BioCatch Launches Behavioral Fraud Detection Network with Major Australian Banks

Digital fraud detection leader BioCatch has launched what it describes as the world’s first inter-bank, behavior-based financial crime intelligence-sharing network. The BioCatch Trust Network, unveiled on November 20, 2024, aims to protect bank customers against financial crimes by assessing receiving account trustworthiness in real-time. This launch comes at a critical time, as recent data shows that approximately 1 in 100 users of digital platforms globally were connected to fraud rings in 2023.

Five of Australia’s largest banks have joined as founding members: Australia and New Zealand Banking Group (ANZ), Commonwealth Bank of Australia (CBA), National Australia Bank (NAB), Suncorp Bank, and Westpac.

The network employs a behavioral intelligence engine that analyzes digital session data, payment information, account details, device characteristics, IP addresses, and geo-location signals. Similar to approaches seen in other leading behavioral fraud prevention systems, when the system identifies an untrustworthy receiving account, it immediately alerts the sending bank, enabling transaction suspension and investigation before funds transfer.

“Real-time information sharing enables us to recognize patterns that individual entities may miss, providing a fuller view of criminal activity while protecting sensitive information,” said Matt O’Neill, Co-Founder of 5OH Consulting and former U.S. Secret Service Deputy Special Agent in Charge of Cyber. “The ability to securely share actionable intelligence without compromising privacy is what allows institutions, with support from real fraud fighters like BioCatch, to act decisively and prevent the exploitation of our financial systems.”

The network incorporates pseudonymization technology to protect retail banking customers’ identities at member institutions. This feature maintains security while enabling the sharing of critical fraud prevention intelligence. This approach aligns with emerging trends in the industry, as demonstrated by similar partnerships between behavioral biometrics providers and major financial institutions.

Trace Fooshée, Strategic Advisor at Datos Insights, noted the importance of comprehensive transaction visibility: “Accurately and effectively detecting and preventing authorized payment fraud scams comes down to the ability of both the sending and receiving financial institutions to piece together meaningful context behind any given payment from both the perspective of the sender and the beneficiary.”

BioCatch plans to expand the network to additional countries throughout 2025, working toward establishing a global inter-bank intelligence-sharing system. This expansion comes as financial institutions worldwide are increasingly adopting AI-driven solutions for payment verification and identity validation to combat evolving fraud threats.

Source: BioCatch

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November 20, 2024 – by the ID Tech Editorial Team