In a world where digital transactions are the lifeblood of commerce, the battle against financial crime is relentless. Fraud is a $486B global problem, and in 2023, $10B of that was lost to cyber-enabled scams. Meanwhile, major growth in threat vectors and scam typologies suggest the magnitude of this challenge is unwavering.
Nasdaq Verafin Cloud insights show that an alarming surge in the digital threat landscape between 2022 and 2025. AI-related fraud and scam cases have skyrocketed by 60%. Meanwhile, cryptocurrency has seen an 80% increase in fraud cases, fueled by anonymity and rapid adoption. Impersonation fraud — where identities are mimicked to exploit trust — has also climbed by 60%, eroding confidence in digital interactions. Perhaps most unsettling, online account takeovers have risen by 50%, turning everyday logins into battlegrounds for control. Together, these trends paint a stark picture of a digital frontier under siege by fraudsters, demanding vigilance, innovation, and urgent action.
Now is the time to join forces and leverage a new frontier for prevention — Nasdaq Verafin’s fraud detection platform and consortium data network with BioCatch’s industry-leading behavioral intelligence capabilities.
Nasdaq Verafin & BioCatch: A Partnership Built to Win
Nasdaq Verafin has formed a strategic partnership with BioCatch — two industry leaders with a shared mission: to accelerate the worldwide fight against payments fraud. A leader in behavioral analytics, BioCatch prevents financial crime by recognizing patterns in human behavior, continuously collecting more than 3,000 anonymized data points – including keystroke and mouse activity, touch screen behavior, physical device attributes, and more – as people interact with their digital banking platforms. With these inputs, BioCatch’s machine-learning models reveal patterns in user behavior and provide device intelligence that, together, distinguish the criminal from a legitimate actor. Today, more than 30 of the world’s largest 100 banks and 287 total financial institutions deploy BioCatch solutions, analyzing 16 billion user sessions per month and protecting more than 532 million people on over 1.6 billion devices around the world from fraud and financial crime.
“As criminal threats grow in scale and sophistication each day, the need for greater industry collaboration has never been more urgent. We are thrilled to partner with BioCatch to further enrich our existing solutions and improve our clients’ ability to fight scams and payments fraud.”
– Stephanie Champion, Nasdaq Executive Vice President and Head of Nasdaq Verafin
What Is Behavioral Intelligence?
Cyber-enabled fraud often begins with unusual behavior on a computer or mobile device, before a payment is initiated. Behavioral intelligence is the science of understanding and interpreting these human actions that occur in digital environments. Going beyond static data points like transaction amounts or device IDs, these insights dive deep into the patterns of how users interact with online banking platforms, payment channels, and financial services. Is a user moving through a website normally or uncharacteristically? Is there hesitation, or a sudden change in device? Behavioral intelligence captures these nuances — signals of a risky uninitiated payment— using advanced analytics and machine learning to build a real-time profile of risk.
What Challenges Does Behavioral Intelligence Address?
Financial institutions face a battle on multiple fronts: they must prevent direct losses from financial crime, and manage operational costs, maintain customer trust, and minimize friction in the user experience.
Traditional fraud prevention methods are often reactive and siloed. These approaches rely on rules and thresholds, generating false positives that could lead to a bank taking action and potentially delaying a legitimate transaction while offering limited detection for true fraud. Fraudsters adapt quickly, and isolated systems miss the bigger picture — especially when evidence from one channel could inform risk in another.
Behavioral intelligence, along with Nasdaq Verafin’s transaction monitoring, addresses these challenges head-on by analyzing user behavior in real time, enabling pre-emptive alerts — preventing fraudulent transactions before they occur. Reducing false positives by providing richer context, allowing investigators to focus on genuine threats, and empowers financial institutions to move from reactive to proactive.
The Power of Combining Behavioral Intelligence and Consortium Analytics
The integration of BioCatch behavioral analytics with Nasdaq Verafin’s consortium-based Financial Crime Management solution marks a paradigm shift, bringing together the best of both worlds: deep behavioral insights and powerful consortium analytics, all within a unified case management platform.
The Path Forward
Financial crime is an ongoing battle, but the tools at our disposal are evolving. Behavioral intelligence offers a window into intent, enabling financial institutions to detect and prevent fraud with unprecedented precision. By consolidating behavioral analytics and consortium-based transaction monitoring, organizations can move from siloed, reactive defense to holistic, proactive protection.
With BioCatch and Nasdaq Verafin working together, financial institutions can safeguard their customers, reduce losses, and build trust in the digital age. The future of fraud prevention is here — and it’s behavioral.
For more information on Nasdaq Verafin’s collaboration with BioCatch, register now for our webinar on October 23, “Next-Generation Fraud Detection for Banks and Credit Unions.”
About the Author:
COLIN PARSONS
Vice President — Head of Fraud Product Strategy at Nasdaq Verafin
Colin Parsons spearheads the strategic development of technology solutions to combat fraud at Nasdaq Verafin. Throughout his time with the company, Colin has worked as a development team lead, software developer and in product marketing. Applying the knowledge gained through his roles and experiences, Colin is focused on using technology to solve the hard problems that are persistent within the fraud space.
