BioCatch raises $20M and launches Client Innovation Board to keep behavioral biometrics ahead of fraud
BioCatch has announced a $20 million Series C funding round, with four major global banks investing in the behavioral biometrics provider. The company has also created the BioCatch Client Innovation Board to gather insights on the latest industry trends to keep BioCatch’s technology ahead of online fraud.
The investment comes from Barclays, Citi, HSBC and National Australia Bank (NAB), each of which joins previous BioCatch investor American Express Ventures in placing representatives on the new BioCatch Client Innovation Board.
The board will serve as a collaborative forum for invited members to meet regularly to develop new, creative, and cutting-edge approaches to leverage and scale the behavior biometric attributes. Members will also work closely with each other and BioCatch to explore how working together and network effects can help combat fraud across the financial services industry.
“Behavioral biometric technology is a key strategic capability to protect our customers from the risk of fraud,” comments Richard Harvey, group head of Retail Banking Products at HSBC. “BioCatch is a leader in this space and HSBC is looking forward to strengthening its partnership through this investment and through its role as part of the company’s newly formed Client Innovation Board.”
“We invest heavily in the latest cyber security and fraud detection capabilities to protect our customers,” says Chris Sheehan, GM of Group Investigations and Fraud for NAB. “In using device behavioral biometrics from BioCatch, we’re able to bolster our efforts to proactively detect fraud before the transfer of funds occurs, reducing the financial and emotional impact of scams for our customers.”
BioCatch has now raised $168 million to date, and now holds a dataset of more than 150 million biometric behavior profiles from tens of billions of transactions.
“We are extremely excited that five of the largest and most important global financial institutions are working with BioCatch to jointly address today’s most pressing problems in the areas of online fraud, account authentication and digital identity,” states Howard Edelstein, BioCatch chairman and CEO, in the announcement. “We have already seen the power of collaboration in solving difficult problems in other areas of the financial services industry, such as clearing corps, transaction networks, post-trade processing, margin calculation and collateral management, when banks work together and share knowledge, workflow and data in the common interest.”
Experian announced recently that BioCatch’s behavioral biometrics saved one of its clients approximately $23 million in fraud costs.