Banking Systems Fraud and Technology Approach

It is my intention to use the Banking Systems in Nigeria for this case study. I have observed that the process of banking operations in Nigeria is very porous and with little technological advancement so the verification of customers' transaction is difficult. These transaction verifications include signature authentication, balance inquiry and facial recognition.

Banking systems can be compromised if certain confidential information finds its way into the hands of fraudsters. Such information can be in form of

(i)  Personal data for example national identification number and address

(ii)  Banking data for example account details and electronic card pin number.

Conventional knowledge-based methods do not really provide positive personal recognition because they rely on surrogate representations of the person's identity (e.g exclusive knowledge or possession) (Jain A.K, 2004). However, biometrics-based methods provide several advantages over these authentication methods because of its true and precise representation of a person's identity, which is very useful and effective in securing personal and banking data.

The use of biometrics, for instance fingerprints, can be used to verify withdrawals of cash over the counter in banking halls or online. This technology commonly called cryptology registers a customer's fingerprint and prevents someone else from accessing the account. Another approach is to verify the signature of a customer and determine if the handwriting is that of a registered customer in the case of a cheque.

Another useful aspect of biometrics is voice testing which can be applied in the verification of online banking transactions.