Financial Fraud: Biometrics Point A Finger

March 21, 2002

Abstract

Boston, MA, USA March 21, 2002

Passwords Are Vulnerable, And Biometrics May Be The Answer  

Financial

institutions will increasingly incorporate biometric technologies into their security systems in response to increases in fraud, as well as greater expectations and demands from customers since September 11. Total biometric sales will exceed US$1 billion in 2004, with most deployments at airports, financial institutions, and healthcare facilities.

In a new report, " ," Celent Communications examines how the continued impact of September 11 on the financial services industry has resulted in an increased focus on preventing fraud with better security methods, particularly biometrics.

"At a time when security fears have reached new heights, it has become increasingly obvious that current security methods, especially passwords, are not sufficient and are costly to maintain," says Christine Barry, Celent analyst and author of the report. Biometric technologies, which identify individuals based on unique physiological and behavioral characteristics, are more robust than passwords and cannot be lost, forgotten, or stolen by unauthorized users. Increased accuracy, a higher level of consumer awareness and lower costs are making biometric technologies even more attractive.

While most financial institutions have already begun to pilot programs for internal use, future deployments are likely to be on a larger scale with more of the technology available for customer use.

"New fears have heightened demand for greater security, causing the industry to quickly emerge out of its infancy. It is now up to the biometric developers to deliver on their promises," says Barry.

A Table of Contents is available online.

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Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

 

Boston, MA, USA  March 21, 2002

Return to report Abstract

 

EXECUTIVE SUMMARY 3
INTRODUCTION 4
MARKET OPPORTUNITY 6
  Significant Opportunity 6
  Market Size and Potential 6
  Global Adoption 7
  The Aftermath of September 11 8
  Privacy Issues 8
TECHNOLOGY 10
TECHNOLOGY BREAKDOWN BY SECTOR 13
  Facial Recognition 14
  Finger Scanning 14
  Hand Geometry 15
  Iris Recognition 15
  Signature Verification 16
  Voice Authentication 17
BIOMETRICS AND FINANCIAL SERVICES 18
  Phase 1: Internal Use 18
  Phase 2: On-Premise Customer Use 19
  Phase 3: Remote Use By Customers 20
CHOOSING THE RIGHT BIOMETRIC DEVICE 22
FUTURE TRENDS 25

 

        

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