November 23, 2015
Mitigating the risk of a security breach and protecting customer data is one of the many concerns that need to be addressed with innovative technological solutions and methods. Biometric authentication is one such solution to this problem. With rapid innovation in this field, new companies and use cases are coming up in order to provide secure and convenient authentication processes to users.
LTP has recently come up with a three-page sector snapshot on biometric authentication which analyzes the need for biometric authentication and the latest trends in this sector.
Governments and various industries are trying to implement mobile biometrics to speed up the process of biometric authentication. Individual biometric identification can be achieved on a mobile device either through its built-in biometric sensors or by attaching portable biometric hardware to it via a USB cable or through a Wi-Fi connection. The global biometric authentication and identification market is expected to undergo considerable growth over the next five years.
By the end of 2014, fraud losses incurred by banks and merchants on all credit, debit and prepaid general purpose and private label payment cards issued worldwide reached $16.31 billion. The US accounted for 48.2% of gross card fraud losses worldwide. US fraud losses equaled 12.75¢ for every $100 in total volume in 2014.
From January to April 9, 2015, the number of attacks on debit cards used at ATMs reached the highest level for that period in at least 20 years with debit card compromises at ATMs located on bank property jumping 174% from January 1 to April 9 compared with the same period in 2014 while successful attacks at nonbank machines soared by 317%.
- Biometrics is expanding to the retail and consumer market to address problems with the current PIN and password authentication.
- Smartphone manufacturers are turning to biometrics to authenticate device access.
- Biometric modalities fueling the growth in consumer and retail are focused more on convenience than security.
-Biometric solutions are being deployed for multiple payment use cases, including leveraging smartphones for POS purchases and using biometrics as a second form of authentication at ATMs
- Mobile Banking: Biometric authentication seems to be an absolute must-have in the near future for banks, especially taking into consideration how mobile banking is getting popular. It seems to be a milestone when considering the future of mobile applications.
- Multifactor Authentication: Organizations are now seriously considering multifactor biometrics like fingerprint, retina, voice, retina, facial and heartbeat for authentication as it has a lot of significance in online/mobile banking. Banks have started working with technology firms, developers and startups in order to create fool-proof authentication systems which will be the key to a great mobile banking and mobile payments experience.
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