Visa to Acquire BioCatch for $2.4B as AI-Powered Scams Cost Global Economy Over $1 Trillion

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 is buying BioCatch for $2.4 billion because AI scams now cost the global economy $1 trillion a year

Visa is acquiring BioCatch for $2.4B cash from Permira. BioCatch uses behavioral biometrics to catch fraud before payment. Visa estimates scams cost $1T/year globally. 760M users, 350 banks. Visa is acquiring Tel Aviv-based fraud detection startup BioCatch for $2.4 billion in cash from private equity firm Permira and other investors. BioCatch's platform analyses keystroke timing, touchscreen pressure, swipe patterns, and device handling to distinguish real users from scammers and bots. The company currently protects 760 million users across roughly 350 banks. Visa processes over 329 billion transactions annually worth more than $17 trillion. Visa estimates that scams and account takeovers cost the global economy more than $1 trillion annually, and generative AI is making attacks cheaper and more convincing. "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 acquisition expands Visa's value-added services division, which sells fraud prevention, cybersecurity, and analytics software and has become one of the company's fastest-growing businesses. BioCatch acknowledged the scale of the problem in a blog post: "As a society and industry, we are not winning this fight. 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." Deepfake-enabled fraud has risen 3,000% since 2023, and behavioral biometrics, which verify identity by how someone interacts with a device rather than what they know or possess, is one of the few defences that scales against AI-generated attacks. The deal is expected to close by the end of Visa's fiscal second quarter in 2027, subject to regulatory approvals. Straiker raised $64M for agentic AI security, and the broader security market is consolidating around the premise that AI-powered offence requires AI-powered defence. Visa's $2.4 billion is the largest bet yet that fraud prevention belongs inside the payment rail, not beside it.

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 to boost cybersecurity efforts with $2.4bn BioCatch acquisition

Visa's Andrew Torre claimed the acquisition will enable the organisation to better identify fraud before it impacts consumers at the point of payment. Payment platform Visa has stated it plans to acquire Israel-based cybersecurity company BioCatch as a means of tackling cybersecurity breaches and AI-powered attacks. Andrew Torre, the president of value-added services at Visa, said the $2.4bn cash acquisition will enable Visa's clients to prevent fraudulent activity before it reaches a point of payment. Established in Tel Aviv in 2011 by Avi Turgemen, Benny Rosenbaum and Uri Rivner, BioCatch aims to detect fraud and differentiate legitimate users from fraudulent users in real time by analysing signals. The organisation has offices in Tel Aviv, London, New York, São Paulo, Mexico City, Mumbai and Sydney. Reportedly, as part of the acquisition, Visa will gain access to BioCatch's biometrics platform, which can analyse identifying data such as keystroke timing, touch screen pressure and other signals used to distinguish real users from fake. In a public statement, BioCatch's CEO Gadi Mazor said, "Real-time insights into customer intent continue to grow increasingly essential for institutions to establish trust within digital banking sessions. 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. Together with Visa, we're even better positioned to advance our mission of making the world a safer place to transact and protect consumers from financial crime." AI-powered cyberattacks are becoming an increasingly concerning issue for organisations. In late July, chipmaker Nvidia formed an alliance with other companies in the technology space, in order to develop and share tools designed for enhanced AI safety and cybersecurity. The Open Secure AI Alliance's founding members include Adobe, Crowdstrike, Hugging Face and Dell Technologies, among others. Visa's deal will be subject to the traditional closing conditions, including receipt of applicable regulatory approvals and is expected to close by the end of Visa's fiscal second quarter of 2027. Don't miss out on the knowledge you need to succeed. Sign up for the Daily Brief, Silicon Republic's digest of need-to-know sci-tech news.

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 Buys BioCatch for $2.4 Billion to Fight AI Fraud - Visa (NYSE:V)

The acquisition will add BioCatch's behavioral intelligence technology to Visa's existing security, fraud and risk management offerings. The company said the deal will help financial institutions detect scams, account takeovers, money mule activity and application fraud before payments are made. Visa reported $13.9 billion in combined cash, cash equivalents, and investment securities as of June 30, 2026. AI Fraud Detection Expansion BioCatch uses artificial intelligence and machine learning to analyze thousands of behavioral, device and network signals, including keystrokes, touch gestures and device interactions, to distinguish legitimate users from fraudsters in real time. The company serves more than 350 banking clients across 21 countries, including over 100 of the world's largest banks. Its platform protects more than 760 million users across 1.8 billion devices. Visa President of Value-Added Services Andrew Torre said account takeovers and scams cost the global economy more than $1 trillion annually, while AI is making such attacks more sophisticated and scalable. He said the acquisition supports Visa's strategy of stopping fraud earlier in the payment process. Building a Broader Security Platform The acquisition expands Visa's broader cybersecurity portfolio, which includes AI-based authentication, identity verification and fraud prevention tools. The company said it has invested more than $13 billion in technology and infrastructure over the past five years to strengthen payment security and reduce fraud. BioCatch CEO Gadi Mazor said combining the companies' capabilities will enhance real-time fraud detection and help protect consumers from financial crime. The transaction remains subject to customary closing conditions, including regulatory approvals. Visa expects the deal to close by the end of its fiscal second quarter of 2027. Visa Price Action V Price Action: Visa shares were down 0.34% at $364.89 at the time of publication on Monday, according to Benzinga Pro data. Photo via Shutterstock Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

Visa signs $2.4 billion deal to acquire Israeli anti-fraud firm BioCatch

Visa signed a definitive agreement on Monday to acquire Tel Aviv-based anti-fraud company BioCatch for $2.4 billion in cash, adding the Israeli firm to its network of cybersecurity, risk-management and payment-security solutions. BioCatch serves more than 350 financial institutions in 21 countries, protecting 760 million users and 1.8 billion devices. Its artificial intelligence and machine-learning systems analyze more than 3,000 anonymized data points to identify suspicious activity, supporting the wider use of AI-based fraud prevention in digital payments. "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. This acquisition is part of our strategy to help clients prevent cyber threats upstream while continuing to protect transactions as they occur, building trust into every transaction," he added. Visa said it has invested more than $13 billion in technology and infrastructure over the past five years to protect the payments ecosystem. The deal also reflects growing demand for real-time fraud detection across financial services. The transaction is expected to close by the end of Visa's fiscal second quarter of 2027, subject to regulatory approvals and other customary closing conditions. The planned purchase follows a year of record Israeli cybersecurity exits and other major transactions, including Google's acquisition of Wiz. BioCatch seeks to strengthen trust in digital banking "Real-time insights into customer intent continue to grow increasingly essential for institutions to establish trust within digital banking sessions," BioCatch CEO Gadi Mazor said. "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," he added. "Together with Visa, we're even better positioned to advance our mission of making the world a safer place to transact and protect consumers from financial crime."

Visa Inks $2.4 Billion Deal to Acquire Fraud Prevention Firm BioCatch | PYMNTS.com

The all-cash deal, announced Monday (Aug. 3) aims to complement Visa's cyber, fraud, risk and security solutions and help clients protect themselves and customers from a growing range of fraud-related threats. "Account takeovers and scams cost the global economy over $1 trillion annually and AI is enabling these attacks at unprecedented scale," Andrew Torre, president of value-added services, Visa, said in a news release. "BioCatch will help our clients stop fraud before it reaches the point of payment." BioCatch does this, the release added, via artificial intelligence (AI) and machine learning-based solutions that analyze thousands of application, behavioral, device, and network signals like keystrokes and device handling to separate legitimate users from fraudsters. The company said it safeguards 1.8 billion devices and 760 million users around the world, serving upwards of 350 banking customers in 21 different countries, including more than 100 of the world's largest banks. "Real-time insights into customer intent continue to grow increasingly essential for institutions to establish trust within digital banking sessions," said Gadi Mazor, BioCatch's CEO. "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." PYMNTS Intelligence collaborated with Visa DPS on "The Issuer Risk Playbook," which found that 42% of bank and non-bank issuers rank fraud and disputes as either their biggest or second-biggest platform-related operating cost after employees. "At the same time, shortcomings in fraud systems are tangible," PYMNTS wrote last week. "The share of issuers citing insufficient fraud systems and high false declines as a processor pain point increased to 21% from 14% a year earlier, while cybersecurity and network concerns rose to 36% from 30%." The research also found that around 60% of issuers across customer lifetime value (CLTV) tiers are either deploying or enhancing AI-powered card fraud detection and prevention, a sign that the capability is turning into a basic requirement of modern issuing. Sixty-eight percent of high-CLTV issuers surveyed said that enhanced security and fraud prevention are required for agentic commerce, versus 47% of medium-CLTV issuers and 43% of low-CLTV issuers. "In other words, high-CLTV issuers are roughly 1.5 times as likely as the other groups collectively to make the connection between security and commerce conducted by AI agents," PYMNTS added. For all PYMNTS B2B coverage, subscribe to the daily B2B Newsletter.

Visa buys Israel's BioCatch for $2.4b

American credit card and digital payments company Visa announced yesterday the acquisition of Israeli company BioCatch for $2.4 billion in cash. BioCatch became a unicorn (a valuation of $1 billion) back in late November 2023, when it completed a secondary transaction at a valuation of approximately $1 billion. The company's last known funding round was conducted in 2020, when it completed capital raises totaling $165 million. The company operates from several global offices and employs about 280 workers, half of them in Israel. According to Visa, the transaction is expected to close by the end of the second quarter of Visa's 2027 fiscal year. AI-powered fraud detection BioCatch develops artificial intelligence systems for detecting and preventing financial fraud by analyzing biometric and behavioral characteristics, such as typing patterns and mouse movements. The company was founded in 2011 by Avi Turgeman and the late Benny Rosenbaum, and is managed by CEO Gadi Mazor. According to the joint statement, BioCatch protects 1.8 billion devices and 760 million users worldwide, serving more than 350 banking clients across 21 countries, including over 100 of the world's largest banks. Andrew Torre, president of Value-Added Services at Visa, said: "The cost of account takeovers and fraud to the global economy stands at about $1 trillion annually, and artificial intelligence enables these attacks on an 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 upstream cyber threats." Gadi Mazor, CEO of BioCatch, said: "For more than a decade, we have demonstrated the unique ability of behavior to distinguish between a criminal and a legitimate user. Over the past two years, we have shown how real-time intelligence-sharing networks among our clients can further amplify the power of our behavioral intelligence. Together with Visa, we are better positioned to advance our mission to make the world a safer place to transact and to protect consumers from financial crime." Another record year for Israeli cyber This marks the second cyber exit this year valued at approximately $1 billion or more, after Israeli firm Oasis, which manages non-human identity security and AI agents in organizations, was acquired last month by Israeli firm Cyera for about $1 billion, of which approximately $700 million was in cash and the remainder in Cyera shares. This year also saw the completion of the mega-deal in Israeli tech and cyber, the Wiz transaction, which was sold to Google for approximately $32 billion. Along with it, four other mega-exits and mergers were completed, which together with Wiz accumulate to approximately $64.75 billion. The first half of the year served the cyber sector particularly well, with approximately $2.57 billion raised, accounting for about a third of the roughly $7.6 billion raised during that period across all high-tech sectors.

Visa to acquire fraud detection firm BioCatch for $2.4B By Investing.com

SAN FRANCISCO & TEL AVIV - Visa Inc. (NYSE:V) announced today it has signed a definitive agreement to acquire BioCatch, a behavioral fraud intelligence provider, for $2.4 billion in cash, according to a press release statement. The acquisition involves purchasing BioCatch from funds advised by Permira and other shareholders. BioCatch provides AI and machine learning-based solutions that analyze behavioral, device, and network signals to detect fraud in real time. BioCatch currently protects 1.8 billion devices and 760 million users globally, serving more than 350 banking clients across 21 countries. The company's technology analyzes thousands of signals including keystrokes, touch gestures, and device handling to distinguish legitimate users from fraudsters. "BioCatch will help our clients stop fraud before it reaches the point of payment," said Andrew Torre, president of value-added services at Visa. "This acquisition is part of our strategy to help clients prevent cyber threats upstream, building trust into every transaction." The company stated that account takeovers and scams cost the global economy over $1 trillion annually. BioCatch's solutions are designed to detect account takeovers, scams, money mules, and application fraud. Gadi Mazor, CEO of BioCatch, said the company has demonstrated behavior's ability to distinguish criminals from legitimate users for more than a decade. Visa stated it has invested more than $13 billion in technology and infrastructure over the last five years to safeguard the payments ecosystem. The transaction is subject to customary closing conditions and regulatory approvals. Visa expects the transaction to close by the end of its fiscal second quarter of 2027. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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

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. At the end of 2025, BioCatch exceeded $185 million in annual recurring revenue. Permira first invested in BioCatch in April 2023 and took a majority stake the following year. In May 2024, Permira said its stake acquisition gave BioCatch an enterprise valuation of $1.3 billion. 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.

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.