Strengthening Digital Banking with Facial Recognition Technology
The evolving digital state of economies is also witnessing an evolution in corresponding threats and risks. And in the new era of digital banking, online fraud has emerged as the most concerning threat to transactions and banking security.
According to a 2022 report by the Association of Certified Fraud Examiners (ACFE), a whooping USD 4.7 trillion is lost to online frauds out of the total global corporate revenue every year. This alarming number is expected to rise manifold in the coming years. As a virtue of technological ease to commit cybercrime, all that is needed is certain technical knowledge and access to the right computer equipment. Online fraud is on the road to becoming the topmost threat to banking efficiency and performance.
Criticality of Synthetic Frauds
Scams and phishing attacks have put customers in a constant state of distress. Often posed as authentic transactions, scams are difficult to make out. Fraudulently extracting personally identifiable information (PII) for personal and financial gains is another challenge to security and data breaches across online channels. Sophisticated technology frauds through phishing and hacking are dangerous, leading to personality duping. E-commerce frauds from data leaks, gaining unauthorized access to payment accounts, man-in-the-middle attacks and false billing hinder sectoral and economic growth.
Ineffectiveness of Traditional Fraud Prevention
Since passwords and PINs have been quite established in the online banking ecosystem, fraudsters have found ways to go around and defy such layers to gain unauthorized access. Security questions and unique identifiers can easily be predicted and memorized. Passwords and PINs can be compromised on public networks, easily forgotten and skimmed. Consequently, the frauds recorded in the past two years have been the highest in 20 years. And global payment frauds are further estimated to rise to USD 40.62 bn by 2027. Multi-factor authentication is still not universally adopted, limited to weak passwords and fingerprint biometrics.
It is to say that traditional fraud prevention techniques are inefficient in protecting the ever-rising online banking user count. Economies realize that the effects of such stolen money can range from executing small purchases online to mobilizing funds towards illegitimate funding for terrorist activities. So, it is crucial to build reliable solutions to cater for the changing security requirements with immediate action.
Curtailing Frauds Through Facial Recognition Systems (FRS)
The questions of identity theft and forgery can be rested with the implementation of countering AI-enabled solutions. Liveness detection quickly differentiates an actual person from a fictitious identity and raises alerts of attempted breaches.
PII is secured with facial biometrics as the key keeps it safe from leaks and thefts. Face image helps access resources and make transactions, reducing the risks of illicit uses and phishing attacks.
“To ensure that security moves with the pace of advancements in digital banking, facial recognition technology can act as a backbone of support. Not only does it reduce the risks of frauds, but accelerates the speed of the banking revolution.” – Eugenia Marina, Business Development Director, MENA region, RecFaces.
“In our digital world, facial recognition stands as the unwavering guardian of online security. It’s the trusted shield that keeps fraudsters at bay while preserving convenience for all.” – Valerie Lapteva, Business Development Director, APAC region, RecFaces.
