In the financial sector, fraud prevention and customer convenience are the two most important attributes that you cannot neglect. This is where eKYC solution processes have transformed client onboarding and verification.
Automated face recognition in eKYC is an emerging technology known for its speed, accuracy, and heightened security. But how exactly does this technology maintain security, particularly in such a sensitive field as finance?
Here are the essential factors making face verification in eKYC secure and reliable for identity verification.
Deep Learning for Face Recognition
The security measures for automated face recognition under the eKYC solution are driven by advanced machine learning (ML) and artificial intelligence (AI) algorithms. These algorithms highly assess facial features, considering factors such as bone structure, skin tone, and distinctive facial landmarks.
Face recognition systems use deep neural networks (DNNs) and convolutional neural networks (CNNs) to reduce false negatives and positives. This high accuracy guarantees that a person’s identity cannot easily be faked or misrepresented, which is essential for financial institutions deploying eKYC solutions to avoid fraud.
Fraud Prevention Solution Based on Liveness Detection
A major problem with this is the possibility of submitting a forged image of someone else, otherwise known as a spoof attack, using photos, videos, or masks during face recognition. To avoid it, eKYC uses liveness detection in face verification.
Liveness detection methods evaluate facial motions, blinking, and even fine-grained texture changes in the skin across varying lighting conditions to ensure the person attempting verification is physically there. Liveness detection enhances security by forcing users to move their heads or smile during verification.
Data Security/Protection using Biometric Encryption
Safeguarding customer data is imperative. Unlike passwords and PINs, biometric data (like facial features) is sensitive information that needs to be stored securely. That’s where biometric encryption comes in.
During automated face recognition under eKYC, encryption guarantees that the unfiltered facial data is transformed into a safe, unreadable format before storage. This ensures that even if an unauthorized party gains access to a database, the encrypted data cannot be used or decoded without the appropriate cryptographic keys.
Biometric encryption and secure storage policies can aid your financial organization in complying with data privacy regulations such as GDPR and CCPA while gaining customers’ trust.
Additional Security with Multi-Factor Authentication
So, eKYC solutions automate the identity verification process. However, the hybrid approach of using automated face recognition with MFA combines a layer of security over it. MFA requires users to confirm their identity in two or more ways, including:
- What they know (a PIN or password)
- It is something they have (such as a phone or a hardware token)
- Something they are (biometric data like a face)
Face verification in eKYC and MFA can minimize the risk of unauthorized access to an account if one authentication factor is compromised. This multilayered method was proven to improve the security of the whole verification process.
AI-Driven Anomaly Detection
Scammers are always finding new ways to circumvent security. Financial institutions depend on AI-powered anomaly detection systems used with eKYC solutions to save themselves. These systems examine user behavior, geographic patterns, and even the device used to navigate the verification train to call out possible red flags.
Adhering to Compliance Standards
Compliance with regulatory requirements is critical for financial institutions to preserve their reputations and avoid penalties. When implemented correctly, automated face recognition in eKYC is recognized by regulatory bodies worldwide as a secure and compliant method of identity verification.
Most technologies utilized in eKYC solutions need to pass strict security measures covering:
- Data up to October 2023 AML compliance
- Know Your Customer (KYC) compliance
- Data protection standards (GDPR, etc.)
These regulations provide a framework for the security measures that you must have in place to protect the data you collect, store, and process. They ensure that face recognition technology can be used without breaching security or legal obligations.
Periodic System Maintenance and Monitoring
Cyber threats emerge constantly, so security arrangements need to advance perpetually. Most eKYC solution vendors push regular system updates as security patches for newly discovered vulnerabilities.
Moreover, you can take a proactive approach in facing cyber threats. They often work with cybersecurity professionals to perform penetration testing and vulnerability assessments of face verification embedded in the eKYC system. This ensures that any potential threats are identified and addressed in advance, providing a sense of security to the audience.
Build customer education and awareness.
Even the most secure solutions can be compromised if customers are uninformed of the best uses for KYC solutions. You can play a crucial role in educating customers on how to protect their personal information during the verification process, empowering them to take an active role in the system’s security.
Clear instructions on verifying URLs, avoiding public Wi-Fi when doing so, and recognizing phishing attempts give customers agency in operating the system’s security.
Scalability for Future Growth
As your financial business grows, verifying systems must upgrade without sacrificing security. Modern automated face recognition eKYC systems are enhanced to efficiently process huge volumes of data and transactions.
You can engage thousands of customers daily, setting strong security protocols in scalable systems. Invalid or revoked records will restrict them from accessing or utilizing the service.
Final Thoughts
Identity verification methods are a must in the financial sector, as the industry is a prime target of fraud. Automated face recognition in eKYC solutions strengthens security and smoothens the customer journey. You can protect your customers’ data and transactions by utilizing advanced technologies such as liveness detection, biometric encryption, and AI-driven anomaly detection.
As an evolving technology, its presence in the financial sector will continue to expand, providing unmatched security and efficiency. Lending institutions that open themselves to innovation and adapt to these trends will be able to keep up with the rising demand for digital banking and regulatory compliance.
Whether you are a financial institution considering face verification in eKYC, a customer utilizing these systems, or anyone venturing into the digital world, it is essential to know the key security aspects so you are prepared and aware.
