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Biometrics is paving the way you screen for customers in 2024. Learn more about it here.
Biometric AML is a face-matching technology used by companies all across the world to maintain the security of financial operations and prevent corruption and money laundering.
The process of biometric screening begins with the use of a high-quality and clear image and matching them against millions of sanctions, watchlists, PEPs, and corruption databases.
This blog will talk about the importance of biometric screening, the role of AI in improving the process of ongoing biometric AML, and the top 2 use cases of AI-based biometric AML.
Why is there a need for AI in biometrics?
The approach to anti-money laundering becomes more accurate especially when the image is matched closely with the exact results rather than showing the number of results against a query.
Moreover, the need for artificial intelligence is relevant in 2024 in the following ways:
- The rise in the use of advanced technology is not current among compliance teams alone, criminals have been using it for their own defense thus minimizing their chances of being caught. The use of AI-based biometric technology overcomes the barriers posed by information manipulations, name matching, and aliases of the same individual thus, drilling down the time it takes for accurate matching.
- With advancements in technology, it has become fairly easy to manipulate information residing in a system. While technology like artificial intelligence facilitates the process of quick screening, it impacts the credibility of information residing within systems, presenting digital challenges that can be effectively dealt with by biometric technology.
- With the spread of digital operations, limiting the mandatory requirement of being present physically facilitates the criminal attempt to exploit the open gap to engage in fraudulent activities mandating the need for AI-based biometric screening so that no risks go un-detected.
Case Study of Zeus Trojan Horse Malware
This case revolves around the instance of fraud committed by Zeus Trojan Horse malware. The fraud was committed by cyber criminals who got access to the customer details of a bank. This information included sensitive information such as login credentials of the users who operate their functions through the banking system.
In this case, thousands of systems were intruded with this malware, which then used the credentials of a user account and enabled transactions from the account of the user to an account that belonged to the attacker.
This one case undermined the user’s trust as it enabled millions of dollars from personal and business accounts costing millions of dollars that went to financial loss.
Biometrics is not only limited to accurate and efficient screening of criminal backgrounds rather serves more than what organizations know about it. Here are the top 4 use cases to make full use of this feature.
1. Customer Onboarding
The most difficult part of any onboarding process is the time it takes to fully screen and verify the individual who has come to be a potential user of the services offered by the business.
The process begins with identifying the user to confirm that the business is dealing with the same individual as intended on the documents. This is where biometric screening never leaves a gap to manipulate the person on the other side of the screen.
AI-powered screening also simplifies the AML/KYC process with a simple name plus image scan. Despite the lack of information, businesses can complete their compliance requirements by adding names and images to the system and extracting the entire background of ethical conduct to confirm if a targeted person could be a threat to your business.
Biometric technology is most prevalent during the stage of onboarding as there is little to no information available at this stage to detect accurate risk profiles and threat thresholds posed to the business.
2. Minimize Data Breaches
Allowing random access to the accounts has caused numerous troubles in the past which has resulted in millions of dollars ending up in the hands of fraudsters. Rather than promising anyone who asks to enter the system, biometric technology adds an additional layer of security that blocks attempts to access the information if the person on the other side of the screen appears to be fake, manipulated, or different from the data present in the database.
This feature blocks criminals from manipulating the information and enables transactions with the intended purpose of being someone they are not.
To sum it up as whole
Thus, the purpose of online biometric in AML is to ensure more accurate screening, especially when there are multiple variations of the same name existing in the database. Despite the great usefulness of biometric screening, the ethical dilemma associated with biometric AML remains crucial to address. This may include privacy concerns and the right to share information while maintaining complete compliance with international AML regulations.
by Brandon Smith
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