BioCatch launches behavioral analytics tool to help stop APP fraud

BioCatch has unveiled the latest iteration of its behavior-based scam-fighting solution, Scams360, which promises financial institutions the ability to detect and block the majority of authorized push payment (APP) fraud in real time.

APP fraud exploits victims’ willingness to transfer funds under false pretenses, and until now, traditional fraud systems that are reliant on transaction records or device intelligence have struggled to spot these social engineering schemes.

Scams360 applies BioCatch’s behavioral and device intelligence to flag subtle indicators of manipulation, such as erratic typing patterns, unusual mouse movements, or hesitation before entering information, all in the moments before a transaction is approved. These indicators are compared against typical user interactions for behavioral analytics, rather than with individual user patterns for authentication with behavioral biometrics.

“Already, we’re seeing a 50 percent improvement in our ability to detect non-impersonation scams,” said Ayelet Eliezer, BioCatch chief product officer.

“Scams360’s current alert rate – the percentage of total transactions requiring banks to intervene – is also best-in-class, helping banks deploying Scams360 to keep their operational costs low while stopping more scams in real time, before any money leaves the would-be victim’s account.”

The timing is propitious as the Global Anti-Scam Alliance estimates that consumer losses from scams exceed one trillion dollars annually, a figure set to rise as generative AI fuels more convincing and scalable fraud campaigns.

Legacy defenses simply cannot keep pace with social engineering tactics that trick users into authorizing payments. Scams360 seeks to address this gap by tracking up to 3,000 behavioral and device-related signals, offering a contextual view of user intent.

Financial institutions gain a nuanced understanding of when a customer’s actions deviate from their usual digital behavior, enabling real-time intervention against romance, investment, impersonation, business email compromise and other sophisticated scams.

Suzanne Sando, lead analyst of fraud management at Javelin Strategy and Research, says that innovations in payment channels and ecommerce have expanded criminals’ opportunities to exploit consumers. “The rapid evolution of these consumer activities presents criminals with numerous opportunities to identify weaknesses in scam-detection and better target victims,” she said.

“Financial criminals are clearly exploiting the growing attack surface. It’s time for the financial services industry to regain control from fraudsters and invest in more modern and advanced methods for scam prevention and detection.”

In a broader push to fortify the industry, BioCatch and the Knoble have launched an anti-scam guide and cost calculator, highlighting how scam losses extend far beyond stolen funds to include operational expenses, customer churn, compliance risks and reputational damage.

As fraud threats evolve, BioCatch reports that it now analyzes over 15 billion user sessions each month, safeguarding more than 500 million individuals and 1.5 billion devices worldwide. In 2024 alone, the company says it helped stop an estimated $3.7 billion in fraudulent transactions, setting the stage for Scams360 to help fight the surge.

And if those numbers aren’t impressive enough, BioCatch announced this week that its behavioral biometrics and fraud-fighting technology just broke the $160 million mark in annual recurring revenue.

Article Topics

behavioral biometrics  |  BioCatch  |  biometrics  |  financial services  |  fraud prevention