Biometrics/Identity Verification Technologies: Ready for Prime Time?

SUMMARY

Biometrics is to many seen as the ultimate in high tech security, enablingaccess to systems through the blink of an eye or the touch of a finger. However, the technology is becoming less science fiction by the day as the priceof hardware drops and devices become increasingly commonplace.  In theirlatest report, 'Biometrics and Identity Verification, Ready for Prime Time?',Mercator Advisory Group investigates the potential of biometrics in the consumerpayments industry.

Nick Holland, Director Emerging Technologies Research and co-author ofthe report determines that the one to one marketing potential of biometrics asseen in 'Minority Report' will not be hitting the high streets anytime soon:

"Biometrics are a highly valuable tool in assisting with theverification of an individual's identity, but will not be used for consumerpayments in their own right for some time.  We'll see them morefrequently as a second or third factor of authentication, used inconjunction with something we have, such as a credit card and/or somethingwe know, such as a password or PIN, but not by themselves..." 

The 37 page report analyzes each of the common biometric types in use intoday's security systems and assesses which applications are most applicable tothe consumer payments industry based on their individual strengths andweaknesses.  The report also highlights current rollouts of biometrictechnology for consumer payment applications and considers the factors thatthose planning to invest in biometric systems really need to consider.

"It's not just about purchasing the hardware and plugging it in, it'sabout considering the environment it will be used in and for how long --biometrics rely on good, clean, accurate readings and a typical POS terminalwill be in use for five years or more.  The biometric hardware needs tokeep up with the same level of abuse and must consistently deliver time aftertime.  If not, users will simply revert to tried and tested paymentvehicles such as card, check and cash..." says Holland.

TABLE OF CONTENTS

1. Introduction

2. Why Biometrics?

2.1. Increased security

2.2. Increased convenience

2.3. Fraud detection & deterrence

2.4. Loyalty and Marketing Applications

3. Biometric Systems ? An Overview

3.1. Identifying or Verifying?

3.1.1. Biometric Verification Systems

3.1.2. Biometric Identification Systems

3.1.3. When are verification and identification appropriate?

3.2. Logical or Physical Access?

3.2.1. Physical Access Systems

3.2.2. Logical Access Systems

3.3. Metrics in Biometrics

3.3.1. False Match Rate (FMR)

3.3.2. False Non Match Rates (FNMR)

4. The Technology

4.1. Commonly Used Biometrics

4.1.1. Fingerprinting

4.1.2. Hand Geometry

4.1.3. Iris Scanning

4.1.4. Facial Scanning

4.1.5. Signature Recognition

4.1.6. Voice Verification

4.2. Summary of Biometric Technologies

5. Commercial Applications of Biometrics in the Consumer Payments Industry

5.1. Diminishing the odds

5.2. Check Cashing

5.3. Cash, Card or Finger?

5.4. Beyond Fingerprints ? Biometric Exotica

6. Conclusion - Reality Check

List of Exhibits:

Exhibit 1: A Generic Biometrics Model

Exhibit 2: Correlation between False Match Rates and False Non-Match Rates

Exhibit 3: Fingerprint Minutiae in Detail

Exhibit 4: Relative Strengths and Weaknesses of Fingerprint ScanningTechnologies

Exhibit 5: Comparison of Strengths and Weaknesses of Major BiometricTechnologies

Exhibit 6: Comparative Size of Average Biometric Templates

Exhibit 7: Market Share by Technology, 2003 ($ Millions)

Exhibit 8: Predicted Biometrics Revenues, 2002-2007

Exhibit 9: Reducing the Odds ? One, Two, Three and Four FactorAuthentication

Exhibit 10: Hypercom POS Terminal with attached biometric fingerprintscanner

Exhibit 11: Pay By Touch Terminal & BioPay bCheck fingerprint scanner

Exhibit 12: Ultra-Scan Fingerprint Scanner

Exhibit 13: 'Bud'  and 'Stella'  Concept ATMs.