Saudi Arabia-based ATM provider Alhamrani Universal has partnered with ShoCard, a blockchain-based identity verification system, on blockchain powered ATM with biometric authentication.
ShoCard said the biometric ATM prototype will allow consumers in the region to use their blockchain-based app and faces instead of personal identification numbers to withdraw money from cash points.
Powered by ShoCard, the ATM will use five-factor authentication and can communicate across banks and will use blockchain to conform the customer’s identity without accessing the bank’s database.
The prototype is presently being tested and is expected to be rolled out in production soon, ShoCard said.
In the wake of ATM frauds, banks are concerned about scammers devising new ways to defraud them by circumventing systems where biometrics and blockchain have not been introduced. A recent scam involved scammers setting up a lookalike website to harvest users’ access information to steal $106,000 from 125 accounts in cash withdrawals.
ShoCard founder and CEO Armin Ebrahimi said: “The ShoCard solution will solve the issue of card fraud at ATMs that continues to plague banks and consumers. It fits nicely into existing ATM technology, which usually already has a camera installed, and makes the customer experience as seamless as possible. At the same time, it utilizes blockchain technology to protect individuals’ identity while confirming the information that banks need to verify that a withdrawal is legitimate.”
The new prototype biometric ATM solution from ShoCard is touted to close the door to such scams by introducing biometrics as part of a five-factor authentication process that includes ShoCard ID, a QR Code, timestamps, session IDs and other certifications methods by which the user was verified, like selfie IDs and more.
As banks begin to adopt biometric technology for authentication and verification at ATMs across the region, Alhamrani Universal’s ATMs will be able to verify all customers irrelevant of their banking partner because of the use of blockchain and biometrics together.
The blockchain services provider stated that its technology will use blockchain to identify across different banks, hardware or online services where no device or service can be trusted. With the technology, users and enterprises can establish their identities with one another in a secure and verified way, so that any transaction can be accomplished quickly and seamlessly.
In 2017, ShoCard partnered with Bank AlJazira to support the bank in protecting clients’ information and avoid fraud. ShoCard agreed to deploy its blockchain-based identify management solution for this project.
With the blockchain system in place, benefits such as reduced cost and duplication of identity management, reduced instances of fraud are expected, along with allowing for exchange of customer information on wire transfers and investigatory reports and improved anti money laundering (AML).