Argentinian banks join real-time fraud detection network

The system works by identifying suspicious behaviour before funds are transferred. Banco Galicia, Naranja X, and Santander Argentina are among the first institutions participating in the initiative, which is facilitated by the behavioural biometrics firm BioCatch. 

The platform, known as BioCatch Trust Argentina, analyses behavioural patterns and device activity, such as keystroke dynamics, touchscreen interactions, and mouse movements, to assess the credibility of recipient accounts involved in financial transfers.  

When the system detects anomalies associated with known scam techniques, it alerts the sending institution in real time, allowing for intervention before the funds leave the customer’s account.

Intelligence network targets mule accounts 

The primary focus of the network is to address the widespread use of mule accounts, which are often employed to move funds on behalf of fraudsters. These accounts are typically embedded across various financial institutions, forming networks that enable criminals to launder illicit gains. 

According to representatives from BioCatch, the effectiveness of combating such networks lies in proactively sharing intelligence before transactions occur. Rather than responding after the fact, the system aims to stop fraudulent payments at the source by combining data from both sender and recipient accounts. The technology leverages pseudonymised data to ensure user privacy is maintained across institutions. 

In addition to behavioural indicators, the platform incorporates data from digital sessions, account activity, devices, and non-transactional events. This approach is particularly aimed at mitigating scams that originate outside digital banking platforms, such as those initiated through phishing messages or social media. 

Officials from participating banks have indicated that this collaborative model aligns with their security strategies. Representatives from Banco Galicia stated that the ability to vet recipient accounts prior to payment enhances their internal fraud detection capabilities. Naranja X officials noted that the system provides a new layer of context for ongoing fraud prevention efforts and expressed hope that industry participation will strengthen the initiative. Santander representatives described the platform as a way to detect threats earlier and reduce disruption to legitimate transactions.