5 Factor Authentication
According to a press release, Alhamrani Universal (AU) service provider will be using the expertise of ShoCard to develop a secure identification system of ATM users by employing a combination of blockchain and biometrics. The merger of the two security systems would mean the deployment of the world’s first 5 factor authentication for top of the line security.
Through the use of blockchain, ATM users will be able to verify themselves without the need of Personal Identification Number (PIN). With the decentralized technology basing itself on bringing military grade security, it is the obvious choice for ATMs. Founder and CEO of ShoCard, Armin Ebrahimi said banks can use blockchain to “protect individuals’ identity while confirming the information that banks need to verify that a withdrawal is legitimate.”
Unlike other technologies, data entered within blockchain is immutable. That is, the data cannot be deleted or edited. With personal identification of customers entered on the decentralized ledger, banks can offer a higher level of security against scams and frauds. Cloning or editing of data would not be possible by malicious parties.
The immutable ID, combined with biometrics such as facial recognition, means that ATMs would not need to access bank data bases every time a customer enters his or her card in an ATM. This will give AU users another advantage: faster ATM transaction times- even perhaps when bank networks are down.
The collaboration of Alhamrani and ShoCard would be able to service a significant bank clientele. The service provider is the largest of its kind in the Middle East, with nearly half of all ATMs in Saudi Arabia being operated by the firm.
Blockchain, with its immutable and secure nature, is being adopted by different industries where the verification of identification is becoming important. Thailand’s main opposition party has already used blockchain to verify identity for its first round of internal party elections.
Deloitte, one of the largest accounting firms in the world, last year partneredwith another blockchain firm for developing decentralized identification system.