Visa to buy Israeli cyber firm for $2.4 billion to fight AI-driven scams

Visa Inc. is set to acquire Israeli cybersecurity firm BioCatch for $2.4 billion, a move designed to significantly enhance its defenses against the growing threat of AI-driven financial fraud and account takeovers. The deal, announced by the credit-card giant, will integrate BioCatch's advanced behavioral biometrics platform into Visa's existing cybersecurity infrastructure.

BioCatch's technology analyzes thousands of user interaction signals, such as mouse movements, typing cadence, and phone tapping, to distinguish legitimate users from fraudsters in real-time. This behavioral analysis helps detect fraudulent activities before payments are even processed, providing a crucial layer of security for both consumers and financial institutions.

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Account takeovers and scams cost the global economy over $1 trillion annually and AI is enabling these attacks at unprecedented scale. BioCatch will help our clients stop fraud before it reaches the point of payment.

"Account takeovers and scams cost the global economy over $1 trillion annually and AI is enabling these attacks at unprecedented scale," said Andrew Torre, Visa president of value-added services. "BioCatch will help our clients stop fraud before it reaches the point of payment." This acquisition underscores Visa's commitment to safeguarding its payments ecosystem, having already invested over $13 billion in technology and infrastructure over the past five years.

BioCatch CEO Gadi Mazor highlighted the escalating challenges in combating financial crime, noting that "bad actors (increasingly and primarily organized crime) perpetrating fraud, scams, and financial crime continue to enjoy greater returns, explosive growth, and a wealth of new tools." He expressed confidence that the partnership with Visa represents a significant step forward in this ongoing battle. Founded in 2011, BioCatch will continue to operate with its current team following the acquisition, which is expected to close by the end of Visa's fiscal second quarter of 2027, pending regulatory approvals.

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The reality is, as a society and industry, we are not winning this fight. By every metric, the bad actors (increasingly and primarily organized crime) perpetrating fraud, scams, and financial crime continue to enjoy greater returns, explosive growth, and a wealth of new tools to help them scale, innovate, and hone their attacks.