Considering the huge transformation experienced by every business sector in the light of the technological advancements, the traditional cash systems are also subjected to the same. For quite some time, businesses have worked to develop digital currency systems but have failed to do so due to some major loopholes. However, recent efforts have bore fruit in the form of cryptocurrency that has gained popularity worldwide. As soon as the crypto exchanges became frequent, the scammers devised ways to disrupt them too. With their advanced disruptive strategies, the scammers have, unfortunately, been very successful in this regard.
The rising crypto scams soon caught the attention of the local and global regulatory authorities who took strict action against it. Authentic preventive measures were ordered to be implemented by the crypto industry that included biometric verification. Here’s how Biometric security systems work towards fraud prevention and risk assessment in the crypto industry.
Understanding Biometric Screening:
The term biometrics, refers to the biological characteristics of an individual that are unique to everyone. Verifying and validating the user’s identity on the basis of his biometrics leave minimum to zero chances of fraud and identity thefts. The process of biometric screening enables the firm to validate the user’s identity via fingerprint recognition, iris scan, voice and facial recognition etc. When the crypto exchanges implement the biometric screening in their security networks, each and every transaction passes through a detailed verification process that detects any suspicious activity almost instantly. For this purpose, the fingerprint or iris scans or facial images have already been registered in the database and matched for verification when needed.
How do Biometric Security Systems Benefit the Crypto Industry?
Considering the fact that the scammers have yet again succeeded in disrupting the digital currency system i.e. the crypto exchanges, it has become the need of the hour to integrate biometrics to the identity verification processes. Since the crypto exchanges involve heavy transactions that take place in a matter of seconds, integrating biometric verification systems in the security networks leads to the prevention of fraud during the ongoing process. For this particular purpose, government identity checks as well as Know Your Customer checks are available that use fingerprint biometrics. Therefore, adequate implementation of biometric user authentication procedures detect money laundering and terrorist finance networks.
Biometric Technology’s impact on Cryptocurrency
Although cryptocurrency has been subjected to a widespread use worldwide, integration of the biometric technology with the crypto exchanges account for its increased usage in everyday life. The fast and secure payment feature of crypto exchanges makes it stand out of the rest. Keeping in view the increased demand of biometrics in crypto, silicon biometric sensors are also available that act as a low cost solution ensuring secure methods of payments and fast image captures for security purposes. The biometric sensors have vast applications and are implemented in various fields for the provision of security.
Biometric Recognition and How it Prevents Fraud
Moreover, the biometric recognition facilitates the business in detecting suspicious activities and directing them to respective authorities that deal with them. In this way any organisation with adequate implementation of the biometrics in their security networks save themselves from the criminal’s evil intentions of disrupting the system’s normal functioning. Moreover, the biometric recognition system makes the customer engaged in financial transactions to undergo the screening process where the biometric ID cards and biometric passports along with other necessary documents are authenticated.
Considering the fact that the identity documents are subjected to extreme manipulation and the scammers are increasingly swooping in with fake documents, the biometric identity verification is extremely necessary for all businesses. The surge in identity theft has led to a massive increase in the purchases of identities and social security hubers from the dark web. The criminals use this information to conduct terrorist financing and other illicit activities. This is exactly where biometric recognition and authentication comes to the rescue. Since it is nearly impossible to fake the online biometric verification of an individual as no two individuals can ever have same biometric traits, once the system registers the individual’s unique physical characteristic, it gives the criminals a tough time, forging them.
Cryptocurrency has been widely used for quite a long time and is becoming the new normal, regarding the cash systems. However, unfortunately, the scammers have located the loopholes in crypto exchanges as well and paved ways in the security systems to disrupt them. The implementation of online biometric verification with the identity verification services has saved the game and made it extremely difficult for the criminals to intervene with their disruptive strategies.