Visa plans to purchase BioCatch in a $2.4 billion cash transaction that would expand the payment company’s cybersecurity services and strengthen its ability to detect account takeovers, scams and other financial crimes before transactions are completed.
By yourNEWS Media Newsroom
Visa announced Monday that it has agreed to acquire fraud-intelligence company BioCatch for $2.4 billion in cash as the global payments processor moves to broaden its cybersecurity capabilities amid increasingly sophisticated financial scams.
The transaction will be financed by investment firm Permira and other BioCatch investors, according to Reuters. Visa said the acquisition is intended to help banks, financial institutions and other clients identify fraudulent activity earlier and respond to threats before money is transferred.
BioCatch develops artificial intelligence systems that analyze how people interact with digital devices and financial platforms. Its technology evaluates behavioral signals such as typing patterns, mouse movements, touchscreen activity, the use of AI agents and whether a device has been jailbroken or otherwise modified.
Those data points can help determine whether an account is being used by its legitimate owner or by someone attempting to impersonate the customer, take control of the account or conduct an unauthorized transaction.
Visa said BioCatch’s technology would strengthen its ability to protect clients as criminals increasingly use artificial intelligence and other advanced tools to scale fraud operations.
“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,” Andrew Torre, president of value-added services at Visa, said in a statement.
Unlike systems that focus primarily on reviewing a payment after it has been initiated, BioCatch’s behavioral technology is designed to identify suspicious activity while a user is navigating an account or preparing a transaction.
The platform can detect unusual changes in device handling, typing rhythm or cursor movement that may indicate fraud, coercion or unauthorized access. It also examines whether automated AI tools are interacting with an account in ways that differ from normal customer behavior.
Visa said the addition of BioCatch would give its clients more tools to address a threat environment in which account takeovers, impersonation scams and digitally assisted financial crimes are becoming more difficult to identify through traditional security measures alone.
The acquisition forms part of Visa’s broader effort to expand beyond payment processing by offering fraud prevention, data analysis and other value-added services to financial institutions and merchants.
BioCatch’s behavioral intelligence capabilities would complement Visa’s existing cybersecurity and risk-management products by allowing suspicious activity to be evaluated before a transaction reaches the payment stage.
The companies did not provide additional details about the expected closing date or other conditions required to complete the deal.
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