Payments giant Visa is teaming up with security company FireEye to create novel security products to protect the retailers and card issuers from cyber theft and share cyber threat data and intelligence.
The two companies announced their striking novel partnership for their joint venture on Community Threat Intelligence (CTI). The venture is a unique and new joint threat information alert that will let merchants and card issuers quickly detect and take action to attacks against their IT and payment infrastructure. The product or service may seem to be the address the problems caused by data breaches at retailers, banks and other companies that have big warehouses of consumer payment data.
“The threat environment for merchants is more hostile than we have ever seen – attack groups focused exclusively on stealing consumer data are continuously expanding their operations and employing new techniques – it is a daunting prospect for any merchant whose business could collapse if they lose customer trust,” said the CEO of FireEye David DeWalt.
CEO of Visa Charlie Scharf said, “By combining Visa’s unparalleled view into global payments and FireEye’s industry-leading cyber security expertise, we intend to bring faster, actionable intelligence directly to players across the payments system.”
The sale of the web-based service will be by Visa personnel that may come from the fraud risk solution department, said a FireEye spokesperson. The service is designed to spot and identify the possible threats when they reach the company’s networks, providing an enormous valuable data to FireEye and Visa, and take immediate action on it.
FireEye’s executive Rich Stegina said, “One of the key benefits for Visa is being able to reduce that time from discovery to remediation.” He also added, “The ability to reduce the time of a threat and recognize where those threat vectors are coming from is key.”
Based on Foster City, Visa is the pioneer in the payments worldwide. According to Nilson Report in 2013 Visa debit cards accounted for more than 38% of card transactions around the world and 22.1% for the transactions with the credit card. Milpitas-based FireEye is running fast in the field of security offerings from Silicon Valley to overtake Palo Alto Networks and Fortinet and stalwarts like Cisco and Symantec.
This new partnership with Visa will lead FireEye to race ahead said FBR Capital Markets analyst Daniel Ives. “This speaks to a wakeup call for stalwarts like Visa to take cyber security initiatives to the next level,” Ives said in an email exchange. “It is also a validation for FireEye to get this deal.”
At the stock market, FireEye hit a 52-week high on Wednesday and closed with 1.5% gain at $47.69, then leaped again in late trading after the deal was declared, reaching $49. Visa fell 0.1% to $68.95 on the day.
In the current scenario, the need for cyber security is well understood and the practice of cyber-threat sharing is receiving increased support in both the retail and the tech communities and also in Washington. In 2014, the National Retail Federation developed its own cyber security community to protect and assist the retailers share threats with each other, and with government agencies, law enforcement and partners in the financial services sector.
Last March, a bill was passed from the House of Representatives Intelligence Committee that would enable sharing cyber security data in a simplified form by eliminating the prospect of potential litigation. However, it has been reported some issues by security experts. A month later, a bunch of security experts said threat-sharing is already possible without the need of legislation, and the bill could only make it difficult to identify the clues that can avoid more attacks.