How facial biometrics are leading the fight against payment fraud

The evolving digital economy brings powerful advantages for online payments businesses – and new opportunities for fraudsters. 

There’s a clear need for robust security. Veriff’s US Fraud Industry Pulse Survey 2024 found that almost 87% of payment industry leaders had seen an increase in online fraud from April 2024.

And it’s hitting them financially. Almost 90% had suffered a financial hit of between 1% and 9%, which could represent millions of dollars of lost revenue depending on company size. 

It’s little wonder, then, that they’re looking to bolster their defences. The vast majority (nearly 98%) are using Identity Verification and/or biometrics in fraud prevention already, with a similar proportion planning to go further in the next year.

Biometric benefits

Biometrics-based authentication tools are based on a person’s physical characteristics, which are unique to the individual involved. That means they are ideal for stopping the account takeover-type fraud that is so common in the payment space. 

There are many types of biometrics analysis, including analysing a person’s fingerprint, gait, or eyeball, but facial biometrics are most useful to payments providers. 

Facial biometrics can be captured by taking a selfie on the user’s camera, laptop, tablet or computer – there is no need for specialist equipment like fingerprint scanners. The user takes a selfie, and the biometric analysis compares it to a stored biometric template or government ID to confirm that the user is who they say they are. 

Facial biometrics as an authentication method are far more secure than passwords, for example, because they are much more difficult to steal. They are more secure than device-based tokens, which assume that a genuine person has their device with them, or one-time passcodes, which assume that the passcode has reached the intended recipient without being intercepted or diverted.

Facial biometrics are also more accurate than other identification methods because they are more able to confirm the human presence in the session and that the human is the right person in their selfie—something that is not possible when only requiring users to type in a password or shared code. 

They also boost the user experience because customers don’t need to remember cumbersome passwords or other login details to access an account. 

And for the payments platform, they can also save organizations time and money – customers never need to remember their login information, so there’s no need to waste resources on resetting passwords on accounts or assisting customers through account verification or re-verification. 

Security, convenience, and speed

We know that payments organisations must securely authenticate users without disrupting the user experience. This matters across the entire customer journey, particularly at critical steps such as account access, undertaking a high-risk activity, or recovering an account. 

With facial biometrics, you can offer secure authentication combined with user-centred authentication and a streamlined experience. You can access seamless identity assurance and enjoy the benefits of adaptive technology and explainable decision-making that is customisable and scalable for your needs. 

For payment companies facing a growing threat of increasingly sophisticated online fraud, verifying users instantly, conveniently, and securely while beating the fraudsters is a win-win for platforms and users alike.  

For more information on what biometrics are and how they can help your business, download this Ultimate guide to biometrics