Thursday. The acquisition will bring expanded threat intelligence capabilities to the New York-based payments firm, which recorded $9 trillion in gross dollar volumes last year, a metric that represents the total dollar value of all transactions processed. Click here to connect with us on WhatsApp The rapid adoption of new technologies has upped the risk of cyber threats, with companies increasingly facing hacking or ransomware attacks. In June, Arkansas-based Evolve Bank confirmed that it was a victim of a cybersecurity incident with customer data illegally released on the dark web. With threat actors looking at new ways to exploit technology, Mastercard has been ramping up card fraud detection by using generative artificial intelligence technology. The company is already collaborating with Recorded Future, which uses AI-powered analytics to identify potential threats, on a service that alerts financial institutions when a card is likely compromised. Since the launch of the service earlier this year, it has doubled the rate at which compromised cards are identified compared to last year, Mastercard said. More From This Section China warns carmakers of risks of making overseas investment: Report Africa's doses fall short amid Mpox spread while rich nations have plenty DFC commits long-term loan of $20 mn to Panacea Biotec to expand operations Voyaging into eternity: Nasa switches thrusters of probe 24 billion km away US companies in China see record-low profits amid geopolitical tensions The card company currently offers cybersecurity services such as identity fraud prevention and real-time decision-making, among others, to its clients. In 2019, Insight Partners acquired a controlling interest in Recorded Future - which serves over 1,900 clients across 75 countries, including the governments of 45 countries - in an all-cash deal valued at more than $780 million. The deal with Mastercard is expected to close by the first quarter of 2025. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.) Also Read Contactless payments: Mastercard and boAt bring tap-and-pay to wearables China asks Visa, Mastercard to reduce bank card transaction fees: Report Mastercard-backed fintech firm Pine Labs weighs $1 bn IPO in India Visa, Mastercard $30 bn settlement to limit card fees for merchants at risk AI to help Mastercard find compromised cards before criminals can use them

Mastercard Acquires Cybersecurity Firm Recorded Future For $2.65 Billion

The move reflects Mastercard's increasing focus on self-custody crypto solutions. Mastercard Inc. has finalized an agreement to acquire cyber-defense company Recorded Future for $2.65 billion, aiming to enhance the security of its extensive global payments network. The acquisition from the private equity firm Insight Partners is set to bolster credit card giant's capabilities in employing artificial intelligence to safeguard against cyber threats and fraud. Insight Partners had previously acquired a majority stake in Recorded Future in 2019 through a cash transaction valuing the firm at over $780 million. Recorded Future serves over 1,900 clients across 75 countries, and payment services provider highlighted in its announcement the growing urgency of addressing cybercrime, which is projected to inflict global costs of $9.2 trillion this year. According to a recent Bloomberg report, Craig Vosburg, the Chief Services Officer at the credit card network, emphasized that the partnership will accelerate innovation, enhance the development of intelligent models, and proactively address potential cyber threats. The transaction is anticipated to close by the first quarter of the upcoming year. Mastercard also recently enhanced its support for non-custodial cryptocurrency wallets by partnering with European crypto payments infrastructure provider Mercuryo, a Bitcoin ordinals trading platform. This collaboration led to the introduction of a euro-denominated debit card that permits users to spend their self-stored cryptocurrencies -- like Bitcoin -- at over 100 million merchants worldwide within the Credit card network. This initiative followed the launch of a pilot crypto debit card with the MetaMask wallet in August 2024, marking a significant step in Mastercard's strategy to integrate more closely with the burgeoning sector of digital assets. The move underscores a growing trend in the cryptocurrency industry: the shift towards self-custody. Unlike traditional custodial wallets, where third parties like banks or exchanges manage the security and storage of digital assets, self-custodial wallets give users complete control over their private keys and, consequently, their funds. This model of digital asset management promotes greater autonomy but also places the onus of security squarely on the individual users.

Mastercard just made a $2.65 billion purchase to beef up its security

Ozempic maker Novo Nordisk has an experimental anti-obesity pill with noteworthy early trial results The credit card giant's purchase builds on its existing fraud prevention and cybersecurity services, which leverage artificial intelligence and other advanced technologies to combat growing financial crime, Mastercard said Thursday. Boston-based Recorded Future, which is currently owned by private equity firm Insight Partners, is the world's largest threat intelligence company, with more than 1,900 clients across 75 countries, including 30 federal governments and more than half of the Fortune 100. "Recorded Future adds to how we deliver that greater peace of mind before, during and after the payment transaction. Together we will innovate faster, create smarter models and anticipate emerging threats before cyber-attacks can take place - in payments and beyond," Craig Vosburg, chief services officer at Mastercard, said in a statement. The deal is expected to close by the first quarter of 2025, pending regulatory review and other closing conditions. This comes as the shift to an increasingly digital financial landscape, like online payments, withdrawals, and deposits, continues to make crime within the global financial system more pervasive. More than half of Americans use digital wallets more than their cards or cash, according to the results of a Forbes Advisor poll published last year. An estimated $3.1 trillion in illicit funds passed through the global financial system last year, according to a Nasdaq's (NDAQ) latest Global Financial Crime Report. Money laundering alone accounted for trillions of dollars that helped fund international criminal activities, including $346.7 billion in human trafficking, $782.9 billion in drug trafficking, and $11.5 billion in terrorist financing. This year alone, cybercrime is projected to cost $9.2 trillion globally, according to Statista. While financial criminals are getting smarter -- particularly with the advent of AI and generative AI -- financial institutions and RegTech companies are deploying many of the same technologies to help combat the growing criminal enterprise. Both Mastercard and Recorded Future already use AI to analyze billions of data points to identify potential threats, Mastercard said. AI has helped financial institutions identify and stop risks considerably. HSBC (HSBC), for example, uses its AI system, co-developed with Google (GOOGL), to monitor about 1.2 billion transactions for signs of financial crime across 40 million customer accounts each month, Jennifer Calvery, group head of financial crime risk and compliance at HSBC, wrote in a June blog post. It claimed to spot two to four times more financial crime than it did before, with 60% fewer false positives.