Europeans willing to switch banks for biometric authentication

Over half of banking customers across Europe would be willing to switch their accounts to financial institutions that offer biometric authentication services, according to a study conducted by Vanson Bourne and commissioned by LogicaCMG

The study, which spans seven European countries, shows that 57% of people would be more likely to change their current account provider if all it took was an identity card and fingerprint to establish and prove identity.

In Germany this average increases to 64%, almost two thirds of the population, says LogicaCMG.

The research found that over a quarter of Europeans - 27% - would be more likely to change insurance providers, and 25% would switch savings account providers to an institution that provided biometric authentication, while just over one in five (21%) Europeans would be more likely to start a pension and 17% would be more likely to switch mortgage providers.

LogicaCMG says the research reveals that the introduction of biometrics could lead to much greater consumer confidence in switching between different bank accounts and other financial products.

Although the financial services industry has made huge advances in fraud prevention - such as the introduction of chip and PIN - fear of fraud means that consumers are still not entirely comfortable with security measures implemented banks.

Commenting on the research, Paul Gribbon, consultant in LogicaCMG's electronic identity practice, says as banks have to proliferate across channels such as digital television, the Internet, telephone banking systems and physical branches, biometrics will be a key method in establishing and verifying the identity of customers.

"If people are so much more likely to switch accounts when biometrics hit the high street, then banks need to prepare for this," says Gribbon. "Early adopters will be able to offer a "fast-switch" service, increasing market share at the expense of competitors and controlling and focusing churn to their advantage."

He adds: "This is a clear indication that biometric authentication in the hands of the customer - which can range from voice recognition to an iris scan - will lead to a quiet revolution in the retail financial services market across Europe."

ID verification speed drives biometrics

By Martin Czernowalow

 

Posted: 5 May 2006

 

ID verification speed drives biometrics

The convenience of using biometrics for ID verification outweighs any concerns of lax security methods when using smartcards, according to a new survey.

Webwereld reports a global survey of consumer attitudes to using biometrics found a 5% increase in people who favour the use of biometrics as a preferred method of identity verification. Some 10% of individuals in the Asia-Pacific region would prefer a chip implanted in their body.

The survey, conducted by Unisys, surveyed 1 661 people globally, with 12% of the respondents in Australia. Convenience, according to 83% of respondents, was the main reason for using biometrics on a smartcard and three quarters said speedy verification is the main driver for biometric adoption.

Consumers worldwide support biometrics

Nearly 70% of consumers worldwide support using biometrics technology, such as fingerprints or voice recognition, administered by a trusted organisation (bank, healthcare provider or government organisation) as a way to verify an individual's identity, according to new global research from Unisys (www.Unisys.com).

In the first worldwide survey of its kind to study consumer security preferences, the Unisys research also found 66% of consumers worldwide favoured biometrics as the ideal method to combat fraud and identity theft as compared to other methods such as smart cards and tokens, reports Enterprise Networks and Servers.

This finding shows an increase from separate research that Unisys conducted in September 2005, which found 61% of consumers worldwide favoured biometrics as the preferred method to fight fraud and identity theft.

Biometrics centre of excellence opens

A biometrics centre of excellence has been created in the heart of the Europe Union, in Brussels, Belgium, reports the eGov Monitor.

The new centre is an interactive facility, designed to showcase advanced identity management solutions to customers and illustrate potential real-life examples of biometrics technology. These range from e-ID card and passport technology to biometric identification techniques including 3D facial, electronic iris and finger print recognition.

With security and identity management high on the agenda of European businesses and governments looking to reduce risk and protect themselves against fraud, the new centre will offer executives the opportunity to see first hand the benefits of biometrics technology.

 

Chip and PIN scam nets ₤1m

By Iain Scott

 

Chip and PIN scam nets ₤1m

Petrol giant Shell yesterday suspended chip and pin payments in 600 filling stations across Britain at the weekend as fears grew over a ₤1 million card fraud scam, reports TMCnet.

BP and other petrol companies were also looking into reports of fraud, including a number of incidents in the Midlands, as police seized eight people for questioning. Motorists throughout the UK have had their credit and debit card details copied by fraudsters, and then money has been withdrawn from their accounts.

The scam works by criminals implanting devices into chip and pin machines, which can copy a bank card's magnetic strip and record a person's pin number.

New Java Card version

Sun Microsystems has announced the availability of version 2.2.2 of its Java Card platform specification and Java Card Development Kit, reports SecureIDNews.

Java Card 2.2.2 adds contactless capabilities and biometry support for smart card chip manufacturers, smart card vendors, and Java Card platform implementation providers to embed into their products.

Sun announced the new Java Card platform specification in San Francisco prior to the kick off of CardTechSecureTech 2006.

Security measures enhanced

MasterCard International has introduced two new authentication solutions, the MasterCard All-in-One Authentication Device and MasterCard Mobile Authentication, designed to enhance security for both online banking and e-commerce transactions.

CRM Today reports both solutions are based on the proven MasterCard authentication standard, known as the OneSmart Chip Authentication Programme (CAP), in use in multiple countries around the world.

The two solutions provide enhanced security by offering "two-factor authentication", whereby a consumer employs something only he or she knows (such as a PIN) in tandem with something he/she has (an authentication device or a mobile phone).