Behavioral biometrics provider BioCatch today announced it has closed a $30 million financing round led by Maverick Ventures with additional participation from American Express Ventures, NexStar Partners, Kreos Capital, CreditEase, OurCrowd, JANVEST Capital and other existing investors.
“BioCatch helps to answer the question, ‘who are you’ in an online world where fraudsters operate with the legitimate credentials of others, making it very hard to distinguish them from authorized users,” said Howard Edelstein, BioCatch CEO. “We take pride in the track record we have amassed and the role that we play as an integral part of our clients’ identity strategy. This strategy cuts across the digital ecosystem, from stopping fraud in real-time to preventing fake accounts from being opened in the first place, all while enabling a seamless user experience.”
“BioCatch’s robust behavioral analytics platform is helping companies identify and stop fraudulent activity without sacrificing the user experience for legitimate customers,” said Harshul Sanghi, managing partner of Amex Ventures, the strategic investment group within American Express. “The demand for organizations to strike that balance will only increase as digital engagement with their customers grows, and cyber threats become more sophisticated. We’re excited to support BioCatch as it works to expand its capabilities and help organizations, including American Express, address this critical need.”
Founded by experts in big data, machine learning and artificial intelligence, BioCatch set out to address the next generation of cyber threats by focusing on the behavior of the fraudster as opposed to adding new endpoint security layers. BioCatch proactively collects and analyzes more than 2,000 parameters to generate user profiles and model different types of genuine and malicious behavior. The platform addresses a wide range of threats at login and beyond by identifying malware, robotic activity, social engineering (phishing, etc.) and other cyber threats, which is a differentiator from traditional fraud approaches and other behavioral biometrics providers.
BioCatch monitors more than 5 billion transactions per month and generates real-time alerts when behavioral anomalies are detected, stopping fraud at the source and reducing the significant operational costs associated with managing it.
“BioCatch has made its mark as behavioral biometrics emerges as a key component in driving authentication and fraud strategies today. Their technology helps minimize friction for the end user, working passively in the background, eliminating the trade-off that has been made to date between security and the user experience,” said Julie Conroy, research director of Aite Group’s retail banking & payments practice. “Practitioners are being hit from multiple directions – ever changing cyber threats, new regulations and open banking requirements, global trends towards real-time and faster payments, and customer demands for more functionality in the digital channel. Whether in banking, insurance, cryptocurrency, P2P payments, healthcare, government or otherwise, enterprises large and small are all facing the same identity challenges”