BioCatch shifts fraud to loss prevention

This shifts BioCatch from a fraud tool bought by digital banking teams into a loss prevention system that can be funded by scam operations and customer remediation budgets. Scams360 matters because APP fraud is handled after the payment, in fraud review queues, contact centers, and reimbursement workflows, so a product that flags customer manipulation before money leaves the account helps banks avoid both the scam loss and the cost of making the customer whole.

• In practice, the buyer expands from the online fraud team to the people running scam calls and claims. BioCatch already detects signals like hesitation, erratic input, long inactivity, malicious apps, and an active phone call during a transfer. Those signals are useful not just for blocking a payment, but for routing the case to an agent who can intervene live.
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• Reimbursement rules turn scam prevention into a direct P and L issue. In the UK, mandatory APP scam reimbursement for Faster Payments and CHAPS started on October 7, 2024, which forces payment firms to build claims handling and prevention processes. That creates budget for tools that reduce scam case volume and improve reimbursement outcomes.
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• This also opens a network product path. BioCatch Trust shares risk data across banks before transfers complete, which is especially valuable in scam markets where the receiving bank now has stronger incentives to help stop mule accounts and fraudulent payees, not just the sending bank to stop a bad payment.
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The next step is for scam detection to move from a point product into bank wide operating infrastructure across digital payments, contact centers, mule account screening, and interbank intelligence sharing. As reimbursement mandates spread and instant payments grow, the vendors that save banks from downstream claim costs will capture larger, stickier budgets than login fraud tools alone.