Why Are So Many Banks Investing in This Cybersecurity Company?

Big banks like JPMorgan, Chase and American Express are pumping money into Menlo Security, a startup working to paralyze phishing attacks, according to Fortune.

“Phishing has grown to be one of the most common threats to businesses across industries and geographies,” said Rick Smith, head of private investments at JPMorgan Chase, in a statement.

The goal of these companies’ investments is to help Menlo protect its customers through “web isolation,” where the firm would open all documents, emails, and attachments in a virtualized environment, then mirror an image of the content back to end users. This method helps keep end users’ information safe, and “clean.” “The approach differs from more frequently used sandboxing technology in that the “active” content, capable of running potentially malicious programs through a browser or stealing passwords, never has a chance, in theory, to touch an employee computer, even after it has been opened,” Fortune says.

The recent investments will also help Menlo to expand into international markets like Asia and Europe.

What this mean for decision makers:

Based on Fortune’s report, Menlo is helping end users stay safe from hackers, viruses and malicious software. This is especially good news for companies that may be struggling to implement effective cybersecurity awareness and best practices, or that deal with employees who are not cyber-security savvy.

Menlo also serves as a solid buffer from cyberattacks, but without withholding potentially compromised content from end users. Because Menlo enables end users to see a mirror image of potentially compromised content, these users can gain experience on what certain cyberattacks look like, and how to prepare and protect themselves and the company from future harm.

Plus, Fortune says that Menlo has grown to about 125 employees this past year, and has raised around $85 million as of mid-December. This shows how cybersecurity awareness and action is growing, and how companies are investing in keeping their crucial data and employee information safe.

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