Visa Buys BioCatch for $2.4 Billion to Fight AI Fraud
JAKARTA - Visa is moving more seriously against artificial intelligence-based financial fraud or AI. The payment giant agreed to buy Israeli fraud detection company BioCatch for 2.4 billion US dollars in cash. Assuming a rate of Rp. 18,000 per US dollar, the acquisition value is equivalent to around Rp. 43.2 trillion.
Anadolu Agency, quoted Tuesday, August 4, reported that the deal was announced by Visa on Monday. The acquisition was made at a time when financial fraud was becoming more complicated as criminals also used AI.
BioCatch will be bought from a fund managed by London-based private equity firm Permira, as well as other shareholders.
BioCatch uses AI and machine learning to analyze more than 3,000 anonymous data points. The data includes how users type, move the mouse, touch the screen, hold the device, to the sign that the device has been infiltrated.
Machine learning is a technology that makes a system able to recognize patterns from data. In the case of BioCatch, the pattern is used to distinguish between the original customer activity and fraudsters.
The BioCatch platform evaluates user behavior during digital banking sessions. The goal is to distinguish legitimate customers from fraudsters, bots, or people who transact because they are forced by others.
Visa said BioCatch's technology will complement the company's existing cybersecurity, fraud detection, identity, and risk management products.
The technology will also help banks identify account takeover, fraud, fake apps, and money mule activity before money is transferred.
A money mule is a person or account used to store or transfer money from a crime.
"BioCatch will help our clients stop fraud before it reaches the point of payment," said Andrew Torre, President of Visa's Value Added Services Division.
Visa estimates that account takeover and fraud costs the global economy more than $1 trillion annually. The company says AI allows criminals to carry out attacks on an unprecedented scale.
In the past five years, Visa has invested more than 13 billion US dollars in technology and infrastructure. The funds are used to protect the payment network and reduce fraud.
BioCatch CEO Gadi Mazor said his company will retain its leadership team and reporting structure after the acquisition. BioCatch will join Visa's value-added services organization.
This transaction is still awaiting regulatory approval and the fulfillment of other closing conditions that are common in corporate actions. Visa expects the deal to close by the end of the second quarter of fiscal year 2027.