Banks are subject to increasing levels of fraud, costing them billions of dollars annually. In fact, synthetic fraud losses grew from $6 billion to $20 billion between 2016 to 2020*.
To protect their revenues and divert valuable resources away from covering customers’ losses, banks must invest in fraud prevention and recovery technologies such as facial recognition. Whilst not all facial recognition technologies are created equal, VisionLab’s unmatched level of accuracy and focus on developing anti-spoofing features allows banks to deliver the ultimate customer experience alongside the greatest level of protection.
Fraud prevention in payments
Implementing facial recognition technology into the payments process can prevent large amounts of fraud as the identity of the purchaser is confirmed. A recent study found merchants lose $2.40 for every $1 a fraudster takes through fraud**. As it is common practice for banks to aid in covering these financial losses, each case of fraud drains its own resources.
Facial recognition can be leveraged by banks throughout the full customer journey, from Know Your Customer (KYC) to face payments providing all-around protection. Our unparalleled accuracy and liveness provide a seamless experience for their customer while protecting all parties involved.
Reducing the impact of identity fraud
Identity fraud is one of the greatest challenges the finance industry faces today. However, there is a solution available to fight it – facial recognition technology. Facial recognition reduces fraud in banking by integrating it across mobile apps, web-based platforms, ATMs, self-service kiosks and in-store. However, unlike VisionLabs, some software solutions do not meet the level of accuracy needed to boast such a high level of protection.
VisionLabs’ software scans, analyzes and processes faces in milliseconds with unmatched accuracy. Our liveness check identifies fraudulent attempts to bypass the software. This allows banks to confidently verify that customers are who they say they are.
When fraudulent activity occurs, facial recognition plays a vital role in post-fraud proceedings. Leveraging the technology means banks can identify the fraudster for legal use. This allows banks to successfully reclaim lost monies through the legal system and adds another layer of prevention as fraud carries heavier risk.
Government agencies should aid in identifying fraud prevention by supplying a biometric database of fraudsters to financial institutions. These institutions would then be empowered to cross-check potential customers’ identities to ensure that fraudsters cannot attempt to use the bank’s services and cause harm. This is another layer of protection that facial recognition and biometrics can provide to banks.
Who leads the way?
Consumers and businesses are already demonstrating their desire for biometric solutions, with the UAE being one of the leading countries in implementing these technologies. The UAE has integrated facial recognition technology into airport security, public safety, public transport and financial services. VisionLabs is at the forefront of this technological advancement and is partnered with Emirates NBD Bank PJSC in Dubai, which currently uses the technology for their mobile banking.
Merchants and financial institutions are in a daily struggle to prevent fraud. The most powerful tool in the industry is high-quality facial recognition. Financial institutions should analyse their revenues and losses, and investigate the implementation and set up costs of facial recognition as a fraud prevention system.
Government agencies should initiate surveys of financial institutions to understand the appetite and need for facial recognition solutions. This could also include working with facial recognition providers and data specialists to understand how to create, store and safely manage biometric data if systems were to be implemented. These can be the first steps in mitigating vast swatches of fraud that plague financial institutions.