Identity Theft
Identity theft has been a threat to businesses for a very long time. The numbers are continuously increasing and banks are the primary target. Unfortunately, identity theft has taken various forms as well, including child identity theft, medical identity theft, and social identity theft. This enables criminals in making purchases, opening new bank accounts, and enjoying numerous other benefits with false names.
Data Breach
Data breach is a social engineering technique that fraudsters use to acquire customer information. The stolen data is later used for bank account scams, identity theft, and numerous other illegal activities. The identities stolen from a data breach are also used for new account fraud. Around 8,000 data breaches were reported in 2019. In the first half of 2020, 540 data breaches were reported only in the United States according to Statista.
Biometric Authentication – The Additional Security Layer
Biometric authentication is the additional layer of security that not only enhances the level of security, but it is also a rigid measure that fraudsters cannot dodge. Fooling biometrics is not a piece of cake for criminals because biometric authentication requires the live presence of the individual for identity verification. Voice, face, palm, iris, pupil, and retina are some of the biometric traits of an individual that are required for biometric verification.
Biometric verification employs various artificial intelligence models and the following techniques are used for authentication:
All these techniques ensure the live presence of individuals and any spoof attacks or deepfakes can be identified within seconds.
How will Multi-Tier Security Help Your Bank?
Digital identity verification is a multi-tier security measure that your bank needs. This system has multiple methods of verifying identities that prevent fraudsters from entering the business. Here is how the process of multi-tier security works:
- First, the individual has to register on your bank’s website for the identity verification process
- Along with the registration details, government-issued ID documents are also submitted
- Then, the information submitted is verified with the government-issued ID document
- Once the documents are verified, biometric authentication comes in action and face verification checks are performed
- Customers have to submit their selfie or video during verification which is matched with the image on the ID document
- Lastly, consent verification checks are also performed in which the customer has to submit a handwritten or typed consent note
Conclusion
All in all, verifying identities with the manual method is not an adequate option in the digital world. Digital identity verification is an automated process of verifying identities with layers of security to increase the efficacy of the process. One of the strongest layers in this method is biometric authentication that ensures the live presence of the customer for verification. Fraudsters cannot bypass these checks through any of their techniques. Due to the robustness of this technique, bank account scammers fear from the additional layers of security to verify identities and transactions. Identity theft, account takeover fraud, new account fraud, and data breaches are some of the criminal activities that have increased over time. Now, banks need a multi-tier security system to ensure the security of the customers as well as the organisation.
Get in touch with our experts and learn more about the digital ID verification system and biometric authentication.
