In today’s ever-evolving world, the fintech industry faces the threat of financial losses as scammers find new ways to exploit this sector. A report states that the financial industry faced an average cost of $6 million due to data breaches in 2022.
The financial industry should use a robust identity verification solution to ensure secure transactions and prevent spoofing attacks from negatively costing the industry. Face liveness detection is an advanced biometric verification method that strengthens the identity verification procedure and protects sensitive data from cybercrimes.
What Is Face Liveness Detection?
Face liveness detection is a biometric identity authentication technique that confirms the customer’s identity using their live image. It uses machine learning and computer vision to ensure the individual is physically present for verification and is not a spoof. Liveness detection for face recognition differentiates between live human faces and manipulated entities using AI-powered 3D liveness checks.
This technology aims to enhance the accuracy of the authentication process in the fintech industry, where fraud prevention is crucial. Financial businesses can reduce the risk of impersonations and spoofing attacks with face-liveness verification and ensure a seamless customer verification experience.
Face Liveness Detection Applications in the Fintech Industry
In the fintech industry, face detection and recognition applications are very diverse. This technology can be used in the following events:
Authorization of Transactions
The fintech industry can implement face detection technology to confirm the user’s live presence during the transaction process. It provides an extra security layer while preventing unauthorized users from commiting transactional fraud. This feature protects the user’s and the financial institution’s funds from unauthorized access.
Account Opening
Face-liveness detection makes the account opening process simpler and more trustworthy. It ensures that new accounts are opened only for legitimate users by verifying their live presence using advanced AI-powered detection techniques. Liveness checks mitigate fraudulent activities and identity thefts, opening new accounts seamlessly.
Remote Verification
The liveness detection technology allows customers to verify their identities and conduct financial transactions from the comfort of their homes. They can use advanced identity verification techniques to verify their identities from home.
Compliance With KYC Regulations
The fintech industries must comply with the KYC regulations. Using face liveness detection, these institutions can ensure compliance with the KYC regulations because it verifies the customer’s identity accurately and efficiently.
Active and Passive Liveness Detection
In active liveness detection technology, the user is prompted to perform specific actions such as tilting their head, blinking their eyes, or smiling. It captures the person’s pupil movement to analyze whether the person is a real or spoofed entity. On the other hand, passive liveness detection occurs in the background. This feature explores the person’s skin texture, depth, 3D face mapping, and movement to detect their liveness.
Main Features of Face Liveness Detection
Liveness detection for face recognition uses various techniques to verify a person’s identity. These techniques are as follows:
- Motion-Based Detection: This feature detects facial expression movements to identify that the person is a real human being. It detects an individual’s eye twitching and blinking, head tilting, and any change in their expressions.
- Texture-Based Analysis: In texture analysis, an individual’s skin textures, pores, sweat patterns, and face color variations are detected to differentiate a human skin’s characteristics from spoofed entities.
- 3D Imaging and Depth Analysis: Liveness detection uses depth camera technology to capture an individual’s 3-dimensional image by mapping their face’s depth. This is crucial for the fintech industry as it helps them differentiate between a real and a flat image.
- AI-Powered Detection: Face detection uses artificial intelligence algorithms to analyze the micro details of a person’s facial features. It measures those properties which are impossible to recreate with spoofing attempts.
Importance of Face Liveness Detection in Fintech Institutions
- Mitigating Fraud and Identity Theft Risks
Face recognition online ensures that financial services are accessible only to authorized users. These services use advanced identity verification techniques to detect and prevent financial risks, such as identity theft and spoofing attacks.
- Regulatory Compliance
Fintech institutions can meet KYC and AML regulations by using liveness detection technology. This technology provides a reliable identity verification method while ensuring that these industries are not related to fraudulent and sanctioned entities.
- Enhanced Customer Onboarding
Face liveness detection enhances the customer’s onboarding experience. The customers can be identified seamlessly in a short time frame and from the comfort of their homes. It also improves the company’s reputation and provides financial gains by reducing cybercrime threats.
Final Words
Face liveness detection is a cutting-edge technology used to verify the customer’s identity using advanced biometric verification methods. It helps the fintech industries efficiently open customer accounts, authorize remote transactions, and prevent fraud. It protects the institutions from financial crimes while ensuring a smooth onboarding experience. This improves the institution’s reputation and ensures streamlined operations.
