June 17th, 2014 by Elma Jane
BioCatch, an Israeli startup that uses behavioural biometrics to authenticate visitors to banking and e-commerce sites, has raised $10 million in a funding round. BioCatch aims to eliminate passwords and authentication dongles for online banking and shopping, replacing them with a system that recognizes users by how they physically use their computer or tablet. The firm’s technology collects and analyses over 400 bio-behavioral, cognitive and physiological parameters based on how people type and move a cursor around to create unique profiles for visitors to sites.
In addition, the system creates invisible challenges for visitors to sites. For example, when a user moves the cursor towards a button, they are deliberately knocked slightly off course and subconsciously have to correct in what the company says is a way unique to them. This, argues BioCatch, is more secure than traditional authentication methods, demonstrating an 80% reduction in false positives for detecting the same amount of fraud. It also significantly reduces friction for the customer because the system automatically kicks in when they visit a site using the technology. BioCatch says that it has signed up several unnamed banks and e-commerce sites, and that it will use the new funding to push on in North American and Europe as well as to expand R&D efforts. Funding will also allow to continue strengthening BioCatch offering and expand global reach in strategic markets, while keeping the world’s largest and most influential institutions safe and secure.
Posted in Best Practices for Merchants, e-commerce & m-commerce Tagged with: banking, banking and e-commerce, behavioural biometrics, BioCatch, biometrics, computer, e-commerce, funding, online banking, R&D, tablet
