- Financial crime prevention innovator BioCatch has launched its behavior-based scam-fighting solution, BioCatch Scams360.
- The new offering helps financial institutions deal with social engineering-based scams such as authorized push payment (APP) fraud.
- Founded in 2011, BioCatch made its Finovate debut at FinovateFall 2014 in New York.
Financial crime prevention company BioCatch recently unveiled the latest edition of its behavior-based scam-fighting solution: BioCatch Scams360. Designed especially to deal with the challenge of authorized push payment (APP) fraud, BioCatch Scams360 enables financial institutions to spot and stop most APP fraud in real time.
APP fraud leverages psychological manipulation to entice victims into transferring their funds to accounts owned by fraudsters. These sophisticated social engineering-based scams can range in tactics from romantic overtures and investment pitches to business email compromise and impersonation of friends or loved ones. To fight this, BioCatch Scams360 uses behavioral and device intelligence to give financial institutions the contextual knowledge they need to distinguish legitimate user behavior from indications that the user may be under some form of manipulation by a nefarious party.
Examples of this can include the rate of the user’s typing, the speed with which they respond to prompts, prolonged periods of in-session inactivity, and/or making a phone call during an online banking session. BioCatch is able to track up to 3,000 different behavioral and device-based datapoints to help distinguish behavior that is genuine from behavior that may be criminally manipulated.
“Already we’re seeing a 50% improvement in our ability to detect non-impersonation scams,” BioCatch Chief Product Officer Ayelet Eliezer said. “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 new offering builds on the company’s previous success in combatting impersonation-based scams; BioCatch noted that it had helped a regional bank stop $100 million in impersonation scam payments in 2024 alone. BioCatch recently teamed up with The Knoble, a Tennessee-based alliance of financial service professionals, law enforcement, and regulators dedicated to fighting crimes such as human trafficking, financial scams, child sexual exploitation, and elder exploitation. Together, the two organizations launched an anti-scam guide and cost calculator that underscores the fact that the cost of fraud often exceeds direct financial losses to include customer churn, reputational risk, compliance exposure, and more.
“We are excited to see more innovation out of BioCatch to combat the global increase in scams,” The Knoble Founder and Board Chair Ian Mitchell said. “BioCatch is leading a growing list of solution providers working to protect banking customers and communities from the increased complexity of scams.”
Founded in 2011 and headquartered in New York, BioCatch made its Finovate debut at FinovateFall 2014. Today, the company counts more than 250 financial institutions—including 34 of the world’s largest banks—among its customers. BioCatch’s technology analyzes 15+ billion user sessions every month, helping more than 525 million people worldwide defend themselves against fraud and cybercrime.
BioCatch’s product news comes at the same time that the firm reported topping $160 million in annual recurring revenue (ARR) in Q2 of this year, the best second quarter in the company’s history. In May, BioCatch announced that it was partnering with identity and fraud prevention platform provider Alloy to integrate its account opening solution into Alloy’s platform. Alloy is an alum of Finovate’s developer conference, FinDEVr Silicon Valley 2016.
Photo by Shannon Potter on Unsplash
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