BioCatch Scout Delivers Financial Pre-Crime Logistical Intelligence for Targeted Fraud Interdiction & Mule Account Identification

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Sep 18, 2023, 08:00 ET

New Graphical Link Analysis Canvas Illuminates Financial Crime Syndicate and Network Behaviors; Accelerates Collaboration Among Fraud and AML Teams in Effort to Identify and Eliminate Mule Accounts

TEL AVIV, Israel and NEW YORK, Sept. 18, 2023 /PRNewswire/ -- BioCatchÒ, the global leader in digital fraud and money laundering detection and response powered by behavioral biometric intelligence, today announced the availability of BioCatch ScoutÔ. BioCatch Scout is a graphical, next-generation link analysis technology that presents pre-crime interdiction intelligence to reveal the depths of global criminal networks of connected accounts, devices, and individuals associated with fraud or money laundering.

The United Nations Office on Drugs and Crime estimates the amount of money laundered globally in a calendar year is between 2 to 5% of the global GDP, or approximately $800 billion to $2 trillion in US dollars. These estimates parallel findings released in June 2022 by the BioCatch Global Fraud Intelligence Team that approximated 0.3 percent of all accounts held by U.S. financial institutions are mule accounts which translates to nearly $3 billion US dollars in fraudulent fund transfers a year.

"Mule accounts underpin a worldwide surge in fraud and digital crime, enabling criminals to achieve significant returns with minimal investment," notes Jonathan Frost, a fraud expert and former Program Director for the United Kingdom's fraud and cybercrime reporting service. "Real-time payments have increased efficiency for criminals, who can build and dismantle complex networks of money mules within countries and across the globe. Complicit and unwitting mules, alongside synthetic identities, have further increased the challenge for banks and law enforcement, with some mules also proving to be victims. The growing ubiquity of real-time payments across the globe will only serve to increase the need for banks and law enforcement to trace illicit funds."

The world's largest 150 retail banks acknowledged the increasing challenge they face in detecting fraud and money laundering campaigns before customers' financial assets are lost in an independent study conducted earlier this year by Forrester Consulting. Specifically, 75% of financial institutions agreed that financial risk to their organization increases significantly with each additional day of investigation into cases of financial crime. The same percentage believe that integrating Enterprise Fraud Management (EFM) and Anti-Money Laundering (AML) capabilities is critical to their ability to respond to financial crime quickly.

BioCatch Scout Connects Fraud and AML Teams

BioCatch Scout enhances the BioCatch Mule Account Detection framework by providing an added layer of behavioral intelligence that bridges the gap between EFM and AML departments. By supporting more than 50,000 nodes and over 250,000 edges, BioCatch Scout illuminates the connection of every suspected mule account in a bank's network. Layering in more than 3,000 combined application, behavioral, device, network and transactional signals, BioCatch Scout reveals clusters of connected and suspected mule account activity through a graphical galaxy interface that allows fraud and AML analysts to zoom in, highlight, and filter suspected mule accounts per risk level and desired connection criteria. BioCatch Scout's dynamic, multi-attribution filtering technology allows fraud and AML teams to quickly drill-down into suspected clusters to execute behavioral intelligence, response, and interdiction workflows.

BioCatch Scout customer design partners have realized quantifiable ROI through the application of the technology's pre-crime logistic visibility features including the ability to identify 98% of active mule accounts in advance of existing system alerts and 70% of newly created accounts as mules before the first incoming transfer.

"BioCatch's ability to detect money mules before they transact is transforming how fraud and compliance teams disrupt financial crime and protect their customers from next generation scams," said Kevin Donovan, Vice President, New Products at BioCatch. "BioCatch Scout expands the bank's detection capabilities by illuminating hidden networks of bad actors operating within the bank, and empowering fraud and AML teams to remove criminals from the bank before additional damage is done."

BioCatch Scout is the latest addition to the Predictive Intelligence tool set of the BioCatch Connect^TM product portfolio which also includes Analyst Station, Rule Manager, and the Insights Query Engine. Similar to BioCatch's preceding Predictive Intelligence tools, BioCatch Scout is powered by BioCatch's patented, next-generation Continuous Behavioral Sequencing™️ (CBS) technology which leverages advanced cognitive human behavioral science, data modeling, and machine learning algorithms to parse, match, analyze, coalesce, and score every element of data collected by the Fraud Telemetry Collection module. The Fraud Telemetry layer uses a lightweight mobile and web SDK to continuously collect thousands of signals from five distinct data sources, including applications, user behaviors, devices, networks, and transactions from each session. To learn more about how BioCatch Connect works and what sets it apart from first-generation online fraud detection solutions, download the new technology paper, BioCatch Connect: Reshaping How Fraud and AML Teams Work Together.

BioCatch Scout is now in early availability release. Banks, fintechs and financial services organizations interested in learning about BioCatch Scout can learn more on our website or schedule an introductory briefing with a BioCatch Global Advisor. Additionally, BioCatch will be holding a webinar, Revealing Criminal Networks with BioCatch Scout, on Thursday, October 26 at 10:00 AM ET to demonstrate its new canvas technology. Interested parties may request an invitation to the event using this link: https://biocatch.zoom.us/webinar/register/WN_CgjWH5XjQv27t2FH1kasXg#/registration

About BioCatch

BioCatch stands at the forefront of digital fraud detection, pioneering behavioral biometric intelligence grounded in advanced cognitive science and machine learning. BioCatch analyzes thousands of user digital interactions to support a digital banking environment where identity, trust, and ease coexist. Today, more than 25 of the world's leading 100 banks and >100 of the largest 500 rely on BioCatch's solutions to combat fraud, facilitate digital transformation, and grow customer relationships. BioCatch's Client Innovation Board, an industry-led initiative featuring American Express, Barclays, Citi Ventures, HSBC, and National Australia Bank, collaborates to pioneer creative and innovative ways to leverage customer relationships for fraud prevention. With more than a decade of data analysis, over 80 registered patents, and unmatched expertise, BioCatch continues to lead innovation to address future challenges. For more information, please visit www.biocatch.com.

Media Contact:
Jay Jones
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404.668.0218

SOURCE BioCatch