Hacks and data security breaches in recent years have torn up some consumers’ lives and cumulatively have cost companies billions of dollars, but several cybersecurity outfits looking to protect consumer interests and corporate interests alike. Visa Inc. (NYSE: V) has announced a new contract with cybersecurity firm, FireEye Inc. (NASDAQ: FEYE) to protect consumers. The case might be a total “game changer” in cybersecurity going forward.
Late on Wednesday, FireEye and Visa announced that they intend to work together to create tools and services to help merchants and issuers protect against advanced cyberattacks.
This deal is one of the first of its kind. The Visa and FireEye Community Threat Intelligence (CTI) offering will bring together threat information from both companies, allowing merchants and issuers to quickly detect and respond to attacks against their IT and payment infrastructure.
Under the offering, FireEye will operate the Web-based service that provides an improvement over current industry practices such as sharing threat intelligence via e-mail.
Basically, as Visa’s network security becomes more policed by FireEye, customers stand to be safer than they were previously. At this point Visa is looking out for its best interest, but it is giving FireEye, and for that matter the whole cybersecurity field, a shot at the big leagues.
David DeWalt, CEO of FireEye, commented on the deal:
The threat environment for merchants is more hostile than we’ve ever seen — attack groups focused exclusively on stealing consumer data are continuously expanding their operations and employing new techniques — it’s a daunting prospect for any merchant whose business could collapse if they lose customer trust. This new collaboration brings together two industry leaders to help protect merchants and payment data and minimize the impact of attacks by sharing information.
So far FireEye has grown over 50% in 2015 alone. It has gained momentum along with other cybersecurity stocks such as CyberArk Software Inc. Ltd. (NASDAQ: CYBR), which has grown 57% year to date.
Cybersecurity might be considered by some one of the most under-addressed issues, but effectively one of the most important in corporate America.
Shares of FireEye closed Wednesday up 1.5% to $47.69, in a 52-week trading range of $24.81 to $48.29. In premarket trading Thursday, shares were up 4.2% at $49.70. The stock has a consensus analyst price target of $47.50.