Mastercard to Acquire Cybersecurity Firm Recorded Future for $2.65 Billion

Mastercard has announced plans to acquire threat intelligence company Recorded Future from private equity firm Insight Partners for $2.65 billion, aiming to strengthen its cybersecurity capabilities. The acquisition, revealed on Thursday, is expected to bolster Mastercard’s ability to protect against rising cyber threats, particularly as digital transactions continue to expand.

According to Reuters, Mastercard processed $9 trillion in gross dollar volumes last year, making it crucial for the payments company to stay ahead of cybercriminals who seek to exploit new technologies. The deal underscores Mastercard’s focus on enhancing its threat intelligence and cybersecurity services, which already include identity fraud prevention and real-time decision-making for its clients.

The rise of cyberattacks, including incidents like the June breach at Arkansas-based Evolve Bank, has put pressure on financial institutions to enhance their security frameworks. In that incident, customer data was leaked on the dark web following a cybersecurity breach. Per Reuters, this increasing threat landscape has driven Mastercard to adopt new technologies like generative artificial intelligence (AI) to improve card fraud detection.

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Mastercard has already partnered with Recorded Future on a service that leverages AI-powered analytics to detect compromised cards. Since its launch earlier this year, the service has significantly improved Mastercard’s ability to identify fraud, doubling the rate of detected compromised cards compared to last year, the company said.

Recorded Future, founded in 2009, provides intelligence services to more than 1,900 clients across 75 countries, including 45 government entities. Insight Partners initially acquired a controlling stake in the company in 2019 for over $780 million, according to Reuters.

The Mastercard acquisition is expected to close by the first quarter of 2025, pending regulatory approval.

Source: Reuters