Nasdaq Verafin and fraud detection company BioCatch announced on Wednesday that they have established a strategic partnership to integrate their respective technologies in response to the growing threat of payment fraud.

Banks and payment institutions are facing increasing pressure to protect customers from scams and social engineering schemes that exploit vulnerabilities in rapid payment systems to steal account funds in real-time.

Under the leadership of CEO Adena Friedman, Nasdaq has expanded beyond its role as a stock exchange operator, using acquisitions to build a more comprehensive suite of financial technology tools. In 2020, Nasdaq acquired anti-financial crime software developer Verafin for $2.75 billion.

BioCatch's financial crime prevention platform can analyze up to 3,000 unique behavioral and device-related data points in real-time.

In the first phase of this collaboration, BioCatch's alert information and analytical insights will be integrated into the Nasdaq Verafin platform.

The two companies stated that this integration aims to strengthen fraud prevention capabilities by combining behavioral data with transaction data, helping financial institutions intercept suspicious payment activities before funds leave customer accounts.

Currently, more than 2,600 financial institutions use Nasdaq Verafin's financial crime management technology, representing institutions with total assets exceeding $10 trillion.