Biometrics in Real World of Financial Services

Steve Cook Specialist & Fintech Consultant Steve Cook Specialist Biometrics & Fintech Consultant

An Advisor to Banks, Enterprises, Fintech Start-ups and Investor Groups, regarding their biometric implementation and business strategies.

Currently assisting a biometric Fintech start-up FaceTec.

Owner of the Biometrics for eCommerce business community news group on LinkedIn with more than 23,000 members. Please feel free to join the group here. www.bioecom.com

Biometrics are Everywhere!

Biometrics in Mobile Digital Banking

Over 1.9 billion bank customers will use biometrics by the end of 2020

Goode Intelligence 2018

Apple’s Face ID is Officially the Future for iPhones

All Three New iPhones Feature Face ID Biometric

The new iPhones will be ready to ship at the end of October 2018: iPhone Xs $999 XS Max at $1099 XR at $749

Consumer Banking Trends Consumer Banking Trends

#worlddigitalbanking2018 #worlddigitalbanking2018 Mobile Banking Trends Consumer Banking Trends • By 2020, personal banking through mobile apps will overtake telephone, online and branch banking in the UK.

• In the UK, over 22 million people managed their current account on their phone last year. By 2023, they have predicted that around 35 million people or 72% of the UK adult population will bank in the future via a phone app.

• Mobile banking is most popular among millennials, with almost 59% of 16 to 24- year-olds and 69% of 25 to 34-year-olds using smartphones.

• In contrast, almost half (49%) of 65-year-olds bank online.

• Around 5.5 billion log-ins to banking apps last year, a 13% rise on 2016.

Source: UK Finance

Payment Services Directive 2 (PSD2)

Regulatory Technical Standards (RTS)

Strong Customer Authentication (SCA) Payment Services Directive 2

• The EU set out the regulation framework for PSD2 and tasked the European Banking Authority (EBA) to define the RTS for the implementation of PSD2.

• PSD2 is designed to make payments safer, increase consumer protection, and foster innovation and competition while ensuring a level playing field for all players, including new ones.

• PSD2 became law in all EU Member States in January 2018.

• Under PSD2, all Payment Service Providers (PSPs) will be required to apply SCA every time a payer initiates an electronic payment transaction, barring a few exemptions such as contactless payments or low risk transactions. Strong Customer Authentication

• SCA of the payer must be performed on all payment transactions, including credit transfers and card payments. PSD2 and the RTS describes three elements:

• Knowledge – Something the user knows • Possession – Something a user has • Inherence – Something the user is

• These elements must be independent of each other (breach of one does not compromise the reliability of the others).

• All PSPs must be compliant with the RTS and SCA by 14th September 2019. For online and mobile payments/transactions there is an extra requirement. A unique authentication code that must link the transaction to the specific amount in a specific payee, known as dynamic linking.

Inherence Something you are?

Biometrics

The rise of biometrics in the smartphone Which of the methods listed below have you used to identify yourself when unlocking your phone, authorising mobile payments or other transactions?

#worlddigitalbanking2018

Behavioural Biometrics

#worlddigitalbanking2018

Voice Biometrics

#worlddigitalbanking2018 #worlddigitalbanking2018 #worlddigitalbanking2018

Face Biometrics & True Liveness Detection

How Does ZoOm Work?

ZoOm uses a smart device front facing camera or a webcam to capture a 2 second video selfie of the user as they move the device closer to their face.

If the user is a 3D human, the camera will observe “perspective distortion” and the user’s face will morph and distort in a predictable way.

ZoOm’s Artificial Intelligence measure the changes in the face as well as ~40 other unique human traits while concurrently matching the user’s face to confirm identity.

Why Is ZoOm Different?

Face recognition has been in use for many years, but it hasn’t replaced because it lacked Human Liveness Detection, until now.

Unsupervised authentications cannot be trusted if the system can be spoofed by photos, videos or .

As the world leader in Liveness Detection, ZoOm is not fooled by photo or video spoofs and has the 3rd party certification to prove it.

Ready for a Demo? Try FaceTec’s ZoOm 3D Face Authentication

Download a Free SDK: https://dev.zoomlogin.com/

For more information: www.facetec.com

3rd Party ISO 30107-3 Certification

ZoOm is the 1st and only biometric to pass the NIST iBeta Level: 1 Presentation Attack Detection Test

The test determines the effectiveness of anti-spoofing Liveness Detection technology in compliance with the ISO 30107-3 global standard.

1,500+ spoofs with high-res photos and videos were attempted. ZoOm achieved a perfect 100% rating. More Test Reports & White Papers Avail Here

Vulnerabilities of Biometrics

Spoofing?

See how easy it is to spoof some liveness detection systems with a CrazyTalk app. Watch a short video here

Learn more about Spoofing here

Vulnerabilities of Passwords

#worlddigitalbanking2018 http://www.informationisbeautiful.net/visualizations /worlds-biggest-data-breaches-hacks

#worlddigitalbanking2018

Remote Digital On-boarding

#worlddigitalbanking2018 Most Remote On-boarding Methods

#worlddigitalbanking2018 Issues with Remote On-boarding

Capturing an ID document such as a or Driving Licence via a smartphone camera does not mean the ID document is 100% genuine.

Some Passport Data with a biometric chip can be captured via a smartphone NFC function but this is only possible on Android phones, not IOS iPhones.

Comparing and matching small ID photos via a camera with a selfie can be problematic in terms of accuracy. Often only 50% reliability.

True Liveness Detection is a necessity in order to prove a person is real.

Because an ID document cannot be proved to be 100% reliable, it is better to begin the process with a selfie and true liveness detection.

#worlddigitalbanking2018 A True Liveness On-boarding Method

#worlddigitalbanking2018

Why Biometrics? #worlddigitalbanking2018

Why are banks adopting biometrics?

More customers using the bank’s mobile app

Increased Increased Reduced Enhanced customer brand costs security engagement perception

Here is one typical frustrated on-line user! Thank you

Steve Cook Specialist Biometrics & Fintech Consultant [email protected]

Let’s Connect