BioCatch, a digital fraud detection company, has launched an inter-bank, behaviour-based financial crime intelligence-sharing network, dubbed the BioCatch Trust Network.
Claimed to be the first of its kind globally, the new initiative is designed to protect bank customers from financial crime, scams, and fraud by providing real-time assessments of the accounts to which payments and transfers are made.
By assessing the risk of receiving accounts, the network enables sending banks to suspend or investigate transactions before any money leaves the sender’s account if the receiving account is deemed untrustworthy.
The network has been launched in Australia, with five of the country’s largest banks joining as founding members.
Using BioCatch’s behavioural intelligence engine, the network evaluates digital session, payment account, device IP, geo-location, and non-monetary events.
The BioCatch Trust Network enables financial institutions to proactively protect users from the risk of authorised push payment (APP) fraud and social engineering scams. These scams involve fraudsters manipulating victims outside digital banking sessions often through email, text messages, or social media posts.
The new network protects users while safeguarding user privacy, employing pseudonymisation technology to protect the identities of retail banking customers at member banks.
BioCatch CEO Gadi Mazor said: “Scam payments are nearly always transferred to mule accounts through which scammers launder their profits before withdrawing them.
“To combat this rampant criminal activity, it’s crucial for sending and receiving banks to collaborate and share intelligence in real time to proactively identify these money mules and halt payments to them.
“This cooperation can dramatically reduce the number of scam victims and significantly disrupt criminals’ ability to launder their illegally acquired money. We know the bad actors behind these attacks swap tactics, strategies, intelligence, and technology with other rival cybercriminals.”
The BioCatch Trust Network works in parallel with existing networks, which typically provide information after a scam has already occurred. The network’s ability to learn and grow is powered by its increasing data pool, as more banks contribute account intelligence.
As the network gathers billions of historical and validated data points, its predictive intelligence improves, providing immediate protection for all members as soon as a potential risk is identified.
The company plans to roll out networks in additional countries throughout 2025.
