Saudi Banks Set to Curb Card Theft with DLT and Biometrics
In a bid to make it impossible for fraudsters to use stolen cards to withdraw money at automated teller machine (ATM) points, ShoCard, a mobile blockchain-powered digital identity platform has developed an identity management solution that combines biometric and distributed ledger technology (DLT). The system is now being trialed by Alhamrani Universal, Saudi Arabia’s largest ATM provider, reports ComputerWeekly on June 25, 2019.
Putting an End to Card Fraud with DLT
Per sources close to the matter, ShoCard, a U.S.-based startup that claims to be a patented digital identity platform, is now set to permanently solve the problem of card fraud that has given banks and consumers sleepless nights over the years.
According to a study by Gemini Advisory, in 2018, fraudsters succeeded in compromising and selling 60 million U.S. credit cards on the dark web.
Now, ShoCard has developed a solution that uses blockchain and biometric technologies in tandem to verify and authenticate users’ identities, making it almost impossible for a rogue actor to steal peoples funds at ATM points even if they have the pin and other credentials.
A New DLT-Based ID Authentication Prototype
Reportedly, the ShoCard identity authentication prototype which is being trialed by Alhamrani has the ability to interact with the entire banking network in the region and it confirms a person’s identity via blockchain technology without accessing the bank’s database.
Interestingly, the team claims the ShoCard solution makes it possible for bank users to seamlessly withdraw money at ATM points using their faces and blockchain-based apps for authentication instead of the usual PIN numbers.
The ShoCard solution employs a five-factor authentication process that includes biometric scanning, a QR code, ShoCard ID, timestamps, session IDs and selfie IDs, making it almost fail-proof.
Commenting on the innovative technology, Armin Ebrahimi, founder, and CEO of ShoCard reiterated that the solution has all it takes to make card fraud a thing of the past, as it works perfectly with existing ATM technology.
“ShoCard will permanently solve the problem of card fraud at ATMs. It integrates smoothly into existing ATM system, which usually already has a camera installed, and makes the customer experience as frictionless as possible.”
As more banks integrate biometric technology into their verification and authentication processes at ATMs in Saudi Arabia, everyone in the region will be able to use Alhamrani’s ATMs regardless of their banking partners, thanks to blockchain and biometrics technology.