The future of retail lies in the hands of e-commerce and mobile-based payments. As Internet-driven transactions multiply by the day, user authentication for banks, financial services, retail websites and everyone in the business of selling online is becoming a key parameter. Owing to more and more people sharing sensitive financial data for buying and selling online, hackers and online identity thieves are constantly on the prowl to steal and misuse funds whenever possible.
That’s where the current technology patent being developed by Israeli startup BioCatch is breaking new grounds. The device-based patent works with the use of touch and the phone’s accelerometer to authenticate mobile device users.
The company’s focus is to equip the online business industry with a product that helps to fight against advanced cyber threats. The privately owned and rapidly growing BioCatch is pushing biometrics technology to the next level through a unique approach. The technology for their first product focuses on online and mobile fraud mitigation. Though in the beta stage, it is already being used in multiple commercial online environments. The company has developed what it calls a “behavioural biometric authentication and threat detection” technology that will help banks and e-commerce companies to stop online fraud even before it happens. The technology demonstrates outstanding results in terms of accuracy, Man-in-the-Browser (MITB) attacks, remote access attacks and automated account manipulation.
How it works: BioCatch collects and analyses over 400 bio-behavioral, cognitive and physiological parameters. This helps to create unique user profiles for consumers of banks and e-commerce sites. It then uses its technology to authenticate visitors on their return to a site and identify users who show behaviors similar to those of fraudsters. The user profiles are constructed based on bio-behavioral, cognitive and physiological parameters, including how someone locates and moves their mouse when presented with a hidden challenge. It creates a unique footprint and even records details such as palm size, press size, hand tremor and eye-hand coordination integrated with behavioral traits (such as usage preferences and device interaction patterns) to help ensure that a user is in fact who he/she claims to be.
The focus for BioCatch’s latest offering is to reduce risky transactions and stop cyber threats like account takeovers, malware, remote access, etc., almost like the last line of defence. It doesn’t replace authentication and fraud detection but takes measures to stop cybercrime. Currently, BioCatch’s tech has been installed in eight banks, e-commerce sites and enterprises in a total of six countries. The company counts RSA and Trusteer as competitors.
Prior to its recent Series A round, BioCatch raised $4 million in 2011. It closed its recent Series A at $10 billion, which was led by OurCrowd and Blumberg Capital. The new cash flow will be used to expand the Tel Aviv-based BioCatch’s R&D efforts and push for growth in its key markets, including North America, Europe and Brazil.