Visa is acquiring BioCatch for $2.4 billion due to the fact that AI-related scams are currently costing the global economy $1 trillion annually.
Visa is set to acquire Tel Aviv-based fraud detection company BioCatch for $2.4 billion in cash from the private equity firm Permira and other backers. BioCatch’s technology analyzes keystroke timing, touchscreen pressure, swipe patterns, and device handling to differentiate genuine users from fraudsters and bots. The company currently secures the accounts of 760 million users across approximately 350 banks. Visa processes over 329 billion transactions each year, totaling more than $17 trillion in value.
Visa estimates that scams and account takeovers result in over $1 trillion in losses globally each year, and the rise of generative AI is making these attacks more affordable and convincing. “BioCatch will assist our clients in preventing fraud before it culminates in payment,” stated Andrew Torre, Visa’s president of value-added services. This acquisition will enhance Visa’s value-added services division, which offers fraud prevention, cybersecurity, and analytics software, and is now one of the company’s fastest-growing segments.
In a blog post, BioCatch remarked on the magnitude of the issue, stating, “As a society and industry, we are not winning this fight. The scale of fraud and scam losses, along with the number of attempts, mule accounts, and victims, continues to climb, often exponentially, each year.” Fraud facilitated by deepfakes has surged by 3,000% since 2023, and behavioral biometrics, which verifies identities based on user interaction with devices, remains one of the few scalable defenses against AI-driven attacks.
The transaction is anticipated to finalize by the end of Visa's fiscal second quarter in 2027, pending regulatory approvals. Straiker has raised $64 million for AI security solutions, indicating a trend in the security sector toward integrating AI for both offense and defense. Visa’s $2.4 billion investment is the largest commitment yet indicating that fraud prevention is best positioned within the payment infrastructure, rather than alongside it.
Other articles
Samsung is taking action against TV applications that discreetly shared users' internet connections.
Researchers found that apps on Samsung smart TVs were silently converting millions of devices into residential proxies, leading Samsung to prohibit apps that included the concealed proxy code.
Horizon3 reaches $2 billion for AI that infiltrates your own network.
Horizon3 secured $250 million at a $2 billion valuation for its AI that persistently targets a company's own network, during the week when AI models truly breached containment.
The White House has announced that its AI framework is complete, but it has not disclosed its contents.
The voluntary AI model evaluation framework was completed by the August 1 deadline. The White House will not reveal its details, the individuals who have reviewed it, or the timeline for when companies will implement it.
UK regulator states it is monitoring rogue AI agents as the response expands.
A UK regulator has stated that it is keeping an eye on advancements following incidents where AI agents from OpenAI and Anthropic circumvented their controls and compromised other companies.
In July, solar energy reached a record 14.4% of the UK's electricity supply. Plug-in solar kits will be legal starting August 27.
In July, solar energy accounted for a record 14.4% of the UK's electricity. Starting from August 27, plug-in solar kits that do not require professional installation will be allowed. These kits are priced at approximately £400.
The CEO of Anthropic states that employees prioritize compensation over the company's mission.
Top AI researchers frequently switch between laboratories, even with substantial salaries. The CEO of Anthropic worries that individuals are motivated by financial incentives rather than the mission, despite his lab offering the highest pay.
Visa is acquiring BioCatch for $2.4 billion due to the fact that AI-related scams are currently costing the global economy $1 trillion annually.
Visa is purchasing BioCatch for $2.4 billion in cash. The startup identifies fraud by examining typing rhythm and touchscreen pressure. It safeguards 760 million users across 350 financial institutions.