Visa announced Monday that it has agreed to acquire Israeli fraud detection company BioCatch for $2.4 billion in cash, expanding its cybersecurity capabilities as artificial intelligence fuels increasingly sophisticated financial fraud, Anadolu reports.
The payment company will acquire BioCatch from funds advised by London-based private equity firm Permira and other shareholders, according to a joint announcement.
BioCatch uses artificial intelligence and machine learning to analyze more than 3,000 anonymized data points, including keystroke and mouse activity, touchscreen behavior, device handling and signs of compromised devices.
The platform continuously evaluates user behavior during digital banking sessions to distinguish legitimate customers from fraudsters, bots and people acting under coercion.
Visa said the technology will complement its existing cyber defense, fraud detection, identity and risk management products by helping banks identify account takeovers, scams, fraudulent applications and money mule activity before money is transferred.
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“BioCatch will help our clients stop fraud before it reaches the point of payment,” Andrew Torre, president of Visa’s value-added services division, said.
Visa estimates that account takeovers and scams cost the global economy more than $1 trillion each year, with AI enabling criminals to carry out attacks on an unprecedented scale.
The company said it has invested more than $13 billion in technology and infrastructure over the past five years to protect its payment network and reduce fraud.
BioCatch CEO Gadi Mazor said the company will retain its leadership team and reporting structure after the acquisition and become part of Visa’s value-added services organization.
The transaction remains subject to regulatory approvals and other customary closing conditions. Visa said it expects the deal to close by the end of its fiscal second quarter in 2027.
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