Visa is acquiring fraud detection startup BioCatch for $2.4 billion in cash to bolster cybersecurity against AI-powered scams.
Visa is acquiring the fraud detection startup BioCatch for $2.4 billion in cash to strengthen its cybersecurity capabilities. The acquisition, which is expected to close by the end of Visa's fiscal second quarter in 2027, will integrate BioCatch's behavioral biometrics platform into Visa's payment network. This technology analyzes data such as keystroke timing and touch screen pressure to distinguish real users from bots and scammers. This move highlights a growing need for financial institutions to defend against a surge in artificial intelligence-powered scams, which cost the global economy more than $1 trillion annually. By acquiring BioCatch, Visa aims to help clients stop fraud before the payment process occurs. The acquisition is the latest expansion of Visa's value-added services division, which provides fraud prevention and analytics software to financial institutions worldwide. BioCatch currently protects 760 million users across 350 banks, while Visa's global network connects nearly 14,500 financial institutions.