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Mastercard to acquire NuData Security to strengthen digital payments security

Mastercard has entered into an agreement to acquire an online and mobile fraud prevention solutions provider NuData Security.

However, the terms of the transaction were not disclosed.

The acquisition is expected to allow Mastercard to boost its efforts around device-level security and authentication.

Mastercard enterprise risk and security president Ajay Bhalla said: “The addition of NuData will build on our layered security strategy to safeguard each and every transaction across the globe.

“The combination of session and biometric information will provide even richer context around potential cyber and device-specific threats, enabling us to deliver even greater trust and peace of mind.”

The payments company plans to integrate NuData solutions, which use session and biometric indicators for fraud prevention, to its suite of fraud management and security products.

Based on online, mobile app and smartphone interactions of users, NuData’s product NuDetect detects potential fraudsters and flags those that represent the highest risk.

NuDetect analyses hundreds of device, location, passive biometric and behavioral signals to create an ongoing digital identity. It analyzes 80 billion online interactions yearly.

To enable near real-time authorization decisions for merchants and issuers, NuData’s technology scores each online or mobile transaction.

NuData chief executive officer Michel Giasson said: “For nearly a decade, we’ve worked to develop innovative solutions to help transform the way banks and merchants digitally interact with consumers.

“Those efforts will continue and accelerate through our collective enhanced capabilities to secure the digital landscape, while offering an enhanced user experience.”

In October last year, Mastercard announced the European roll out of Identity Check Mobile, a new payment technology application that uses biometrics like fingerprints or facial recognition to verify a cardholder’s identity.

Image: Mastercard plans to integrate NuData solutions to its suite of security products. Photo courtesy of MasterCard.