The fintech industry is undergoing immense advancement due to the rapid proliferation of digital solutions catering to every sector. These top-notch technologies have emerged as revolutionary developments to make everyday affairs more convenient and secure. Financial institutions, specifically banks and cryptocurrency exchanges, benefit from them to protect from fraud and crimes. Face recognition technology is an extraordinary tool that enables different financial and non-financial organizations, such as the gaming sector, to elevate their security.
Use of Face Recognition to Boost Security
Artificial intelligence and machine learning have proven to be a milestone in the cyber-technological world. They have emerged as a means to fill the security loopholes that would otherwise lead to data breaches and higher risks of identity theft and fraud. AI provides numerous tailored solutions related to various fields, including the finance sector, security, healthcare, travel, etc. In other words, it has become a source of convenience for every industry by providing solutions to the challenges facing them.
Face recognition online is one of the most useful and widely adopted technologies, being employed in almost every other industry. Face recognition technology enables your organization to upgrade its overall security measures to shield itself from potential criminals and fraudsters while protecting customers’ data. It is a part of the initial client onboarding process through which financial and non-financial firms verify their customers by recording their facial characteristics.
Biometric Face Verification for AML Compliance
Biometrics refers to the automated recognition of legitimate persons through unique physical features, like fingerprints, faces, hand gestures, etc. Biometric screening is conducted in different sectors to register their customers. For instance, banks have resorted to AI-based face recognition technology to identify their clients and employees. As per recorded data, the global capital size of biometric verification technologies is expected to reach a whopping figure of $8.5 billion by 2025. Thus, the aforementioned number indicates a further hike in the significance of biometrics in the upcoming years. Facial recognition, one of the most popular and highly used biometric authentication methods, would also rise in demand and supply.
Facial Recognition in Financial Institutions & AML Measures
It is, firstly, essential to understand how a biometric system works. The organization scans the unique physical features of customers, such as fingerprints, facial characteristics, hand or palm gestures, and voice patterns. In terms of face recognition, they can even record slight facial maneuvers or expressions. The biometrics use liveness detection to scan and record their customers in real-time. The next step is to preserve that recorded data in the system’s database, allowing the firm to grant automated access to the registered customers in the future.
Biometric face recognition technology holds an immensely essential place in financial organizations. This is solely due to the security risks associated with banks and cryptocurrency exchanges, in particular. The finance sector faces the menace of financial crimes such as money laundering, financing of criminal networks, and terrorism sponsorship. Banks perform facial verification of their customers, specifically to identify illegitimate persons, including imposters. Most significantly, individuals with links to money laundering or other crime-focused groups are recognized during KYC.
Face recognition technology allows the identity verification of customers at the time of onboarding and, thus, filters out potential financial criminals, scammers, and fraudsters. It makes banks cautious before establishing official ties with their customers. Moreover, it is used in digital banking and mobile applications, granting equal convenience to the institution and its customers. Hence, it proves to be highly critical for staying compliant with the anti-money laundering and counter-terrorism funding regulatory standards. Eventually, they can conveniently avert financial penalties and reputational damages due to compliance failures.
Face Recognition Online – How is it Crucial for the Gaming Industry
The online gaming industry is booming at a rapid pace due to the shifting attention of youths toward e-gaming. However, it has its adverse points, as online gaming possesses security gaps due to swift growth. This sector has now become a target of scammers, data thieves, and imposters. Furthermore, money launders use multiple gaming accounts to transfer their funds illicitly. Thus, the gaming platforms fail to recognize the fraudulent elements during initial gamer sign-ups. Simultaneously, they lag in staying compliant with the established security laws and financial regulations such as AML and CFT benchmarks.
Face recognition technology is, therefore, the need of the hour in online gaming firms. They must ensure the identity authentication of each gamer before allowing them access to their online space as a crucial component of the know-your-payer process. To achieve this, online gaming firms should scan the facial features of players via AI-backed biometric tools. It saves them from any risk of errors and meticulously records the facial data of e-gamers. The data is stored in the firm’s records and, hence, shields it from illegitimate individuals.
Biometric face recognition technology in financial organizations uses QR codes to streamline secure customer onboarding, ensuring compliance with regulations and preventing financial crimes. QR codes allow customers to conveniently scan their biometric data, strengthening security measures and identifying potential fraudsters during the KYC process.
The Bottom Line
To conclude, face recognition technology has become vital for different industries and sectors. It protects financial institutions, including banks, and non-financial organizations, such as online gaming companies, from threatening individuals. Hence, facial verification eases AML and CFT compliance.