Visa buys AI company BioCatch for $2.4 billion: how new technologies will change fraud protection

Visa is investing billions in cybersecurity

The world's largest payment system Visa signed an agreement on the acquisition of an Israeli company BioCatch, which specializes in developing solutions to combat financial fraud. The value of the transaction is 2.4 billion US dollars, and the settlement between the parties will take place entirely in cash.

Currently, the completion of the operation is expected in the second financial quarter of 2027, after passing all necessary regulatory procedures. The sellers are the investment fund Permira and other shareholders of the company.

What does BioCatch do?

BioCatch is one of the world leaders in the field behavioral biometrics and analyzing the digital behavior of users.

Unlike traditional security systems that rely on passwords, SMS codes or one-time verifications, the company's technology analyzes, exactly how a person uses the device.

Artificial intelligence evaluates hundreds of behavioral factors, including:

• - text printing speed;

• - strength and rhythm of keystrokes;

• - mouse movements;

• - the nature of gestures on a smartphone;

• - page scrolling speed;

• - features of interaction with the application.

Each user has his own digital style of behavior, which is almost impossible to fake. If the system detects anomalies, it instantly identifies an increased risk of fraud and can block a suspicious transaction even before funds are debited.

More than 350 banks already use the technology

Today, the BioCatch solution is used more than 350 banks and financial institutions in different countries of the world.

The technology allows you to detect:

• - theft of bank accounts;

• - unauthorized access to accounts;

• - use of stolen credentials;

• - automated bot attacks;

• - fraudulent payments in real time.

Thanks to this, banks can significantly reduce financial losses and at the same time reduce the number of cases where legitimate customers are mistakenly blocked.

Why Visa made such a big investment

According to international experts, cyber fraud causes more than $1 trillion in losses to the global economy every year.

With the development of digital banking, online shopping and mobile payments, the number of attacks is increasing rapidly. Criminals increasingly use:

• - artificial intelligence;

• - automated programs;

• - stolen personal data;

• - phishing campaigns;

• - social engineering.

Visa emphasizes that the integration of BioCatch technologies will make it possible to move from the usual verification of payments to proactive detection of fraud, when suspicious actions are identified even before the financial transaction is carried out.

Behavioral biometrics can replace passwords

One of the main directions of development will be the use behavioral biometrics as alternatives to traditional authorization methods.

Unlike regular passwords, which can be stolen or guessed, a user's digital habits are virtually impossible to copy.

The system analyzes a person's behavior constantly, without requiring additional actions from him. This allows:

• - increase the level of security;

• - reduce the number of checks for customers;

• - reduce the need to enter confirmation codes;

• - to make online banking more convenient.

Visa continues to invest heavily in digital security

In recent years, Visa has significantly increased its investment in payment protection technology.

The company is expanding the direction of value-added services that help financial institutions more effectively detect fraudulent transactions and reduce risks for customers.

Visa also recently reported financial results that exceeded analysts' expectations, and raised the forecast for annual revenue growth. At the same time, the company is carrying out a large-scale optimization of the business, reducing approx 2,600 jobs.

What the deal means for the financial market

The acquisition of BioCatch indicates a change in approaches to cyber security in the global financial system. If earlier the main method of protection was passwords and confirmation codes, now it is becoming more and more important analysis of user behavior using artificial intelligence.

Experts expect that after the deal is completed, BioCatch technologies will be integrated into even more banking services and Visa payment products, which will improve the security of online payments and significantly reduce the scale of financial fraud.