Technological advancements within the payment industry have led to the creation of new ways to perform a transaction. Similarly, with the advent of digital banking, customers are demanding more seamless and convenient ways to transfer their funds. However, criminals using these innovations to launder money and reap financial benefits are exposing the payment industry to legal repercussions as well as reputational loss.
With $96.19 billion of market worth in 2022, the digital payment industry will undergo exponential growth. Financial institutions require biometric security solutions to provide secure transactions and uphold their integrity. As they involve mathematical techniques, it becomes hard for criminals to bypass these checks. This blog sheds light on use cases of biometric screening and how it overcomes threats involved in digital payments.
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Highlighting Criminal Threats Experienced by Digital Payment Providers
Criminals are deploying various techniques such as hacking into passwords, using spoof attacks, deepfake, and much more for illegitimate digital onboarding. This makes authentication of transactions somewhat challenging while leaving loopholes for imposters.
Criminal threats compromise the security of confidential information and hard-earned funds of customers. However, biometric recognition eliminates the need for creating passwords. Somehow, fraudsters find other ways to exploit this system. Digital payment systems are vulnerable to various cybersecurity threats including;
- Bring Your Own Device (BYOD)
In the majority of cases, workplaces ask employees to BYOD, which they later use for both professional and personal purposes. This exposes payment systems to biometric security breaches and cyber-attacks. Similarly, transactions performed through mobile phones are also vulnerable to security threats.
Customers prefer jail-broken devices or buying cell phones from the black market to escape multiple authorisations and additional registration taxes. Therefore, digital payment providers need to integrate efficient biometric screening solutions to secure transactions from their end.
- Malware Software
Despite incorporating biometric IDs, the malware also adds as a criminal threat to the digital payment industry. Where the service providers are placing necessary precautions in place, customers still fall into the trap of criminals. They use attractive offers and discounts for redirecting users to malicious websites. Therefore, after bypassing biometric security checks, cyber actors then hack into passwords, webcams, and digital payment accounts more easily.
- Spear Phishing Attacks
This form of cybersecurity attack is very difficult to detect as it involves targeting high-profile users or company officials. Criminals impersonate banking officials and convince customers to disclose their personal and payment details. The lack of biometric recognition checks further makes this process easier.
- Compromising the Internet of Things (IoT)
Since biometric identity verification solutions provide security to mobile phones, laptops, and other such in-use personal devices, criminals are targeting IoTs. As these physical objects are interconnected, it becomes easier to breach payment details.
Prominent Use Cases of Biometric Security Systems
Transaction scams do not lessen. Therefore, it has become a liability for the payment industry to integrate biometric screening solutions. Moreover, service providers need to play their part against cyber attacks by employing more efficient identification checks. The next section details major use cases of AI-powered biometric security systems and how they help make payments more secure, seamless, and faster.
Contactless Kiosks and Point of Sale (PoS) Payments
Biometric recognition systems minimise the need for customers to be physically present at the time of making a purchase. Similarly, the payment industry can further ensure security with the availability of companies such as Payface, that provide “pay by face” options.
Digital onboarding solutions with robust biometric technology are making PoS easier. E-commerce platforms, retail stores, and other such businesses involving funds transfers can eliminate the chances of scams by allowing users to upload real-time selfies. Through liveness detection, biometric screening solutions ensure the presence of customers and eliminate fraud risks.
Online Transactions and Digital Wallets Safety
Since digitisation took banking operations online, use of digital wallets and transactions is becoming commonplace. Customers prefer cashless options and demand secure solutions for their fund transfers. Where this eliminates the need for carrying credit/debit cards and hard cash. Biometric security solutions such as facial verification for log-in and liveness detection for ensuring physical presence are further helping the digital payment industry to reduce friction.
In the End
Biometric security solutions are making it easier for customers to make instant payments and for service providers to authenticate transactions in less time.
AI-powered biometric user authentication analyses biological and behavioural features, leaving less space for criminals. The payment industry can provide more convenient and secure transactions with solutions like facial verification, voice recognition, iris/retina scans, and others.