In the context of a digital and connected world, banking security has become one of the main concerns of financial organizations.
Banking fraud with PIX has affected thousands of account holders. It is estimated that R$2.5 billion was lost due to fraud in 2022. But how can we detect and solve this problem?
In this article, we will learn about the growing threat of bank fraud and how biometric technology can help combat these crimes.
The most common banking scams
Before we start solving the problem, knowing and identifying the most common bank frauds is essential. According to a research conducted by the fraud prevention and digital security company CAF and data from the Brazilian Central Bank, in the first quarter of 2023 alone, the country experienced an average of 2,800 attempted bank frauds in electronic channels per minute. These attacks harm not only customers but also financial institutions.
The main banking scams are:
Whatsapp hacking scam
Best known as the WhatsApp hacking scam, it involves obtaining the victim's mobile number and name to clone their WhatsApp account. Once the account is cloned, the criminal will ask for loans or money from colleagues and contacts via PIX as if they were the victim.
Fake call center scam
The fake call center scam involves the fraudster calling the victim and impersonating a bank attendant (or even sending the call to fake call centers). Among the most common approaches are contacting the victim to help them register a PIX code, inducing them to download a malicious application under the pretext of "protecting" their account, and asking them to confirm sensitive information such as their credit card and bank account number.
Phishing Scam
The word "phishing" means "fishing" in Portuguese, which means that the criminal's strategy is to "fish" for information such as passwords, social security numbers, IDs, and other personal data by using fraudulent links sent in emails or messages.
Fake Payment Slip Scam
The fake payment slip scam involves sending a payment slip that looks like a legitimate document but has a fake value. After the victim makes the payment, the amount is credited to the criminal's account.
Fake loan cancellation scam
In this scam, the criminal pretends to be a bank employee via phone or WhatsApp.
The fraudster informs the victim that a payroll loan has been approved and tries to convince the victim that the amount will be repaid to the bank that granted the loan. However, the fraudster directs the payment to accounts that do not belong to the bank.
How biometrics can help prevent bank fraud
Artificial Intelligence (AI) plays a vital role in the fight against bank fraud. AI can examine behavior patterns, identify suspicious activity, and predict attacks before they occur. This proactive approach is essential to maintain financial security in an ever-evolving cyberspace.
Another key technology is biometrics. Biometric solutions use physical characteristics that are considered unique, such as fingerprints, iris scans, and facial recognition, to authenticate users. This makes it more difficult to falsify or steal personal information.
Biometrics provides an additional layer of security and ensures that only the account holder has access to financial information. Banks can use this technology to protect online transactions and withdrawal authorizations, allowing only the authorized user to perform these actions.
How BioPass ID can help
In order to combat the growing threat of fraud, financial institutions, and users must be prepared for fraud detection and prevention.
With BioPass ID, it is possible to create desktop or mobile applications for biometric validation. The technology provides all the tools needed to build them quickly and cost-effectively, including liveness testing that ensures the security of those accessing the system through APIs and SDKs.
Quality API
The Quality API package provides a set of functionalities that enable the qualification of the captured biometric data. As a result, it is possible to achieve better results in system matching operations.
Multibiometrics
This solution combines different biometric modalities, such as fingerprints and facial recognition, to provide a higher level of security. The Multibiometrics package combines the most common functionalities, such as Face Matching 1:1, Face Passive Liveness, Face Passive Liveness, and others.
SDKs
Software Development Kits (SDKs) allow banks to easily integrate biometric authentication into their applications and systems, making the experience more secure and convenient for their customers.
The importance of biometrics in preventing bank fraud
Today, we learned about the main banking frauds, how to identify them and solve them using biometric technology.
In an ever-evolving world, protection against banking fraud is essential. Biometrics is an effective and reliable solution for keeping institutions and their customers safer.
Discover the BioPass ID APIs focused on biometric applications for the financial sector.
