Stake

Intel is turning McAfee into a separate company.

A worker mounts an Intel sign on a pavilion at San Francisco's Super Bowl City attraction on Jan. 27, 2016.

Credit: Stephen Lawson

Intel is selling off a majority stake in its McAfee unit and turning it back into an independent security company.

Intel made the deal with investment firm TPG, which will own a 51 percent stake in the new McAfee company. Intel will own the remainder.

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As part of the deal, Intel is receiving $ 3.1 billion in cash. It originally bought McAfee back in 2011 for $ 7.7 billion -- a deal that caused some industry watchers to scratch their heads.

Intel is best known as a chipmaker, but at the time it was also hoping to improve  security around its products. PC security was a major concern back then, said Nathan Brookwood, principal analyst at Insight 64. But now cyberthreats are moving to target the cloud and servers.

"McAfee had relatively little to do in cloud security. While Intel didn't lose a lot of money, it never was a huge win," he said.

In 2014, the chipmaker rebranded its McAfee business as Intel Security. However, reports about a possible McAfee sale circulated earlier this year as Intel worked to restructure its business amid lagging PC sales. In April, the company announced it would cut 12,000 jobs.  

Intel will continue partnering with the McAfee unit on security. Chris Young, the general manager for Intel Security, will be head of the new company. In a
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Assaf Regev

Assaf Regev serves as the product marketing manager for the web fraud portfolio of Trusteer, an IBM Company, part of IBM’s Security Systems division. Assaf holds a BS.c in...

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According to data from IDC, the worldwide smartphone market is in excess of 2 billion units. By 2017, the smartphone market share will reach 70.5 percent, up more than 10 percent compared to 2013.

In addition to IDC’s findings, the recent “Consumers and Mobile Financial Services 2016” report stated that 43 percent of mobile phone owners perform online banking via a mobile device, up from 39 percent last year. Additionally, 53 percent of smartphone owners use mobile banking.

A Stake in the Ground

It’s evident that consumers expect to interact with services such as e-commerce, gaming and online banking through their mobile devices. As a result, organizations offering new services must keep up with the ever-growing mobile landscape and any associated regulatory guidelines.

The Federal Financial Institutions Examination Council (FFIEC) recently issued guidance that focused on risks associated with mobile financial services (MFS). The publication also emphasized an enterprisewide risk management approach for more effective risk mitigation.

The agency put a stake in the ground, issuing a new set of security guidelines for mobile banking in late April 2016. This was an important update to the organization’s previously released handbooks. With these new guidelines, the FFIEC set the foundation for 24/7 online banking services of all types, including a set of detailed, actionable directives.

Read the white paper to learn to how to protect Mobile Financial Services

Protecting Mobile Financial Services

More generally, financial institutions looking into protecting existing and new MFS should consider the following:

  • The main channels for mobile banking, such as SMS messaging, mobile-enabled websites, mobile applications and wireless payments;
  • The risks and potential implications on the various aspects of the offered service, including strategic, operational, compliance and reputational risks;
  • The means of identifying, measuring, assessing and mitigating the risks across all applicable categories, which includes the likelihood and impact of such risks and their potential effect on the service and the organization; and
  • The processes and systems in place to help validate and report whether the offered product or service meets operational expectations.

Financial institutions looking to address the above issues must make sure these objectives can be aligned with their short- and long-term strategic plans. To help address security concerns related to mobile financial services, financial institutions can embed the IBM Security Trusteer Mobile SDK in proprietary mobile banking applications via a dedicated security library for Apple iOS and Google Android platforms.

For more information, download the white paper to see how IBM solutions can help protect mobile financial services and provide effective and sustainable fraud prevention.

Topics: Banking, Mobile, Mobile Banking, Mobile Devices, Mobile Security, Risk Management


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