ATM thieves to get the finger

By Fiona Gounden

South Africa is on the brink of a banking revolution with the introduction of fingerprint identification at ATMs and the phasing out of cards and PIN codes.

Major banks in the country are investigating the use of fingerprint identification, which could be introduced within the next seven months.

The banks are already conducting tests into biometric identification technology, where fingerprint verification sensors are used on ATMs. Clients place their fingers on the machine sensor and the screen tells users whether they have been recognised, and whether they may withdraw cash.

Countries like Colombia have already introduced this and it has been dubbed as the "hardest form of authentication to imitate".

Pierre Steyn, CEO of the South African Banking Risk Information Centre, the unit set up by the banks to deal with crime, said: "We have been looking at strategies to deal with crime at ATMs for a long time. We believe that it (fingerprint identification) would give ATM criminals difficulty.

"It would mean that they would have to chop off a person's finger to gain access to their money."

Absa Bank has already started preparing for biometric verification. Pravesh Mahadeo, General Manager for the Self Services Channel at Absa, said: "A fingerprint is such a unique feature. No two people share this, even if they are twins. We see the use of this technology as quite likely in the future. Absa has been conducting a number of tests.

"The only shortfall is looking at tolerance levels for fingerprint recognition, particularly with elderly people and manual workers.

"Their fingerprints tend to get worn out and we may need to improve our imaging for these prints to be recognised."

The technology could be introduced quickly, depending on how the banks worked with each other, said Mahadeo.

"Other banks would have to accept us and we would accept them. So all major banks would have to work closely together on this initiative and it could take anything from seven months, if we work fast, up to a few years."

Herman Singh, director of engineering at Standard Bank, said: "Tests of fingerprint testing started as a pilot project last year and we believe it is reaching an advanced stage.

"Fingerprint technology is being used at our pension payouts. Pensioners have praised this new development as they find it more convenient and hassle free. This has proved so successful that we think that ATM fingerprint verification will be an even greater progression."

Singh said the bank was also experimenting with voice verification at ATMs.

"The good thing about bio-metric verification is that characteristics like the fingerprint and voice are almost impossible to duplicate," he said.

"With more than 12 000 ATMs, a great deal of planning will have to go into this. It would take a few years as all banks would have to be standardised, and we would need to work together in transmitting information to each other," he said.

First National Bank's Mike Arnold, who is the CEO of the Self Services Channel, said the new technology was proving to be a huge success in other countries and the bank believed a breakthrough in biometric identification technology in South Africa was "imminent".

The Department of Social Welfare has introduced a fingerprint identification system at payout points for pensioners. The department's chief officer for Social Security Services, Sifiso Khanyile, said it had been highly successful.

This article was originally published on page 1 of The Independent on Saturday on October 29, 2005