Mastercard has announced the acquisition of Recorded Future, a global threat intelligence company, for $2.65 billion. The deal aims to bolster Mastercard’s cybersecurity infrastructure and enhance the insights used to secure the digital economy, particularly in the payments ecosystem. Both companies utilize artificial intelligence to analyze data and identify potential cyber threats.
The acquisition is expected to provide Mastercard with a robust platform to proactively identify and mitigate security risks. Mastercard highlighted the increasing need for comprehensive cyber defense measures in today’s digital landscape. The company believes that integrating Recorded Future’s capabilities will offer better security solutions to their clients, reinforcing trust and reliability in their financial services.
Recorded Future, based in Somerville, Massachusetts, sells AI-powered technology that analyzes various data sources to identify potential security threats.
Mastercard enhances cybersecurity with acquisition
The company has more than 1,900 clients in 75 countries, including governments and Fortune 500 companies.
The acquisition is part of Mastercard’s ongoing investments in AI and emerging technologies to combat payment fraud and manage security risks as digital payments and processing speeds increase. Mastercard has previously introduced biometric authentication and updated its technology to identify stolen cards using generative AI. Fraud is a constant challenge in the payments industry, with consumers reporting $5.4 billion in losses due to financial services fraud in the first half of 2024.
The use of AI in fraud prevention is becoming increasingly important as traditional rules-based detection tools struggle to keep up with sophisticated threats. The deal is expected to close in the first quarter of 2025, pending regulatory approvals and customary closing conditions. Shares of Mastercard saw a slight increase following the announcement, pushing them to an all-time high above $490.
