How Do I Invest In The Biometric Technology And Security Sector? – The increasing number of financial transactions has forced banks to use stronger customer verification methods to prevent theft. Now the security of bank customer data is protected by two regulations managed by the European Union authorities. The first would be the well-known General Data Protection Regulation (GDPR) which requires banks to give ownership of data directly to customers, who can review the data being processed, request changes and give consent to how their data is used. Another is the second Payment Services Directive (PSD2), which requires banks to use multi-factor authentication (MFA) to secure payments.
Consequently, the implementation of the requirements of the two directives may be sufficient to ensure adequate protection. However, common security measures such as passwords and PINs can be easily leaked or stolen, rendering them ineffective.
How Do I Invest In The Biometric Technology And Security Sector?
Although it was possible to establish the authentication of many mobile banking products, to overcome the challenges of modern security, financial institutions started using biometric security. This advanced verification ensures that the customer has a specific image or feature.
What Is Biometrics? Definition, Data Types, Trends
In this article, we will take a closer look at the benefits of biometric security in financial transactions.
Most of today’s banks are adopting new digital strategies that provide modern services to their customers. At the same time, they still rely heavily on traditional security measures, which is the reason for the global increase in cyber fraud. According to the Global Banking Fraud Study conducted by KPMG, 60% of banks worldwide committed more fraud, and less than 25% of fraud resulted in losses.
Many bank customers have become accustomed to passwords as a form of authentication. Unfortunately, cybercriminals can easily crack passwords. Common methods of password analysis are dictionary attacks, brute-force attacks, password encryption, and domain engineering. Some hackers use advanced techniques such as rainbow attacks, which compromise passwords, or traffic jams, which search for hidden passwords, allowing unauthorized access to the network and allowing multiple accounts to be compromised at once. Additionally, multi-factor authentication using one-time passwords (OTP) via SMS can be broken if cybercriminals use it to spoof phone numbers.
All of this has forced banks to turn to biometric security as a way to prevent fraud and protect customer data. 67% of bank managers invest in physical (active) biometrics, such as voice, fingerprint or facial recognition, while 33% invest in behavioral (passive) biometrics.
Access Control: Is Fingerprint Or Facial Recognition Better For Your Business?
Functional biometrics are gaining popularity in the financial industry due to their consistent security and ease of use. The biometric verification process is as follows. In the first step – registration – the sensor records the user’s biometric data. The information is converted into binary code, saved and stored in a predefined database as a template. Every time a user activates biometric authentication, advanced AI algorithms compare the biometric data with a stored template and allow or deny access.
Fingerprint scanning is a fast, simple and reliable biometric authentication method that analyzes unique patterns on the ridges and valleys of a user’s finger. Today, fingerprint authentication is a standard practice for verifying your identity during financial transactions. As of 2018, MasterCard produces biometric payment cards with an attached sensor that instantly scans, processes and verifies the card’s owner. Other examples include secure biometric ATMs and mobile payment systems such as Google Pay. Most importantly, fingerprint biometrics are very difficult to create or duplicate, which does not include unauthorized access to financial transactions.
Eye tissue analysis is another biometric verification method that has a very low chance of false positives. This can be done in different ways, especially if you are looking at different parts of the eye, such as the iris, retina or sclera. The process of reattaching the retina and sclera involves analyzing the unique structure of the nerves of the human eye. These biometric methods are rarely used because they require close eye contact – a technique that is not as easy to use as one might think. Currently, the iris examination remains the best method of determining eye tissue. The user will be properly tested even if they wear contact lenses or glasses; besides technology has also reached mobile phones. Banks are now adopting eye pressure authentication methods; for example, the Wells Fargo CEO’s mobile banking app offers quick and easy login with an eye scanner.
Face recognition is based on two main methods: geometric recognition, which looks for different facial features, and an image recognition method, which divides the image into features and compares them to provided templates. 3D facial recognition is a reliable method because it is not affected by changes in light or the shape of the person, and it can identify the user from different angles, including profile views. Modern banks use facial recognition to help identify customers during KYC (Know Your Customer) compliance.
Artificial Intelligence (ai) Biometric Authentication For Enterprise Security
A voice is a unique characteristic of each person, like a finger or an iris. Individual breathing, soft hollows and movements of the mouth and jaw produce vocal sounds with intensity, power and intensity, leading to the ability to hear speech.
Biometrics are very useful because they cannot be customized. The system does not interfere with the user’s natural speech during recording, and background noise does not affect its performance.
One of the biggest advantages of voice biometrics is the ease of use as voice verification is simple, easy and accessible through mobile devices. In addition, voice authentication can be connected to other devices, such as smart cars or home appliances. In addition, the implementation of voice verification banks can control costs because it reduces the time each agent needs to verify the user, which leads to additional costs.
In addition, another advanced form of biometric security is emerging – called passive behavioral biometrics.
Infographics: New Trends In Biometric Technology Today
Passive biometrics is based on AI-powered hidden security that continuously authenticates the user by analyzing various ways of interacting with their devices, including phone calls. The data is carefully analyzed by various parameters, which eliminates unauthorized access. Banking applications with static biometrics ensure seamless authentication and seamless usage. With the ability to track user activity in real time, banks can instantly identify malware bots, act on fraud and significantly reduce fraud rates.
The most obvious way to use biometrics is MasterCard’s NuData Security, which uses four layers of security, effectively preventing the hijacking of customer accounts and cyber attacks. After MasterCard’s response was adopted by several major US banks, it was reported that 30% of their inbound traffic was generated by malicious attacks targeting customer accounts.
According to a report by MarketsandMarkets, the market for biometric systems will almost double in size by 2024. This growth can be attributed to the unique advantages of using biometrics, which are strong security in omnichannel banking, good privacy and good customer information.
In the midst of digital disruption, secure authentication is one of the biggest challenges financial companies must address. Global fraud levels are rising, and the financial sector cannot rely on security measures such as passwords, which can be easily compromised by cybercriminals.
Biometric Technology: A Game Changer For The Digital Banking Security
Using standardized or passive biometric authentication methods can improve financial performance, benefit from cost savings and create a unique user experience.
If you are looking for an experienced digital service provider who can help you find biometric authentication solutions, please do not hesitate to contact the Fintech experts.
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The Ultimate Guide For Biometric Payments
We have a solution for your needs. Just send us a message, and our experts will follow up with you shortly. According to IBM, 20% of breaches are caused by compromised data. In the worst case scenario, it can take up to 287 days to detect and respond to a data breach.
AI-based security is becoming more and more common in practice and will be essential to remain competitive in any industry. IBM says that by 2021, 25% of businesses will have implemented AI-based security, and 40% will be partially deployed. The remaining 35% have not started this process, and if your business is in this category, you could be putting your customers at risk of a serious data breach. Investing in AI-based security can save a