Visa to Acquire BioCatch for $2.4 Billion to Combat AI-Powered Scams

Visa to buy fraud intelligence provider BioCatch for $2.4 billion

Aug 3 (Reuters) - Visa (V.N), opens new tab said on Monday it would buy fraud intelligence provider BioCatch for $2.4 billion in cash, as the card giant looks to beef up its cybersecurity offerings. The company said the deal would ⁠further bolster its existing cyber, fraud, risk and security offerings and enable it to help clients better protect themselves. "Account takeovers and scams cost the global economy over $1 trillion annually and AI is ⁠enabling these attacks at unprecedented scale," said Andrew Torre, president of value-added services, Visa. "BioCatch will help ⁠our clients stop fraud before it reaches the point of payment." The transaction ⁠is expected to close by the end of Visa's ⁠fiscal second quarter of 2027. Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Joyjeet Das Our Standards: The Thomson Reuters Trust Principles., opens new tab

Visa to buy cybersecurity firm BioCatch for $2.4 billion amid surge in AI-powered scams

The transaction will bolster Visa's value-added services division as the payments giant expands beyond traditional transaction fees. Visa on Monday said it is acquiring fraud detection startup BioCatch for $2.4 billion in cash, expanding the payment giant's push into cybersecurity as banks confront a surge in artificial intelligence-powered scams and account takeovers. Under the deal, Visa will get BioCatch's behavioral biometrics platform, which analyzes data including keystroke timing, touch screen pressure and other signals to distinguish real users from scammers and bots. Visa said it is acquiring the firm from London-based private equity firm Permira and other investors. The acquisition underscores how payments companies are racing to strengthen fraud defenses as generative AI makes attacks cheaper, faster and more convincing. Visa estimates that scams and account takeovers cost the global economy more than $1 trillion annually. It is also the latest move by Visa to expand its value-added services business, which sells fraud prevention, cybersecurity and analytics software to financial institutions and has become one of the company's fastest-growing divisions. "BioCatch will help our clients stop fraud before it reaches the point of payment," Andrew Torre, Visa's president of value-added services, said in a statement. The acquisition is expected to close by the end of Visa's fiscal second quarter in 2027, subject to regulatory approvals. Other financial terms weren't disclosed. While the Israeli startup said it currently protects 760 million users across roughly 350 banks, Visa's global rails connect nearly 14,500 financial institutions, processing over 329 billion transactions annually worth more than $17 trillion. In a blog post accompanying the announcement, BioCatch said joining Visa will allow it to scale its impact amid a rising tide of global fraud. "The reality is, as a society and industry, we are not winning this fight," the firm said. "The value of fraud and scam losses and the number of fraud and scam attempts, mule accounts, and victims of these financial crimes all continue to grow (in some cases, exponentially) every year, all around the world."

Visa to acquire fraud detection firm BioCatch for $2.4 billion

BioCatch identifies fraud by monitoring behavioral cues -- including how users type, swipe, and hold their devices -- to tell genuine account holders apart from bad actors as transactions occur. Its customer base spans more than 350 banks in 21 countries -- among them over 100 of the world's biggest financial institutions -- with coverage extending to 1.8 billion devices and 760 million individual users. Its AI and machine-learning models collect more than 3,000 anonymized data points per session, analyzing 19 billion user sessions per month.

Visa agrees $2.4 billion deal to acquire BioCatch

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community. BioCatch operates a suite of AI and mahcine learning products that analyse thousands of application, behavioral, device, and network signals -- such as keystrokes, touch gestures, and device handling -- to detect fraud and distinguish legitimate users from fraudsters in real time. The company protects 1.8 billion devices and 760 million users around the world, serving more than 350 banking clients in 21 different countries, including more than 100 of the largest banks globally. Gadi Mazor, CEO, BioCatch, says: "For more than a decade, we've demonstrated behavior's unique ability to distinguish the criminal from the legitimate. In the last couple of years, we've shown how real-time intelligence-sharing networks between our customers can amplify the power of our behavioral intelligence further still." Over the last five years, Visa has invested more than $13 billion in technology and infrastructure to combat escalating levels of payment fraud. Andrew Torre, president of value-added services, Visa, comments: "Account takeovers and scams cost the global economy over $1 trillion annually and AI is enabling these attacks at unprecedented scale. BioCatch will help our clients stop fraud before it reaches the point of payment. This acquisition is part of our strategy to help clients prevent cyber threats upstream, building trust into every transaction."

Visa beefs up cybersecurity offerings with $2.4 billion BioCatch deal

Visa is acquiring fraud intelligence provider BioCatch for $2.4 billion. This acquisition aims to significantly bolster Visa's cybersecurity and fraud prevention capabilities. BioCatch analyses user signals to detect fraudulent activities in real time. The deal is expected to finalize by Visa's fiscal second quarter of 2027. This move reflects a broader industry trend of card giants investing in security. Visa said on Monday it would buy fraud intelligence provider BioCatch for $2.4 billion in cash from investment firm Permira and other investors, marking the card giant's latest effort to beef up its cybersecurity offerings. The deal would help the world's largest payment processor further ⁠bolster its ⁠existing cyber, fraud, risk and security offerings and enable it to help clients better protect themselves in an increasingly complex threat environment, Visa said. "Account takeovers and scams cost the global economy over $1 trillion annually and AI is enabling these attacks at unprecedented scale. BioCatch will help our ⁠clients stop fraud before it reaches the point of payment," said Andrew Torre, president of value-added services ⁠at Visa. Founded in 2011, BioCatch helps detect fraud and distinguish legitimate users from fraudsters in real time by analyzing signals such as keystrokes, touch gestures and device handling. The firm serves more than 350 banking clients in 21 countries and offers protection to 1.8 billion devices and 760 million users around the world. Card giants have increasingly turned to acquisitions to bolster their fraud prevention offerings in recent years. Mastercard finalized a $2.65 billion acquisition of ⁠threat intelligence company Recorded Future in 2024, while Visa bought payments protection firm Featurespace the same year. Over the last five years, Visa has invested more than $13 billion in technology and infrastructure to tackle fraudsters. The BioCatch deal is expected to close by the end of Visa's fiscal second quarter of 2027.

Visa to Buy Fraud Defense Platform BioCatch in $2.4 Billion Deal

Visa is acquiring BioCatch, a fraud-reduction platform, for $2.4 billion in cash. Visa is buying the Israeli company from funds advised by Permira, as well as other shareholders, the company said Monday. BioCatch uses artificial intelligence to detect fraud and distinguish legitimate users from attackers in real time. The company protects 1.8 billion devices and 760 million users globally. Visa has been increasing its use of AI to fight fraud through its Visa Vulnerability Agentic Harness platform, a tool designed to help clients identify and fix vulnerabilities to fraud. Visa has spent $13 billion in fraud technology and infrastructure over the past five years. "BioCatch will help our clients stop fraud before it reaches the point of payment," said Andrew Torre, Visa's president of value-added services. The deal is expected to close by the end of Visa's fiscal second quarter of 2027.