BioCatch highlights rise of bots and money mules in new report

The use of bots to fraudulently open a bank account has risen three times in the first half of 2025 compared to the same period last year, according to a new report from behavioural biometrics firm BioCatch.

According to the company’s new report “2025 Digital Banking Fraud Trends in the United States,” account takeover fraud (ATO) has risen by 13 percent. Additionally, fraudsters are utilizing remote access 50 percent more frequently in these attacks compared to the previous year.

BioCatch, however, highlights that it has achieved an 18 percent reduction in fraud during account onboarding.

The report also notes that money mule cases have seen a 168 percent increase in the first half of 2025 compared to the same period last year. Money mules are actors who transfer illegally acquired money on behalf of criminal organizations.

The research is based on data from more than 200 financial institutions in the U.S., serving more than 245 million retail banking customers, says BioCatch.

The report shows other interesting trends when it comes to scams and fraud. The company, however, does not provide incident totals or detailed figures.

Deposit fraud has decreased in both account opening journeys and existing accounts, for instance, even though it is still the most commonly reported fraud type. Social engineering scams remain the most common type of fraud in the U.S., says BioCatch. While the company does not explicitly define fraud and scams in the report, the common element in the scams described is the manipulation of the victim, over and above the actual fraudulent transaction itself.

Impersonation scams, in which criminals trick victims into sharing information by pretending to be someone else, and purchase scams, where criminals offer fake goods or services to steal payment, are the two most common scam types in the U.S. Yet, investment scams result in the highest losses of any other type of scam in the country, according to the firm.

BioCatch warns that banks are facing new dangers, including an increase in fraud executed from stolen devices as well as the rise of malware.

The firm was recently declared a leader in behavioral biometrics and device intelligence for fraud prevention by QKS Group.

Article Topics

behavioral biometrics  |  BioCatch  |  biometrics  |  financial crime  |  fraud prevention