Biometric ID Verification: A Big Leap for Finserv to Eliminate Fraud

Biometric ID Verification: A Big Leap for Finserv to Eliminate Fraud

Authored by: Mohammed Mansoor    Reading Time: 03 min 15 sec

Banks and NBFCs endeavor to provide the best experience for their customers. While improving user convenience, one of the most challenging tasks is to prevent them from scammers. Hence, financial institutions should balance any improvement in convenience with increased security.

Therefore, financial services are shifting towards biometric identity verification. iStart video KYC platform offers faster and more effective customer onboarding and has a better track record concerning fraud prevention.
This blog discusses about bimoteric identification and how it helps Banks & NBFCs to eliminate financial frauds.
Biometric Identity Verification
Biometric Identity Verification

What is Biometric identity verification?

Biometric identity verification identifies the individuals based on their unique identifiable traits related to their unique biological personas. These biological metrics include fingerprints, face, iris, earlobe geometry, voice acoustics, DNA, etc.

How does biometric identity verification work?

Pattern matching software is one of the essential tools for biometric identity verification. Human bodies have in-built patterns unique to each person, like fingerprints, ear shapes, hand geometry, etc., known as biometric modalities.

The financial institution collects these unique customer data and stores it in the secure database during initial KYC verification. When the customers access the account service, the new biometric data is collected and matched with the stored data to identify the customer. 

iStart Biometric verification to prevent banking fraud

Identity frauds and its derivative crimes cost banks, NBFCs, healthcare industries, consumers, and taxpayers around the globe, millions of dollars, and the numbers continue to grow.
Biometric verification is making its way rapidly into the mainstream to prevent identity fraud. Listed below are some ways the iStart platform prevents fraudulent activities:

1. Identity theft

Cybercriminals can sniff the victims’ personal banking information using their stolen identity. The criminals target these victims to commit financial fraud, bad credit, or unauthorized transactions. Identity theft occurs when criminals steal your credentials or passwords. iStart video KYC uses their unique identifiable biological data for onboarding, which is difficult for scammers to duplicate.

2. Spoofing Attacks

With digital customer onboarding, fraudsters employ AI-based facial spoofing techniques to bypass the verification system using stolen identities.

iStart Facial Biometrics uses advanced 2D and 3D face mapping technologies to detect the user’s liveness during the digital KYC process. It matches the customer’s selfie with the photo on the government-issued ID card to verify the user. Such sophisticated processes prevent fraudsters from spoofing innocent customers.

3. Money mule attacks

Cybercriminals use synthetic user identities to establish new accounts that cannot be traced back to them. Scammers leave these accounts dormant to avoid the rise of red flags and use them for illegal money transfers. iStart employs behavioral biometrics, which plays a vital role in detecting these money mule accounts. It determines the application fluency and the lower data familiarity during the account opening to authorize such accounts, preventing money mule accounts.

4. Deep Fakes

Deep fakes refer to manipulated video or audio produced by sophisticated AI technologies that yield fabricated images and audio that looks real. The practical solution for preventing deep fakes is multi-factor biometric authentication. The manipulation of a person’s voice, face, and password is easy, but when authentication requires all three factors, it is nearly impossible to fake it.

Privacy Protection

Biometric identity verification improves the security of customer accounts, but financial institutions should protect their customers’ biometric data. Financial institutions should anonymize customer data and should prohibit sharing them.
All transactions, passwords, photographs, and personal data should be encrypted and stored in a separate secured network. These measures will protect privacy while improving the customer experience and safety.

Biometrics: A way to better banking

The current digital market expects a robust and safe digital banking infrastructure. Biometric identity verification is one of the best ways to prevent banking fraud, especially from more sophisticated spoofing and deep fake threats.
However, facial biometric authentication coupled with artificial intelligence can prevent spoof attacks. iStart’s enhanced biometric verification checks use multiple AI models to authenticate and confirm the live presence of the customer. With 90% accuracy, our onboarding solutions make sure that your company is safe from facial spoof attacks.
Want to find out more about how biometric identity verification works for your bank? Talk to us.

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