Behavioural biometrics aims to detect payment fraud before transactions are authorised

Visa is strengthening its fraud prevention capabilities with the acquisition of behavioural biometrics specialist BioCatchfor US$2.4 billion. The move reflects a broader shift in financial security: rather than focusing solely on detecting fraudulent transactions after they occur, payment providers are increasingly seeking to identify suspicious behaviour before money ever leaves an account.

The acquisition adds behavioural intelligence to Visa’s existing portfolio of fraud detection, identity verification and risk management services. According to the company, the goal is to help financial institutions stop fraud at earlier stages of the attack chain, including account takeover attempts and payment manipulation.

Behaviour rather than credentials

Founded in 2011, BioCatch has become one of the leading providers of behavioural biometrics. Instead of relying primarily on passwords, fingerprints or facial recognition, the company’s technology analyses how users interact with digital banking applications.

Typing rhythm, mouse movements, touchscreen gestures and even the way a smartphone is held contribute to a behavioural profile that is continuously evaluated using machine learning algorithms. If a user’s behaviour deviates significantly from established patterns, the system can flag potential account compromise or identity fraud—even when login credentials appear legitimate.

The approach reflects a growing industry trend towards continuous authentication, where trust is assessed throughout an online session rather than at the login stage alone.

Stopping fraud before payments are initiated

Visa says the strategic value of the acquisition lies in extending fraud detection beyond the payment transaction itself.

Behavioural analysis can identify compromised customer accounts, detect so-called money mule activity used for laundering criminal proceeds and help uncover fraudulent loan applications. It is also designed to recognise behavioural indicators associated with authorised push payment (APP) fraud, where victims are manipulated through social engineering or scam phone calls into approving transfers themselves.

“BioCatch will help our customers prevent fraud before payments even begin,” said Andrew Torre, President of Value Added Services at Visa. According to the company, the acquisition forms part of a broader strategy to strengthen trust in digital payments by identifying threats earlier in the fraud lifecycle.

AI analyses billions of banking sessions

The scale of BioCatch’s platform highlights the growing role of artificial intelligence in financial crime prevention.

According to the company, its technology analyses approximately 19 billion online banking sessions every month, protecting around 760 million users across 1.8 billion devices. More than 350 banks and financial institutions in 21 countries use the platform, including over 100 of the world’s largest banks.

By analysing large volumes of anonymised behavioural data, machine learning models continuously refine their ability to recognise emerging fraud patterns and adapt to evolving attack techniques.

Fraud prevention becomes increasingly proactive

Visa plans to integrate BioCatch into its Value Added Services portfolio, which already includes solutions for fraud prevention, identity verification, cybersecurity and risk management.

The acquisition reflects a wider transformation in the financial services industry. Traditional fraud detection has largely focused on analysing completed or pending transactions. Increasingly, however, security vendors are shifting towards continuous behavioural monitoring, where suspicious activity can be identified throughout a customer’s digital journey.

For banks and payment providers, behavioural biometrics is emerging as an additional layer of defence rather than a replacement for existing authentication methods. Combined with AI-driven analytics, it offers the potential to detect attacks before a payment is authorised—an increasingly important capability as cybercriminals adopt more sophisticated, AI-assisted fraud techniques.

Visa says it has invested more than US$13 billion in technology and infrastructure to protect its global payment ecosystem over the past five years. The acquisition of BioCatch suggests that behavioural intelligence will play an increasingly important role in the next generation of fraud prevention.