Visa buys BioCatch for $2.4 billion to fight AI scams

Visa announced on August 3, 2026, that it will acquire cybersecurity firm BioCatch for $2.4 billion in cash. The deal aims to bolster Visa's fraud prevention capabilities as AI-driven scams become more prevalent.

The acquisition will bring BioCatch's behavioral biometrics platform under Visa's umbrella. This technology analyzes user behavior such as keystroke timing and touch screen pressure to differentiate legitimate users from fraudsters and bots. Visa is purchasing the company from London-based private equity firm Permira and other investors.

The move highlights the growing urgency for payment companies to enhance security measures. According to Visa, scams and account takeovers cost the global economy over $1 trillion each year, a figure that is rising with the advent of generative AI, which makes attacks cheaper and more convincing.

This purchase is part of Visa's strategy to expand its value-added services division, which offers fraud prevention, cybersecurity, and analytics software to financial institutions. Andrew Torre, Visa's president of value-added services, stated that BioCatch will help clients stop fraud before it reaches the payment stage. The transaction is expected to close by the end of Visa's fiscal second quarter in 2027, pending regulatory approvals.

BioCatch currently protects 760 million users across roughly 350 banks. In contrast, Visa's network connects nearly 14,500 financial institutions and processes over 329 billion transactions annually, valued at more than $17 trillion. In a blog post, BioCatch noted that joining Visa will allow it to scale its impact, emphasizing that fraud and scam losses continue to grow globally.

The acquisition is subject to regulatory approvals, with other financial terms not disclosed.