“With fintech, you get about three times more fraud than what you now get on traditional banking”

“If you look at the traditional banks… over the years, they created multiple defenses, some of them create friction, like the OTP \[one-time password\] and branch interactions you have to do,” explained Gadi Mazor, CEO at BioCatch, a company that provides behavioral biometric protection for banks and users. “Now that everything is moving more to the digital, those defenses are not there. With fintech, you get about three times more fraud than what you now get on traditional banking.”

BioCatch measures how users interact with their banking website or mobile app to help determine the authenticity of that user. By measuring things like typing speed, mouse clicks, or dominant hand gestures, the company can track any irregular behavior and alert the bank if fraudulent activity is suspected. “We don’t look at what they do, we just look at how they do things… That allows us to add those defenses without changing the user experience at all.”

You can watch the entire exchange in the video above.