Biometrics in Banking: Central Database To Blacklist Fraudsters

Data breaches in banking has seemingly become a regular occurrence all over the world. Till most recently a majority of banks and financial institutions relied on old password based security systems which make things effortless for fraudsters to breach banking data. Banks have already lost millions and are now looking for a stable solution against the data breach problem.

Biometrics in Banking

Biometrics in Banking Pixabay

The United States has faced all-time record high of 1,093 data breaches in banks this past year alone. This is an increase of 40% in 2016 from last year, reported by the Identity Theft Resource Center (ITRC). You may have heard of Tesco, a British retail bank that was affected by a massive data breach of their 40,000 accounts and even had money fraudulently withdrawn from 20,000 accounts.

Another notable incident was JPMorgan Chase’s case in 2014 where personal information from 76 million households and 7 million small businesses were affected which ultimately ended up costing them over $1 billion. Cybercrime in commercial banking is rapidly increasing in Nigeria, card fraud has increased by 13% reported by South African banking industry, which had costed 25.3 million U.S. dollars in 2015 and up to 28.6 million dollars in 2016. Bangladesh’s banks are also facing hi-tech ATM fraud hacking. This is just the tip of the iceberg, there are reportedly hundreds of incidents of data breaches in banking alone.

Investors and executives are taking several steps in order to ensure these persistent attacks do not occur as frequent as they have. The Bankers Committee of Nigeria has noted that they will implement a central e-fraud database to blacklist suspected fraudsters. To do this, every bank checks against a central biometrics database before opening an account. Nigerian banks also agreed to implement such technology in order to streamline this process.

Mr. Herbert Wigwe, the Managing Director/Chief Executive of Access Bank Plc, said:

“Part of the deliberation was that there is need to create a central depositary which is a database of suspected fraud through the system.”

“Once that data base is set up and there is suspected case going through the system we can have ways of ensuring there is strong deterrent for people who are known as fraudsters within the system”, he added.

CloudScnr

CloudScnr

M2SYS Technology has also provided biometric technology to combat fraud in banking. Arig Bank of Mongolia is using finger vein technology to authenticate more than 400,000 customers. Unibank of Haiti has also implemented fingerprint biometrics from M2SYS to tighten their security. Costa Rican conglomerate, Grupo Monge deployed M2SYS’s Biometric banking solution for customer identification in their micro credit loan system.

It is already proven that biometric solution is the most promising solution to prevent bank fraud. Financial organizations can protect branch banking, online banking, ATM networks, and mobile banking through biometric solution. To gain the customer trust banks should grab the most secure biometric solutions at the same time it has to be convenient too.

How Financial Services Are Becoming More Secure

biometrics for financial services security

The financial services industry has adopted new technologies to protect sensitive customer information. (Photo credit to Google Images)

The following guest post on improving financial services security was submitted by Damien Troy.

As technology improves and continually evolves, security becomes increasingly important. While new technologies being used in businesses and services is generally a positive, it can also leave them vulnerable to the latest cybercrime, such as hacking and identity theft. For services dealing with sensitive personal information, this is particularly important. Financial services such as banks, advisors and short term loan companies, like loanpig.co.uk, all have a responsibility to keep their customers information secure. Here’s how financial services are improving their security. Continue reading →

Offshore Development Companies Are Bringing Biometric Identification Management Technology in Banking Sector

use biometrics to identify customers and employees in banking

What impact has biometric identification had on the global banking industry? (Photo courtesy of pixabay)

The followin guest post on biometric identification in banking was submitted by Vin Boris.

BIMT (Biometric Identification Management Technology) has been in use for decades. This form of technology has proven its metal and has entirely changed the way security practices are conducted in every field of our life.

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Is Biometric Technology The “Go To” Solution To Prevent Bank Fraud?

Introduction

Data breaches in banking have become commonplace all over the world. Most banks and financial institutions continue to rely on historical password based security systems which are increasingly susceptible to cyber breaches and no longer able to reliably secure data or to prevent bank fraud.

Continuous data breaches in the banking industry clearly demonstrates how antiquated existing identification security is, and something has to change. Due to the challenges that passwords, personal identification numbers (PINs) and physical ID cards present, the banking industry is searching for new technologies which can provide stronger data protection from hackers and they are now considering biometric solutions to solve the problem.

Banking Data

Is biometric identification management technology the answer to improving bank security and creating an indisputable, concrete audit trail of transactions? Image Source: Pexels.com

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