Biometrics in the Banking Industry PPT BY D.SINDHUJA B.RAJESWARI

Gateways for Biometrics Transaction Security Securing client transactions and protect their privacy either remotely or onsite Network Security Security of the bank’s infrastructure, controls what activities specific individuals or job functions have access to Access Control Protecting the physical security of facilities (vaults, safety deposit boxes) Background Checks Protect against internal fraud and illegal transactions with applicant background checks

Fingerprints Most commonly used biometric in the banking industry Used in all areas of the banking industry Transaction security Network security Access control Background checks Advantages Equipment is cheap Highly accurate Disadvantages Criminal stigma Universality

Fingerprint (Transaction Security) Goal: enable clients to authenticate themselves before any transactions are made on their account Enroll customers when the account is created with their fingerprint When wishing to access their account, they must first provide their fingerprint to be verified No ID card is needed Provides non-repudiation Uses In bank, ATM, kiosk, online

Example Banco Azteca: the first bank to be opened in Mexico since 1995 Allow people with limited incomes that live in poor and rural communities to establish a bank account for the first time. Sparseness of banks No form of authentication (driver’s license) Account ID cards were often lost or stolen Digital Persona technology was used to protect accounts using fingerprints 1.2 million customers of Grupo Electra are enrolled Many customers were farmers and construction workers whose prints were damaged and worn 1 out of 4 people failed to enroll because of low quality prints

Fingerprint (Network Security) Protect against internal fraud (employees tampering with the system) Enroll and authenticate bank employees before they can access the bank’s network to perform a transaction

Example Bank of Central Asia (BCA) in Indonesia has around 8 million customers throughout the country Incorporated Identix fingerprint systems to secure the processing of high-value electronic fund transactions If a large transfer is initiated, the teller and possibly a supervisor need to be authenticated by the system before the teller can finalize the transaction Non-repudiation: the teller cannot deny performing the transaction Duress finger If under duress, the teller can authenticate with a duress finger (alerting the police)

Fingerprint (Access Security) Instead of using a key or card to for access, use a fingerprint Access to the bank, vaults, safety deposit boxes

Example Deutche bank is a European financial service provider with ~65,000 employees Installed AC Controls security to establish biometric access to their building Fingerprint readers determine who can enter their offices and also restricts what areas each person can access Problem: A one day visitor would need to enroll with the bank, to gain access to parts of the building Consumers may be reluctant to enroll their biometrics with multiple organizations Morpheus technologies: develop a network of secure, licensed enrollment facilities Standardization + Interoperability

Fingerprint (Background Checks) Submit requests for backgrounds electronically Background checks ensure the integrity of the employee base

Example ING Direct installed live-scan fingerprint readers that channel electronic submissions to the FBI IAFIS database (Identix) Before background checks took 4-5 weeks While waiting, the prospective employee would be trained If the results effect the hiring, much money was wasted during training Now, checks can be done in 4-5 days Able to wait this period before training

Voice Main advantage over fingerprints: Works remotely (by phone), without special readers Used for transaction security Verifying the customer is the rightful owner Disadvantage Can be affected by outside noise

Vein Pattern Recognition Advantages Highly unique to every individual Patterns are formed at birth and remain constant throughout one’s lifetime Rapid, non-invasive enrollment and verification procedures Works only on living, vascularized hands

Vein Pattern Recognition Disadvantages Injuries or deformations to the hand may cause failure to enroll Systems which require contact may be considered invasive/unhygienic Some systems still require PIN or other identification

Vein Pattern Recognition At Work Southeast Asia Several international financial institutions have implemented vein pattern recognition systems from VeID Ltd.

Hand Geometry

Hand Geometry Based on measurements of the hand Robust to environmental changes Easy to use Ageing, deformities may affect verification

Hand Geometry At Work First Bank Puerto Rico Installed IR Recognition System HandPunch terminals at all branches Employees must swipe an ID card and verify with a hand scan to punch in and out of work Attendance and tardiness have been cut down, as well as labor devoted to monitoring these problems

Conclusions Biometrics are already being used in banks around the world: North and South America, Europe, and Asia Biometrics being used include: Fingerprints Signature Vein Pattern Hand Geometry These systems can be applied to virtually every aspect of the banking industry: Transaction Security Employee attendance Network and Database Security Access to facilities The banking industry is very reluctant to change its existing infrastructures It is expected that biometrics will take longer to be incorporated into the banking practices

References http://www.eyenetwatch.com/biometric_users/Bank_Hapoalim_Case_Study.htm http://www.penflow.com/ http://pr.fujitsu.com/en/news/2003/03/31.html http://www.veid.net/Product/default.htm http://www.findbiometrics.com/Pages/financial_articles/financial_3.html http://www.recogsys.com/news/casestudies/cs08.htm http://www.tml.hut.fi/Opinnot/Tik-110.501/1998/papers/12biometric/biometric.htm