Significance of Face Liveness Check in the FinTech World

Blog 29 Nov 2022

Businesses around the world have welcomed digital transformation with open arms after the pandemic. As financial institutions move toward digital customer onboarding and full-service platforms, accurate biometric verification is a more crucial process than ever.

Spoof attacks, techniques are getting more complex as biometric technology evolves over time. In reality, frauds like this result in stolen money and put you in danger by committing fraud in your name. Identity theft increased by 113% in 2020 alone.

Fingerprint authentication was a novelty technique about two decades ago and was widely assumed to be extremely safe. This has become the standard for many businesses due to security concerns. Also, this standard can be easily broken with toys like Play-Doh or silicone masks. Without a face liveness check, it’s almost impossible to defend against presentation attacks (PAs) in the financial technology industry. 

What is a Face Liveness Check?

A technique called face liveness check can be used to confirm that a person is actually there and not just in a picture or a video. It is frequently used in security applications, like authenticating someone’s identity.

In our fast-paced, always-connected world, security is becoming more and more important. Cyberattacks and cyber scams are on the rise and becoming increasingly dangerous. According to a report from the FTC’s Sentinel Network, consumers lost $3.3 billion in 2020, a hike from $1.8 billion in 2019, due to identity fraud, and there are chances that this number will rise in the coming years. Because of this, companies are relying on a face liveness check to safeguard their data and foster customer confidence.

Why is there a Need for Face Liveness Check in Biometrics?

Remember the iPhone X Face ID technology scandal from a Vietnamese cybersecurity company?

The technology, which is supposed to be able to resist the attacks, was hacked with the help of a hand-crafted mask, and this is not any kind of joke.

Identity professionals state that someone’s identity is stolen every 2 seconds worldwide, as it is a silent crime. Businesses are investing in smart biometric systems to combat the fastest-growing crime, which is widely used in the following use cases:

  • Digital person’s onboarding 
  • Access to online business operations
  • Automated Teller Machines (ATMs)
  • Time and attendance management systems
  • Digital check-ins
  • Different training programs

According to estimates, the global market for biometric systems will reach nearly 43 billion U.S. dollars by 2022. The market value will reach up to 83 billion U.S. dollars by 2027 as a result of rapid growth.

At every step of the Fintech value chain, from confirming payments to completing Know Your Customer (KYC) checks, businesses prefer biometrics over passwords and codes.

Identity verification spending is expected to increase from $4.93 billion in 2017 to over $18 billion in 2027, with a Compound Annual Growth Rate (CAGR) of over 26% during that time period.

According to data put together by UK Finance, the number of impersonation scams doubled in the first half of 2021. Fraudsters stole a total of £129,4 million from victims of these schemes during this time period. Comparatively, in the same time period a year ago, there were 14,947 cases of impersonation scams that resulted in £57.9 million in losses. In these states, there is a need to improve the security of biometric systems for the finance industry by incorporating face recognition.

Face liveness check – Identifying Real Customers

Banking industry 

Bankers and other money managers must comply with KYC rules that demand proof of identity from all new clients. Fraudsters were able to impersonate a customer during a live meeting in a bank branch because a manager was busy checking IDs and documents during the meeting. In contrast, with the widespread adoption of digital banking, eKYC is now the standard procedure.

benefits of face liveness detection

Rules and regulations 

To comply with the new rules, financial institutions must implement reliable facial liveness detection solutions to verify the identity of prospective customers. After this, the customer’s identity can be checked by comparing their ID to the information in their file.

Fintech industry 

Face liveness check is used in financial apps to gauge the user’s authenticity by identifying their facial features and emotional responses. This is the only way to convince them that you are an actual person and not some kind of fake. Fintech face liveness check through facial recognition is a service that can be built into mobile banking or other financial applications.

Enhancing customer experience 

Video-based facial recognition, artificial intelligence-enhanced 3D liveness authentication, and real-time ID verification are just a few of the technologies they use for liveness check. Alongside security issues and legislation requirements, facial spoof detection stems from the need to enhance customer experience and the desire to innovate.

Active and Passive Face liveness check

Physical signs of consciousness, such as eye movement and facial expressions, on the basis of Active Liveness Testing. Sometimes, banking applications will ask you to create an account by making a specific eye, lip, or nose gesture. Using a face liveness check seems more real than just scanning a selfie, but it also has some problems.

Tax evaders in China used deep fake puppets controlled by an app to hack the government’s active identity verification system in March 2021, costing the country $72.2 million.

These checks have not required any actions taken into account, factors like the skin’s texture and features, the amount of light hitting them, and any slight movements. Further, scammers are not open to passive face liveness checks, and it’s very accurate.

For example, facial recognition technology performs a real-time scan while you use your device normally. The method only requires a single frame to determine if a character is real or fake.