BioCatch reaches 57 patents for its behavioral biometrics, targets mule accounts
BioCatch’s method of verifying an individual’s identity and detecting fraud using behavioral biometrics based on mobile device usage patterns has earned it a U.S. registered patent, bring the company’s total number of patents to 57 since it began operations in 2011.
FintechNews reports that this development comes after a year in which the company announced the opening of an office in Singapore for the APAC region, extended its presence to five continents with over 40 customers and 175 employees.
BioCatch has a database of over 200 million behavioral biometric profiles, allowing it to analyze over two billion digital sessions every month.
“We continue to enhance our platform and find new ways to protect financial institutions and their customers from fraud and cybercrime. Surpassing 50 patents is a major milestone and a testament to our innovative strength and leadership in the industry,” FintechNews quoted Avi Turgeman, BioCatch founder, CTO and Vice President of Business Development, as saying.
“We have a very strong IP portfolio in the behavioral space and in the cybersecurity field, and we intend to continue to expand it to address the needs of our customers and to help protect consumers,” he added.
FintechNews also recalled that BioCatch recently sealed a deal with Suncorp Bank to put behavioral biometrics in place for mule account detection, which during a trial process helped the Australian financial company close down 90 per cent of mule accounts before fraud was carried out.
More actions on mule account detection anticipated
Meanwhile, BioCatch in a recent blog post examined the issues around mule account fraud and how the problem has been able to surge since the outbreak of the coronavirus pandemic.
Mule accounts are generally used to collect money through fraud, before passing it on to another account.
The post observes that although the phenomenon has been on an upward trend, partly also because of the lack of adequate industry mechanisms to check it, behavioral biometrics technology such as that of BioCatch has been able to help put a check on the growth in account opening fraud.
Only 6 percent of financial institutions are currently investing in mule detection capabilities, however.
To better handle the situation, BioCatch projects that anti-money laundering (AML) practices relating to mule detection will soon go through some changes, especially as regulators become keener on questions around practice.
BioCatch thus notes, using the U.S. as an example, that it anticipates changes in legislation which will prompt stronger responsive action against mule account fraud; that companies will be joining forces to develop industry best practices and standards for identifying mule accounts; and that progressive technologies including behavioral biometrics will be implemented to be able to nip mule account fraud in the bud.