Biometric Vending Machines – what next for self service security?

Hitachi has unveiled a biometric vending machine, which uses finger vein authentication technology to allow pre-registered users to buy goods. The cost is then directly charged to their credit cards.

Such developments are encouraging for both the self service and banking sectors. Biometric technology has been seen as something of a silver bullet in terms of increasing the speed and security of automated transactions. ATM fraud is a growing problem with skimming and video devices able to access customer details relatively easily. However if transactions were authorised by a PIN combined with biometric information, this type of fraud would be impossible.

Consequently, biometric technology is increasingly on the agenda and has begun to be deployed by banks in the Middle East, for example Barclays in the UAE implemented biometric fingerprint technology in late 2007. However pan-regional deployment by banks is far from widespread in part because:

1) There are no comprehensive standards as yet (Visa and Mastercard are currently working on this) relating to biometrics so it is dependent on the deploying party

2) It involves significant expense, investment and resources

3) Such sophisticated technology requires more thorough testing and simulation scenarios that require effective automated tools to be used as opposed to a traditional manual process

As the growth of fraud continues, the business case for biometrics at the ATM is increasing. Consequently banks need to consider how this technology would impact the terminal, not just in terms of one off deployment but in terms of long term functionality and maintenance.

Issa Keshek