{"id":7145,"date":"2017-02-07T07:13:03","date_gmt":"2017-02-07T12:13:03","guid":{"rendered":"https:\/\/www.m2sys.com\/blog\/?p=7145"},"modified":"2022-06-15T08:20:39","modified_gmt":"2022-06-15T12:20:39","slug":"biometric-technology-prevent-bank-fraud","status":"publish","type":"post","link":"https:\/\/www.m2sys.com\/blog\/biometric-technology\/biometric-technology-prevent-bank-fraud\/","title":{"rendered":"Is Biometric Technology The \u201cGo To\u201d Solution To Prevent Bank Fraud?"},"content":{"rendered":"

Introduction<\/strong><\/p>\n

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.<\/p>\n

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.<\/p>\n

History of Bank Fraud<\/strong><\/p>\n

Although data breaches are regular incidents, they only tend to go viral when they impact high profile companies like \u00a0<\/a>. According to a new report by the Identity Theft Resource Center (ITRC) and CyberScout, the number of U.S. data breaches tracked in 2016 hit an all-time record high of 1,093 increasing 40% from the year prior. A few months back, British retail bank Tesco faced a massive data breach<\/a> where 40,000 accounts were affected and money was taken from 20,000 accounts. India\u2019s largest data breach<\/a> affected 3.2 million<\/strong> customers whose card data was stolen between May 25th and July 10th from a network of Yes Bank ATMs managed by Hitachi Payment Services. In 2014, JPMorgan Chase faced a massive data breach<\/a> where personal information from 76 million households and 7 million small businesses were affected, costing them $1 billion even after spending $250 million annually on cybersecurity.<\/p>\n

Why Biometric Technology?<\/strong><\/p>\n

We need to understand how biometric technology<\/a> works and the metrics behind it in order to determine if it is the best solution to increase data security protection in the banking and financial services industries. In short, biometrics are the measurement and statistical analysis of physical and behavioral human characteristics which compares these measurements and characteristics with previously registered data to identify a person.<\/p>\n