Nasdaq Verafin and BioCatch: Fighting Payment Fraud
The partnership aims to prevent fraud with the combination of Nasdaq Verafin's global consortium and its fraud detection platform with BioCatch’s unique intelligence insights into fraud risk.
BioCatch offers behavioural and device intelligence, which generates insights that will be integrated into Nasdaq’s platform.
Combatting financial fraud
The combination of the services leaves financial institutions able to preemptively halt fraudulent transactions in the fight against fraud.
These actions can be done before payments leave a customer’s account.
Stephanie Champion, Nasdaq Executive Vice President and Head of Nasdaq Verafin says: “As criminal threats grow in scale and sophistication each day, the need for greater industry collaboration has never been more urgent.
“We are thrilled to partner with BioCatch to further enrich our existing solutions and improve our clients’ ability to fight scams and payments fraud.”
FinCrime: Fraud on the rise
Banks and global financial institutions such as Visa and Mastercard have recently made developments in the fight against fraud.
FinCrime has continued to rise, with consumers in the US reported to have lost US$12.5bn to fraud in 2024, marking a 25% increase from the prior year.
“This partnership showcases the power of two innovative organisations that have built exceptional, trusted networks,” comments Stephanie
“Together, we share a vision to leverage consortium data and behavioural insights as a force multiplier to create a true crime-fighting network that helps financial institutions act faster and better safeguard consumers from harm.”
Over 2,600 financial institutions with over US$10trn in assets make up the consortium. Clients of the platform use Verafin’s technology in anti money-laundering and countering the financing of terror efforts.
“The job of a fraud fighter is hard,” Gadi Mazor, CEO at BioCatch says.
“It’s getting more difficult each day, as our criminal counterparts find new ways to socially engineer and scam bank customers.
“Our initial integration with Nasdaq Verafin promises to make the job of the fraud fighter immediately easier, giving them single-screen access to powerful, predictive behavioural and transactional fraud signals that enable real-time decisioning across sessions, users and networks.
Gadi adds: “This partnership underscores the need for a truly global, collaborative approach to fighting financial crime – one that changes the way financial institutions collaborate, protects account-to-account transfers, stops fraudulent payments, and eliminates the money laundering accounts that power financial crime syndicates.”
Intelligence meets consortium
Using Nasdaq Verafin’s network, data from 735 million counterparties worldwide influences insights around fraud risk.
To stop fraud before it occurs, BioCatch analyses thousands of unique user behaviours on digital banking platforms in real-time.
By assessing behavioural and device-related data points such as typing patterns and mouse activity, BioCatch’s machine-learning models enable banks to accurately distinguish a genuine customer from a fraudster.
Julie Conroy, Chief Insights Officer at Datos Insights says: “This partnership represents a win-win by combining the scale of consortium analytics with the precision of behavioral and device intelligence, enabling a comprehensive defense against increasingly sophisticated fraud attacks.
“Fraudsters are actively capitalising on the immediacy of faster payments to commit faster fraud, and it’s imperative that financial organisations have the tools that enable them to move from reactive mode to proactive prevention to protect both their bottom line and consumer trust.”
More information about the partnership will be available through webinars which will be released later this year.
