Cutting-edge blockchain ATM prototypes are being rolled out in Saudi Arabia with a special spin on granting users access to capital. The ATMs utilize biometric scanners to scan the face of every account holder as part of a five-factor authentication process secured by a blockchain program being used by the biggest ATM supplier in the Middle East.
Biometric Facial Recognition With Blockchain
Face-scanning verification has the capability to make PIN codes obsolete. Source: CCN / Conor MaloneyThe ATMs would be the result of a partnership between Alhamrani Universal (AU) and blockchain mobile-identity platform ShoCard. The five-factor authentication procedure consists of facial scanning, the ShoCard ID, a QR code, session IDs, and timestamps among other certificate methods aimed at thoroughly assessing and verifying each user.
The system does away with the traditional method of memorizing four-digit PIN codes in an attempt to fight the ever-present threat of credit card fraud, and this is made all too easy with the simplistic PIN system and a flourishing black market for credit cards.
Dark Web Credit Card Fraud
Before, the PIN system was simple but perfectly functional. However, the growth of the dark net and its bustling black marketplaces for weapons, drugs, hacking tools, and credit cards continues for years outpaced the basic steps in place to prevent fraud.
A study by Gemini Advisory revealed that 60 million credit cards were compromised last year and sold on the dark net in america alone. Credit card details are obtained in numerous ways, from hacking important company databases to phishing scams, CCN reported. Each card can then be sold on the darkened net for anything between $10 — $450 based on the spending limitation.
Buyers can buy the credit card information, for making digital purchases, or a more-coveted physical clone of the card, which is used to carry out thousands of dollars in cash from ATMs.
The latter is a lot more difficult to trace, as an individual just wants a PIN and to pay their face when withdrawing cash from an ATM that may be thousands of miles apart in the initial copy of the cloned credit card. Through five-factor biometric authentication, this method of cloning cards and withdrawing little fortunes is hopeless and basically rendered obsolete, allowing banks and financial service providers to grab with shadowy net criminals at last.
The model being launched by AU, which controls over 50 percent of the market share of ATMs in Saudi Arabia, is made to be bank-agnostic, communicating information across numerous institutions and providers.
The ATMs use blockchain technology to validate the identity of every user without actually accessing the database of the bank. ShoCard technology is designed to protect user privacy during the authentication process, allowing for true-digital touch with non-perishable audit trails, transaction authorization, and frictionless login with no password or username required.
Still in testing, the ATMs will be launched soon and should put a halt to peer card fraud in any ATMs equipped with all the technology based on Armin Ebrahimi, CEO of ShoCard.
Tariq Abdat, CEO of Alhamrani Universal, said that the invention was part of a wider national movement to digitally transform the state of Saudi Arabia.