Biometric Authentication: Its Applications and Associated Constraints

Biometric Authentication: Applications and Constraints

Biometric authentication is considered as an advanced way of ensuring Know Your Customer (KYC). The purpose of controlled access is achieved through biometric scanning which verifies a person’s identity based on the physical characteristics. The biometric data for each individual is different. This data is already stored in the biometric security system which identifies and verifies the identities. Today at the organizational level, 65% of authentications are based on biometrics. The global revenue generated from biometric verification was around $21.8 billion in 2018. The adoption of biometric techniques is increasing rapidly especially in the financial sectors and at Government level.
Biometric verification includes facial recognition, fingerprints, hand geometry verification, iris scanning, vocal verification, retina scanning, and signature dynamics. The biometric technology converts all the data into digital information and formats which are further processed under complex algorithms. These algorithms are based on Artificial intelligence (AI) and Machine learning (ML). The pre-stored data is matched against the data entered into the devices and is verified.

Importance of Biometrics In KYC

“KYC” refers to the personal information and details required by the regulated companies and the financial institutions in order to allow trusted individuals to enter into the system. To ensure the security policies of the company, customers are verified through biometrics. This helps the companies avoid the risks of online payment scams, money laundering activities, and credit card fraud. The biometric verification of customers has resulted in an efficient and accurate authentication system. Also, this reduces the time which facilitates both customers and organization.
Biometric innovation facilitates banks in performing their verification processes without letting them wait in the queues, answer queries, and filling large forms. This would help quick verification and secure record keeping. This secure implementation of KYC management process will protect the system from identity theft and money laundering as well as shape the system with the Government regulations accordingly.

Industrial adoption of Biometrics

Multiple industries are using biometric technology as it fits in their usability.

  • Reduce Time Theft:

Businesses are using the biometric attendance of employees to reduce time theft and increase productivity. This would help in a proper time track of when the employee is entering and leaving the workplace.

  • Medical Industry:

There is a 105 increase in the use of biometrics in the medical industry. Medical Industry is using it for the authentication of patients to help doctors find out the medical record of the relevant patient. Also, for the identification of blood donors, biometric verification is in use.

  • School Management:

Schools are using it for the maintenance of records and attendance of the students and teachers. The automated record keeping will help efficient management.

  • Travel Industry:

The travel industry is using biometric with a record of 11% increase. To verify the tourists and travelers, biometric authentication helps in quick processing and avoiding restricted candidates to travel.

  • Finance Industry:

Similarly, at the Government level and in financial institutions and banks, biometric verification plays a key role in the authentication of customers. To ensure KYC compliance of the customers, it is necessary to perform their biometric. 46% of top-ranking biometric mobile applications were banking apps.

  • IT Industry:

In the IT industry, mobiles have embedded biometric technology through which they unlock their phones in order to keep their information and data save. Mobile applications are developed that need online biometric verification to help businesses authenticate their end-users. The biometric study shows that the use of biometrics in mobile apps will increase from 5% in 2018 to 70% in 2022.

Biometric Verification in Mobile Phones

Biometric verification in mobile phones is getting common nowadays. It is estimated that by the end of 2019, 100% of the mobile shipments would include mobile phones with biometric technology. Also, the wearables and tablets will also be empowered by biometric verification by the end of 2020. The verification through fingerprint, face and iris scanning are the most common password features of the devices today.
Online verification and authentication are done in order to perform any transaction or to purchase something from an online store. The online marketplace is inserting the biometric technology in their system to allow the transaction and purchasing through mobile applications. Also, the banking applications (mobile wallet apps) use biometric verification of their customers if they want to open an online bank account or to perform a transaction.

Biometric Authentication Risks

Businesses consider biometric technology the top-notch solution of identity verification and authentication. Unfortunately, that is not the case. The physical characteristics through which verification is done are unique for each individual. Any negligence in record and data keeping can result in heavy risks and reputational damage to businesses. Below are the major security risks associated with the adoption of biometric technology:

  • Privacy Breach:

In case the server storing the data gathered from biometric devices get hacked, all the sensitive information of individuals will be lost which can result in the malicious activities done by the hackers and blackmailing of individuals. The blame would definitely be on the organization. For this to handle, biometric verification must be done under secure boundaries.

  • Error in Device:

Any error in the device can lead to the incorrect status of accepting and rejecting an individual. This could be due to the failure in capturing the features of individuals properly.

  • User Acceptance:

Biometric verification in some cases is hard for the customers to perform. The customers who do not want to share their personal information with any third parties do not agree on their authentication on the basis of biometrics.

  • Identification copy:

In case, any fraudster copy your biometric record maybe fingerprint or some other feature, he could easily get all the access to the stuff you are the owner of. This loss can never be recovered in any way. Therefore, it is necessary to take serious security measures while stepping into the use of biometric technology.

Conclusion

Biometric authentication is revolutionalizing globally as it helps the verification of the individuals in less time efficiently. Industries are innovating themselves with the use of biometric technology. The security risks associated with this technology should be mitigated in order to prevent any loss that could result in heavy fines and loss.

Biometric Identification

Warning: You’re Losing Money by not Using Biometric Identification

On the surface, Biometric Identification might seem as if it’s only useful for opening your bank account or when you cast vote at the polling station. The reality is that it can increase business profits and prevent fraud.  

Install Biometric Clock to Save Time 

Manually marking attendance is not only tedious but wastes time. And you cannot rule out errors. Install a biometric clock and it will take the burden off the supervisor. No need to manually check who is absent or who arrived late.

Profit and loss of a business are not only about the margin on the products sold. Managing human resources effectively is as crucial as selling a product for profit. The biometric clock also keeps a record of employees’ habits or biological traits. 

This also ensures that no one is ‘buddy punching’. What this means is that employees share PINs or swipe cards and use it for their friend, who is spending time away from the office.

Stop Fraud from Within the Company

Marking attendance for someone else is not always voluntary. Factory unions and offices can have small groups that can put tremendous peer pressure on employees to clock in for someone else. 

The company loses money by paying the wages for the day to a person that did not work. In certain cases, this apparently harmless act can turn ugly. What if the person absent at the office was involved in a crime but their register proves that they were at work?  

Eliminate Loopholes

You can lose your swipe card or the PIN you wrote somewhere but you cannot lose your fingerprint. When a payment is processed through biometric-enabled POS systems, you can be certain that the person was present. 

An employee could also be working for you remotely. Think about it. There are apps that give you access only after you identify yourself via a biometric. If you are the business owner managing a team of remote workers, you can make sure that your worker who is appearing online is genuinely present. 

Beyond the Finger Print

Think Beyond simple fingerprint identification. Imagine banks opening up bank accounts for you when you don’t even have to visit the branch. This has been tried at a few locations using facial and identity verification. It proved convenient for customers and profitable for banks. They didn’t have to spend money on additional staff and paperwork.  

A standard way to achieve this is to ask the potential customer to upload a government-issued ID to a secure online portal. Then biometric identification services match the picture on the ID with the person’s face. This entire process takes a few minutes.

You can open a bank account in minutes!  

Facial verification systems are becoming smart. They are not fooled by someone holding up a picture. The algorithms search for 3D depth for liveness. Moreover, there are systems that ask the user to turn the face away or blink to verify the person.      

Business, banks in general, are heavily invested in state of the art biometric verification of customers. Customer convenience aside, these are mandatory in many cases for know your customer and anti-money laundering compliance.

Online Facial Recognition

Speed Up customer Onboarding with Online Facial Recognition

Banks are spending loads to digitize their operations. The competition is mounting, plus, people are downloading non-banking apps to buy and transfer money. This is forcing banks to compromise and share customer data with Fintech companies. But speeding things up can create security problems. Online facial recognition can help banks take customers onboard much faster without compromising security.    

What is facial recognition software?

It is a biometric software that uses facial recognition to ‘map’ a person’s face. It stores facial features as mathematical data called the faceprint.

Usually, such software uses deep learning algorithms to match a live or digital image with the saved faceprint (learn the basics of how facial recognition software work).

Google’s Image Search

With the Google image search engine, you can find matching images online. Simply go to the image search bar, click the camera icon and upload your desired image. Searching this way will show you the matching or similar images.

Facial Recognition can help Banks Get More Customers

Financial regulatory authorities want banks and similar firms to onboard only those individuals that they know.

This knowledge has a technical meaning. For instance, banks should know the profession of a person that wants to open an account or invest in a company. If illegal money is stored or transferred or invested through them, they are responsible.

Know Your Customer

Know Your Customer or KYC is a compliance process that helps banks to officially know their customers.

Although the specifics of KYC vary from industry to industry, however, the main features are;

  • Customer Acceptance Policy
  • Customer Identification Procedures
  • Monitoring of Transactions
  • Risk management

Conventional KYC requires a lot of paperwork. By making KYC electronic (e-KYC), banks can streamline the otherwise lengthy process. Naturally, the online verification of biometrics will be extremely useful here.

Which Banks are using Online Facial Recognition for Customer Onboarding?

In early 2019, New Zealand’s ASB ran a pilot project to onboard new customers online. They removed the obligation of visiting a branch. Not surprisingly, they used biometric facial recognition technology.

ASB’s technique was basic. The bank matched customer’s pictures with their uploaded driver’s license.

Spain-based France’s Boursorama Financial Services Group plans to run a similar process through its subsidiary Self Bank. The difference from ABS will be the use of video-conferencing. The basics (biometrics and electronic signatures) will be the same.

Besides big names, a huge number of Fintech firms have been using online verification for some time.

How does facial recognition Help in KYC Compliance?

Customer identification is the core of KYC. Physically, the facial recognition is performed the way the security at the airport; they match your face with the picture on your passport.  

Technology does the same but faster. You might open an account at a bank using just your phone. This would require you to open its camera and show your face, then, upload a government-issued ID.

Recognizing facial patterns, in-depth 3D sensing, detecting liveness and texture, machine learning algorithms will match your face with the one on your passport, driver’s license or other official documents.

Will online facial recognition reduce processing time?

Yes. The conventional mode requires so much paperwork. Online verification might reduce the processing time to mere minutes, especially if banks are using contemporary artificial intelligence algorithms.

Looking forward…

We want things fast. Imagine your browsing speed slows down by a mere second, you will feel it. The same goes for banking services. We want transactions today, purchased items delivered the same day if not within the next hour.  

Banks should and will be using digital face recognition in the near future on a massive scale. This will not only help accelerate onboarding new customers but it will also assist the existing customers to log in to their accounts securely.

Banks need to speed things up while maintaining due diligence. Those that will efficiently manage both will excel, the rest will bite the dust. This is why banks are either readily buying the budding Fintech companies or developing software in-house that can assist with ID data and biometrics.

Identity Verification APi

ID Verification API – Smooth Integration With Online Systems

The financial services (FS) sector has the highest ever recorded abandonment rate of 83.6% amongst other sectors. This indicates the need for FS firms to transform their processes and systems. Market leaders in the industry have managed to set certain standards for onboarding procedures. For others, it is necessary to transform their systems and processes in order to stay in the race. Customers nowadays look for faster, more convenient yet safer services. One of the best ways to achieve such milestones is to integrate modern technology in banking procedures. An identity verification API is an all in one system that can improve, compliance as well as onboarding procedures for FS companies.

Another concern for financial institutions is regulations and compliance. In the past couple of years, regulatory bodies have been overactive in curbing money laundering activities. That, in turn, has resulted in increased scrutiny for banking institutions. Online identity verification systems cannot only fulfil compliance requirements for FS firms but can also transform their onboarding processes. Some of the ways in which an identity verification app can transform financial services are;

Easing Customer Onboarding with Identity Verification API

Client onboarding procedures can be extremely drawn out for banks and financial institutions. With automated identity verification solutions, banks can

  • Optimise onboarding with a faster due diligence process.
  • Enhance the process of CDD and EDD, allowing them to assess the risk associated with each customer.
  • Make onboarding faster but also increase the rate at which banks can take on new clients.
  • Increase convenience for customers, thereby increasing customer satisfaction levels.

How Identity Verification API Enhances Security in Financial Services

Not only can a KYC API facilitate customer onboarding, but can also enhance security for banks. Digital KYC procedures can help them identify and verify individuals within seconds. This largely reduces the risk of identity theft and credit card fraud. Proper AML screening can help banks avoid getting involved in money laundering activities. Moreover, it can also enable them to meet their compliance requirements more effectively.  

Making Compliance Procedures Simpler

As global financial regulations become more stringent, compliance becomes a complicated process. Long drawn out compliance processes tend to frustrate clients. FS firms need to implement a tech solution that can not only meet compliance regulations effectively but make convenience and speed a priority in customer onboarding. An identity verification API can effectively address both issues and ease both compliance and onboarding for banks.

In a fast-paced and competitive environment, the biggest challenge for FS institutions is to simultaneously approach the need for trust and compliance along with convenience and speed. Approaching both milestones can be tricky. However, with intelligent user experience (UX) choices and advanced technology, both parameters can be addressed adequately. An identity verification API solution can enhance compliance as well as onboarding for FS firms.

Facial Verification

Face Verification Becoming Vital For Travel Industry

Over the past few years, biometric technology has become increasingly mainstream. This is due in part to the fact that mobile companies these days are increasingly incorporating fingerprint scanners and facial verification in their smartphones. Facial recognition systems like Face ID from Apple and Facebook’s DeepFace have made the commercialised use of face verification technology. Contrary to what people believe, biometric verification procedures are more secure and accurate. As the facial recognition technology is frequently incorporated by businesses it is important to view its advantages in detail. This article attempts to outline the ways in which the travel industry is reaping benefits from it.

The travel and hospitality sector rely heavily on customer care and fast and efficient service. Companies in the travel industry including airlines and hotel chains deal with large volumes of customers in a day. They have to maintain an efficient yet effective procedure of check-ins and check-outs without jeopardising their security. Moreover, the instant customer verification process can enable businesses to improve their experience, thus drastically increasing levels of satisfaction. Some of the ways in which the travel industry can leverage the facial recognition technology in their favour include;

Customer Service

For any business wishing to improve their sales and revenues, they have to improve their customer service and increase levels of satisfaction. The hospitality industry, in particular, has to maintain robust customer relations in order to stay in the competition. Face verification software fulfils this objective impeccably. Through facial verification online, the airline staff at the airport and the hotel check-in staff at reception desks can speed up the customer verification process. With real-time verification results, all employees can verify customers instantaneously. It can also allow the hotel staff to issue more personalised greetings to customers upon their arrival.

Read More: Online Facial Recognition Could Drive a New Wave of Digital Transparency

If the customer has already uploaded their picture at the time of booking, the online facial recognition software can be used to identify returning customers, thus allowing businesses to offer them better and more customised services. The instant check-ins and the elimination of long ques at check-in counters can be eliminated entirely, which can be often frustrating for customers.

Better Security

The primary function of facial verification technology is security. It can help identify and authenticate the identity of customers in an instant. Thus the travel and hospitality sector can greatly benefit from it, seeing as it increases the security and access for customers. The possibility of frauds like identity theft and credit card frauds increases while a person is travelling. The ultimate brunt of such scams is borne by businesses in the form of chargebacks, fines and a loss of reputation.

With the help of facial recognition, the airport staff can authenticate a traveller against their identity documents, thus enabling them to verify the identity of an individual. Biometric authentication is more secure and allows the travel industry to weed out fraudsters and scammers. Fast access can also be granted to customers through biometric identification in their hotel rooms.

Seamless Integration

Amongst all the biometric verification tools currently available in the market, facial verification probably has the most seamless integration. The technology does not require any additional hardware to be installed by either the customer or the business. If the company has the facial recognition software available, the customer can verify themselves using an ordinary phone camera that is a necessary feature of every smartphone nowadays. Thus there is no need for the development of an additional tech infrastructure in order to integrate the technology. It saves both time and costs for the hospitality sector. There is no need for them to go to the trouble of spending more on developing technology.

Fewer Documentation Requirements

Biometric technologies are eliminating the need for businesses to require elaborate documentation from customers in order for them to identify themselves. All they have to do in order to verify the identity of a customer is to corroborate their facial scans against any one of their identity documents. Biometric verification procedures reduce customer check-in times at checkpoints like passport control and boarding terminals by 40%. In hotels that are using facial verification software for customer and business verifications, the check-in times have been reduced from three minutes to one. As customers arrive in hotels, they identify themselves through the facial recognition process, and their details are entered into an automated system. They are then automatically issued room keys, thus accelerating the check-in process.

The Future of Facial Verification

While there is still a considerable amount of scepticism around the facial verification technology, its benefits are far more than its shortcomings. As technology is advancing more rapidly than ever before, it is important for businesses like the travel and hospitality sector to keep up with the changes in the landscape. More than anything, biometrics can help eliminate fraud and help companies establish safer business practices. As consumers remain wary of facial recognition technology, businesses must assure them of its safety and all the measures that they take to protect customer data.

Facial Recognition

4 Reasons why Facial Recognition is Better at Biometric Verification than Fingerprint Scans

Biometric verification is smartphones was introduced nearly five years ago when iPhone launched its fingerprint scanner in 2013. At the time the technology seemed like a thing from the future, and everyone eventually rushed to follow pursuit. It was one of the things about the iPhone that was negligibly scrutinised. Now, five years later, it seems like a necessary security feature for smartphones. Fast forward four years and iPhone X beats everyone to the punch on Facial Recognition.

The Face ID feature in iPhone eliminated the need for a fingerprint scanner, enabling users to unlock their phone without doing anything. Now nearly every new smartphone in the market has a face recognition feature. Although the race is not about face recognition vs fingerprint scanners, it does seem appropriate to discuss the pros and cons of the two methods for biometric verifications.

Fingerprint Scanner – A thing of the Past?

It is no rocket science that fingerprint scanners use a person’s fingerprints to grant them access to their phones. However, like every technology, the fingerprint sensors have their advantages and disadvantages. On the plus side fingerprint scanners are easy to use and saves users the trouble of remembering a password. Fingerprints are unique for everyone and are hard to deceive.

On the downside though, the accuracy of a person’s fingerprints is reduced when someone gets dirt or grease on their fingers or the scanner. The scanner is unable to read the fingerprint in such situations unless you clean your fingers or the scanner (or both). The cost of fingerprint technology is considerably higher as it requires both unique hardware and software. Most mobile manufacturers who are not Apple or Samsung are unable to afford the added technology. Moreover, a person has to actually have physical contact with their phones in order to unlock their phones through fingerprint tech. Not to mention the fact that not everyone can have a fingerprint, or may lose them due to an accident.

Facial Recognition the Future of Biometrics

Facial recognition software is relatively new in smartphones as compared to fingerprint scanning. The software uses flood illuminator technology to identify 80 nodal points on your face and stores the unique features of a person’s face to store it as a face print. Every time you reach for your phone the camera identifies your faceprint and unlocks the phone, and that is it.

There are numerous advantages to Facial Recognition technology, the least of which is its sleekness. Some of the reasons facial verification is better at biometric verifications than fingerprint scanners will be discussed here;

Affordable

Unlike fingerprint scanners, facial verification requires no foreign or additional hardware to install onto a person’s phone. Normal smartphone cameras work just fine with the technology. The phone doesn’t have to have a high-end camera There are hardly any smartphones these days without a front camera. Therefore, all a mobile phone company has to do is invest in a facial recognition software.

Remote Verification is Possible

The facial verification feature in phones, tablets and PCs allows for remote verification. In that, it only requires you to show your face in front of the camera and the scanner will do its work to unlock your device. You do not have to pick up your device or do anything for that matter.

Ease of Use

On most devices with a facial recognition feature, the face verification can take place seamlessly. It is fast, effortless and efficient. It has been a breakthrough in biometric authentication. Analysts say that the ease with which face verification grants people access to their devices makes the thought factor behind the whole process vanish. That is, when you get used to the tech, you pick up your phone and you swipe up without much thought. This tech is also easily integrated into authenticating apps and passwords with ease. They are superior in every device and are simpler than

Security

A lot of arguments have been raised about the issue of security with the facial verification feature in devices. However, in many ways, the facial id feature in devices only increases the level of security without compromising it. Facial Id verification has a high acceptability rate than fingerprints. They are also universal in nature as every person has facial features but not everyone has fingerprints. Moreover, when it comes to the tradeoff between ease of use and security. Facial id eliminates this tradeoff.

Recommended for you : Face, Document Verification

Facial Recognition is fast and secure. Business verification with facial recognition software has never been so easy. It allows many businesses to verify their customers within seconds and can eliminate the threat of identity fraud. Shufti Pro is providing biometric identification through a seamless facial recognition software. Through its 3D depth perception and liveness detection, the software eliminates any risks of spoof attacks. It is next to impossible to defraud it as it sees past any attempts to do so.

EIDAS

How eIDAS compliance is easier with Biometric Consent from Shufti pro?

Biometric consent authentication is a brand new verification solution from Shufti Pro, using an innovative mix of multiple verification services such as facial verification, document verification, and handwritten note verification. Available in both offsite as well as onsite verification mode, Biometric Consent authentication is even offered with OCR technology. This highly customizable Biometric consent solution has a large number of use cases but support for eIDAS compliance is something that is beneficial for a large number of businesses, especially those operating in the European Union. eIDAS envisions to ensure transparency in digital transactions, business communications and tends to provide a legal groundwork for electronic identifications. There are various features of Biometric consent verification from Shufti Pro that enables businesses to adapt signature verification and digital identity verification in compliance with specific regulations of eIDAS.

Handwritten Note Verification

Biometric consent verification can authenticate the presence of custom text on a handwritten note. It can use conventional verification process and can even utilize OCR for extracting text directly from a handwritten note. With broad language support available for OCR based data extractions and universal language coverage available for the conventional verification process, Shufti Pro is perfect for not only verifying signatures but even signature texts that can be changed for every new customer. For businesses operating solely in the European Union, Shufti Pro can easily identify and verify signature text written in all official European languages such as:

  • English
  • Spanish
  • Italian
  • French
  • German

Biometric Aspect

eIDAS is all about transparency in digital business practices and what better way to authenticate a person’s identity than with the help of their biometric features. Now when we hear biometric verification, we immediately think of a fingerprint scan or an iris scan. But all these sources of biometric verification create scalability problems for businesses. Not every potential user is in possession of a hardware that is required to perform a fingerprint scan or iris scan, despite large scale roll out of this specialized hardware in a smartphone these days. This is where facial verification comes handy as most smartphones include them and can easily take a snap of a user that wants to perform an identity verification.

Biometric consent verification from Shufti Pro utilizes facial verification as an additional check to achieve full-scale transparency that was the basic intention of those who formulated eIDAS. So, a person who has to show a customized document or a handwritten note carrying signature text on it also has to show their face to complete the verification process. Shufti Pro ascertains the physical presence of a person with the help of features such as liveness detection and microexpressions.

GDPR Compliant Solution

Shufti Pro is fully compliant to GDPR, another crucial compliance introduced by the European Union for data privacy and data rights protection of European consumers. All of the verification services and authentication solutions from Shufti Pro – including Biometric Consent – are fully compliant to GDPR. They follow all the guidelines put forward by this legislation and all the customer data is secured according to the protocols set forth by GDPR. Not only that, but it is only used for verification purposes as we understand the sensitivity attached to personal credentials of an end-user, liability attached to any leakage of those credentials and last but not least we are also aware of the trust shown by our clients to handle end-user information on their behalf.It means that Biometric consent verification from Shufti Pro is not only ideal for eIDAS compliance but it also helps businesses to perform verifications of their customers without worrying about multi-million dollar fines that are sanctioned by GDPR for companies that adopt lax data security practices.

Real-Time Verification Status

Automation, transparency, and digitization of businesses was the focus of the European Union when they introduced eIDAS, and Shufti Pro is a strong proponent of these principles as well in the online marketplace. This is why every verification result for all authentication services offered by Shufti Pro is provided in real-time with data collection being completed in 30-60 seconds, through an automated procedure. This feature is available for biometric consent verification as well, regardless of the fact that whether only a handwritten note is being verified or whether a user has to validate their face, a customized document along with a handwritten note. All this is made possible by smartly designed Artificial Intelligence of Shufti Pro that takes help from machine learning algorithms.

Global Presence

Shufti Pro and its biometric consent verification are not only available for businesses and companies based in EU. Both of them can even help companies based outside of EU but wants to conduct business and offer services in EU based countries as well. Shufti Pro is available in more than 225 countries and even supports 150+ official languages. Round the clock functioning of Shufti Pro provides a competitive edge to businesses that otherwise have to suffer time zone differences with EU based economies.

Compliance to eIDAS becomes entirely hassle-free for Shufti Pro customers with Biometric consent authentication. It increases the chances of encountering users with fake credentials and digitally authenticating monetary transfers.

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