CIOTechOutlook >> Magazine >> April - 2015 issue
The rise of Biometric Banking to combat banking fraud
By
The necessity of a stringent authentication process has become inevitable in financial and banking services with the rise of security infringement. The rapid adoptions of transactional technology and weak passwords and PINS have compelled the banking sector to move towards the use of biometric identification technology. This technology offers more security than traditional Personal Identification Number and passwords. Acting as a strong authentication tool to help secure online transactions and ATM withdrawal biometrics technology has become an integral part of financial and security platforms. Biometric-based authentication systems are widely considered to be more reliable than established password systems for verifying individuals and ensuring they are who they say they are. Various techniques like palm print, face and vein recognition, iris and retina scanning, DNA matching and even odour recognition are used to determine the identity of the individual. However, the complexity in design, cost involved in the deployment of biometric infrastructure raises questions about its adoption in the banking industry to prevent banking fraud.
By deploying biometrics technology, the financial institutions can prevent insider fraud by establishing secure employee authentication, accountability and solid audit trial of each transaction.
In the years to come, Biometric technology, embedded with an existing traditional security system, will empower banks to deploy the highest level of authentication security possible and aid in gaining customer trust and loyalty.
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