UAE card scam highlights need for biometric security

The use by banks of biometric technology - the analysis of unique body "signatures" such as fingerprint or iris scanning - is now seen as a viable alternative to personal identification numbers (PINs), to protect both the banks and their customers against "identity theft."

A recent nationwide card fraud in the United Arab Emirates emphasised the vulnerability of current systems. It involved a co-ordinated attack by "identity thieves", forcing banks to slash withdrawal limits at automated teller machines (ATMs) in an attempt to limit the financial damage.

The UAE Central Bank said last week it had identified US$411,000 illegally siphoned funds from ATM transactions in one day. Banks have promised compensation for victims of the fraudsters.

The UAE "identity thieves" succeeded in breaking the PIN codes of individual customers, enabling them to access their accounts and withdraw large sums of money - in some cases totally emptying ATMs of cash.

But it is not just financial damage. Such incidents cause substantial damage to a financial institution's reputation and its relationship to customers.

To provide customer security and reassurance, a number of "biometric-enabled" ATMs have been installed by banks in the US and Europe, incorporating fingerprint or iris recognition.

"If Gulf banks are serious about reducing their risk, both financial and to their reputations, they must consider introducing biometric technology," said Chris Mullinger, director of the Middle East Biometrics Forum (www.iirgulf.com/biometrics) which opens in Dubai later this month.

"The combination of smart cards with biometric technology is the logical progression from outdated and unreliable security systems of the past," added Chris Blake, co-founder and director of research for leading smart card and biometrics company Banque-Tec of Australia.

"Banque-Tec have been working with experts in the fields of fingerprint, iris and face recognition to integrate these technologies with our smart card readers. This enables everyone to carry their own 'digital signature' on their card and ensure their presence at the point of access or transaction."

Until now the major market internationally for biometric technology has been in the government sector, which is predicted to reach over $4 billion in the US alone by the year 2007.

But with smart cards incorporating biometric elements seen as virtually eliminating the possibility of data or identify theft, high-tech companies are targeting banks, financial institutions and other areas such as healthcare, for biometric technology systems.

These so-called "civilian" identity and network security access systems are seen by US-based International Biometric Group as the leading area for biometric applications over the next five years, expected to account for nearly $2 billion in combined annual revenues in 2007 - again in the US alone.

The International Biometrics Group and Banque-Tec are among ten international companies and consultancies demonstrating how biometric technology can be put to work in both the private and public sector at the Middle East Biometric Forum (22-24 June 2003) - the only event in the region dedicated to biometrics.

Organised by the Institute for International Research, the forum investigates the growing market for biometric technology in the region as well as key, new applications in banking, e-commerce, healthcare, digital rights management, point of sale, as well as law enforcement, border and building security.

The forum is endorsed by the Association for Biometrics and includes participants from eHosting Datafort, UAE; the International Biometric Group, USA; Sagem, France; LG Iris, USA; Siemens, Sweden; Identix, UK; Banque-Tec, Australia; Datastrip, UK; ES Gulf, Bahrain; De La Rue, UK; Hewlett Packard, Middle East.