By: KV Sai Mounish, Department of computer science and technology, Student of computer science and technology, Madanapalle Institute Of Technology and Science, 517325, Angallu, Andhra Pradesh.
ABSTRACT –
In the ongoing world one of the important aspects which is to be preserved in the rapidly growing and constantly evolving sphere of the financial industry is the element of security. Even the use of passwords and other digital identification numbers is the tradition even today, it is still the familiar route to breaches and fraudulent trickery. As a result of these pressures, biometric security has developed into a decent means of someone confirmation since it consists of the utilization of body features to create a circuit security. In this article, the author presents the general view on the usage of biometric security and concentrates on its specific features in the sphere of finance, advantages and disadvantages and further perspectives. Finger prints, face, iris, voice technologies can be applied in the enhancement of the security of transactions, of course customer’s data security and usability. Also, the article covers regulation and privacy and ethical risk that can be linked with biometrics data for the financial activities. Hence, the purpose of this article is also to provide detailed information regarding how ‘biometric security’ is proving to be beneficial in the field of financial services and is making a positive enhancement so as to gradually make the ‘banking system’ more secure, favorable and safe for the institutions in addition to the ‘consumers. ’
KEYWORDS –
Financial industry, Security, Password, Consumers, Digital Identification numbers, Privacy, Fraudulent.
INTRODUCTION –
Regarding the key components which should be kept in mind while considering the functioning of the paradigm in the context of the interaction with the current world and the constantly increasing rates for the development of the scope of the financial industry the element of security can be mentioned as a crucial one. To date, the passwords and other numerical identifiers to the form of conventional security measures remain susceptible to being counterfeited and exposed to fraud transactions. Thus, owing to such pressures, biometric security has emerged as a dependable approach for affirming an individual’s identity through building an authentication cycle based on features unique to the person.
Here the author mentioned some information on applying biometric security within the sphere of financial activity, while giving detailed information on the specific characteristics and trends of its usage. Together with fingerprint, facial, iris and voice recognition means the enhance the security of the financial transactions of organizations, protect valuable customer data, and at the same time, increase the convenience of the process. Furthermore, different activities related to the regulation, the privacy concern and the ethical concern of biometrics data applying when applying for financial activities are also mentioned in the article. The center of focus of this article is to provide information on nature and benefits of the biometric security and productivity within the area of applied finance hence positively impacting and enhancing the security, satisfaction and safety of banks for its institution’s clients. In this article the author attempts to bring reference to the current practices and then carry it forward into the future, about how the concept of biometric security is soon going to revolutionize the financial industry.
Security and Usability enhancing in Finance
These two aspects must be achieved under the conditions of the constant transformation of operations and transactions that shape the financial world. Primarily, the traditional security approaches like the passwords and PINs are becoming extremely exposed to criminal activities and fraud[1]. Originating from the word bio-measure, biometric security falls under the umbrella of physical security by using physiological and/or behavioral characteristics for identification. This section goes in detail explaining how different biometric technologies are enhancing the functionalities of security for financial transactions as well as the ease of use.
Fingerprint Recognition
However, fingerprint recognition is among the most prevailing biometric solutions implemented in the sphere of financial institutions. This form of biometric product acquisition is precise and safe since it involves analyzing the ridges and valley on the fingertip of the user. Mobile banking applications, ATMs, POS terminals, and any other electronic products where accessibility is sensitive is defended through fingerprint recognition in bank and various financial entities.
Facial Recognition
Facial recognition technology is employed to automatically identify the facial contour and then match it to the database of pictures. Such method is more suitable for online banking and mobile payments since it does not intervene with other functionalities of the device and is very easy to use. Users are thus able to perform secure transaction authentication with increased efficiency by just blinking at a camera.
Iris Recognition
Iris recognition entails the use of a camera supporting a dioptric that scans the complex patterns in the iris of an individual; this pattern does not change with time and cannot be forged[2]. It is stable and is slowly finding its way into highly secure networks and applications such as the financial kind that demands high levels of security for users. In the area of ATM and security banking sectors, the usage is fixed to guarantee that only accredited persons can conduct sensitive financial transactions.
Voice Recognition
Another technique used in biometric verification incorporates voice and examines the characteristics of a person’s voice in order to authenticate their identity. It provides an automatic and also fast method for authentication, especially in the case of call centers and customer relations departments. Since the passphrase is unique to the account, the user can safely gain entry to his account and make transactions without having to present other identification.
Considerations in Biometric Security
Regulatory Frameworks
Collecting biometric data is regarded as the most personal, and following the processes of collecting the information is surrounded by strict rules of protection to make sure people’s rights do not violate[3]. Now, for the biometric information collecting, storage, and use, the countries and regions have issued legal regulation and provisions. For instance:
General Data Protection Regulation (GDPR): Subjects that are within the European Union are governed by the GDPR and it has restrictions as to the processing of biometric data. Biometric data is defined as special categories of personal data which makes it possible to process it only with the permission of the person involved. The same requires protection by use of secure features and the seven principles of data protection which the organization has to adhere to.
California Consumer Privacy Act (CCPA): In the United States of America, especially for California residents The CCPA provides rights with regard to biometric data as well. They must declare how personal data is collected, the subjects receives the right to request personal data or their deletion and has legal repercussions if not followed.
Biometric Information Privacy Act (BIPA): There is special legislation in Illinois, USA – BIPA that sets clear and specific rules regarding the collection of biometric data and its storage, not to mention the requirement of subjects’ consent and reporting the policy on data retention and safety. The compliance process and overview of framework is shown in Figure 1.
Ethical Considerations
Beyond legal and privacy issues, the use of biometric security also involves ethical considerations: Thus there are a number of other problems connected with ethical issues concerning biometric security which are the following: Legal and privacy problems connected with biometric security are not the only problems of ethic.
Bias and Fairness: This is so; especially when Biometric systems can be bias and this situation arises when the biometric template is incorporated in the algorithm is extracted from a bias data set. This is because something such a system may cause the error rate for a certain demography to be high and the treatment becomes absolutely unfair on the disappointed population. The measures which have to be pursued in training are the diversity in the training data which are built-in, and the reviewing of the systems of bias which have to be done periodically.
Autonomy and Control: The general public ought to have ownership rights of their biometric information and this way people have rights to ignore biometric systems if they want to. Any of the business firms providing financial services to the consumer must allow the user’s independent wave and should offer the exit if utilization of the biometric identifier is an offense.
Transparency and Accountability: And, what is rather important, as it was stated before, biometrics cannot assist organizations in evading their external environment and tarnishing of the corresponding corporate images as a result of misuse or disclosure to the circles of interested parties[4]. Specifically, the tasks of the profession and organizational behavioral requirements that characterize and proscribe the proper moral conduct[5]; the monitoring schedules; and the channels whereby people can ventilate their concerns are needed[6].
CONCLUSION –
The application of biometric security in the sphere of finances can be considered as a major step forward on the way to the development of security and convenience of its use. Formalisms of protection like the passwords and PINs have become vulnerable to break-ins and fraudulent activities thus requiring better security measures. Fingerprint, face recognition technologies and iris, voice recognition technologies are some of the unique features that guarantee Biometrics technologies because they use human biological features to access the systems. Not only these technologies enhance the security of the financial transactions but also make the usage of the account easy and convenient and the factor of password hardly gets compromised. With rapidly increasing complexities in the financial industry, there is a growing importance of the biometric security systems as they will be used to further enhance security as well as exclude unauthorized personnel from accessing certain information. This integration of security improvements of the financial system with the freedoms that should be provided to customers ensures that the banks can protect and assist their clients while following the set legal requirements, privacy policies and ethical benchmarks. With constant development and adherence to principles of right practices, the financial institutions can fully realize the opportunities affiliated with the implementation of biometric security, which will eventually create more protected and effective finance environment.
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Cite As
Mounish K.V.S. (2024) Role of Biometric Security in Finance, Insights2Techinfo, pp.1