Payment giant Visa has announced that it will acquire Israeli artificial intelligence financial fraud prevention company BioCatch for $2.4 billion (approximately 16.231 billion yuan) in cash, leveraging its behavioral analysis and device intelligence technology to further enhance risk detection capabilities for account theft, financial fraud, dummy accounts, and false account applications. The transaction is currently awaiting regulatory approval and is expected to be completed before the end of Visa's fiscal year 2027, i.e., by the end of March 2027.
Public information shows that BioCatch was founded in 2011 and mainly uses AI and machine learning technologies to analyze behavioral data, device information, application environment, and network signals generated when users access online banking, thereby determining in real-time whether an operation is performed by a genuine user or a potential fraudster. The company currently serves more than 350 financial institutions in 21 countries worldwide, including over 100 large banks. Its system analyzes about 19 billion user interactions each month, covering 760 million users and 1.8 billion devices.
Modeling 3,000 Behavioral Data Points for Comprehensive Risk Detection, Even Identifying "Forced Transfers"
BioCatch's core technology continuously collects more than 3,000 anonymous behavioral data points, including keyboard and mouse operation methods, touch habits, input rhythm, device holding style, whether a jailbroken device is used, and whether there are AI proxy program operations. Its AI model not only verifies account, password, and device information but also analyzes user behavior patterns and operational intent to determine whether the current operator is a genuine user, a fraudster, or a victim being controlled or coerced by others.
For example, if a user suddenly changes their input habits, their device is remotely controlled, or the user is transferring money according to a fraudster's instructions during a call, the system may identify abnormal risks and prompt the bank to perform additional verification or block the transaction. Visa said that after the acquisition, it will move the AI fraud prevention capabilities further upstream from the payment stage, covering user account opening, login, and account operations, and identify potential risks before funds enter Visa's payment network.
AI Speeds Up Fraud, Payment Giants Invest 13 Billion Dollars Over Five Years to Build a Defense
Visa pointed out that account theft and financial fraud cause losses of over 1 trillion dollars to the global economy every year, and the development of generative AI allows hackers to carry out fraud activities faster and on a larger scale. BioCatch's technology will further supplement Visa's existing security, fraud prevention, risk management, and identity verification products, enabling coverage of the entire process from account opening to payment transactions.
In recent years, major payment companies have been expanding their security and anti-fraud capabilities through acquisitions. Visa previously acquired AI fraud detection company Featurespace in 2024, while its competitor Mastercard acquired threat intelligence company Recorded Future for 2.65 billion dollars the same year. Over the past five years, Visa has invested more than 13 billion dollars in building payment security technologies and related infrastructure. As generative AI makes the cost of fraud nearly zero, payment giants are using the same fast-paced acquisition strategy to build a complete defense line from behavioral analysis to transaction interception.
