Fraud Reduction with BioCatch
Spanish banks have significantly reduced fraud attempts by 23% in Q1 2025 by deploying behavioral biometrics from RegTech firm BioCatch. While financial institutions across Spain report a surge in fraud, those using BioCatch’s tools are seeing tangible success in curbing malicious activity.
Fighting Account Takeovers
One of the most notable impacts has been a 52% reduction in third-party account takeover fraud. BioCatch’s technology uses advanced behavioral analysis to detect unusual activity, offering a real-time layer of protection that adapts to emerging threats. This progress is critical, especially as other types of fraud remain on the rise.
Rise of Social Engineering Scams
Despite these gains, social engineering scams are proving harder to tackle. These now account for 58% of all reported fraud in Spain. BioCatch’s director of global fraud intelligence, Thomas Peacock, notes that as technology makes third-party fraud harder, criminals are shifting to tricking victims into authorizing payments themselves. He emphasizes that in 2025, this tactic is “the No. 1 problem facing banks in Spain.”
Malware and Mobile Vulnerabilities
The “2025 Digital Banking Fraud Trends in Spain” report also highlights new fraud vectors. Card fraud and mobile malware attacks are surging, especially on Android devices, which dominate 75% of mobile banking traffic in Spain. This makes them a prime target for cybercriminals.
Proactive Defense Strategies Needed
Peacock stresses the importance of proactive malware detection strategies. Rather than relying solely on identifying malicious software packages, banks should monitor behaviors across sessions to detect fraud tactics in real-time—even when facing never-before-seen malware. This approach helps reduce response times and strengthens banks’ overall fraud defense frameworks.
As fraudsters evolve, Spanish banks are leveraging behavioral technology to stay one step ahead, balancing innovation with increased security.