Five leading Australian banks have partnered with BioCatch, a digital fraud detection startup, to launch a collaborative initiative focused on sharing intelligence to combat fraud.

Australia and New Zealand Banking Group, Commonwealth Bank of Australia, National Australia Bank, Suncorp Bank and West have joined the BioCatch Trust network, a pilot of the world’s first inter-bank network for sharing fraud and scam intelligence based on behavioral and device data.

BioCatch Trust will evaluate potential risks in real-time for accounts receiving domestic online payments within its network. If a risk is detected, BioCatch shares this information with the sending bank, allowing them to review the transaction before the payment is processed and funds leave the sender’s account.

It identifies these risks by integrating behavioral intelligence with data from digital sessions, payments, accounts, devices, and non-monetary events.

The initiative aims to help banks to prevent scams where fraudsters manipulate the victim outside of a digital banking session, such those originating from emails, text messages or social media.

The BioCatch Trust network is designed to improve with every new financial institution that joins. As more banks share account intelligence, the system grows smarter and more effective.

Ben Young, head of fraud prevention at Westpac, said:  “Stopping scams is one of our highest priorities, so we’re pleased to add an extra layer of protection for customers. Working closely with other banks and providers in the ecosystem is our best bet for making Australia a harder place for scammers to operate.”