The all-cash deal, announced Monday (Aug. 3) aims to complement Visa’s cyber, fraud, risk and security solutions and help clients protect themselves and customers from a growing range of fraud-related threats.
“Account takeovers and scams cost the global economy over $1 trillion annually and AI is enabling these attacks at unprecedented scale,” Andrew Torre, president of value-added services, Visa, said in a news release. “BioCatch will help our clients stop fraud before it reaches the point of payment.”
BioCatch does this, the release added, via artificial intelligence (AI) and machine learning-based solutions that analyze thousands of application, behavioral, device, and network signals like keystrokes and device handling to separate legitimate users from fraudsters.
The company said it safeguards 1.8 billion devices and 760 million users around the world, serving upwards of 350 banking customers in 21 different countries, including more than 100 of the world’s largest banks.
“Real-time insights into customer intent continue to grow increasingly essential for institutions to establish trust within digital banking sessions,” said Gadi Mazor, BioCatch’s CEO. “For more than a decade, we’ve demonstrated behavior’s unique ability to distinguish the criminal from the legitimate. In the last couple of years, we’ve shown how real-time intelligence-sharing networks between our customers can amplify the power of our behavioral intelligence further still.”
PYMNTS Intelligence collaborated with Visa DPS on “The Issuer Risk Playbook,” which found that 42% of bank and non-bank issuers rank fraud and disputes as either their biggest or second-biggest platform-related operating cost after employees.
“At the same time, shortcomings in fraud systems are tangible,” PYMNTS wrote last week. “The share of issuers citing insufficient fraud systems and high false declines as a processor pain point increased to 21% from 14% a year earlier, while cybersecurity and network concerns rose to 36% from 30%.”
The research also found that around 60% of issuers across customer lifetime value (CLTV) tiers are either deploying or enhancing AI-powered card fraud detection and prevention, a sign that the capability is turning into a basic requirement of modern issuing.
Sixty-eight percent of high-CLTV issuers surveyed said that enhanced security and fraud prevention are required for agentic commerce, versus 47% of medium-CLTV issuers and 43% of low-CLTV issuers.
“In other words, high-CLTV issuers are roughly 1.5 times as likely as the other groups collectively to make the connection between security and commerce conducted by AI agents,” PYMNTS added.
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