Keep online customers happy without jeopardizing security

Online transactions are fraught with security concerns -- both for businesses and for consumers. Yet, even while those consumers harbor worries that their personal identifiable information could be stolen if security precautions are weak, they also have limited patience when doing business online and will abandon a website if the transaction takes too long or requires too many steps.

This creates a knotty situation for businesses: They must minimize customer frustrations while still making sure security measures are tight and requiring that users prove they are who they say they are.

Traditionally, some of the primary methods for authenticating user identities have been passwords and PINs. Unfortunately, those can be susceptible to breaches, leading to identity theft and fraud.

But there is another option to improve the online transaction landscape: the integration of biographic and biometric information. This will both enhance security and streamline the transaction process, resulting in fewer frustrations and more satisfaction for those customers.

Biographic information

Biographic information includes personal data such as name, address, date of birth, and other identifiers. Plenty of sectors have made biographic information the cornerstone of identity verification. Apply for a job, apply for a loan, or engage in a number of other situations and this is the type of information you are asked to supply. With online transactions, biographic information can also serve as the initial layer of authentication. When businesses ensure that the information a user provides aligns with existing records, this establishes a foundational level of trust.

But there is a significant caveat here. Biographic information has limits to its effectiveness.

This is because the theft of personal data and the prevalence of data breaches make it less than optimal to rely solely on these types of information for identity verification. Just because someone can supply a name, date of birth, birthplace, and other bits of identifying information doesn’t mean they are who they say they are.

This is where biometric information steps in, introducing another layer to the authentication process.

Biometric Information

Biometric information is much more difficult for cybercriminals to get their hands on or duplicate.

This is because it involves unique physical or behavioral traits that distinguish one person from another, such as fingerprints, facial recognition, iris scans, and voice recognition. Even behavioral biometrics such as keystroke dynamics can come into play because the timing and rhythm of the way each person types is different from others.

Putting Them Together

Biographic information and biometric information both have their advantages, but their true power is when they work in tandem. By using both, businesses can create a vigorous and multifaceted approach to security that overcomes shortcomings the two have when they are used individually.

The combination of biographic and biometric information creates a multi-factor authentication system that raises the bar for blocking unauthorized access. Even if one layer of security is compromised, the other is there to provide an extra line of defense. This layered approach minimizes identity theft risk and ensures that only authorized users can complete online transactions.

Of course, from the standpoint of consumers, improving the online transaction process is about more than security. They also want a smooth and user-friendly experience.

Here’s where they get it: Once the person is identified through biographic data, the biometric authentication takes over, so there is no need to remember complex passwords or repetitive security questions.

How does this play out in the real world where, according to the Deloitte Center for Financial Services, identity fraud is expected to generate at least $23 billion in losses by 2030?

One answer to that question involves banks and financial institutions, which are at the forefront of adopting biographic and biometric authentication. Facial recognition, fingerprint scans, and voice recognition are becoming commonplace methods for accessing accounts, authorizing transactions, and ensuring the integrity of financial data.

In healthcare, the integration of biographic and biometric information adds an extra layer of security to online medical records and telehealth transactions. Patients can securely access their information, and healthcare providers can ensure the authenticity of users during remote consultations.

Making It Work

It’s one thing to talk about all this; it’s another to implement these processes in a way that is both secure and builds customer trust. Privacy concerns, data security, and the potential for misuse of biometric data require a thoughtful and transparent approach from businesses.

While biometric data provides a more reliable way of verifying someone’s identity, collecting and storing that information necessitates a greater level of privacy measures.

This means businesses must implement secure encryption, adhere to stringent data protection regulations, and ensure transparent policies regarding the use and retention of biometric information. To build trust with consumers, user consent and clear communication about handling practices for the data also are crucial.

It’s possible to make online transactions more secure while also giving customers a better online experience, free from frustration. And for forward-thinking businesses, the combination of biographic information and biometric information can show the way.

Raj Ananthanpillai is founder and CEO of Trua, a technology company that provides privacy-preserving identity and risk-screening platforms that assure trust and safety in digital environments, sharing economy, employment and workforce screening. Ananthanpillai has more than 30 years of experience building technology businesses, with successful exits. One of his companies was instrumental in developing TSA-Precheck, and other security threat-assessment programs for some U.S. intel agencies. Ananthanpillai holds an M.S. in Engineering Physics and an M.S. in Electrical Engineering. In addition, he holds multiple U.S. patents and has authored two books.