Tag Archives: emerging technology

Digital vs. Physical Heists: Does Crypto Theft Impact Cryptocurrency Value?

Fig. 1. Digital vs. Physical Financial Theft Graphic, Jeremy Swenson, 2025.

Minneapolis—

Cryptocurrencies have revolutionized the financial landscape, offering decentralized and borderless transactions. However, the rise of crypto fraud and theft poses significant challenges to the stability and perception of digital currencies. With large-scale hacks and scams frequently making headlines, the question arises: do these fraudulent activities ultimately raise or lower the value of cryptocurrencies? This article examines the immediate and long-term effects of crypto theft on digital asset valuation, comparing these incidents with traditional cash heists and analyzing market reactions, investor psychology, and regulatory responses.

High-Profile Crypto Thefts and Their Immediate Impact:

One of the most significant incidents in recent history is the Bybit exchange hack in February 2025, where approximately $1.5 billion worth of Ethereum was stolen during a routine transfer from a cold wallet to a warm wallet. The breach led to a temporary decline in Ethereum’s value and prompted over 350,000 withdrawal requests from concerned users. Bybit’s CEO, Ben Zhou, assured clients of the company’s solvency and commitment to reimbursing affected users, highlighting the exchange’s $20 billion in assets to cover the losses.[1] Yet this is hard to believe considering the firm’s newer status. This event underscores the immediate negative impact such breaches can have on cryptocurrency values and investor confidence.

Similarly, the 2016 Bitfinex hack resulted in the theft of 119,756 Bitcoins, causing a sharp decline in Bitcoin’s price by 20%. The exchange managed to recover and reimburse affected users over time, but the incident highlighted vulnerabilities in crypto security and the potential for significant market disruptions.[2] Other major breaches, such as the infamous Mt. Gox collapse in 2014 and the Ronin Network hack of 2022, further illustrate how large-scale thefts can shake the market.[3]

Digital Heists vs. Traditional Bank Robberies:

The magnitude of the Bybit crypto heist becomes more striking when compared to traditional bank robberies. Stealing $1.5 billion in cash presents substantial logistical challenges. For instance, $1 billion in $100 bills weighs approximately 10,000 kilograms (22,046 pounds) and would occupy significant physical space.[4] Transporting such a massive amount would require meticulous planning, heavy machinery, and considerable risk of detection.

In contrast, the largest cash robbery in U.S. history, the Dunbar Armored robbery in 1997, involved the theft of $18.9 million.[5] This amount, while substantial, pales in comparison to the $1.5 billion stolen digitally from Bybit. The largest known cash heist globally was the 2005 Banco Central burglary in Brazil, where thieves stole approximately $70 million by tunneling underground to access the vault.[6] Even this record-setting crime is dwarfed by the scale and ease of execution of digital heists, which require no physical transport or direct confrontation with law enforcement.

Statistical Trends in Crypto Fraud and Theft:

The prevalence of crypto-related fraud and theft has seen a marked increase over the years. In 2022, the FBI reported that Americans lost over $2.57 billion to cryptocurrency investment fraud, a staggering 183% increase from the previous year.[7] This figure represented more than two-thirds of all internet investment scam losses reported that year. By 2023, losses had escalated to over $5.6 billion, indicating a 45% surge from 2022.[8] These statistics reflect a growing trend of illicit activities within the crypto space, which can erode investor trust and negatively impact cryptocurrency values.

Long-Term Effects on Cryptocurrency Value:

While immediate reactions to fraud and theft often result in sharp declines in cryptocurrency values, the long-term effects can vary. In some cases, the market demonstrates resilience, with values rebounding as security measures are enhanced and regulatory frameworks are strengthened. For instance, despite the significant losses from various hacks and scams, the overall market capitalization of cryptocurrencies has continued to grow over the past decade.[9]

However, persistent incidents of fraud and theft can lead to increased volatility and deter potential investors, hindering mainstream adoption. The perception of cryptocurrencies as high-risk assets may be reinforced, leading to more cautious investment approaches and potentially suppressing value growth. Large institutional investors, who could provide market stability, may hesitate to enter the crypto space due to security concerns.[10]

Regulatory Responses and Market Confidence:

Regulatory bodies worldwide are becoming increasingly vigilant in addressing crypto-related fraud and theft. Enhanced regulations aim to protect investors and ensure the integrity of the financial system. While some argue that increased regulation may stifle innovation, others believe it is essential for building trust and stability in the crypto market.[11]

For example, the U.S. government’s recovery of funds from the Bitfinex hack and the subsequent legal actions against the perpetrators demonstrate a commitment to combating crypto-related crimes. Such actions can bolster investor confidence, potentially leading to a positive impact on cryptocurrency values over time.[12] Similarly, stricter Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements for crypto exchanges have been implemented to deter illicit activities and restore trust in the industry.

Conclusion:

Crypto fraud and theft present significant challenges to the stability and perception of cryptocurrencies. While the immediate consequences often include sharp value declines and shaken investor confidence, the long-term impact hinges on the industry’s ability to strengthen security, implement effective regulations, and promote transparency. For crypto thieves and threat actors, the profitability of theft can incentivize further attacks, potentially driving up cryptocurrency values. The real question is: how much theft and insecurity can the system withstand before it collapses, or will its architects continue propping it up just long enough to cash out? As the crypto ecosystem evolves, addressing these vulnerabilities is essential for sustaining growth and maintaining public trust.

About the Author:

Jeremy Swenson is a disruptive-thinking security entrepreneur, futurist/researcher, and senior management tech risk consultant. Over 17 years, he has held progressive roles at many banks, insurance companies, retailers, healthcare organizations, and even government entities. Organizations appreciate his talent for bridging gaps, uncovering hidden risk management solutions, and simultaneously enhancing processes. He is a frequent speaker, podcaster, and a published writer – CISA Magazine and the ISSA Journal, among others. He holds a certificate in Media Technology from Oxford University’s Media Policy Summer Institute, an MBA from Saint Mary’s University of MN, an MSST (Master of Science in Security Technologies) degree from the University of Minnesota, and a BA in political science from the University of Wisconsin Eau Claire. He is an alum of the Cyber Security Summit Think Tank , the Federal Reserve Secure Payment Task Force, the Crystal, Robbinsdale and New Hope Citizens Police Academy, and the Minneapolis FBI Citizens Academy. He also has certifications from Intel and the Department of Homeland Security.

References:

  1. “Hackers steal $1.5bn from crypto exchange in ‘biggest digital heist ever,'” The Guardian, February 23, 2025.
  2. “Bitcoin Exchange Bitfinex Hacked, Loses $72 Million,” Reuters, August 3, 2016.
  3. “The Mt. Gox Bankruptcy and Its Lasting Impact on Crypto,” CoinDesk, March 2022.
  4. “Money Weight Calculator,” Good Calculators.
  5. “Dunbar Armored robbery,” Wikipedia.
  6. “The Biggest Bank Robbery in History,” Guinness World Records.
  7. “Fact Sheet: Crypto Harms by the Numbers,” Americans for Financial Reform, May 2024.
  8. “Americans lost $5.6 billion last year in cryptocurrency fraud scams,” AP News, September 2024.
  9. “Cryptocurrency Market Capitalization Hits New High Despite Scams,” Bloomberg, January 2025.
  10. “How Institutional Investors Approach Cryptocurrency,” Financial Times, November 2024.
  11. “How Global Regulators Are Cracking Down on Cryptocurrency Fraud,” Financial Times, December 2024.
  12. “US Recovers $3.6B Stolen in Bitfinex Hack, Arrests Two,” CNBC, February 8, 2022.

DeepSeek R1: A New Chapter in Global AI Realignment

Fig. 1. DeepSeek and Global AI Change Infographic, Jeremy Swenson, 2025.

Minneapolis—

DeepSeek, the Chinese artificial intelligence company founded by Liang Wenfeng and backed by High-Flyer, has continued to redefine the AI landscape since the explosive launch of its R1 model in late January 2025. Emerging from a background in quantitative trading and rapidly evolving into a pioneer in open-source LLMs, DeepSeek now stands as a formidable competitor to established systems like OpenAI’s ChatGPT and Microsoft’s proprietary models available on Azure AI. This article provides an expanded analysis of DeepSeek R1’s technical innovations, detailed comparisons with ChatGPT and Microsoft Azure AI offerings, and the broader economic, cybersecurity, and geopolitical implications of its emergence.

Technical Innovations and Architectural Advances:

Novel Training Methodologies DeepSeek R1 leverages a cutting-edge combination of pure reinforcement learning and chain-of-thought prompting to achieve human-like reasoning in tasks such as advanced mathematics and code generation. Unlike traditional LLMs that rely heavily on supervised fine-tuning, DeepSeek’s R1 is engineered to autonomously refine its reasoning steps, resulting in greater clarity and efficiency. In early benchmarking tests, R1 demonstrated the ability to solve multi-step arithmetic problems in approximately three minutes—substantially faster than ChatGPT’s o1 model, which typically required five minutes (Sayegh, 2025).

Cloud Integration and Open-Source Deployment One of R1’s key strengths lies in its open-source availability under an MIT license, a stark contrast to the closed ecosystems of its Western counterparts. Major cloud platforms have rapidly integrated R1: Amazon has deployed it via the Bedrock Marketplace and SageMaker, and Microsoft has incorporated it into its Azure AI Foundry and GitHub model catalog. This wide accessibility not only allows for extensive external scrutiny and customization but also enables enterprises to deploy the model locally, ensuring that sensitive data remains under domestic control (Yun, 2025; Sharma, 2025).

Detailed Comparison with ChatGPT:

Performance and Reasoning Clarity ChatGPT’s o1 model has been widely recognized for its robust reasoning capabilities; however, its closed-source nature limits transparency. In direct comparisons, DeepSeek R1 has shown parity—and in some cases superiority—with respect to reasoning clarity. Independent tests by developers indicate that R1’s intermediate reasoning steps are more comprehensible, facilitating easier debugging and iterative query refinement. For example, in complex multi-step problem-solving scenarios, R1 not only delivered correct solutions more rapidly but also provided detailed, human-like explanations of its thought process (Sayegh, 2025).

Cost Efficiency and Accessibility While premium access to ChatGPT’s capabilities can cost users upwards of $200 per month, DeepSeek R1 offers its advanced functionalities free of charge. This dramatic reduction in cost is achieved through efficient use of computational resources. DeepSeek reportedly trained R1 using only 2,048 Nvidia H800 GPUs at an estimated cost of $5.6 million—an expenditure that is a fraction of the resources typically required by U.S. competitors (Waters, 2025). Such cost efficiency democratizes access to high-performance AI, providing significant advantages for startups, academic institutions, and small businesses.

Detailed Comparison with Microsoft Azure AI:

Integration with Enterprise Platforms Microsoft has long been a leader in providing enterprise-grade AI solutions via Azure AI. Recently, Microsoft integrated DeepSeek R1 into its Azure AI Foundry, offering customers an additional open-source option that complements its proprietary models. This integration allows organizations to leverage R1’s powerful reasoning capabilities while enjoying the benefits of Azure’s robust security, compliance, and scalability. Unlike some closed-source models that require extensive licensing fees, R1’s open-access nature under Azure enables organizations to tailor the model to their specific needs, maintaining data sovereignty and reducing operational costs (Sharma, 2025).

Performance in Real-World Applications In practical applications, users on Azure have reported that DeepSeek R1 not only matches but sometimes exceeds the performance of traditional models in complex reasoning and mathematical problem-solving tasks. By deploying R1 locally via Azure, enterprises can ensure that sensitive computations are performed in-house, thereby addressing critical data privacy concerns. This localized approach is particularly valuable in regulated industries, where strict data governance is paramount (FT, 2025).

Market Reactions and Economic Implications:

Immediate Market Response and Stock Volatility The initial launch of DeepSeek R1 triggered a significant market reaction, most notably an 18% plunge in Nvidia’s stock as investors reassessed the cost structures underlying AI development. The disruption led to a combined market value wipeout of nearly $1 trillion across tech stocks, reflecting widespread concern over the implications of achieving top-tier AI performance with significantly lower computational expenditure (Waters, 2025).

Long-Term Investment Perspectives Despite the short-term volatility, many analysts view the current market corrections as a temporary disruption and a potential buying opportunity. The cost-efficient and open-source nature of R1 is expected to drive broader adoption of advanced AI technologies across various industries, ultimately spurring innovation and generating new revenue streams. Major U.S. technology firms, in response, are accelerating initiatives like the Stargate Project to bolster domestic AI infrastructure and maintain global competitiveness (FT, 2025).

Cybersecurity, Data Privacy, and Regulatory Reactions:

Governmental Bans and Regulatory Scrutiny DeepSeek’s practice of storing user data on servers in China and its adherence to local censorship policies have raised significant cybersecurity and privacy concerns. In response, U.S. lawmakers have proposed bipartisan legislation to ban DeepSeek’s software on government devices. Similar regulatory actions have been taken in Australia, South Korea, and Canada, reflecting a global trend of caution toward technologies with potential national security risks (Scroxton, 2025).

Security Vulnerabilities and Red-Teaming Results Independent cybersecurity tests have revealed that R1 is more prone to generating insecure code and harmful outputs compared to some Western models. These findings have prompted calls for more rigorous red-teaming and continuous monitoring to ensure that the model can be safely deployed at scale. The vulnerabilities underscore the necessity for both DeepSeek and its adopters to implement robust safety protocols to mitigate potential misuse (Agarwal, 2025).

Geopolitical and Strategic Implications:

Challenging U.S. AI Dominance DeepSeek R1’s emergence is a clear signal that high-performance AI can be developed without the massive resource investments traditionally associated with U.S. models. This development challenges the long-standing assumption of American technological supremacy and has prompted a strategic reevaluation among U.S. policymakers and industry leaders. In response, initiatives such as Microsoft’s Stargate Project are being accelerated to ensure that the U.S. maintains its competitive edge in the global AI arena (Karaian & Rennison, 2025).

Localized AI Ecosystems and Data Sovereignty To mitigate cybersecurity risks, several U.S. companies are now repackaging R1 for localized deployment. By ensuring that sensitive data remains on domestic servers, these firms are not only addressing privacy concerns but also paving the way for the creation of robust, localized AI ecosystems. This trend could ultimately reshape global data governance practices and alter the balance of technological power between the U.S. and China (von Werra, 2025).

Conclusion and Future Outlook:

DeepSeek R1 represents a watershed moment in the global AI race. Its technical innovations, cost efficiency, and open-source approach challenge entrenched assumptions about the necessity of massive compute power and proprietary control. In direct comparisons with systems like ChatGPT’s o1 and Microsoft’s Azure AI offerings, R1 demonstrates superior transparency and operational speed, while also offering unprecedented accessibility. Despite ongoing cybersecurity and regulatory challenges, the disruptive impact of R1 is catalyzing a broader realignment in AI development strategies. As both U.S. and Chinese technology ecosystems adapt to these shifts, the future of AI appears poised for a more democratized, competitively diverse, and strategically complex evolution.

About The Author:

Jeremy A. Swenson is a disruptive-thinking security entrepreneur, futurist/researcher, and seasoned senior management tech risk and digital strategy consultant. He is a frequent speaker, published writer, podcaster, and even does some pro bono consulting in these areas. He holds a certificate in Media Technology from Oxford University’s Media Policy Summer Institute, an MSST (Master of Science in Security Technologies) degree from the University of Minnesota’s Technological Leadership Institute, an MBA from Saint Mary’s University of Minnesota, and a BA in political science from the University of Wisconsin Eau Claire. He is an alum of the Federal Reserve Secure Payment Task Force, the Crystal, Robbinsdale, and New Hope Community Police Academy (MN), and the Minneapolis FBI Citizens Academy. You can follow him on LinkedIn and Twitter.

References:

  1. Yun, C. (2025, January 30). DeepSeek-R1 models now available on AWS. Amazon Web Services Blog. Retrieved February 8, 2025, from https://aws.amazon.com/blogs/aws/deepseek-r1-models-now-available-on-aws/
  2. Sharma, A. (2025, January 29). DeepSeek R1 is now available on Azure AI Foundry and GitHub. Microsoft Azure Blog. Retrieved February 8, 2025, from https://azure.microsoft.com/en-us/blog/deepseek-r1-is-now-available-on-azure-ai-foundry-and-github/
  3. Waters, J. K. (2025, January 28). Nvidia plunges 18% and tech stocks slide as China’s DeepSeek spooks investors. Business Insider Markets. Retrieved February 8, 2025, from https://markets.businessinsider.com/news/stocks/nvidia-tech-stocks-deepseek-ai-race-nasdaq-2025-1
  4. Scroxton, A. (2025, February 7). US lawmakers move to ban DeepSeek AI tool. ComputerWeekly. Retrieved February 8, 2025, from https://www.computerweekly.com/news/366619153/US-lawmakers-move-to-ban-DeepSeek-AI-tool
  5. FT. (2025, January 28). The global AI race: Is China catching up to the US? Financial Times. Retrieved February 8, 2025, from https://www.ft.com/content/0e8d6f24-6d45-4de0-b209-8f2130341bae
  6. Agarwal, S. (2025, January 31). DeepSeek-R1 AI Model 11x more likely to generate harmful content, security research finds. Globe Newswire. Retrieved February 8, 2025, from https://www.globenewswire.com/news-release/2025/01/31/3018811/0/en/DeepSeek-R1-AI-Model-11x-More-Likely-to-Generate-Harmful-Content-Security-Research-Finds.html
  7. Karaian, J., & Rennison, J. (2025, January 28). The day DeepSeek turned tech and Wall Street upside down. The Wall Street Journal. Retrieved February 8, 2025, from https://www.wsj.com/finance/stocks/the-day-deepseek-turned-tech-and-wall-street-upside-down-f2a70b69
  8. von Werra, L. (2025, January 31). The race to reproduce DeepSeek’s market-breaking AI has begun. Business Insider. Retrieved February 8, 2025, from https://www.businessinsider.com/deepseek-r1-open-source-replicate-ai-west-china-hugging-face-2025-1
  9. Sayegh, E. (2025, January 27). DeepSeek is bad for Silicon Valley. But it might be great for you. Vox. Retrieved February 8, 2025, from https://www.vox.com/technology/397330/deepseek-openai-chatgpt-gemini-nvidia-china

Digital Horizons: 8 Transformative Trends Reshaping AI, Cybersecurity, Strategy, and Crypto for a Smarter 2025

Fig. 1. Digital Horizons Infographic, Jeremy Swenson, 2025.

Minneapolis—

The rapid technological developments of 2024 have established a foundation for significant shifts in artificial intelligence (AI), cybersecurity, digital strategy, and cryptocurrency. Business executives, policy leaders, and tech enthusiasts must pay attention to these key learnings and trends as they navigate the opportunities and challenges of 2025 and beyond. Here are eight insights to keep in mind.

1. AI Alignment with Business Goals:

2024 underscored the importance of aligning AI initiatives with overarching business strategies. Companies that successfully integrated AI into their workflows—particularly in areas like customer service automation, predictive analytics, tech orchestration, and supply chain optimization—reported not only significant productivity gains but also enhanced customer satisfaction. For instance, AI-powered tools allowed firms to anticipate customer needs with remarkable accuracy, leading to a 35% improvement in retention rates. However, misalignment of AI projects often resulted in wasted resources, showcasing the need for thorough planning. To succeed in 2025, organizations must create cross-functional AI task forces and establish KPIs tailored to their unique business objectives.[1]

2. The Rise of Responsible AI:

As AI adoption grows, so does scrutiny over its ethical implications. 2024 saw regulatory frameworks such as the EU’s AI Act and similar policies in Asia gain traction, emphasizing transparency, accountability, and fairness in AI deployments. Companies that proactively implemented explainable AI models—capable of detailing how decisions are made—not only avoided legal risks but also gained consumer trust. Moreover, organizations adopting responsible AI practices observed better team morale, as employees felt more confident about using ethically sound tools. The NIST AI Risk Management Framework is a good start. Leaders in 2025 must view responsible AI as a strategic advantage, embedding ethical considerations into every stage of AI development.[2]

3. Cyber Resilience Becomes Non-Negotiable:

The escalation of sophisticated cyber threats—including AI-driven malware and deepfake fraud—led to a dramatic increase in cybersecurity investments. Many businesses adopted zero-trust models, ensuring that no user or device is trusted by default, even within corporate networks. Product owners must build products with a DevSecOps mindset and must think out misuse cases from many angles. Additionally, the integration of machine learning for anomaly detection enabled real-time identification of threats, reducing breach response times by over 50%. As the cost of cybercrime is projected to exceed $10 trillion globally by 2025, organizations must prioritize cyber resilience through advanced threat intelligence, employee training, and frequent vulnerability assessments. Cyber resilience is no longer a luxury but a fundamental pillar of operational stability.[3]

4. Quantum Readiness Emerges as a Critical Strategy:

Quantum computing made significant strides in 2024, with breakthroughs in error correction and hardware scalability bringing the technology closer to mainstream use. While practical quantum computers remain years away, their potential to break traditional encryption methods has already prompted a cybersecurity rethink. Forward-looking organizations have begun transitioning to quantum-safe cryptographic algorithms, ensuring that their sensitive data remains secure against future quantum attacks. Industries like finance and healthcare—where data sensitivity is paramount—are leading the charge. By adopting a proactive quantum readiness strategy, businesses can mitigate long-term risks and position themselves as leaders in a post-quantum era.[4]

5. The Blockchain Renaissance:

Blockchain technology continued to evolve beyond its cryptocurrency roots in 2024, finding innovative applications in sectors such as logistics, healthcare, and real estate. For example, blockchain’s immutable ledger capabilities enabled unprecedented transparency in supply chains, reducing fraud and enhancing consumer trust. Meanwhile, the tokenization of physical assets, such as real estate and fine art, democratized access to investment opportunities, attracting a broader range of participants. Organizations leveraging blockchain reported reduced operational costs and faster transaction times, proving that the technology’s value extends far beyond speculation. In 2025, businesses must explore blockchain’s potential as a tool for enhancing efficiency and fostering trust.[5]

6. Employee Upskilling for Digital Transformation:

The digital skills gap emerged as a critical bottleneck in 2024, prompting organizations to invest heavily in workforce development. Comprehensive upskilling programs focused on AI literacy, cybersecurity awareness, and digital strategy were launched across industries. Employees equipped with these skills demonstrated greater adaptability and productivity, enabling their organizations to better navigate technological disruptions. Additionally, companies that prioritized learning cultures saw higher retention rates, as employees valued the investment in their professional growth. As digital transformation accelerates, the ability to upskill and reskill the workforce will be a key differentiator for organizations aiming to remain competitive.[6]

7. Convergence of AI and IoT:

The integration of AI and the Internet of Things (IoT) reached new heights in 2024, driving advancements in smart factories, connected healthcare, and autonomous vehicles. AI-enabled IoT devices allowed businesses to predict equipment failures before they occurred, reducing downtime and maintenance costs by up to 20%. In healthcare, AI-powered wearable devices provided real-time insights into patient health, enabling early intervention and personalized treatment plans. The growing adoption of edge computing further enhanced the responsiveness of AI-IoT systems, enabling real-time decision-making at the device level. This convergence is set to redefine operational efficiency and customer experiences in 2025 and beyond.[7]

8. The Decentralized Finance (DeFi) Evolution:

Decentralized Finance (DeFi) continued to mature in 2024, overcoming early criticisms of security vulnerabilities and lack of regulation. Enhanced interoperability between DeFi platforms and traditional financial systems enabled seamless cross-border transactions, attracting institutional investors. Innovations such as decentralized insurance and automated compliance tools further bolstered confidence in the ecosystem. As traditional banks increasingly explore blockchain for settlement and lending services, the line between centralized and decentralized finance is beginning to blur. In 2025, DeFi’s scalability and innovation are poised to challenge the dominance of legacy financial institutions, creating new opportunities for both consumers and businesses.[8]

Looking Ahead:

The intersection of AI, cybersecurity, digital strategy, and cryptocurrency offers unprecedented opportunities for value creation. However, success will hinge on leaders’ ability to navigate complexity, embrace innovation, foster outstanding leadership, and prioritize ethical stewardship. As these trends continue to evolve, businesses must remain agile and forward-thinking.

About the Author:

Jeremy A. Swenson is a disruptive-thinking security entrepreneur, futurist/researcher, and seasoned senior management tech risk and digital strategy consultant. He is a frequent speaker, published writer, podcaster, and even does some pro bono consulting in these areas. He holds a certificate in Media Technology from Oxford University’s Media Policy Summer Institute, an MSST (Master of Science in Security Technologies) degree from the University of Minnesota’s Technological Leadership Institute, an MBA from Saint Mary’s University of Minnesota, and a BA in political science from the University of Wisconsin Eau Claire. He is an alum of the Federal Reserve Secure Payment Task Force, the Crystal, Robbinsdale, and New Hope Community Police Academy (MN), and the Minneapolis FBI Citizens Academy. You can follow him on LinkedIn and Twitter.

Footnotes:

  1. Smith, J. (2024). “AI’s Business Integration Challenges.” Tech Review.
  2. European Commission. (2024). “AI Act Regulatory Guidelines.” EU Tech Law Journal.
  3. Cybersecurity Ventures. (2024). “The Cost of Cybercrime: Annual Report.”
  4. Quantum Computing Report. (2024). “Quantum Progress and Cryptographic Implications.”
  5. Blockchain Association. (2024). “The Blockchain Beyond Crypto Study.”
  6. World Economic Forum. (2024). “The Future of Work: Digital Upskilling.”
  7. IoT Analytics. (2024). “The AI-IoT Convergence Report.”
  8. DeFi Pulse. (2024). “State of Decentralized Finance.”

Review of the New Link to Windows Application

Fig. 1. Screen Clip of the Link to Windows Application. Microsoft. Fair use Journalistic and AI created, 2025, Jeremy Swenson.

Minneapolis—

In today’s interconnected world, managing tasks across multiple devices has become second nature for many. The Link to Windows application takes this multitasking to the next level, creating a seamless bridge between Android smartphones and Windows PCs. It’s not just about convenience; it’s about enhancing productivity, ensuring security, and even adding a touch of fun to your digital life. Here’s a closer look at what the app offers, how it works, and why it’s worth integrating into your daily routine.

How It Works:

The Link to Windows app is like a personal assistant for your devices, synchronizing your Android smartphone with your Windows PC using a Microsoft account and a Wi-Fi connection.[1] Once paired, the app allows users to access essential phone functions directly from their computer. This includes:

  • Sending and receiving text messages.
  • Managing calls.
  • Accessing mobile apps right on the PC.
  • Viewing and transferring photos.
  • Mirroring notifications in real time.

Samsung and Surface Duo devices, the app is built-in, while others can easily download it from the Google Play Store. On the PC side, it integrates with Microsoft’s Phone Link app, pre-installed on Windows 10 and 11. The setup process is intuitive and guided, ensuring even beginners can start using the app with ease.

Key Benefits:

1. Security: Keeping Your Data Safe

Security is a cornerstone of the Link to Windows experience.

  • End-to-End Encryption ensures that messages and notifications are private and protected from prying eyes.
  • Granular Permissions empower users to decide exactly which features are shared between their devices, offering peace of mind.
  • For professionals, the app’s enterprise-friendly design makes it a great tool for IT-managed systems, maintaining compliance with corporate security standards.
  • Microsoft Account Integration leverages robust authentication protocols, including multi-factor authentication, to secure your data.

2. Convenience: Simplifying Multitasking

Imagine texting with the speed and ease of a full keyboard—that’s just one of the standout features of Link to Windows. Typing messages on your PC eliminates the frustration of small on-screen keyboards and lets you copy-paste content seamlessly between apps. Whether you’re drafting a quick response or multitasking during a meeting, this feature alone is a game-changer. Beyond texting, the app’s convenience extends to:

  • Unified Notifications: No more juggling devices; get all your alerts in one place and respond directly from your computer.
  • Drag-and-Drop File Transfers: Share photos, documents, and other files instantly between your phone and PC.
  • App Streaming: Run Android apps on your PC in a separate window, perfect for accessing mobile-only tools while working on a larger screen.

3. Fun: Enhancing Everyday Life

Link to Windows isn’t all about work—it’s also about fun and personalization.

  • Gaming Fans can play their favorite mobile games on a larger screen with keyboard and mouse controls for better precision.
  • Media Enthusiasts will love the ease of browsing photo galleries or streaming music directly from their phone to their PC.
  • Customization Options let you tailor notification styles and app layouts to match your workflow or personal aesthetic, making the experience uniquely yours.

Competitors in the Market:

While Link to Windows shines as a leader in device integration, it isn’t without competition. Apps like AirDroid and Pushbullet offer similar functionalities, such as file transfers, notifications, and messaging synchronization. However, these competitors often require premium subscriptions to unlock full features, whereas Link to Windows integrates seamlessly and cost-effectively with the Windows ecosystem.

Even Samsung recommends it as their own attempt at it failed: “The DeX for PC on Windows OS will end support from the One UI 7 version. We encourage customers to connect mobile phones and PCs through the Link to Windows feature.”[2]

Additionally, Apple users may point to the Apple Continuity suite, which offers exceptional integration between iOS devices and Macs. Though limited to Apple’s ecosystem, its smooth handoff capabilities, messaging sync, and call management rival those of Link to Windows. For those in mixed-device households, Link to Windows provides a more versatile alternative, particularly for Android-Windows users.

Why It’s Revolutionary:

The magic of Link to Windows lies in its ability to make your devices feel like extensions of one another. Instead of viewing your phone and PC as separate entities, the app integrates them into a single ecosystem. For instance, you can answer a text message on your PC, drag a photo into a PowerPoint slide, and then pick up a call—all without ever touching your phone. This unified experience is not just convenient; it’s empowering.

Room for Improvement:

While the app is a stellar achievement, it does have some room for growth:

  • The initial pairing process can be slightly clunky for non-tech-savvy users.
  • Not all features, such as app streaming, are available on every Android device, which can limit its appeal.
  • Apple users are left out, as there’s no comparable integration for iOS devices, making it a missed opportunity for cross-platform connectivity.

Final Verdict:

The Link to Windows app represents a new era in device integration. It’s a must-have for Android users who rely on Windows PCs, offering unparalleled security, convenience, and even an element of fun. From the ease of sending texts with a full keyboard to the joy of playing mobile games on a larger screen, the app transforms everyday tasks into streamlined experiences.

About the Author:

Jeremy A. Swenson is a disruptive-thinking security entrepreneur, futurist/researcher, and seasoned senior management tech risk and digital strategy consultant. He is a frequent speaker, published writer, podcaster, and even does some pro bono consulting in these areas. He holds a certificate in Media Technology from Oxford University’s Media Policy Summer Institute, an MSST (Master of Science in Security Technologies) degree from the University of Minnesota’s Technological Leadership Institute, an MBA from Saint Mary’s University of Minnesota, and a BA in political science from the University of Wisconsin Eau Claire. He is an alum of the Federal Reserve Secure Payment Task Force, the Crystal, Robbinsdale, and New Hope Community Police Academy (MN), and the Minneapolis FBI Citizens Academy. You can follow him on LinkedIn and Twitter.

References:

[1] Microsoft. “Use Phone Link to Sync Your Android or iPhone”. 12/06/24. https://www.microsoft.com/en-us/windows/sync-across-your-devices?r=1

[2] Bowe, Zac. “Samsung is killing DeX for Windows — suggests Microsoft Phone Link as a replacement”. 12/03/24. https://www.windowscentral.com/software-apps/windows-11/samsung-is-killing-dex-for-windows-suggests-microsoft-phone-link-as-a-replacement

Why You Should Spit Out the Corporate Kool-Aid if You Want Innovation

Fig. 1. The Fallacy of Corporate Kool-Aid, Jeremy Swenson, 2024.

Minneapolis—

Corporate culture often prides itself on “innovation” and “forward-thinking,” yet more often than not, it’s hindered by bias, malignant egos, and groupthink. Ironically, in organizations claiming to embrace innovation, employees can become immersed in an environment where dissent is discouraged, and adherence to the company’s established perspectives is a prerequisite for professional survival. This “corporate Kool-Aid” fosters an atmosphere where true innovation struggles to survive. For those who genuinely want to innovate, shedding these restrictive mindsets is essential.

The Innovation Blockers: Bias, Malignant Egos, and Groupthink:

Biases are deeply embedded in most corporate structures, forming an invisible barrier that subtly yet persistently stifles new ideas. Whether it’s confirmation bias, where decision-makers favor ideas that reinforce their pre-existing beliefs, or status quo bias, which resists significant change, these biases ensure that only certain perspectives are entertained. When an organization prioritizes only safe, incremental improvements, true breakthrough ideas are abandoned. Biases in corporations thus serve as a gatekeeper against ideas that could lead to substantial innovation, as anything that doesn’t fit within the current framework is dismissed as too risky.

Ego also plays a significant role in corporate stagnation. In large corporations, leaders are often incentivized to maintain their status, limiting the emergence of truly groundbreaking ideas that may disrupt existing hierarchies. Malignant egos—those that view challenges to the status quo as personal affronts—tend to quash any idea that questions their own vision. When ego takes precedence over objective evaluation, promising concepts are often sidelined or dismissed outright, limiting the potential for progress.

Perhaps the most insidious blocker of innovation is groupthink, a phenomenon that thrives in environments where conformity is rewarded. Groupthink arises when employees, out of fear of ostracization or in pursuit of consensus, align their ideas with what they believe to be the dominant perspective. This limits a company’s ability to approach problems creatively. Once groupthink takes hold, organizations become less adaptable, focusing on pleasing internal stakeholders instead of exploring unconventional approaches that could lead to innovation.

The Alternative: Start-Ups and Their Blueprint for Innovation:

Unlike large corporations, small start-ups are known for their nimbleness and freedom from these entrenched mindsets. Start-ups, by necessity, must adopt a creative approach to stand out in a competitive market. Their size allows them to quickly adapt, test, and refine ideas based on real-world feedback. They lack the layers of management and rigid protocols that stifle creativity in corporations, allowing them to pivot and re-imagine solutions as challenges arise.

Start-ups encourage dissent and debate rather than penalizing it, knowing that innovation rarely emerges from echo chambers. In these environments, groupthink is less likely to flourish because diverse, disruptive perspectives are often essential to a start-up’s success. Without the burden of malignant egos dominating decision-making, start-ups can remain focused on solving genuine problems instead of adhering to individual agendas.

Another advantage of start-ups is their natural resistance to the biases that pervade larger corporations. Start-ups often draw talent from diverse backgrounds and ideologies, meaning biases are more likely to be challenged and less likely to dictate outcomes. This environment fosters resilience against the conformity that stifles corporate innovation, creating an ecosystem where unique ideas can grow.

Breaking Free: Encouraging Innovation Outside the Corporate Mindset:

For those within corporate structures who still wish to innovate, breaking free from the influence of corporate Kool-Aid requires courage and a willingness to challenge entrenched perspectives. Start by questioning assumptions and biases, both personal and organizational, and by fostering a culture where dissent and debate are embraced rather than discouraged. Encourage cross-departmental collaboration, and resist the urge to fall in line with the dominant viewpoint. Innovation rarely emerges from comfort zones; it thrives in the challenging, often uncomfortable process of questioning and exploring new perspectives.

To truly innovate, corporations must consider restructuring their approach. They could adopt leaner, start-up-like teams with the flexibility to pursue independent projects. They must create a culture where ideas are judged on merit, not on the ego or position of the proposer.

Conclusion:

Innovation and corporate Kool-Aid are often incompatible. The groupthink, biases, and egos prevalent in large organizations act as barriers to breakthrough thinking, driving companies to favor predictability over exploration. By shedding these restrictive mindsets and looking to the adaptable, challenge-embracing cultures of start-ups, those genuinely committed to innovation can find ways to foster creativity, disruption, and genuine progress. In doing so, they have the potential to reshape not only their organizations but also their industries—proving that sometimes, the best way forward is to spit out the Kool-Aid.

About the Author:

Jeremy A. Swenson is a disruptive-thinking security entrepreneur, futurist/researcher, and seasoned senior management tech risk and digital strategy consultant. He is a frequent speaker, published writer, podcaster, and even does some pro bono consulting in these areas. He holds a certificate in Media Technology from Oxford University’s Media Policy Summer Institute, an MSST (Master of Science in Security Technologies) degree from the University of Minnesota’s Technological Leadership Institute, an MBA from Saint Mary’s University of Minnesota, and a BA in political science from the University of Wisconsin Eau Claire. He is an alum of the Federal Reserve Secure Payment Task Force, the Crystal, Robbinsdale, and New Hope Community Police Academy (MN), and the Minneapolis FBI Citizens Academy. You can follow him on LinkedIn and Twitter.

Foreign Threat Actors Amplify Disinformation Ahead of 2024 U.S. Election, Warn FBI and CISA

Minneapolis—

As the 2024 U.S. general election nears, the FBI and CISA have issued a public service announcement to alert the public about foreign disinformation campaigns.[1] These campaigns, led by foreign adversaries, aim to undermine voter confidence by spreading false narratives before, during, and after Election Day. Despite these efforts, the FBI and CISA confirm that there is no evidence of malicious cyber activity compromising U.S. election infrastructure, including voter registration systems, ballots, or vote-counting processes.

Evolving Disinformation Tactics with AI:

The disinformation campaigns have become more sophisticated due to the use of generative AI tools, which allow foreign actors to create convincing fake content, such as AI-generated articles, deepfake videos, and synthetic media.[2] These false narratives are then spread across multiple platforms, both in the U.S. and abroad. By lowering the barrier for creating and distributing disinformation, AI has made it easier for foreign actors to mislead the public and erode trust in the election process.

Disinformation Campaigns from Russia and Iran:

Russia and Iran are identified as the primary foreign actors behind many of these disinformation efforts. Russian operatives have set up AI-enhanced social media bot farms and cybersquatted on domains mimicking legitimate news websites, such as “washingtonpost.pm” and “foxnews.in,” to disseminate propaganda. The DOJ responded by seizing over 30 of these domains and indicting individuals linked to Russian government-controlled media outlets that covertly funded U.S. influence campaigns.

Iran, too, has engaged in similar efforts, with recent DOJ charges against Iranian nationals accused of hacking and leaking U.S. campaign materials to manipulate the election outcome.

Public Recommendations:

To help combat the spread of disinformation, FBI and CISA urge the public to:

  • Educate themselves about foreign influence operations, especially AI-generated content.
  • Rely on trusted sources, such as state and local election officials, to verify election-related claims.
  • Understand AI-generated content by looking for clues that content may be doctored or synthetic.
  • Report suspicious activity or disinformation attempts to the FBI.

Election Security Efforts:

Federal, state, and local authorities are collaborating to safeguard U.S. elections. The FBI investigates election crimes and foreign influence campaigns, while CISA works to secure election infrastructure. Jen Easterly, director of CISA, has reassured voters that the systems are more secure than ever, with robust cybersecurity measures in place, including paper ballot records that verify vote counts in 97% of jurisdictions.

Easterly emphasized that, although foreign adversaries will continue to attempt to influence U.S. elections, they will not be able to alter the final outcome. She also encouraged patience as election results may take time to finalize and urged the public to trust official sources. Being an election judge is not a bad idea either.

Conclusion:

As Election Day approaches, foreign disinformation campaigns remain a threat, but significant efforts have been made to secure the election process. With the support of informed voters and coordinated efforts from election officials, the integrity of U.S. elections can be maintained. We in the private sector need to share and support these efforts, as CISA, and the FBI cannot be everywhere.

About the Author:

Jeremy A. Swenson is a disruptive-thinking security entrepreneur, futurist/researcher, and seasoned senior management tech risk and digital strategy consultant. He is a frequent speaker, published writer, podcaster, and even does some pro bono consulting in these areas. He holds a certificate in Media Technology from Oxford University’s Media Policy Summer Institute, an MSST (Master of Science in Security Technologies) degree from the University of Minnesota’s Technological Leadership Institute, an MBA from Saint Mary’s University of Minnesota, and a BA in political science from the University of Wisconsin Eau Claire. He is an alum of the Federal Reserve Secure Payment Task Force, the Crystal, Robbinsdale, and New Hope Community Police Academy (MN), and the Minneapolis FBI Citizens Academy. You can follow him on LinkedIn and Twitter.

[1] CISA. “FBI and CISA Issue Public Service Announcement Warning of Tactics Foreign Threat Actors are Using to Spread Disinformation in the 2024 U.S. General Election.” 10/18/24. https://www.cisa.gov/news-events/news/fbi-and-cisa-issue-public-service-announcement-warning-tactics-foreign-threat-actors-are-using

[2] CISA. “FBI and CISA Issue Public Service Announcement Warning of Tactics Foreign Threat Actors are Using to Spread Disinformation in the 2024 U.S. General Election.” 10/18/24. https://www.cisa.gov/news-events/news/fbi-and-cisa-issue-public-service-announcement-warning-tactics-foreign-threat-actors-are-using

8 Key AI Trends Driving Business Innovation in 2024 and Beyond

Minneapolis—

Artificial Intelligence (AI) continues to drive massive innovation across industries, reshaping business operations, customer interactions, and cybersecurity landscapes. As AI’s capabilities grow, companies are leveraging key trends to stay competitive and secure. Below are six crucial AI trends transforming businesses today, alongside critical insights on securing AI infrastructure, promoting responsible AI use, and enhancing workforce efficiency in a digital world.

1. Generative AI’s Creative Expansion

Generative AI, known for producing content from text and images to music and 3D models, is expanding its reach into business innovation.[1] AI systems like GPT-4 and DALL·E are being applied across industries to automate creativity, allowing businesses to scale their marketing efforts, design processes, and product innovation.

Business Application: Marketing teams are using generative AI to create personalized, dynamic campaigns across digital platforms. Coca-Cola and Nike, for instance, have employed AI to tailor advertising content to different customer segments, improving engagement and conversion rates. Product designers in industries like fashion and automotive are also using generative models to prototype new designs faster than ever before.

2. AI-Powered Personalization

AI’s ability to analyze vast datasets in real time is driving hyper-personalized experiences for consumers. This trend is especially important in sectors like e-commerce and entertainment, where personalized recommendations significantly impact user engagement and loyalty.

Business Application: Streaming platforms like Netflix and Spotify rely on AI algorithms to provide tailored content recommendations based on users’ preferences, viewing habits, and search history.[2] Retailers like Amazon are also leveraging AI to offer personalized shopping experiences, recommending products based on past purchases and browsing behavior, further boosting customer satisfaction.

3. AI-Driven Automation in Operations

Automation powered by AI is optimizing operations and processes across industries, from manufacturing to customer service. By automating repetitive and manual tasks, businesses are reducing costs, improving efficiency, and reallocating resources to higher-value activities.

Business Application: Tesla and Siemens are implementing AI in robotic process automation (RPA) to streamline production lines and monitor equipment for potential breakdowns. In customer service, AI chatbots and virtual assistants are being used to handle routine inquiries, providing real-time support to customers while freeing human agents to address more complex issues.

4. Securing AI Infrastructure and Development Practices

As AI adoption grows, so does the need for robust security measures to protect AI infrastructure and development processes. AI systems are vulnerable to cyberattacks, data breaches, and unauthorized access, highlighting the importance of securing AI from development to deployment.

Business Application: Organizations are recognizing the importance of securing AI models, data, and networks through multi-layered security frameworks. The U.S. AI Safety Institute Consortium is actively developing guidelines for AI safety and security, including red-teaming and risk management practices, to ensure AI systems are resilient to attacks. DevSecOps needs to be on the front end of this. To address challenges in securing AI, companies are pushing for standardization in AI audits and evaluations, ensuring consistency in security practices across industries.

5. AI in Predictive Analytics and Decision-Making

Predictive analytics, powered by AI, is enabling companies to forecast trends, predict consumer behavior, and make data-driven decisions with greater accuracy. This is particularly valuable in finance, healthcare, and retail, where anticipating demand or market shifts can lead to significant competitive advantages.

Business Application: Financial institutions like JPMorgan Chase are using AI for predictive analytics to evaluate market conditions, identify investment opportunities, and manage risk.[3] Retailers such as Walmart are employing AI to forecast inventory needs, helping to optimize supply chains and reduce waste. Predictive analytics also allows companies to make proactive decisions regarding customer retention and product development.

6. AI for Enhanced Cybersecurity

AI plays an increasingly pivotal role in improving cybersecurity defenses. AI-driven systems are capable of detecting anomalies, identifying potential threats, and responding to attacks in real-time, offering advanced protection for both physical and digital assets.

Business Application: Leading organizations are integrating AI into cybersecurity protocols to automate threat detection and enhance system defenses. IBM’s AI-powered QRadar platform helps companies identify and respond to cyberattacks by analyzing network traffic and detecting unusual activity.[4] AI systems are also improving identity authentication through biometrics, ensuring that only authorized users gain access to sensitive data.

Moreover, businesses are adopting AI governance frameworks to secure their AI infrastructure and ensure ethical deployment. Evaluating risks associated with open- and closed-source AI development allows for transparency and the implementation of tailored security strategies across sectors.

7. Promoting Responsible AI Use and Security Governance

Beyond technical innovation, AI governance and responsible use are paramount to ensure that AI is developed and applied ethically. Promoting responsible AI use means adhering to best practices and security standards to prevent misuse and unintended harm. The NIST AI risk management framework is a good reference for this.[5]

Business Application: Companies are actively developing frameworks that incorporate ethical principles throughout the lifecycle of AI systems. Microsoft and Google are leading initiatives to mitigate bias and ensure transparency in AI algorithms. Governments and private sectors are also collaborating to develop standardized guidelines and security metrics, helping organizations maintain ethical compliance and robust cybersecurity.

8. Enhancing Workforce Efficiency and Skills Development

AI’s role in enhancing workforce efficiency is not limited to automating tasks. AI-driven training and simulations are transforming how organizations develop and retain talent, particularly in cybersecurity, where skilled professionals are in high demand.

Business Application: Companies are investing in AI-driven educational platforms that simulate real-world cybersecurity scenarios, helping employees hone their skills in a dynamic, hands-on environment. These AI-powered platforms allow for personalized learning, adapting to individual skill levels and providing targeted feedback. Additionally, AI is being used to identify skill gaps within teams and recommend tailored training programs, improving workforce readiness for future challenges. Yet, people who are AI capable still need to support these apps and managerial efforts.

Conclusion: AI’s Role in Business and Security Transformation

As AI tools advance rapidly, it’s wise to assume they can access and analyze all publicly available content, including social media posts and articles like this one. While AI can offer valuable insights, organizations must remain vigilant about how these tools interact with one another, ensuring that application-to-application permissions are thoroughly scrutinized. Public-private partnerships, such as InfraGard, need to be strengthened to address these evolving challenges. Not everyone needs to be a journalist, but having the common sense to detect AI- or malware-generated fake news is crucial. It’s equally important to report any AI bias within big tech from perspectives including IT, compliance, media, and security.

Amid the AI hype, organizations should resist the urge to adopt every new tool that comes along. Instead, they should evaluate each AI system or use case based on measurable, real-world outcomes. AI’s rapid evolution is transforming both business operations and cybersecurity practices. Companies that effectively leverage trends like generative AI, predictive analytics, and automation, while prioritizing security and responsible use, will be better positioned to lead in the digital era. Securing AI infrastructure, promoting ethical AI development, and investing in workforce skills are crucial for long-term success.

Cloud infrastructure is another area that will continue to expand quickly, adding complexity to both perimeter security and compliance. Organizations should invest in AI-based cloud solutions and prioritize hiring cloud-trained staff. Diversifying across multiple cloud providers can mitigate risk, promote vendor competition, and ensure employees gain cross-platform expertise.

To navigate this complex landscape, businesses should adopt ethical, innovative, and secure AI strategies. Forming an AI governance committee is essential to managing the unique risks posed by AI, ensuring they aren’t overlooked or mistakenly merged with traditional IT risks. The road ahead holds tremendous potential, and those who proceed with careful consideration and adaptability will lead the way in AI-driven transformation.

About the Author:

Jeremy A. Swenson is a disruptive-thinking security entrepreneur, futurist/researcher, and seasoned senior management tech risk and digital strategy consultant. He is a frequent speaker, published writer, podcaster, and even does some pro bono consulting in these areas. He holds a certificate in Media Technology from Oxford University’s Media Policy Summer Institute, an MSST (Master of Science in Security Technologies) degree from the University of Minnesota’s Technological Leadership Institute, an MBA from Saint Mary’s University of Minnesota, and a BA in political science from the University of Wisconsin Eau Claire. He is an alum of the Federal Reserve Secure Payment Task Force, the Crystal, Robbinsdale, and New Hope Community Police Academy (MN), and the Minneapolis FBI Citizens Academy. You can follow him on LinkedIn and Twitter.

References:

[1] PYMNTS. “AI Sparks a Creative Revolution in Business, With an Unexpected Twist.” 07/19/24. https://www.pymnts.com/artificial-intelligence-2/2024/ai-sparks-a-creative-revolution-in-business-with-an-unexpected-twist/

[2] Josifovski, Vanja. “The Future Of AI-Powered Personalization: The Potential Of Choices.” Forbes. https://www.forbes.com/councils/forbestechcouncil/2023/07/03/the-future-of-ai-powered-personalization-the-potential-of-choices/

[3] Son, Hugh. “JPMorgan Chase is giving its employees an AI assistant powered by ChatGPT maker OpenAI.” 08/09/24. https://www.cnbc.com/2024/08/09/jpmorgan-chase-ai-artificial-intelligence-assistant-chatgpt-openai.html

[4] Culafi, Alexander. “IBM launches AI-powered security offering QRadar Suite.” Tech Target. 04/23/23. https://www.techtarget.com/searchsecurity/news/365535549/IBM-launches-AI-powered-security-offering-QRadar-Suite

[5] NIST. “AI Risk Management Framework.” 07/26/24. https://www.nist.gov/itl/ai-risk-management-framework

Mastercard’s Strategic Cyber, AI, and Blockchain Acquisitions: RiskRecon, CipherTrace, and Recorded Future

Fig. 1. Master Buys Recorded Future Infographic.[1]

Minneapolis—

Mastercard has long been a leader in the payments industry, known for its global network and cutting-edge financial solutions. However, in recent years, Mastercard has expanded its focus beyond traditional payments to include a broader suite of digital security, risk management, and compliance services. This shift is evident in its key acquisitions of RiskRecon, CipherTrace, and Recorded Future, each of which bolsters the company’s position in the fintech and cybersecurity ecosystems. By integrating AI, advanced analytics, blockchain, and enhanced compliance capabilities, Mastercard has emerged as a more competitive and savvy player in today’s rapidly evolving cyber and fintech landscapes.

1. RiskRecon (Acquired in December 2019):[2]

RiskRecon is a cybersecurity firm that specializes in third-party risk assessment. The company uses AI-driven analytics to help businesses understand and manage their cybersecurity exposure by continuously monitoring the cyber risk of vendors and partners.

Acquisition Details:

  • Date: December 2019
  • Cost: Undisclosed, but estimates place it around $150-200 million.
  • Company Size: A relatively small firm but highly influential in cybersecurity monitoring.

Strategic Value:

RiskRecon’s technology allows Mastercard to offer enhanced cyber risk management services to its business customers. The acquisition integrates AI-driven analytics to assess security risk levels, providing organizations with continuous monitoring of third-party systems, enabling early detection of vulnerabilities, and helping to avoid costly breaches.

For Mastercard, integrating RiskRecon offers:

  • Enhanced cybersecurity: Real-time risk assessments ensure the security of financial transactions.
  • Improved compliance: RiskRecon’s platform ensures businesses adhere to international regulations and frameworks for data security.
  • Fraud avoidance: By continuously scanning systems for vulnerabilities, Mastercard helps its customers avoid fraud or breaches stemming from third-party risks.

2. CipherTrace (Acquired in September 2021):[3]

CipherTrace is a blockchain analytics firm that helps organizations monitor and secure cryptocurrency transactions. Given the growing adoption of digital assets, CipherTrace provides tools for detecting fraud, tracing illicit transactions, and ensuring compliance with anti-money laundering (AML) regulations.

Acquisition Details:

  • Date: September 2021
  • Cost: Estimated at $250 million.
  • Company Size: Medium-sized firm with a specific focus on cryptocurrency compliance and fraud detection.

Strategic Value:

The acquisition of CipherTrace positions Mastercard as a key player in the emerging blockchain space. By integrating CipherTrace’s tools, Mastercard is equipped to:

  • Secure cryptocurrency transactions: Provide greater transparency in blockchain activities, reducing the risks of fraud, money laundering, and other illicit activities.
  • Enhance anti-money laundering (AML) compliance: CipherTrace’s tools help organizations comply with strict AML regulations, a significant concern with cryptocurrency.
  • Support blockchain adoption: As cryptocurrency becomes more mainstream, Mastercard ensures its networks are prepared to support digital asset transactions securely.

This acquisition directly ties into Mastercard’s strategy of offering fraud avoidance and enhanced compliance in the evolving digital economy. As blockchain technology continues to mature, Mastercard is well-positioned to support safe and compliant transactions in the cryptocurrency space.

3. Recorded Future (Acquired in Sept 2024):[4]

Recorded Future is an intelligence company specializing in real-time threat intelligence. By using machine learning and AI, Recorded Future aggregates and analyzes data to provide businesses with insights into potential cyber threats before they can cause damage. They currently has more than 1,900 clients, which span 75 countries, according to Mastercard. Those customers include 45 national governments as well as more than half of the companies in the Fortune 100, the payments firm said.

Acquisition Details:

  • Date: Sept 2024
  • Cost: Approximately $2.65 billion. Yet Mastercard was one of the key investors via an equity stake acquired through Insight Partners in 2021.
  • Company Size: Large, globally recognized threat intelligence company.

Strategic Value:

Recorded Future’s AI-driven threat intelligence adds another layer of security to Mastercard’s offerings:

  • Proactive cybersecurity: Recorded Future’s data and analytics can identify emerging threats before they impact Mastercard’s networks or those of its partners.
  • Advanced analytics and AI: Mastercard gains access to an enormous database of threat indicators, allowing the company to leverage AI to detect patterns and anticipate future threats.
  • Fraud prevention: Real-time threat intelligence makes it easier to stop fraud before it happens, protecting customers from financial loss.

By incorporating Recorded Future’s threat intelligence capabilities, Mastercard is enhancing its ability to prevent cyberattacks and protect the integrity of its global payments infrastructure.

Comparing Mastercard to Visa and American Express:

Mastercard’s acquisitions of RiskRecon, CipherTrace, and Recorded Future have significantly differentiated it from competitors like Visa and American Express.

  • Visa has also invested heavily in cybersecurity and compliance but lacks the comprehensive focus on third-party risk management (RiskRecon) and blockchain analytics (CipherTrace) that Mastercard now possesses. While Visa has ventured into cryptocurrency through partnerships and blockchain experimentation, it hasn’t yet integrated a firm like CipherTrace, which is critical for cryptocurrency compliance and fraud detection.
  • American Express, while focused on fraud prevention and customer experience, hasn’t made as aggressive a push into the cybersecurity and blockchain spaces as Mastercard. Amex remains a leader in traditional fraud detection and financial services but lacks the AI-driven intelligence and blockchain transparency that Mastercard has through Recorded Future and CipherTrace.

Mastercard’s comprehensive approach, combining cybersecurity (RiskRecon and Recorded Future), blockchain analytics (CipherTrace), and AI-enhanced threat intelligence, puts it ahead of both Visa and American Express in terms of securing digital transactions and ensuring regulatory compliance.

Conclusion—A Well-Rounded Competitive Advantage:

In today’s fintech landscape, the convergence of cybersecurity, compliance, AI, and blockchain is crucial for payment processors to remain competitive. Mastercard’s strategic acquisitions of RiskRecon, CipherTrace, and Recorded Future provide a holistic solution to the growing challenges of cyber threats, cryptocurrency fraud, and AML compliance. These moves not only strengthen Mastercard’s existing payment network but also position the company as a leader in digital security.

By diversifying its portfolio and incorporating advanced technologies, Mastercard has gained an edge over competitors like Visa and American Express, especially in the areas of fraud avoidance, enhanced compliance, and cryptocurrency security. This forward-thinking approach ensures that Mastercard remains at the forefront of the financial industry, well-prepared for the future of digital payments and the ongoing battle against cybercrime.

About the Author:

Jeremy A. Swenson is a disruptive-thinking security entrepreneur, futurist/researcher, and seasoned senior management tech risk and digital strategy consultant. He is a frequent speaker, published writer, podcaster, and even does some pro bono consulting in these areas. He holds a certificate in Media Technology from Oxford University’s Media Policy Summer Institute, an MSST (Master of Science in Security Technologies) degree from the University of Minnesota’s Technological Leadership Institute, an MBA from Saint Mary’s University of Minnesota, and a BA in political science from the University of Wisconsin Eau Claire. He is an alum of the Federal Reserve Secure Payment Task Force, the Crystal, Robbinsdale, and New Hope Community Police Academy (MN), and the Minneapolis FBI Citizens Academy. You can follow him on LinkedIn and Twitter.

References:

[1] N, Balaji. “Mastercard Buys Recorded Future for $2.65 Billion.” 09/12/24. https://cybersecuritynews.com/mastercard-buys-recorded-future/

[2] Miller, Ron. “Mastercard acquires security assessment startup, RiskRecon.” Techcrunch. 12/23/19. https://techcrunch.com/2019/12/23/mastercard-acquires-security-assessment-startup-riskrecon/

[3] Mastercard. “Mastercard acquires CipherTrace to enhance crypto capabilities.” 09/01/24. https://www.mastercard.com/news/press/2021/september/mastercard-acquires-ciphertrace-to-enhance-crypto-capabilities/

[4] Alspach, Kyle. “5 Things To Know About Mastercard Acquiring Recorded Future”. CRN. 09/13/24. https://www.crn.com/news/security/2024/5-things-to-know-about-mastercard-acquiring-recorded-future

Navigating the Future of Media, Law, and AI: Reflections on the 2024 Oxford Media Policy Summer Institute

Fig 1. Jeremy Swenson at the 2024 Oxford Media Policy Summer Institute, 2024.

#medialaw #oxford #mediaethics #airegulation #aipolicy #techethics #oversightboard #techrisk. #web3 #blockchain #techcensorship #contentmoderation Oxford Media Policy Summer Institute Centre for Socio-Legal Studies, University of Oxford Faculty of Law, University of Oxford

Minneapolis—

The Oxford Media Policy Summer Institute[1], held annually for over twenty-five years in person in Oxford, UK, is a prestigious program that unites leading communications scholars, media lawyers, regulators, human rights activists, technologists, and policymakers from around the globe. As an integral part of Oxford’s Centre for Socio-Legal Studies and the Faculty of Law, specifically through the Program in Comparative Media Law and Policy (PCMLP), the Institute fosters a global and multidisciplinary understanding of the complex relationships between technology, media, and policy. It aims to broaden the pool of talented scholars and practitioners, connect them to elite professionals, facilitate interdisciplinary dialogue, and build a space for future collaborations. With over 40 participants from more than 20 countries, the Institute provides an unparalleled opportunity to engage with diverse experiences and media environments. Its alumni network, comprising leaders in government, corporations, non-profits, and academia, remains vibrant and collaborative long after the program concludes.

Reflecting on my completion of the 2024 Oxford Media Policy Summer Institute, I am struck by the depth of knowledge I gained, particularly in the areas of media, tech and diversity, and AI policy. One of the most enlightening discussions revolved around the EU’s approach to regulating platforms like Facebook, Twitter, and Google. The EU has been at the forefront of creating frameworks that balance the need for free expression with the imperative to curb harmful content. I learned about the evolving regulatory landscape, including the Digital Services Act (DSA)—which addresses content moderation, online targeted advertising, and the configuration of online interfaces and recommender systems; and the Online Safety Bill—which seeks to hold tech giants accountable for the content on their platforms. These discussions highlighted the increasing importance of the “Fifth Estate,” a concept coined by William H. Dutton, referring to the networked individuals who, through the Internet, are empowering themselves in ways that challenge the control of information by traditional institutions.[2] The EU’s policies aim to regulate this new power dynamic while protecting vulnerable users and ensuring transparency and accountability.

Fig. 2. The 2024 Cohort of the Oxford Media Policy Summer Institute, 2024.

The Institute also provided invaluable insights into AI types, elections, and content moderation in the Global South. The discussions on the Global South’s technological maturity and policy governance revealed significant gaps in infrastructure, regulation, and policy. These challenges are evident in cases of internet censorship and shutdowns during political unrest, as well as instances of election manipulation. However, I also learned about innovative approaches being developed across the continent, which could serve as models for other regions. One such approach is a proposed third-wave model of tech governance that emphasizes local context, community involvement, and adaptive regulation.[3] This model would be more responsive to the unique challenges faced by countries in the Global South, including the need to balance development goals with the protection of human rights, ensuring they are not overpowered by the tech giants, which are primarily U.S.-based. This new model aligns with the idea of the Fifth Estate, as it seeks to empower local communities and their digital influence.

A particularly compelling aspect of the Institute was the examination of Meta’s Oversight Board and its role in protecting human rights amid global tech acceleration.[4] The Oversight Board represents a novel approach to content moderation, offering a degree of independence and transparency that is rare among tech companies. However, the discussions also highlighted the challenges the Board faces, including its limited jurisdiction and the broader question of how to ensure that human rights are upheld in an era of rapid technological change. Then there is the question of if it’s funded by Meta how can it be truly independent?

The need for stronger international frameworks and greater cooperation among stakeholders was a recurring theme, underscoring the importance of global collaboration in addressing these challenges. The Fifth Estate plays a critical role here as well, as the collective influence of networked individuals and organizations can push for greater accountability and human rights protections in the digital age.

Fig. 3. One of many group discussions, 2024.

The issue of foreign information manipulation, particularly disinformation campaigns designed to interfere with elections, was another critical topic. The example of Russia’s interference in U.S. and Ukrainian elections served as a stark reminder of the power of disinformation in destabilizing democracies.[5] The discussions at the Institute underscored the need for robust strategies to counter such threats, including better coordination between governments, tech companies, and civil society. Cybersecurity emerged as a key area of focus, particularly in ensuring the integrity of information in an age where AI is increasingly used to create and spread false narratives.

The role of the U.S. Federal Communications Commission (FCC) in shaping the future of AI and media policy was also a major point of discussion.[6] I gained a deeper understanding of the FCC’s mandate, particularly its focus on ensuring fair competition, protecting consumers, and promoting innovation. The FCC’s approach to AI reflects cautious optimism, recognizing the potential benefits of AI while also acknowledging the need for regulation to prevent abuses. The discussions highlighted the importance of balancing innovation with the need to protect the public from potential harms, particularly in areas such as privacy and data security.

Finally, the Institute emphasized the critical role of cybersecurity in maintaining information trust, especially against the backdrop of emerging AI technologies, which I detailed in my presentation (Fig 4). This included an overview of both the new NIST Cyber Security Framework (CSF) 2.0, which includes governance, and the NIST AI Risk Management Framework (RMF)—its lifecycle swim lanes with a description of the inputs and outputs. As AI becomes more sophisticated, the potential for malicious use grows, making cybersecurity a vital component of any strategy to protect information integrity. The discussions reinforced the idea that cybersecurity must be integrated into all aspects of tech policy, from content moderation to data protection, to ensure that AI is used responsibly.

Fig 4. Jeremy Swenson Presenting Eight Artificial Intelligence (AI) Cyber-Tech Observations, 2024.

In conclusion, my experience at the 2024 Oxford Media Policy Summer Institute was truly impactful. It underscored the significance of inclusivity, collaborative technological innovation, and the vital role of private sector competition in advancing progress. The recurring focus on the growth of the Global South’s tech economy emphasized the need for adaptable and locally tailored regulatory frameworks. As AI continues to develop, the urgency for comprehensive regulation and risk management frameworks is becoming increasingly evident. However, in many areas, it is still too early for definitive solutions, highlighting the necessity for ongoing research and learning.

There is a clear need for independent entities to provide checks and balances on big tech, with the Facebook Oversight Board serving as a promising start, though much more remains to be done. The strength and independence of journalism and free speech are undermined if they are weakened by misinformed platforms or overreaching governments. Network shutdowns and censorship should be rare, thoroughly justified, and subject to transparent auditing. The Institute has provided me with knowledge of the key stakeholders and their dependencies and levels of regulation. Importantly, I obtained key connections across the globe to engage meaningfully in these critical discussions, and I am eager to apply these insights in my future endeavors, be it a tech start-up, writing, or business advisory.

Last but not least, a big thanks to my esteemed fellow classmates this year. I could not have done it so well without all of you; thanks and much respect!

Ashwini Natesan for always correctly offering the Sri Lankan perspective. Martin Fertmann for shedding light on social media oversight. Erik Longo for offering insight on the DSA and related cyber risk. Davor Ljubenkov for the emerging tech and automation insight.Carolyn Khoo for insight on ‘The Korean Wave’. Purevsuren Boldkhuyag for the Asian legal and communication insight. Elena Perotti for the on-point public policy insight. Brandie Lustbader for winning a key legal issue and setting the example of justice and free speech in media. Jan Tancinco for the great insight on video and digital content strategy and innovation with the Prince reference! Thorin Bristow for your great article “Views on AI aren’t binary – they’re plural”. Eirliani Abdul Rahman for your insight on social media and digital AI from many orgs. Hafidz Hakimi ,Ph.D for the Malaysian legal perspective. Vinti Agarwal for the Indian legal view of e-sports/gaming. Numa Dhamani for your insight on AI, tech, and book writing. Bastian Scibbe for your insight on data protection and digital rights. John Okande for the Kenyan perspective on tech governance and policy. Ivana Bjelic Vucinic for the insight on the Global Forum for Media Development (GFMD). Ibrahim Sabra for insight on digital expression and social justice. Mesfin Fikre Woldmariam for the Ethiopian perspective on tech governance and free speech. Katie Mellinger for the FCC knowledge. Margareth Kang for the Brazilian tech public policy insight. Luise Eder for helping organize and lead all of this among a bunch of crafty intellectuals. Nicole Stremlau for leading such a diverse and important agenda at a time when it is so relevant. Thanks to everyone else as well.

About the Author:

Jeremy Swenson is a disruptive-thinking security entrepreneur, futurist/researcher, and senior management tech risk consultant. He is a frequent speaker, published writer, podcaster, and even does some pro bono consulting in these areas. He holds a certificate in Media Tech Policy from Oxford University. He holds an MBA from St. Mary’s University of MN, an MSST (Master of Science in Security Technologies) degree from the University of Minnesota, and a BA in political science from the University of Wisconsin Eau Claire. He is an alum of the Federal Reserve Secure Payment Task Force, the Crystal, Robbinsdale and New Hope Citizens Police Academy, and the Minneapolis FBI Citizens Academy.

References:

[1] University of Oxford. “Oxford Media Policy Summer Institute”. 2024. https://pcmlp.socleg.ox.ac.uk/oxford-media-policy-summer-institute-2024/

[2] Dutton, William. “The fifth estate: the power shift of the digital age.” Oxford University Press. 2023. https://www.tandfonline.com/doi/full/10.1080/1369118X.2024.2343811

[3] Flew, T., & Lin, F. “The third way of global Internet governance: A dialogue with Terry Flew.” Communication and the Public, 7(3). 2022. https://journals.sagepub.com/doi/full/10.1177/20570473221123150

[4] Meta. “The Oversight Board”. 2024. https://www.oversightboard.com/

[5] Tucker, Eric. “US disrupts Russian government-backed disinformation campaign that relied on AI technology”. AP. 2024. https://apnews.com/article/russia-disinformation-fbi-justice-department-50910729878377c0bf64a916983dbe44

[6] FCC. “The Opportunities and Challenges of Artificial Intelligence for Communications Networks and Consumers.” 2023. https://www.fcc.gov/fcc-nsf-ai-workshop

The Synergy of Art and Technology: Innovation Through Music

Fig. 1. Explore the landscape of AI-Generated Music. Todd S Omohundro, 2024.

Art and technology, though seemingly different realms, have consistently converged to drive groundbreaking innovations. When these two domains intersect, they enhance each other’s potential, creating new pathways for expression, communication, and progress. Music, a quintessential form of art, has particularly benefited from technological advancements, leading to transformative changes in how music is created, distributed, and experienced. This essay explores the importance of the symbiotic relationship between art and technology in music, highlights pioneering musicians who have embraced technology, and outlines the steps to innovation in this fusion, including the significant financial and business impacts of technologies like streaming.

The Convergence of Art and Technology in Music

Music and technology have been intertwined since the earliest days of instrument development. From the invention of the piano to the electric guitar, technological advancements have continually expanded the boundaries of musical expression. In the modern era, digital technology has revolutionized music production, distribution, and consumption.

The importance of this convergence lies in its ability to democratize music creation and distribution. Technology enables musicians to produce high-quality recordings without the need for expensive studio time, distribute their music globally via digital platforms, and interact with their audience in real-time through social media. This democratization has not only increased the diversity of music available but has also given rise to new genres and forms of expression that were previously unimaginable.

Pioneering Musicians in Technology

Several musicians have stood out as pioneers in integrating technology into their art, pushing the boundaries of what is possible in music.

  1. Brian Eno: Often regarded as the godfather of ambient music, Brian Eno’s work in the 1970s with synthesizers and tape machines laid the foundation for electronic music. His innovations in the use of the studio as an instrument and his development of generative music, which uses algorithms to create ever-changing compositions, have had a lasting impact on the music industry.
  2. Björk: Icelandic artist Björk is renowned for her avant-garde approach to music and technology. Her 2011 album “Biophilia” was released as a series of interactive apps, each corresponding to a different track. This innovative format allowed listeners to explore the music through visual and tactile interaction, blending auditory and digital experiences.
  3. Imogen Heap: British musician Imogen Heap has been at the forefront of music technology with her development of the Mi.Mu gloves. These wearable controllers allow musicians to manipulate sound and effects through hand gestures, providing a new way to perform and interact with music.
  4. Prince: Prince was a visionary who seamlessly integrated technology into his music. He was one of the first major artists to sell an album (1997’s “Crystal Ball”) directly to fans via the internet, bypassing traditional distribution channels. Prince’s use of digital recording techniques and electronic instruments in his music, along with his pioneering approach to online music distribution, showcased his forward-thinking approach to the convergence of music and technology.
  5. Billy Corgan: As the frontman of The Smashing Pumpkins, Billy Corgan has been an advocate for technological advancements in music. He embraced the digital recording revolution early on and has continually pushed the boundaries of what can be achieved in the studio. His use of layered guitars and innovative recording techniques has influenced countless artists and producers.

Financial and Business Impacts of Music Technology

The fusion of music and technology has not only transformed artistic expression but has also had significant financial and business impacts. The advent of digital streaming platforms like Spotify, Apple Music, and Tidal has revolutionized the music industry’s economic model.

  1. Revenue Streams: Streaming has created new revenue streams for artists, labels, and tech companies. While physical album sales have declined, the revenue from streaming subscriptions and ad-supported models has surged, offering artists new ways to monetize their work.
  2. Global Reach: Technology has enabled artists to reach global audiences instantly. Musicians can now distribute their music worldwide with a single click, breaking down geographical barriers and allowing for a more diverse and inclusive music industry.
  3. Data Analytics: Streaming platforms provide valuable data analytics to artists and labels, offering insights into listener behavior, preferences, and trends. This information helps musicians make informed decisions about marketing, touring, and production.
  4. Direct-to-Fan Engagement: Social media and other digital tools allow artists to engage directly with their fans, fostering a more personal connection and enabling innovative marketing strategies. Crowdfunding platforms like Kickstarter and Patreon have also emerged, allowing fans to directly support their favorite artists’ projects.

Steps to Innovation in Music Technology

Innovation at the intersection of music and technology follows several key steps:

  1. Identification of a Need or Opportunity: Innovation begins with recognizing a gap or potential for improvement. For instance, the traditional music industry’s limitations in distribution and production led to the development of digital audio workstations (DAWs) and streaming platforms.
  2. Research and Development: This step involves exploring existing technologies and experimenting with new ideas. Musicians like Brian Eno experimented with tape loops and synthesizers to create new sounds, while modern artists might explore artificial intelligence to compose music.
  3. Implementation and Dissemination: Once a viable innovation is developed, it must be implemented and shared with the broader community. Digital platforms like SoundCloud and Bandcamp have been instrumental in distributing new music technologies and innovations.
  4. Feedback and Iteration: Continuous improvement based on feedback is essential. As technology evolves, so too must the tools and methods used by musicians. This iterative process ensures that innovations remain relevant and effective.
  5. Collaboration: Innovation often requires interdisciplinary collaboration. Musicians work with software developers, engineers, and designers to create new instruments, applications, and performance tools. Björk’s “Biophilia” project, for example, involved collaboration with app developers, designers, and scientists.
  6. Prototyping and Testing: Creating prototypes and testing them in real-world scenarios is crucial. Imogen Heap’s development of the Mi.Mu gloves involved numerous iterations and live performance testing to refine the technology.

Conclusion

The fusion of art and technology, particularly in music, has led to profound innovations that have reshaped the landscape of the industry. Pioneering musicians like Brian Eno, Björk, Imogen Heap, Billy Corgan, and Prince have not only expanded the boundaries of musical expression but have also democratized the creation and distribution of music. The integration of technology in music production and distribution has had significant financial and business impacts, revolutionizing revenue streams, global reach, data analytics, and fan engagement. By following a structured approach to innovation, which includes identifying opportunities, research and development, collaboration, prototyping, implementation, and iteration, artists can continue to push the envelope and create transformative experiences. As technology continues to evolve, the potential for new and exciting innovations in music is boundless, promising a future where the synergy of art and technology will continue to inspire and amaze.

About the Author:

Jeremy Swenson is a disruptive-thinking security entrepreneur, futurist/researcher, and senior management tech risk consultant. He is a frequent speaker, published writer, podcaster, and even does some pro bono consulting in these areas. He holds an MBA from St. Mary’s University of MN, an MSST (Master of Science in Security Technologies) degree from the University of Minnesota, and a BA in political science from the University of Wisconsin Eau Claire. He is an alum of the Federal Reserve Secure Payment Task Force, the Crystal, Robbinsdale and New Hope Citizens Police Academy, and the Minneapolis FBI Citizens Academy.