As the US shifts this week to Same Day ACH for debit payments, BioCatch is making the case for behavioral biometrics to help prevent a likely uptick in fraud.
With the rule change, which takes effect tomorrow, banks are required to provide two settlement windows per day for transactions made through the standard Automated Clearing House network, meaning that debit purchases can be settled in a single day, rather than the following day. In a post on its blog, BioCatch points out that this means fraudsters can abscond with illegitimate debit purchases even more quickly, and asserts that after the UK’s banking industry made a similar move, it saw “a gigantic increase in fraud – upwards of 300%”.
Fortunately, BioCatch says, a 24 percent drop in fraud rates reported several months ago by Fraud Action UK “was driven by the adoption of behavioral biometrics”, which analyzes things like patterns in users’ mouse movements and typing speed to add an extra layer of authentication to online sessions.
BioCatch’s behavioral biometrics solution has in recent weeks been embraced by LexisNexis Risk Solutions and Canada-based HoneyTek Systems; now, with the onset of Same Day ACH, its pitch may prove particularly resonant in the digital commerce and financial services sectors.