BioCatch Mule Account Detection Brings Mule Detection Capabilities to Financial Institutions

BioCatch has launched Mule Account Detection, a solution that provides comprehensive protection against mules of money, the people who, under someone else’s direction, receive and move money obtained by criminal means.

Mule accounts are a vital link in the fraud supply chain, allowing criminals to cash in at the end of the money laundering process. Cybercriminals have used these ploys to take advantage of the global pandemic, prompting further scrutiny from global regulators directed at a financial institution’s detection and processing of mule money accounts.

When mule accounts are not processed, financial institutions can face major financial losses, regulatory issues and reputational risks. According to a recent Aite-Novarica survey, 64% of executives say their institutions are more interested in monitoring, detecting and preventing mule activity. The BioCatch Mule account discovery solution addresses these issues by running continuously in the background of every digital session, monitoring for anomalies that may suggest an account is functioning like a mule of money.

With billions pumped into the economic stimulus, the possibility of defrauding government programs presented cybercriminals with an unprecedented opportunity. To cover up the issue, fraudsters have taken advantage of the vulnerability of individuals by using their accounts to transfer money between financial systems around the world.

The recruitment of money mules has reached an all-time high, with children and young adults particularly vulnerable to money laundering schemes. According to Cifas, a UK-based fraud prevention nonprofit, there has been a 78% increase this year in suspicious money mule activity in the accounts of people under the age of 21.

“The issue of detecting mule accounts is complex because there are many different scenarios involved. A financial institution could be dealing with a criminal using a stolen or synthetic identity to open a new account for money transfer purposes or seize the trust account of an unwitting victim to launder stolen funds, ”said BioCatch CEO Gadi Mazor. “BioCatch Mule Account Discovery applies machine learning risk models to find the unique behaviors associated with multiple fraud scenarios indicating mule activity both at account opening and at the point of payment. “

“Concerns about the implications of rising mule activity rates resulting from the extraordinary amount of fraudulent payments intercepted from government stimulus programs are influencing the number of financial institutions that are building mule detection capabilities into existing transformation programs, ”said Trace Fooshee, strategic advisor at Aite -Pratique Fraude & AML de Novarica. “In some cases, financial institutions are restructuring their policies and even their organizational structures in order to more deliberately mitigate risk. “

BioCatch’s Fraud Protection Platform detects financial fraud in several use cases such as account opening fraud, account takeover, scams and now mule accounts. Built on innovative behavioral biometric technology, BioCatch is operated by more than 50 global financial institutions to reduce the emotional and financial impact of fraud and identity theft on their customers, providing trust and security while protecting their assets from threats. most sophisticated fraud threats today.


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Marianne R. Winn