Captcha is specifically designed to defeat automation tools. UFT has no built-in features for overcoming this limitation.

I did find this article that had some interesting ideas on how to work-around Captcha.

I also had a coworker send me the following:

"Web sites may use Word Verification fields that display text that the user must enter to verify that the user is not a machine. Such verification blocks automated usage of the page, including running automated tests.
If your script fails because of word verification failure, you must cancel this function on the Web site you are testing. " (Micro Focus)

There currently is not a direct solution to enter CAPTCHA values; however, below are the alternative options to try:

1. Request developers to remove CAPTCHA validation OR
2. Ask developers to print the CAPTCHA value somewhere in the response so that we can parse the same for duration of testing OR
3. Make the CAPTCHA as static so that we can use the same value for every iteration for duration of testing. OR
4. Check with the "CAPTCHA vender to see if there is a master key or testing mode to allow automated testing.