A new fraud and scam intelligence-sharing network has been launched in Argentina, with Santander, Banco Galicia, and Naranja X the first financial institutions to join.
The network combines behavioural intelligence with data from digital sessions, payments, accounts, devices, and non-monetary events to assess a receiving account’s potential risks before an eligible payment is processed.
The network was created by BioCatch, a technology firm which uses machine learning models to prevent financial crime by recognising patterns in human behaviour.
According to the company, the new consortium of banks and FinTechs marks the first inter-bank behaviour and device-based, real-time fraud and scams intelligence-sharing network in the western hemisphere.
The network, called BioCatch Trust, aims to help prevent different types of scams, including investment, business email account compromise, and investment romance, where a criminal manipulates the victim outside of a digital banking session.
“Mule accounts serve as the link between fraud and scam payments, the proceeds of financial crime, and the perpetrators of these crimes realising their illegal profits,” said BioCatch chief executive Gadi Mazor. “Criminals utilise sprawling, inter-institution networks of these accounts to launder their riches.”
Mazor explained that to root out these underlying networks, financial institutions must be equipped with the ability to combine sending account, receiving account, and network signals before a transfer of funds takes place.
“Our customers’ security is our top priority, and collaboration is key to addressing the challenge of financial fraud,” said Fernando Turri, Santander Argentina’s head of technology. “BioCatch Trust Argentina allows us to anticipate threats in real time, preventing funds from reaching fraudulent accounts.
“With this innovative approach, we can better protect the financial system and strengthen the trust of those who do business with us. We’re not only providing greater security but also a better experience, with less friction for genuine transactions.”
Manuel Barud, head of fraud prevention at Argentinian FinTech Naranja X, said that the entire market will eventually participate in the initiative.
“We are keen to see the potential of this collaboration through BioCatch Trust Argentina as an add-on to our existing security strategies,” he continued. “The real-time exchange of information could offer an additional perspective in our fraud-prevention efforts.”
Pedro Adamovic, the chief information security officer of Galicia, Argentina’s leading privately owned domestic bank, said that collaboration is essential in the fight against fraud.
“Complementing our transactional behaviour and biometric intelligence technologies with this network – where we can access information about recipient accounts before a transfer is made – gives us an advantage in strengthening our strategy,” he added. “Reducing the number of customers who fall victim to scams is our priority.”
