BioCatch is highlighting three case studies that demonstrate how behavioral biometrics generates considerable ROI for financial institutions. In doing so, the company notes that behavioral biometrics can help spot financial crimes (such as new account fraud) that are more difficult to spot with more traditional security tools.
The first of the three case studies involved a bank with a promotional scheme that allowed high-income clients to sign up for deposit accounts and credit cards using a single application process. The bank was unable to distinguish fraudsters from legitimate clients during the account opening process, leading to significant fraud losses down the line.
After implementing BioCatch’s solution, applicants who exhibited suspicious behavior were asked to visit a physical branch to complete the registration process. The solution saved the bank hundreds of thousands of dollars without creating more fiction for genuine customers.
The story was similar in the other two case studies. In one instance, a credit card issuer that relied on device reputation and location found that its security setup created too much friction, especially since many people end up using many devices when they travel for work. Behavioral biometrics, on the other hand, is device agnostic, and saved the issuer millions of dollars by reducing fraud and increasing customer acquisition rates.
The last study concerned a suspicious shipment of straws that was supposed to be sent to the remote island of Tuvalu. Behavioral biometrics was able to identify the fraudulent scheme and prevent the shipment (and the associated money transfers) from going through.
According to BioCatch, companies with streamlined security procedures are expected to bring in more revenue than companies with more friction in their customer experience. For its part, BioCatch was recently listed as one of CB Insights’ FinTech top 250, and now has more than 150 million biometric profiles in its system.
October 30, 2020 – by Eric Weiss