BioCatch says its anti-fraud app improves fraud detection by 1500%
BioCatch has unveiled a product that it claims is 1,500 percent better than legacy software at detecting fraudulent accounts by it using behavior biometrics.
The Israel-based anti-fraud software maker also claims that Connect cuts customers’ transaction-related fraud rates by 80 percent.
Unlike legacy fraud detection, according to BioCatch, Connect puts behavioral biometrics at the center of its machine-learning models. It continuously integrates application, behavior, device, network and transactional telemetry from session inception to completion from millions of users worldwide.
The algorithm has signal-sequencing and visualization modules that rapidly analyze behavioral biometrics. This means fewer false positives.
BioCatch CEO Gadi Mazor says Connect makes use of AI and visualization tools, data science models, and machine learning engines to spot the exploitation of kindness, emotion, greed naivety and trust.
BioCatch cited industry numbers indicating existing software is not doing the job. It says customers can recognize 98 percent of active mule accounts before being alerted by their software.
The National Australia Bank has been working with the company since 2020 to introduce biometric technology to detect fraudulent activity in real time.
“These initiatives are having a positive outcome for our customers; for example, we’re seeing around $290,000 worth of payments abandoned daily thanks to our payments prompt initiative,” says Chris Sheehan an executive from the bank’s investigations and fraud group. “This tells us that customers are taking the time to stop and think before they make a payment.”
According to BioCatch data, financial scams, such as authorized push payment and remote access scams, increased 30 percent last year.
With new regulation mandating reimbursements for fraud in the financial industry, such as the UK’s Payment Systems Regulator and the European Union Payment Services’ Directive III (PSD3), fraud management and AML practices are going to be re-evaluated broadly, the company says.
BioCatch recently announced its cooperation with Microsoft’s Cloud for Financial Services, which helps financial institutions enroll and track clients as well as automate workflow and reduce fraud. The company has been working with Microsoft since 2011.