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BioCatch Scout: Pre-Crime Detection Technology to Combat Global Fraud, Money Laundering

BioCatch, a digital fraud detection and response provider, has made a groundbreaking announcement with the launch of BioCatch Scout™. This cutting-edge solution introduces next-gen link analysis technology, BioCatch Scout, designed to unravel the complexities of global criminal networks involved in fraud and money laundering, connecting accounts, devices, and individuals.

According to estimates by the United Nations Office on Drugs and Crime, the global annual money laundering figure stands between 2% to 5% of the global GDP, an astounding $800 billion to $2 trillion in US dollars. Echoing these figures are findings from BioCatch's Global Fraud Intelligence Team in June 2022, revealing that 0.3% of accounts in U.S. financial institutions are mule accounts, translating to nearly $3 billion USD in fraudulent fund transfers annually.

"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'sfraud 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."

In a recent independent study by Forrester Consulting, 75% of the world's largest 150 retail banks acknowledged the escalating difficulty in detecting financial crime promptly. They emphasize the importance of integrating Enterprise Fraud Management (EFM) and Anti-Money Laundering (AML) capabilities to combat financial crime effectively.

BioCatch Scout bridges the gap between fraud and AML departments by enhancing the BioCatch Mule Account Detection framework. With support for over 50,000 nodes and 250,000 edges, BioCatch Scout provides behavioral intelligence, utilizing over 3,000 signals, to illuminate connections among suspected mule accounts. This graphical interface empowers analysts to filter suspected mule accounts and execute behavioral intelligence, response, and interdiction workflows.

Customers who partnered with BioCatch in designing Scout have achieved remarkable results, including the identification of 98% of active mule accounts and 70% of newly created accounts as mules before the first suspicious transaction.

The tool expands the bank's detection capabilities, enabling the removal of criminals from the system before further damage is done.

BioCatch Scout is the latest addition to the BioCatch Connect™ product portfolio, powered by the patented Continuous Behavioral Sequencing™️ (CBS) technology. This technology leverages cognitive behavioral science, data modeling, and machine learning to analyze and score data collected by the Fraud Telemetry Collection module continuously.



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