• Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to footer
  • Our Services
  • Contact Us
  • Newsletter
  • Top Nav Social Icons

FindBiometrics

FindBiometrics

Global Identity Management

  • Biometrics
    • What are Biometrics?
    • FAQ
    • Biometric Associations
    • Companies
    • Premier Partners
  • News
    • Featured Articles
    • Interviews
    • Thought Leadership
    • Podcasts
    • Webinars
    • Year in Review
  • Applications
    • Biometric Security
    • Border Control and Airport Biometrics
    • Consumer and Residential Biometrics
    • Financial Biometrics
    • Fingerprint & Biometric Locks
    • Healthcare Biometrics
    • Justice and Law Enforcement Biometrics
    • Logical Access Control Biometrics
    • Mobile Biometrics
    • Other Biometric Applications
    • Physical Access Control Biometrics
    • Biometric Time and Attendance
  • Solutions
    • Behavioral Biometrics
    • Biometric Sensors and Detectors
    • Facial Recognition
    • Biometric Fingerprint Readers
    • Hand Readers & Finger Scanners
    • Iris Recognition
    • Biometric Middleware and Software
    • Multimodal Biometrics
    • Physiological Biometrics
    • Smart Cards
    • Vein Recognition
    • Voice and Speech Recognition
  • Stocks
  • Events
  • Companies
  • Podcasts

BioCatch Predicts Financial Institutions Will Crack Down on Mule Accounts in 2021

February 16, 2021

BioCatch is once again calling attention to the rising threat of mule accounts. The company noted that COVID-19 has accelerated digital transformation, which has in turn created an opportunity for fraudsters who can take advantage of the increased traffic to remain undetected.

BioCatch Predicts Financial Institutions Will Crack Down on Mule Accounts in 2021

However, BioCatch suggested that financial institutions share some of the blame, insofar as they are not taking proactive steps to prevent the creation of mule accounts. Instead, they only try to identify mule accounts when facing scrutiny from financial regulators or law enforcement officers, becoming reactive to the point that only six percent of financial institutions are actively investing in mule detection technology.

Meanwhile, making a mule account has become easier than ever, due to the ready availability of personal information and the simplicity of the account creation process. A mule account is an account that is set up purely for the purposes of moving (and laundering) stolen money. In the past, cybercriminals would pay money mules to move money through legitimate accounts. Now, cybercriminals can simply set up an account with a false name and move the money on their own, often using stolen personal information.

That’s also why BioCatch believes that financial institutions will change their approach to mule accounts in 2021, as they try to clamp down on the rampant fraud they experienced in 2020. Cybercriminals collected an estimated $36 billion in fraudulent COVID relief payments in the US alone. Lawmakers are likely to respond with new anti-money laundering legislation that will force banks to reexamine their security practices, and financial institutions will have their own incentives as they try to protect their reputations and curb fraud losses.

With that in mind, BioCatch predicts that financial organizations will work together to create security best practices and implement new technologies that can thwart mule accounts. For example, they can use behavioral biometrics to watch for suspicious patterns in the account opening process, or use device reputation to assess the trustworthiness of the device itself.

–

February 16, 2021 – by Eric Weiss

Related News

  • BioCatch Unveils New Mule Account Detection ToolBioCatch Unveils New Mule Account Detection Tool
  • BioCatch Warns that COVID-19 is Leading to More Mule AccountsBioCatch Warns that COVID-19 is Leading to More Mule Accounts
  • BioCatch Survey Finds Financial Institutions Worried About Account Takeover AttacksBioCatch Survey Finds Financial Institutions Worried About Account Takeover Attacks
  • BioCatch Details Business Benefits of Behavioral BiometricsBioCatch Details Business Benefits of Behavioral Biometrics
  • BioCatch Explains How Behavioral Biometrics Generates ROI for Financial InstitutionsBioCatch Explains How Behavioral Biometrics Generates ROI for Financial Institutions
  • INTERVIEW: BioCatch CEO Howard Edelstein on Pioneering Behavioral Biometrics and Fighting Modern FraudINTERVIEW: BioCatch CEO Howard Edelstein on Pioneering Behavioral Biometrics and Fighting Modern Fraud

Filed Under: News Tagged With: AML, anti-fraud, behavioral biometrics, BioCatch, Biometric, biometrics, COVID-19, financial services, money laundering, mule account fraud, mule accounts, mule detection technology, online banking

Primary Sidebar

Want To Deploy Biometric Access? Download This First:

The resources in this bundle will give you the know-how to choose the right biometric access for your organization.

Sponsored Links

facetec logo

FaceTec’s patented, industry-leading 3D Face Authentication software anchors digital identity, creating a chain of trust from user onboarding to ongoing authentication on all modern smart devices and webcams. FaceTec’s 3D FaceMaps™ make trusted, remote identity verification finally possible. As the only technology backed by a persistent spoof bounty program and NIST/iBeta Certified Liveness Detection, FaceTec is the global standard for Liveness and 3D Face Matching with millions of users on six continents in financial services, border security, transportation, blockchain, e-voting, social networks, online dating and more. www.facetec.com

TECH5 logo

TECH5 is an international technology company founded by experts from the biometrics industry, which focuses on developing disruptive biometric and digital ID solutions through the application of AI and Machine Learning technologies.

TECH5 target markets include both Government and Private sectors with products powering Civil ID, Digital ID, as well as authentication solutions that deliver identity assurance for various use cases. 

Learn more: www.tech5.ai

With its secunet border gears product portfolio and specialised consulting expertise, secunet supports police forces and security authorities in their sovereign tasks. Whether ABC gates, self-service kiosks or biometric middleware – each component helps to strengthen identity protection and to accelerate verification – in mobile and stationary scenarios.

Mobile ID World Logo

Mobile ID World is here to bring you the latest in mobile authentication solutions and application providers. Our company is dedicated to providing users with the best content and cutting edge information on technology, news, and mobile solutions for your mobile identity management needs.

Recent Posts

  • Police Biometrics, a Data Breach, and Card-focused Partnerships – Identity News Digest
  • Catch Up: The Latest Developments in Biometric Privacy Regulations
  • Highlighting Biometric Security, NC DMV Head Pushes for Mobile Driver’s License
  • NY Attorney General Takes Aim at Madison Square Garden: Identity News Digest
  • [New Sponsors Announced] Feb 15 Virtual Summit Sessions Announced: Digital ID in Healthcare, Financial Services, Travel

Biometric Associations

IBIA and fido

Tweets

Footer

  • About Us
  • Company Directory
  • Advertise With Us
  • Contact Us
  • Privacy Policy
  • Terms of Use
  • Archives
  • CCPA: Do not sell my personal info.

Follow Us

Copyright © 2023 FindBiometrics