On Monday, Visa revealed it is buying Israeli cybersecurity firm BioCatch for $2.4 billion in cash. This signals a significant step in the company’s strategy to bolster defenses against AI-driven fraud. The transaction is part of Visa's broader effort to strengthen its cybersecurity offerings.
What BioCatch Brings to the Table
BioCatch uses behavioral biometrics to detect fraud by tracking elements such as typing speed and screen pressure. Its technology already safeguards 760 million users in about 350 banks. Visa believes integrating this tool will help stop fraudulent activity before a payment is made.
Permira, a London-based private equity company, along with other investors, currently own BioCatch. Visa points to annual global losses exceeding $1 trillion due to scams and account takeovers, fueling the urgency for better protection in the payment sector.
A Strategic Move in a Growing Division
Visa's value-added services division is among its most rapidly expanding units. It offers fraud prevention, cybersecurity, and analytics to financial institutions. Andrew Torre, the division's president, stated that BioCatch will help clients stop fraud sooner. BioCatch recently wrote that "the value of fraud losses and scam attempts are increasing globally." They also said this is happening "and in some cases, at an exponential rate."
The transaction is projected to close by the end of Visa’s fiscal second quarter in 2027, assuming regulatory clearances. No additional financial details were made public beyond the $2.4 billion cash sum.