Fraud
Visa to buy BioCatch for $2.4B
Visa announced on Monday that it has agreed to acquire cybersecurity and fraud prevention company BioCatch for $2.4 billion, aiming to strengthen its service portfolio against AI-driven digital crime. The San Francisco-based card network plans to purchase the Israeli company from Permira investment funds and other shareholders. BioCatch's AI and machine learning solutions analyze thousands of application, behavioral, device, and network signals in real time to distinguish legitimate users from fraudsters. This acquisition is Visa's second major deal in the fraud defense sector within two years, following its purchase of UK cybersecurity company Featurespace for approximately $1 billion in 2024.
Mastercard bolsters scam defense
Mastercard launched a new fraud prevention program last week, aiming to collaborate with merchants and acquiring banks to combat fraud. The new rules require acquiring banks that process Mastercard payments to follow up on specifically flagged fraudulent activities within three days. The program, named the "Fraud Merchant Monitoring Program" (SMMP), took effect last Friday, following a similar initiative launched by competitor Visa last year. Industry experts note that this move reflects Washington's focus on consumer fraud issues, particularly cases where consumers are induced during authorized transactions.
Payments broker gets jail time
The U.S. Department of Justice announced on Monday that Oregon payment processing broker Jeremy Todd Briley was sentenced to three years in prison for his role in a wire fraud scheme that defrauded consumers and businesses through fake online marketing companies. Briley pleaded guilty to one count of wire fraud in April and will also serve three years of supervised release following his prison term, in addition to forfeiting $460,000 in illegal proceeds.
Cash App triggers $45M settlement
Block agreed on Wednesday to pay $45 million to settle with 46 states over misleading consumers about Cash App's security claims and failing to provide fraud protection. The settlement requires Block to improve customer support processes and ensure at least 13.5 hours of live phone support and 18 hours of online chat are available daily.
Amazon settles FTC card fraud case
Amazon has agreed to pay $2.25 million to settle Federal Trade Commission (FTC) allegations that it failed to provide records related to fraudulent credit or debit card transactions to identity theft victims.
World Cup chargebacks coming
Payment security companies ACI Worldwide and Bluefin Payment Systems warn that the FIFA World Cup currently taking place in North America will drive a large volume of online ticketing and related spending, and fraudsters are poised to strike. AI technology has caused the global amount of online fraud to increase by 9.2% year-over-year in 2025. Based on analysis of 24.5 million historical transaction records, ACI found that event-related fraud begins to rise 8-12 weeks before the event, with individual fraud amounts typically ranging from $200 to $400. Fraudsters steal consumer credentials through fake websites and then make subsequent purchases on legitimate sites. Bluefin notes that AI makes fraudulent websites and phishing emails harder to distinguish. Both companies recommend that merchants strengthen monitoring, enhance verification processes, and adopt technologies such as tokenization and point-to-point encryption to protect payment data.