BioCatch is pitching behavioral biometrics as a way for financial institutions to better manage higher levels of risk without increasing their exposure to fraud. Since the technology is so effective, behavioral biometrics allows banks to offer services like real-time mobile P2P payments that would otherwise be too risky to consider.
According to BioCatch, behavioral biometrics works because it is able to identify and stop more sophisticated fraud attacks, including bots, remote access tools, identity theft, and social engineering scams. To do so, the technology tracks a variety of behavioral indicators, building user profiles based on factors like mouse speed, device position, and keystroke movement.
From there, it analyzes each session to determine whether or not the person in that session is in fact a genuine user. BioCatch notes that real users tend to be more hesitant while filling out forms, largely because they are not as familiar with the material. However, they are much more confident when entering personal information (and often use the auto-fill function), since that information has been committed to memory and is used quite frequently.
Criminals, on the other hand, tend to rely on the copy-paste function, and often delete and re-enter information that has been entered incorrectly. They are much more familiar with the form itself, since they have entered new information into the same form on multiple occasions.
BioCatch argues that behavioral provides banks with a positive return on their investment because it filters the fraudsters from the legitimate consumers and drives new business as a result. One Latin American bank reduced social engineering fraud by 67 percent, while a US card issuer enjoyed a $1 million revenue boost after deploying BioCatch. Behavioral biometrics also delivers a better customer experience, as in the case of a UK bank that saw a 95 percent decrease in customer friction.
BioCatch now tracks more than 200 million user profiles, and analyzes more than 1 trillion unique digital interactions on a monthly basis.
January 8, 2021 – by Eric Weiss