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BioCatch Closes $ 30 Million for "Behavioral Biometric" Technology for Banks and Other Trading Firms

BioCatch, the American start-up that has developed a biometric behavioral authentication and threat detection technology to enable banks and other large companies to stop online fraud before It does not happen. In what can be considered a mix of strategic and pure investors, the round is led by Maverick Ventures, with the participation of American Express Ventures, NexStar Partners, Kreos Capital, CreditEase, OurCrowd, JANVEST Capital and other existing investors.

Founded in 2011 by self-proclaimed experts in the fields of Big Data, Machine Learning, and Artificial Intelligence, BioCatch discusses cybersecurity from the angle of the world. online identity. Instead of the traditional approach of simply adding additional layers of security (a password in addition to a passphrase in addition to two-factor authentication, etc.), the technology focuses on the online behavior of customers to detect and prevent a potential fraudster.

Once installed on the website or the application of a bank, for example, BioCatch technology collects and analyzes over 500 cognitive parameters, such as the way you wave the mouse when the cursor disappears or the way you hold your phone. unique profile. It then uses this as a point of reference (or a form of identity) to authenticate that you are what you say you are. In this way, the technology is effective against phishing attacks or bots because it does not rely on the stop of a fraudster but on the prohibition to hurt if and when it does so .

In a call, recently appointed CEO of BioCatch, Howard Edelstein said that it required companies to think about online security in a very different way from the past, by making a challenge to sell to businesses. the right person in a company and someone who will be receptive to a demonstration of technology. Once this happens, especially since BioCatch can reveal anomalies that other cybersecurity technologies could never reveal, the conversation becomes easier.

That said, Edelstein noted that the biometric behavioral technology market has become a race over the past 24 months, with an awareness of technology among businesses and customers of BioCatch's financial institutions. . Being focused on blue chip companies, primarily the big banks, the plan is to expand to other adjacent areas where an identity approach can work better. This could include insurance, cryptocurrency, P2P payments, health care and government.

The start-up will also invest in its product line, says Edelstein, starting by detecting fraud when opening an account, and even before a company does. know who you are. This is made possible now that BioCatch has accumulated enough behavioral data and trained its systems to understand the differences in the behavior of a fraudster when entering crucial details and during other stages of the process d & # 39; entry.

Meanwhile, BioCatch is talking about its robust IP portfolio, with more than 56 patents being granted or pending. I've already talked about one of the patents issued by the company, entitled "System, Device and Method for Detecting the Identity of a User of a Mobile Electronic Device" . It covers the use of physiological factors such as palm size, eye-hand coordination, combined with behavioral traits, such as user preferences and interaction patterns of the Device, to make sure you are what you say you are.

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