BioCatch, which specializes in developing fraud prevention solutions, announced the launch of what it described as the world’s first interbank network for the sharing of information on financial crimes.
It is worth noting that in this case, data based on behavior is implied.
The press release, which was published on Wednesday, November 20, contains information that the BioCatch Trust Network is designed to protect the company’s banking customers from scams, fraud, and other financial crimes. In this case, consumers are offered a real-time assessment of account trustworthiness.
In a press release, it was noted that the mentioned network’s foundational behavioral intelligence engine ingests signals about a digital session, payment, account, device, IP address, and geolocation for a specific country. Also, in this case, non-monetary event signals are used to holistically evaluate the trustworthiness of every receiving account before a payment is processed.
If the network identifies the account to which the money is being transferred as part of a payment transaction is not trustworthy, it informs the sending bank about this in real-time. After receiving the appropriate signal, the financial institution will be able to stop the transaction to verify this operation before the funds leave the client’s account.
BioCatch chief executive officer Gadi Mazor stated that scam payments are almost always transferred to mule accounts through which criminals launder their profits before withdrawing them. According to him, to combat the relevant criminal activity, the sending and receiving banks should cooperate and share intelligence with each other in real-time. He noted that this interaction is necessary to proactively identify money mules and halt payments to them.
Gadi Mazor also stated that the cooperation of financial institutions can reduce scams and disrupt money laundering efforts. In the relevant context, he noted that criminals regularly swap strategies, tactics, intelligence, and technology with each other.
BioCatch launched its network on Wednesday in Australia together with the five largest banks of this country. The purpose of this network is to help the mentioned financial institutions protect customers from common cyber crimes such as authorized push payment fraud and social engineering scams.
It is worth noting that banks are currently facing a kind of twofold challenge. Financial institutions need to provide a seamless experience to their customers, although some people would like a bit of complexity or even friction in the context of the issue of combating fraud. At the same time, it is convenient for clients when banks contact them when spot abnormal behavior. Appropriate practice is necessary for financial institutions to ensure that transactions are executed following the wishes of customers.
The standard or average behavior of clients is what can be described as the main parameter for assessing risks during banking transactions. Many functional solutions in the cybersecurity area rely on the mentioned parameter. For example, Featurespace’s ARIC platform uses adaptive behavioral analytics to analyze customer behavioral data in a cloud-based environment.
It is worth noting that the issue of cybersecurity is currently very relevant. To a large extent, the corresponding state of affairs is due to the rapid development of technology, including the intensive evolution of the artificial intelligence industry. Scammers have access to advanced technologies that make their activities more sophisticated. One of the tools to counter cybersecurity threats is the personal awareness of users. For example, a query in an Internet search engine, such as how to know if my camera is hacked, will allow anyone to get information about signs of unauthorized access to the device. Digital literacy is an effective tool for countering security threats in cyberspace. Relevant knowledge should be updated periodically, as technology development is a constant process.
