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Biometrics: Verification vs. Identification

by Leslie Connelly on July 14, 2010

When dealing with biometrics, there are two types of matching to consider, verification and identification.

  • Verification – A one-to-one comparison (1:1) of a biometric for a person for whom you wish to verify.
  • Identification – A one-to-many comparison (1:N) of a biometric against a biometric database in attempt to identify an unknown individual.

Verification equates to Am I who I claim I am? When you enroll a customer for the first time, you also capture additional information such as name, phone number, or social security number.  When the customer returns, they are identified through one of those pieces of information, then verified through the biometric match.   Verification only proves that the person in front of you now is the one who originally enrolled.

Identification on the other hand, answers the question “Who am I?” .   A customer is enrolled with fingerprint and additional information as noted in verification.  The customer can then be identified from only their fingerprint because the system compares that fingerprint against an entire database (hence the expression one-to-many).   This allows for prevention of enrollments with near-duplicate information or multiple IDs.

These performance criteria can only be met with a high-density fingerprint image and databases optimized to match large quantities.

Which is better?

If you have a single location and know all your customers personally, then you may not need the additional data organization and security that biometric identification provides.

However, if you want to do any of the following, identification may bring benefits to you.

  • Match new customers against shared-negative databases
  • Prevent duplicate enrollments across multiple locations
  • Prevent fraud rings from hitting you multiple times with fake IDs

AllTrust Networks offers biometric identification services for check cashing and other retail applications.

For more information, contact Leslie Connelly at 703-467-8332 x303    or visit

http://www.alltrustnetworks.com or http://www.alltrustnetworks.com/Product/FingerprintDevice/tabid/390/Default.aspx

Related Article: Using Fingerprint Technology in Check Cashing

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Using Fingerprint Technology in Check Cashing

by Leslie Connelly on July 6, 2010

Finger Close upFingerprints have been used in check cashing for a long time. From the very basic – using ink to capture the customers fingerprint image on the back of the check; to the advanced – instantly identifying an individual by their fingerprint. But are biometrics necessary?

The Power of Biometrics
Here’s a short list of reasons why you might consider using biometrics in your check cashing business:

  1. Speeds Transactions. With fingerprint technology, customers don’t have to provide a driver’s license at each transaction; nor do clerks experience language barrier problems when attempting to identify an individual. The check casher simply places their finger on the fingerprint scanner; and their record immediately appears for the clerk. On busy paydays and Friday’s anything to keep the line moving quickly is a benefit for retailers.
  2. Minimizes Management Oversight. By combining the fingerprint with a complete check cashing history, and a few good store policies; clerks can be empowered to make some check cashing decisions; easing management oversight.
  3. Easy to Use. Customer’s like the ease of use; as well as the fact that they don’t have to constantly prove who they say they are.
  4. Government Compliance. Ensuring you know your customer can ultimately help your banking relationship. Having detail on your store’s customers will ease the bank’s burden to ‘know their customers’; keeping your banking relationship open and positive.
  5. Fights Fraud. Biometrics is a great deterrent for many would-be criminals. Some will see the device and immediately walk away. And once enrolled, a person cannot re-enroll. Thus a potential fraudster can’t go to other locations or return to the same store during another shift, with another driver’s license, to cash bad checks. In addition, having fingerprints as part of the check cashing individual’s record gives you some recourse should you need to pursue fund recovery.

For more on biometrics in check cashing, visit AllTrust Networks. And be sure to check out my next post; Biometrics: Identification vs. Verification!

Photo by bcymet

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DC check cashers: Are you feeling the pinch?

June 4, 2010

In April this year, the Bank On DC initiative was launched to help underbanked get bank accounts.  Now, the Washington Examiner reports that Ward 3 Councilwoman Mary Cheh is proposing legislation that would limit how much check cashing companies can charge per transaction. New legislation would limit fees to 2% of all check or $4, [...]

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April Check Cashing down 2% from 2009

June 2, 2010

The number of check cashing transactions was down 2% in April 2010 vs. April 2009 for comparable stores within the AllTrust Network. The trend of comps has been improving throughout 2010, as seen in the graph below. May data with additional commentary will be published around June 10. How is your volume vs. last year?  [...]

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10 Things to Know When Cashing 3rd-Party Checks

May 19, 2010

As a money services business you need to be aware of the federal government regulations surrounding money services. If you are not, you may be putting your business at risk by not fully complying with the law. Here are ten things that retailers should be aware of if they are cashing third party checks and/or [...]

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Foreign IDs and Check Cashing: The Inside Scoop on Risk

April 27, 2010

In a previous article, I showed how foreign IDs make up a substantial portion of the check cashing market.  In much of the West and South, you’re missing out on opportunity if you don’t accept foreign IDs for check cashing. The next logical question is “what about risk?”  It’s great to cash more checks, but [...]

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4 Tips to Pick a Prepaid Card Provider

April 20, 2010

Second in a series.   See also 5 Reasons to Offer Reloadable Prepaid Cards Once you’re interested in offering a reloadable prepaid card to your customers (See 5  Reasons to Offer Reloadable Prepaid Cards if you want to know why), you need to go through the process of choosing a provider.   There’s no universal right and [...]

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5 Reasons to Offer Reloadable Prepaid Cards

April 15, 2010
hand holding credit cards

If you’re running a store with successful bill payment, check cashing, and money transfer offerings, you should also consider offering open loop (branded network such as Visa/MasterCard), reloadable prepaid cards.  Here are some of the key reasons why. Consumers really want them. The Center for Financial Service Innovation (CFSI) released a study in April that [...]

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Foreign IDs: Why some people are more successful check cashers

April 12, 2010

A customer walks into your store, hands over his check and matricula consular card and you tell him what? Sorry, I won’t cash your check. Great!  Let me process this for you. If it’s option 1, you’re probably turning away a lot of customers. A summary of March 2010 data from AllTrust Networks shows that [...]

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Bank On Initiatives for the Unbanked

April 5, 2010

Expansion of the Bank On initiatives for the unbanked has really picked up recently!  San Francisco was the first to launch a program back in 2006 to work with financial institutions to make it easier for the unbanked to get into mainstream banking; providing consumers with financial education and starter accounts. And it has been [...]

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