How Digital AML Biometric Helps Prevent Financial Crimes?

The computation of physical traits or biological characteristics that help identify an individual is known as biometrics. To combat the rising financial crimes, biometric technology is employed to recognize the individuals working behind the shadows. To verify the identity of prospective clients, it is currently used in the compliance and security industry as a risk-based approach. Digital AML Biometric saves identity marks such as fingerprints, facial recognition, or retina scans in their databases to approve or help verify the identity of individuals. Simply put, AML biometrics are hardware that acts as an opener to unlock customer’s access to the system and aids in identity verification. 

Methods Of  AML Biometric

Some examples of AML biometrics commonly employed in the compliance landscape are:

  1. Fingerprint Scanning
  2. Iris Recognition
  3. Voice Recognition
  4. Facial Recognition
  5. Heart-Rate Sensors (frequency spectrum of a heart’s pumping and its rise & fall vary from person to person and therefore can be employed as a biometric identification mark. Experiments have proven it to be a more reliable identity verification method than the mainstream modalities like fingerprints).

Use of Biometric Solutions in the Banking Industry

In the past 50 years, a new middle class has risen. Consequently, the banking sector has expanded tremendously than ever before. The digital revolution has resulted in the growth of the banking sector’s customer base with each passing year. Financial institutions like banks employ biometric identification systems for 

  1. Customer authentication during customer onboarding to protect its business against frauds, identity theft, new account opening fraud, and others.
  2. To comply with Anti Money Laundering (AML).
  3. And to build a trustworthy customer base.

For example, Citibank has employed voice recognition as well as Touch ID Sensor and Fingerprint sign-on to authenticate the identity of its users and protect its customers from financial crimes. 

Likewise, Halifax, a British bank, verifies its customer’s identities by employing Heart-Rate Sensors as a biometric module. 

Use of Biometric Solutions in Airports and Security Checks

Biometric solutions are extensively used in airports around the world to enhance their security and make travel faster. From submitting visa application forms to automated barrier control, biometric verification systems are used in every step of the process in the form of facial recognition technology, voice recognition, fingerprints, and so on. 

All countries have started to incorporate biometrics with e-passports. Here in the United States, the chip of e-Passports comprises fingerprint data, iris recognition, and a digital photograph of the owner. To protect data, it also incorporates technology that makes it impossible for the chip to read and decode any unauthorized data readers.

Dubai Airport employed 80 cameras in 2018 for facial recognition of passengers passing through the virtual aquarium. Other international airports such as Amsterdam, Minneapolis-St. Paul, Tampa, and Helsinki have employed facial recognition technology for customer authentication and identity verification. 

How Digital AML Biometric Helps Prevent Financial Crimes?

Identity authentication by measures such as passwords and CAPTCHA code generators may provide security against hackers however, it is not enough. Using biological traits to confirm the identity of potential customers and current users gives an additional layer of security for the financial firm. In industries where digital transactions are common such as payment gateways, eCommerce platforms, and financial institutions biometric technology helps authenticate the identity of cardholders and helps prevent fraud cases.

Biometric verification helps prevent fraudsters from using stolen debit or credit cards and committing financial crimes. Biometric verification, is, therefore, now preferred in event monitoring and automated surveillance of fund transactions.

Financial crimes like Bank Identification Number (BIN) fraud by employing brute-force computing, or more prevalent financial crimes such as online money transfer, account takeover (ATO) fraud, and others are effectively curbed by the implementation of biometric technologies and complying with anti-money laundering preventive measures such as AML screening as mandated by the international regulatory bodies, government organization, and law enforcement agencies. 

Biometric authentication tools such as detectors, and censors aid financial organizations in securing their data access operations and prevent embroiling in financial scandals such as terrorist financing and money laundering. The incorporation of multi-factor authentication in the form of iris scanners, facial recognition, and fingerprint detectors has secured online banking spaces. Therefore, the use of biometric authentication systems is now on the rise given its benefits and now its market volume is expanding. Digital AML Biometric has now burst out of the bubble of secrecy and anonymity for fraudsters and financial criminals. Anonymity in fund transactions leads to several financial crimes such as money laundering, terrorist financing, bank fraud, identity theft, and beyond. Digital AML Biometric.

Investing in Digital AML Biometric can protect financial firms from the adverse media caused by getting entangled in the criminal activities of customers. It helps build the business trust between the customer and the financial firm. Investing in this single tool can save financial institutions millions of regulatory fines that come with non-compliance with KYC/AML regulatory guidelines. 

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Scott Ben
Scott Ben
Passionate writer well-versed in anime and gaming. Proficient at crafting informative and captivating content, encompassing articles, reviews, and features. Possesses extensive expertise in both the anime and gaming realms, staying current with the latest developments and trends.
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