As concerns over identity theft and ATM or other financial transaction fraud continue to rise, some are pushing for biometric authentication technology to be integrated into ATMs and possibly other devices used in financial transactions. In an article from NEXT, a number of flaws in the current system for ATMs as well as a number of examples of how wrongs can be righted are cited.
Among the flaws, the article is quick to point out the ease with which fraudsters can clone cards, or more commonly in developing countries, get vital account information such as PIN numbers from acquaintances working for banks. Additionally, this call for ATMs with biometric authentication capability is not a call for new technology necessarily as banks such as Western Bank in the U.S., Banco Falabella in Chile, Groupo Financiero Banorte in Mexico, Barclays Bank in the UAE and many others around the world are already offering such technology to their customers.
The most prevalent form of biometrics and most likely to be utilized are fingerprint scanners, which, while more secure, are also subject to fraud. There are other options for biometrics, such as iris recognition and vascular scanning.
The chief argument against iris recognition systems is often its price with a simple recognition system costing thousands of dollars per unit. However, a technology development company named Global Rainmakers insists that it has a solution to this argument, according to a Forbes article. Global Rainmakers has created a small iris scanner system called iSwipe Mini that costs $50 per device. The company argues that it is comparable to its much more expensive counterparts.
Hector Hoyos, founder of Global Rainmakers, claims that in addition to the device’s low-cost it can achieve a match in less than second from up to a foot away from the scanner where many other iris scanners on the market can take 20 times as long and require a user move within inches of the scanner. Hoyos also feels that such technology would be perfect for upgrading ATMs due to its small size and low-cost.
Though none of the iSwipe Minis have been installed into ATMs yet, Global Rainmakers has been striking deals with banks for other uses of the technology including access control at Bank of America headquarters in Charlotte, N.C. and as an optional transaction authentication method for mobile transactions with Deutsche Bank. Hoyos’ hope is that he break into mobile authentication with the device by having them embedded into new smart phones, but has received no interest in utilizing the technology from Apple or Google.
Despite the apparent interest from many in utilizing biometrics to better protect their finances and identity, some privacy and technology experts warn of potential push-back from the public if such technology is adopted. Specifically, people may have negative feelings having their irises scanned by companies that have not yet earned their trust.
Read the full NEXT article here.
Read the full Forbes article here.