Introduction
Fintech has come a long way since the first credit cards were issued in the 1950s. Online and mobile banking are convenient and widely used, yet security remains an ongoing concern for fintech companies. The emergence of biometric identification methods is a promising step forward in fraud prevention, but it’s not enough to ensure that your users remain safe. You need to be able to verify their identity at all times while still protecting their personal data. Here are some tips on how you can achieve this goal:
Online and mobile banking are convenient and widely used.
Online and mobile banking are convenient and widely used. The convenience of being able to access your bank accounts from anywhere at any time, as well as the speed in which you can complete transactions have made online banking one of the most popular financial services available today. It’s also one of the most secure methods for accessing your account, since it uses a two-factor authentication system (passwords plus a code sent via text or email) to protect your information. Mobile banking apps are used by many consumers because they allow them quick access to their accounts while on the go—something that isn’t possible when using a PC or laptop computer with an older operating system like Windows XP!
Secure identity verification is the foundation of fraud prevention.
Identity verification is a critical component of any financial transaction, but it’s particularly important when you’re dealing with money. The best way to verify identity is by using a government-issued ID that contains your photo and signature. If you submit the information necessary for the transaction and you’re approved, your account will be marked as verified and protected against fraudsters trying to steal your identity or credit card number.
There are plenty of ways to protect yourself from fraud while still enjoying convenience at Fintech companies:
- Make sure you have complete control over who views your profile on social media sites like Facebook and Instagram. These websites often make it easy for anyone to dive into an account with minimal effort–so much so that anyone can pretend he’s someone else online! When possible (which isn’t always), use private sharing options where available so only those you choose will see what’s posted about himself on these sites; if not possible, delete posts that aren’t relevant anymore or simply don’t want seen by others without knowing what they contain.
Biometric identification methods offer convenience and security.
Biometric identification methods offer convenience and security. Biometrics are the physical characteristics of a person that can be used to verify their identity by analyzing their fingerprints, iris patterns, voice patterns or facial features. While many businesses rely on traditional forms of identity verification (like passwords or credit card numbers), biometric information is more secure because it’s not stored digitally in files that can be hacked or stolen. Biometric data also isn’t as prone to fraud because it’s much harder for someone else to replicate your unique physical traits than they are to forge a signature on your behalf.
KYC and AML compliance go hand-in-hand with fraud prevention.
KYC and AML compliance go hand-in-hand with fraud prevention.
KYC is a legal requirement to verify your identity, often used by banks and other financial institutions to safeguard against money laundering, terrorist financing, tax evasion or bribery. AML refers to anti-money laundering regulations that require you to identify your customers in order for them to open accounts with you. Both KYC and AML are necessary components of keeping your business safe from frauds and hacks; they help ensure that only legitimate clients can use your platform or service.
Protect your users while they are accessing your app or website.
As a fintech developer or entrepreneur, your number one goal is to keep your users safe. For this reason, it’s important that users are protected while they are accessing your app or website.
You can protect the personal data of your users by offering them 2-factor authentication (2FA). This feature requires a user to provide two pieces of verification before being allowed access to their account. When implementing 2FA into your app or website:
- Offer it as an option for every user; don’t just offer it as an extra option for those who want additional security
- Give users different options for what kind of 2FA they would like (email, SMS text messages) so that there’s no one right answer
- If you use SMS verification codes as one form of 2FA then have multiple layers so that hackers cannot easily hack into someone else’s phone number and get their code sent via text message
Conclusion
The best way to protect users from fraud and theft is by making sure they have a secure identity. This can be done with biometrics, which has become more popular in recent years due to its convenience, cost effectiveness, and accuracy. There are many types of biometric identification methods available today, but one of the most effective is fingerprint scanning technology like Apple’s Touch ID system. A user’s prints are scanned and sent through an algorithm that creates a unique identifier based on patterns found within each person’s fingers such as size and shape. This process is quick because there aren’t any passwords involved.
