Visa announced on Monday that it has agreed to acquire Israeli fraud detection company BioCatch for US$2.4 billion in cash, strengthening its cybersecurity capabilities as artificial intelligence drives increasingly sophisticated financial fraud.
The payments giant will acquire BioCatch from funds advised by London-based private equity firm Permira and other shareholders, according to a joint statement.
BioCatch uses artificial intelligence and machine learning to analyse more than 3,000 anonymised behavioural data points, including keystrokes, mouse movements, touchscreen interactions, device handling and indicators of compromised devices.
The platform continuously monitors user behaviour during digital banking sessions to distinguish legitimate customers from fraudsters, bots and individuals acting under coercion.
Visa said the acquisition will enhance its existing fraud detection, identity verification and risk management services, helping financial institutions identify account takeovers, scams, fraudulent applications and money mule activity before funds are transferred.
“BioCatch will help our clients stop fraud before it reaches the point of payment,” said Andrew Torre, President of Visa’s Value-Added Services division.
Visa estimates that account takeovers and scams cost the global economy more than US$1 trillion annually, with AI enabling criminals to launch attacks on an unprecedented scale.
The company said it has invested more than US$13 billion in technology and infrastructure over the past five years to strengthen its payment network and combat fraud.
BioCatch CEO Gadi Mazor said the company will retain its leadership team and organisational structure after the acquisition, becoming part of Visa’s Value-Added Services business.
The transaction remains subject to regulatory approvals and other customary closing conditions. Visa expects the deal to close by the end of its fiscal second quarter in 2027.