Biometric identification is considered the next step in preventing card-not-present (CNP) fraud. CNP fraud occurs when a criminal makes unauthorized purchases using stolen credit or debit card information, without physically possessing the card.
Biometric identification uses unique physical or behavioral characteristics, such as fingerprints, facial recognition, or voice recognition, to verify a customer’s identity before authorizing a transaction. By using biometric technology, merchants and financial institutions can reduce the risk of CNP fraud and increase customer security.
SCA authorization systems make use of three distinct kinds of information that are independent to confirm the identity of customers. Three verification elements have to be supplied for the authentication of the transaction. The three verification elements include:
- Information that the buyer is aware of such as password, PIN
- What the buyer has such as a card phone, mobile phone, or hardware token
- The buyer can be fingerprint prints or facial recognition or the scanning of the iris
SCA will take full force in 2019 and will be an obligation for online retailers to take across the EU and biometric authentication will become a mandatory component of all online transactions.
Biometric Identification Advantages
Biometric identification offers a variety of advantages when used as a method to confirm the identity of an individual. In the wake of Mastercard’s announcement and SCA, it is already possible to witness its wide-ranging use and significance within the world of eCommerce payments. Furthermore, the introduction of biometrics inside 3D Secure 2 will significantly reduce the risk of fraudulent transactions as well as increase the speed of transactions. In the end, it will increase the security and security of card-not-present online transactions for everyone in society.
What is an example of biometric identification?
Biometrics refers to biological or physical characteristics that can be used to identify individuals, such as fingerprint mapping, facial recognition, and retina scans. These technologies are just a few examples of biometric identification methods available to accurately and efficiently verify a person’s identity.
How can CNP fraud be prevented?
To prevent CNP fraud, it is essential to verify the validity of the three-digit CVV security codes. Customers should also be educated not to store their CVV codes for added security. However, the main challenge is when fraudsters obtain genuine information, making CNP fraud prevention extremely difficult.
What are the three factors to prevent fraud?
The fraud triangle is a model that helps explain why individuals choose to engage in fraudulent behavior. The three components of the fraud triangle are (1) Opportunity, (2) Incentive, and (3) Rationalization. By understanding these factors, businesses and organizations can take measures to prevent and detect fraud.
How Can Businesses Stay Updated On Future Developments And Upgrades To The API?
Regular updates and announcements are provided through official channels, keeping businesses informed about the latest features and improvements.