Biometric ID: The Next Step in Bank Security
Banks go high-tech in their attempts to verify identity.
Banks are increasingly turning to biometrics and other alternative identification methods that mobile and online customers already are comfortable using.
Expect biometric authentication techniques to expand over the next few years. These include fingerprint, face and voice recognition technologies.
Many smart phones are already equipped with the cameras needed for face recognition. Apple’s September purchase of Polar Rose, of Sweden, upped the ante for the technology, which reportedly will be available soon through the iPhone. And other manufacturers aren’t far behind.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Additionally, fingerprint recognition is readily available on laptops, and the required recognition software is compatible now with Microsoft’s Windows 7 operating system.
Some manufacturers are even embedding fingerprint scanners into mobile phones. Authentec, of Melbourne, Fla., offers a mobile phone print reader now, while Hitachi will have a mobile finger sensor product for phones next year.
“For years, biometrics has been rated high in consumer surveys, despite the absence of biometrics in the hands of consumers,” said Robert Vamosi, a risk and fraud analyst for Javelin Strategy & Research. “That trend is changing now with touch pads that can record fingerprints and built-in webcams for facial recognition on the laptop and mobile handsets that can recognize the owner’s face, touch or sound of their voice.”
Banks seem ready to try it once consumers are comfortable with the technology. Deutsche Bank and Citibank have been using biometrics for years for employee access, but banks have been slow to deploy biometrics for customer transactions. That may change.
Citibank is ready to roll out voice biometrics to Australian customers in the next three months. Look for other regions to follow, and for other banks to monitor the effectiveness.
Banks will also experiment with one-time passwords, which can be sent via text message or e-mail. These are good for a short period of time -- usually 30 seconds or a minute. They are effective but can be burdensome if they have to be retyped.
Security questions will continue to be a popular verification technique. Knowledge-based questions, which are based on information the customer supplies when registering, are seen as the most effective and easy to use by banking customers, according to Javelin’s research.
Image recognition is perceived as less effective as it becomes more widely used, the survey shows. Using a mutually agreed-upon image at log-in will still be used by financial firms for a few years, but look for it to be replaced as more sophisticated techniques become available.
To continue reading this article
please register for free
This is different from signing in to your print subscription
Why am I seeing this? Find out more here
-
GM Stock Accelerates After Earnings Beat
General Motors beat expectations for the first quarter and raised its outlook for the year. Here's what you need to know.
By Joey Solitro Published
-
Georgia Has a New Income Tax Rate for 2024
Tax Cuts Georgians now have a tax package containing income tax cuts, childcare relief, and potential property tax caps.
By Kelley R. Taylor Published
-
When's the Best Time to Buy a Domestic Flight? The Kiplinger Letter
The Kiplinger Letter A new study by CheapAir.com has crunched the numbers.
By Sean Lengell Published
-
Woes Continue for Banking Sector: The Kiplinger Letter
The Kiplinger Letter Regional bank stocks were hammered recently after news of New York Community Bank’s big fourth-quarter loss.
By Rodrigo Sermeño Published
-
Anxious Flyers Take Note: The Kiplinger Letter
The Kiplinger Letter Whether it's the routes to avoid that have the most turbulence or the safest airline, we've got you covered.
By Sean Lengell Published
-
The Auto Industry Outlook for 2024
The Kiplinger Letter Here's what to expect in the auto industry this year. If you’re in the market for a car it won’t be quite as daunting as it was during the pandemic and after.
By David Payne Published
-
Two More Travel Trends for 2024: The Kiplinger Letter
The Kiplinger Letter As the world gets moving again, two more travel trends to consider: Solo cruising and airline passengers with loaded guns.
By Sean Lengell Published
-
Three Travel Trends Will Drive the Industry This Year: The Kiplinger Letter
The Kiplinger Letter New travel trends like set-jetting, destination “dupes” and tour traveling will propel the travel industry in 2024.
By Sean Lengell Published
-
State Economics — Spotlight on New England: The Kiplinger Letter
The Kiplinger Letter After a better-than-expected 2023, New England states will see only modest employment growth in 2024.
By David Payne Published
-
2024's Social Media and Smartphone Trends: The Kiplinger Letter
Video-sharing giant, YouTube, dominates as teens' go-to social media outlet.
By John Miley Published