Tag Archives: biometric technology

Biometric Technology Needed to Win the War against Financial Fraud, Explains Enacomm CEO in Biometric Update Byline

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October 31st is just around the corner, but as Enacomm CEO Mike Boukadakis pointed out in a recent guest article for Biometric Update, this month ushered in “something scarier for ill-prepared merchants than anything Halloween has to offer.” The EuroPay, MasterCard, and Visa (EMV) payments liability shift occurred on October 21, 2015, and now “all retailers across America will be forced to take the financial fall when card criminals successfully launch attacks that could have been thwarted.”

New payment terminals that are able to verify chip-enabled credit cards will help fight fraud at the point of sale by stopping fraudsters with counterfeit credit cards in their tracks, but Boukadakis notes that this type of trickery is just a sliver of the larger financial fraud pie. From his op-ed:

Counterfeit credit cards only account for about 37 percent of credit card fraud, and card fraud itself is just a sliver of the larger financial fraud pie. Chip credit cards can still be stolen, and card not present transactions are rife with vulnerabilities. And beyond the card front, fraudsters breach online bank accounts and devilishly divert high-risk transactions. While chip technology will help foil the false reproduction of credit, debit and prepaid cards using stolen information, biometrics must be added to the financial industry’s arsenal to win the war.

Biometrics technology, Boukadakis explains, is needed to win the war against financial fraud, and voiceprint recognition is a proven method of identification that is well-suited for multi-layered authentication systems. By conducting sophisticated analysis of hundreds of voice characteristics, a bank, credit union or prepaid company can accurately identify and authenticate a customer in real-time.

Voice authentication is Reliable with a capital R; it has a 99.99 percent success rate. From Boukadakis’ piece:

While PINs and other authentication data are codes that can be cracked, a person’s voice cannot be compromised or stolen. Tech-savvy crooks cannot reverse engineer a voiceprint to create a spoken voice, and even voice “replays” are of no concern, because next-generation technology can ask for words, numbers and phrases in random order. Stolen voiceprints and voice recordings are useless.

Whether faced with brute force attacks, credential sharing, hacking, Phishing, Vhishing, credential resets, Internet searches or social engineering, voice biometrics offers a stronger defense than traditional methods of identity verification—and, unlike a chip credit card, there’s nothing for the customer to lose.

Last year, annual fraud costs totaled $32 billion – a 38 percent jump from 2013 – according to a LexisNexis study, so “the nationwide shift to EMV should be welcomed with open arms,” says Boukadakis. But the war is far from over with attacks in the mobile and online spaces becoming more intense. To learn more about why banks, credit unions and prepaid companies should set their sights on voice biometrics as the next line of defense against financial fraud, read Boukadakis’ byline for Biometric Update, “Biometrics Needed to Win the War against Financial Fraud.”

Biometrics Will Be Standard on Smart Mobile Devices by 2020

This summer, Acuity Market Intelligence, an emerging technology strategy and research consultancy, released its forecasts for the mobile biometrics market. According to the group:

  •  Annual revenues from biometrics embedded in smart mobile devices, biometric app downloads, and biometric authentication of transactions will grow from $1.6 billion in 2014 to $34.6 billion in 2020 representing a CAGR of nearly 67% with total forecast period revenues exceeding $117 billion.
  • With an installed base of 4.8 billion, more than 89% of all smart mobile devices in use will be biometrically enabled.
  • More than 5.5 billion biometric apps will be downloaded annually, and more than 800 billion transactions that require some level of biometric authentication will be processed on mobile devices each year.

Maxine Most, Acuity Market Intelligence Principal and lead analyst and a biometric identity expert, commented:

“Today’s mobile biometrics are primarily a convenience factor providing an easy pin alternative for device, application, and account access, as well as mobile payment authorization. By 2017, hardened biometric security on mobile devices will begin in earnest and we will see a genuine transformation in identity and commerce and the true end of ‘the password as we know it.’ The potential for consumer use of mobile biometrics and the associated revenue potential is magnitudes greater than any previous application of biometrics. This massive, globally available platform will provide an unprecedented opportunity for sustained sensor, software and app based revenue as well as enormous potential for biometric authentication services for high-risk and high-value transactions.”

Preview Acuity’s “The Global Biometrics and Mobility Report: The Convergence of Commerce and Privacy” here.

To learn more about Enacomm’s biometric authentication technology that protects mobile transactions and more, visit our products page.

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