Could the Fight Against ATM Fraud Use the Help of Bbiometrics?

by Mercator Advisory Group 0

ATM fraud is on the rise and the industry is considering how best to stay one step ahead of the professional criminal rings which have targeted ATMs in recent years.

Biometrics is one strategy being adopted in other countries, but convincing US banks and consumers that investments in technology and education/training are worthwhile in a challenging economic market may be a tough sell.

… for years now, several major Japanese banks have been using some form of biometric technology to combat ATM fraud. One example is the

Bank of Tokyo-Mitsubishi

, which uses palm vein-pattern biometrics for account and identity authentication. In 2006, a new Japanese law made banks liable for fraudulent ATM withdrawals. Prior to the law’s passage, banks did not impose withdrawal limits and did not protect against losses due to theft. As a result of the new law, today more than 90 percent of Japan’s banks use some form of vein-pattern recognition.

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