The 2024 Guide on Utilizing Biometrics for Criminal Apprehension
In today's digital age, biometrics are playing an increasingly significant role in securing financial transactions and combating fraud. These advanced identification methods, such as facial recognition, fingerprint scanning, and voice recognition, are transforming the Know Your Customer (KYC) and Anti-Money Laundering (AML) processes.
During onboarding, biometric samples are collected and saved in a database for future reference. Biometric verification, the process of identifying a person by assessing their unique physical characteristics, is then used to confirm a customer's identity. This verification can be as simple as a fingerprint scan or as complex as an iris recognition.
Biometric verification systems can be either cloud-based or on-premise. The cloud-based system stores data on the cloud for accessibility and portability, while the on-premise system stores data in a physical location where the biometric verification device is set.
The benefits of biometrics extend beyond secure identification. They offer a full-proof advantage over traditional passwords, making transactions and security more reliable. Moreover, biometric authentication is successful when the new record matches the one in the database, providing a high level of confidence in identity verification.
However, biometric fraud is a growing concern. Bypassing is one form of biometric fraud where fraudsters hack into cameras or servers to inject pre-recorded videos or edit uploaded biometric data. Face spoofing, another form of biometric fraud, involves criminals using masks, photographs, or mannequins to access accounts.
To combat these threats, liveness detection has been developed. This technology analyses a person's biometric data using machine-learning algorithms, often associated with facial biometrics but can combine more than one biometric check. Liveness technology can detect deepfakes, inserted videos, 3D masks, and other presentation attacks with over 99% accuracy.
In the realm of KYC, biometric techniques speed up the mandatory customer verification process by matching live biometric data against official ID documents. This improves accuracy and detects fraud attempts like spoofing with photos or masks. Biometric verification also helps prevent account takeover fraud by authenticating customers in real time, including within call centers through voice biometrics.
For AML, biometrics help maintain the integrity of customer identity verification throughout the customer lifecycle. By confirming that customers are who they claim to be, biometrics reduce the chances of criminals using fake or stolen identities to launder illicit funds or obscure financial crime. This complements ongoing AML activities such as sanctions screening, transaction monitoring, and adverse media checks.
In conclusion, biometrics add a vital layer of assurance and security to both KYC and AML processes, making them more robust, automated, and fraud-resistant. They enhance customer onboarding convenience through mobile-friendly and remote solutions, while ensuring the highest level of security and compliance with regulations.
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