Nasdaq Verafin and BioCatch have recently entered a strategic partnership to leverage their technology solutions to fight against payments fraud and financial crime.
The partnership allows combining Nasdaq Verafin’s proprietary fraud detection platform and consortium data network with BioCatch’s behavioural and device intelligence to address the rapid growth of payments fraud across the globe.
The current state of worldwide financial crime
According to Nasdaq Verafin’s 2024 Global Financial Crime Report, payments fraud and scams accounted for the majority of the estimated USD 486 billion in global fraud losses in 2023, which underlines the urgency for companies to adopt more powerful fraud detection and prevention tools.
The same report suggests that top threats in 2023 included real-time/faster payments fraud (52%), money mule (47%), and terrorist financing (33%). Nasdaq Verafin officials claim that a greater industry collaboration is required, as criminal threats grow both in scale and sophistication by the day.
More information about the partnership
The first phase of the partnership includes integrating BioCatch’s alerts and insights into the Nasdaq Verafin platform. The integration is aimed to transform the platform’s fraud prevention efforts, allowing financial institutions to take pre-emptive actions against payment fraud with the help of behavioural and transactional intelligence.
The partnership will also constitute a step further for financial institutions in gaining more holistic risk insights across a transaction’s lifecycle, removing signal-delivery silos. Thus, customers will be able to evaluate risks easier and fight fraudulent transactions in real-time.
The collaboration between the two companies also includes additional product integrations, co-developed fraud solutions, joint research, and thought leadership to enhance the common efforts of fighting payment fraud.
Additional details about the companies
BioCatch is a financial crime prevention platform that delivers real-time analysis of around 3,000 unique behavioural and device-related data points, from keystroke and mouse activity to physical device attributes, touch screen behaviour, and more. The data collected through this technology fuels machine-learning models and is further used to reveal patterns in user behaviour, allowing banks to differentiate between legitimate users and fraudsters.
Nasdaq Verafin is trusted by over 2,600 financial institutions globally, representing more than USD 10 trillion in collective assets. It leverages data from more than 725 million counterparties worldwide and aims to provide useful insights into fraud risk, beyond the view of a single institution.
