Technological advancements within the payment industry have led to creation of new ways to perform a transaction. Similarly, with 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 $572.06 billion of market worth, the digital payment industry is sure to undergo exponential growth. To provide secure transactions and uphold their integrity, financial institutions require biometric security solutions. 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.
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) and Usage of Mobile Phones
In majority of cases, workplaces ask the 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 cellphones from the black market to escape multiple authorizations and additional registration taxes. Therefore, to secure transactions from their end, digital payment providers need to integrate efficient biometric screening solutions.
- Malware Software
Despite incorporating biometric IDs, 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 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 Internet of Things (IoT)
Since biometric identity verification solutions are providing 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 for the Payment Industry
Since transaction scams do not seem to lessen, 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 provides details regarding major use cases of AI-powered biometric security systems and how they help make payments more secure, seamless, and faster.
Point of Sale (PoS) Transactions and Contactless Kiosks
Biometric recognition systems are minimizing the need for customers to be physically present at the time of making a purchase. Similarly, with availability of companies such as Payface, that provide “pay by face” options, the payment industry can further ensure security.
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 presence of customers and eliminate fraud risks.
Safeguards Digital Wallets and Online Transactions
Since digitization 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.
Biometric security solutions are making it easier for customers to make instant payments and for service providers to authenticate transactions in less time. With the increase in cyberattacks, integrating efficient mechanisms to safeguard users’ information and the overall integrity of the industry. AI-powered biometric user authentication provides analysis of biological and behavioral features which leaves less space for criminals. With solutions like facial verification, voice recognition, iris/retina scans, and others, the payment industry can provide more convenient and secure transactions.