BioCatch has officially patented its new Mule Account Detection solution in the United States. The patent is one of nine that the company received since the start of 2021, and brings the total number of patents in its portfolio to 71 across the US, the UK, and Europe.
The company’s Mule Account Detection system is designed to identify users who let criminals move money through their own accounts. BioCatch has repeatedly warned about the growing threat of mule accounts, noting that money mule activity has gone up in the past few years. That activity has drawn the attention of financial regulators, and increased the demand for solutions that can prevent the movement of ill-gotten funds.
In practice, a money mule appears to be a regular account. Criminals will send money that was obtained illegally to a money mule, and the mule will pass that money on to a separate (but legitimate) account. In doing so, the mule helps the criminal launder the money, usually in exchange for a small fee for performing the service.
The BioCatch system, meanwhile, uses behavioral biometrics to watch for patterns that have been associated with mule accounts. The solution provides ongoing monitoring of a bank account and the user’s behavior during each and every online banking session. The platform can also step in to stop a transaction if it detects any suspicious behavior.
“Mule accounts are crucial in the fraud supply chain and, if left undetected, pose a substantial financial risk,” said BioCatch CEO Gadi Mazor. “BioCatch’s experience in applying behavioral insights to prevent fraud allows us to proactively identify the nuances of mule accounts, helping prevent reputational loss and regulatory scrutiny for financial institutions.”
BioCatch launched its new Mule Account Detection solution back in November. The company’s behavioral biometric technology can help fight other forms of fraud, including account takeover and account opening attacks.
February 8, 2022 – by Eric Weiss