Visa has announced the acquisition of BioCatch, a specialist in artificial-intelligence-based fraud detection and prevention, in a deal valued at $2.4 billion aimed at strengthening the payments giant’s capacity to combat financial crime.
The company said integrating BioCatch will complement Visa’s existing portfolio of cybersecurity, risk management and fraud prevention solutions, enabling banks and financial institutions to identify and block suspicious activity before transactions are completed.
Completion of the deal remains subject to regulatory approval and the satisfaction of customary closing conditions. Visa expects to finalise the acquisition by the end of the second quarter of its fiscal year 2027.
BioCatch develops technologies built on artificial intelligence and machine learning that can analyse, in real time, thousands of behavioural signals, devices, applications and networks to distinguish legitimate users from potential fraudsters.
The company currently protects around 1.8 billion devices and 760 million users worldwide, serving more than 350 banks across 21 countries, including over a hundred of the world’s largest financial institutions.
“For more than a decade we have demonstrated that human behaviour is a powerful factor in distinguishing criminals from legitimate users. Over the past two years, we have also shown how real-time information-sharing networks among our clients amplify the reach of our behavioural intelligence,” said BioCatch chief executive Gadi Mazor.
Andrew Torre, president of Visa’s Value Added Services division, warned of the growing threat of AI-enabled financial fraud. “Account takeovers and fraud cost the global economy more than one billion dollars a year, and AI is facilitating these attacks at an unprecedented scale,” Torre said.
Torre added that BioCatch’s technology would allow Visa to stop fraud before it reaches the payment point, reinforcing the security of digital transactions.
According to Brazilian financial portal Finsiders Brasil, the acquisition is part of a growing trend among payments companies and financial infrastructure providers to strengthen their presence in digital identity, authentication and fraud prevention.
Over the past five years, Visa has invested more than $13 billion in technology and infrastructure designed to bolster the security of its payments ecosystem and reduce fraud rates globally. Rival Mastercard has similarly expanded its capabilities through recent acquisitions including NuData Security, Ethoca, RiskRecon and Ekata, reinforcing its competencies in behavioural biometrics, anti-fraud intelligence and risk management.
Source: Mercado / Original article: https://mercado.co.ao/visa-compra-biocatch-por-24-mil-milhoes-de-dolares-para-reforcar-combate-a-fraude-com-ia/
