Over 120 million consumers used biometric authentication for mobile banking in 2015, according to a report from Goode Intelligence. That number is expected to reach over a billion by the year 2020. The huge growth of biometric security is not surprising when considering the many benefits to consumers and banks.
For consumers, passwords are hard to remember and easy to steal. One way passwords are stolen is through phishing emails, purporting to be from your bank, asking you to change your password. If you enter your username and password, and some credentials, you’ve just given a fraudster a means of entering your account. Using biometric security as a second means of authentication to access your account would help protect you against this fraud.
It's good to know there are protections in place for your biometric data:
- Biometric data doesn’t have to be centrally stored. If you use a fingerprint or facial scan to log into a bank account, the image itself resides on your device. It is not stored on a server at your bank.
- Biometrics are generally used as a second layer of ID. Your authenticated smart phone or computer is the first layer. A thief would need to steal and establish control over your mobile device to access your account.
- Liveness detection helps prevent spoofing. Liveness detection assures that the fingerprint or face being scanned is from an actual person, not a photo, video or model.
Given the ease of using biometric authentication versus the difficulty of remembering and constantly changing passwords, biometric security is gaining acceptance among consumers. Biometric security also helps protect banks from billions of dollars of losses due to fraud. It’s becoming standard for mobile banking.
Banks may only allow their customers to use mobile banking for low value transactions such as purchases or online bill paying. Loans and other services, for example adding a new beneficiary, may require more security precautions.
Mobile Biometric Security in Digital Banking
By Aware, Inc., July 25, 2017
Over 1.1 Billion Users of Mobile Biometrics for Financial Services by 2020
Goode Intelligence research report, December 4, 2015
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