April 24, 2024

Transpero

Tiny articles, big solutions.

Biometric Authentication A solution to Combat Dynamic Fraud Threat

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According to a 2017 Tractica report, biometrics hardware and software revenue will grow to $15.1 billion worldwide by 2025, with a CAGR of 22.9 percent. The report suggests that the cumulative revenue from 2016 to 2025 for biometrics will be a total of  $69.8 billion. Biometric technology is being widely deployed for many purposes in business like maintaining attendance of employees, identity verification, time management, etc. Due to its increasing age biometric market is booming tremendously with every passing day.

With the increased fraud ratio, the businesses are becoming proactive in investing in technology and security to keep the fraudsters at bay. However, as per the global identity fraud report, the losses from identity fraud are still on the rise and will continue to grow. The reason is the lack of proper understanding of the dynamic fraud threats and how they impact the businesses. Increasing the security budget and investing in the technology isn’t enough to combat fraud; instead, the businesses need to look at the problems holistically and then take the steps accordingly. Without the extensive knowledge of emerging fraud trends and the vulnerabilities that lead to frauds, the organizations can’t come up with an effective defense mechanism. Biometric authentication

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can play a vital role in this regard. It is a new solution to combat identity theft, cybercrimes, and digital scams by verifying users’ identities based on their unique biometrics. 

Biometric Verification and Fintech World:

Over the past few years, there has been a relative increase in data breaches no matter what the industry is. The records exploited in the breach means that all the personally identifiable information including name, address, social security number, even credit card numbers, and account information is compromised. With our lives revolving around the digital sphere, we are left vulnerable to fraudsters and cybercriminals since they can use our information for any illegal purpose. That’s the reason cybercriminals are always looking out for loopholes in the system and organization so that they can exploit the customer information. Due to stringent KYC Bank, it is now the responsibility of every business to have a sound identity verification system. Biometric verification, in this regard, plays a vital role. It not only saves businesses from fraudsters and heavy fines but also performs the cumbersome process of authentication seamlessly. Biometric authentication thwarts the scammers to keep business sage from fraudulent activities. Banks and other financial institutions are highly reliant on biometric authentication for KYC regulations. The risk of reputational loss, losing the license to operate, and even personal liability of senior management of a business are significant for those who get KYC wrong. So biometric authentication is so very important for financial institutes.

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Biometric Authentication at Airports:

Biometrics are reshaping airport security systems. Biometrics along with airport security teams makes it a very secure environment for airports. Face verification technology plays a prominent role in the travel industry to improve operational efficiencies at airports and hotels. This technology saves the business time and money and provides better customer experience. To fulfill KYC requirements biometric technology plays a crucial role. This technology increases the workflow by converting a time taking procedure seamless and to run the security system more accurately. 

According to a recent report by Valdosta Daily Times, The Department of Homeland Security’s U.S. Customs and Border Protection unit is promoting it as “the ideal technology path to a more seamless travel experience” and leading the charge. In 2017 President Donald Trump ordered the officials to make facial recognition a priority for the airport security system.