Connect with us

Technology

Cybersecurity and the Internet of Things: Time for Biometrics?

Published

on

By David Orme, SVP of IDEX Biometrics

The Internet of Things (IoT) is growing at a rapid pace, with connected devices and white goods entering our domestic and working environments faster than ever before. Now, thanks to the advent of Wi-Fi, what we once deemed to be white goods are increasingly becoming connected and ‘smart’. It’s now possible to order a pizza, replenish the fridge and download a film to watch, all within ten minutes and without leaving the comfort of your armchair using IoT technology – what bliss!

IoT is, undoubtedly, making life much more straightforward. Gone is the need to trawl shops, to battle for that last space in the supermarket car park or struggle through the high street with bags full of shopping. IoT lets us delegate important every day, but mundane, tasks to connected goods, leaving us free to focus on the more complex and fun things in life. If your fridge can order the milk for you automatically (and if it doesn’t already, chances are you will in due course own a fridge that can), that’s one less thing to think about on the way home from work in a busy modern life.

Yet like most good news, IoT comes with a few caveats. Chief among these is the issue of cybersecurity.

Who’s charging to your account?

For a connected device to take actions on your behalf, be that a payment when your intelligent fridge re-orders the milk, or a smart TV granting or refusing permission for a child to download or view particular media, there has to be a process of authentication. In other words, the device or provider has to be sure that the right person is making the request, just as they do when you use a payment card conventionally. Your connected fridge has to be sure that it’s you who just ordered champagne and caviar, and asked for the charge to be placed on your account/card, rather than it being your teenager, or the cleaner, or someone who’s hacked into your fridge and made fraudulent transactions. Let’s also not forget that your manufacturer or service provider has to make sure that it is a real fridge and that it belongs to you, so that it knows it is talking to the right appliance.  After all, manufacturers need to be able to authenticate that it is the right fridge receiving requests from the right person, as well as authenticating the payment.

As a society we are used to authenticating our transactions, it happens daily. Usually the process involves a PIN or a password — when we use our card in store or check our bank balance, for instance. The problem is, we know that these methods of authentication are no longer fit for purpose. For example, it may be  easy for criminals to guess or uncover a PIN correctly, while passwords are also often compromised .

Indeed, the constantly-repeated advice that passwords must be unique, complex, but never recorded, provides a perfect example of why this authentication method has had its day. If forecasts are correct, there will be more than 20 billion devices connected to the IoT by 2020 and a good proportion will be directly connected to payments.  Providing cyber criminals with up to 20 billion more opportunities, particularly if those devices rely on outdated authentication protocols.

The answer’s at your fingertips

To secure the things that we treasure, a higher level of authentication is required, one that is entirely personal to us and impossible to replicate. Biometrics are the answer for the burgeoning IoT. Manufacturers of smart goods must look to include fingerprint sensors into connected devices themselves, so that authentication can take place on site, without information being sent into cyberspace. Locally stored biometric data for authentication is virtually impossible for criminals to hack or intercept, and impossible for anybody to replicate in person. The only person who can authenticate an action, permission or transaction, where biometrics are involved is the person whose fingerprint is held as a record on the device.

Biometric authentication will end the concerns people currently have about the implications of devices being lost or stolen, and even sold on. Using biometrics to authenticate gives users a truly personalised and secure IoT experience.

After all, if the time comes for somebody to order several magnums of champagne and kilos of caviar from a smart fridge in your home, don’t you want to be absolutely sure that person is you?

 

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Technology

HOW ARE SPEECH RECOGNITION AND AI FIGHTING FRAUD?

Published

on

By

Nigel Cannings the founder of Intelligent Voice

Nigel Cannings is the founder of Intelligent Voice

 

Speech recognition and AI provide innovative methods for businesses to significantly develop and improve their fraud detection systems. With the technology and techniques used by fraudsters rapidly changing, AI can evolve and adapt to provide more comprehensive protection, assisted by the use of machine learning. The acceptance of AI as a crucial asset to fraud detection and prevention is already being recognised, with 31% of CIOs having already reported the implementation of AI systems in their business, and a furth 23% expressing intent to have the technology deployed within the next year. Crucial to the effective implementation of this technology, however, is having a basic understanding of how it functions and will assist business needs.

 

What are the roles of AI and machine learning in fraud detection and prevention?

AI can take a variety of forms, with the core systems required for anti-fraud measures being Conversational AI, Natural Language Processing (NLP), and Automatic Speech Recognition (ASR). Automated, voice-enabled applications rely on the use of Conversational AI to allow efficient communication between technology and humans. ASR is the model tasked with translating verbal data into different formats, facilitating the recording and processing of data. The crucial bridging of the gap between the rules of human language and machine learning is carried out by NLP systems, allowing technology to process the sentiment and intent that can be derived from human interaction.

Together, these AI systems are used to both develop and augment machine learning models. The machine learning process involves the application of data from previous interactions with the intent to enable algorithms and analysis to develop and evolve alongside rapidly changing fraudulent technology and techniques. Through the collaboration between machine learning, Conversational AI, NLP, and ASR, data that would have previously been considered difficult or impractical to apply to anti-fraud measures can be repurposed. Fraud detection procedures such as checking for consistency in the details of claimant stories, identifying connections between claimants and witnesses that may be problematic, or detecting more complex behavioural indicators can be carried out more effectively, enabling a more comprehensive anti-fraud system.

 

What are the features that AI can recognise, and how does this help prevent fraud more efficiently?

Modern AI systems have the capabilities to detect a range of both speech and behavioural patterns, providing a more comprehensive analysis of the mannerisms and language features displayed in customer-facing interactions. There are several features that have been traditionally associated with fraudulent intent, with the most notable being frequent pauses in speech, hedging, delaying responses, indirectly answering questions, and displaying heightened emotional responses. AI not only has the ability to detect these traditional features of fraud, but it will also use its recorded history of confirmed fraudulent calls to continue tracking trends in behaviour and speech by fraudsters. Customers who have been identified to be displaying suspicious behaviour can be more closely monitored, and if the potential for fraud is confirmed, customer records can be updated with the necessary information and warnings concerning their claim. Currently, it is possible to also use AI systems to record a biometric voiceprint of known fraudsters, allowing their detection even when they call back with a new claim and different details. Through these measures, it can be possible to detect fraudulent intent from the first phone call.

However, it is important to be aware that these systems and tactics are not static, and constantly evolve depending on the new techniques being adopted by fraudsters to avoid detection. The most recent development in fraudulent operations is the use of “deepfake” technology, which can be used to mimic audio and mask a human voice in real-time. This allows fraudsters to create entirely new identities to recommit fraud with the same company, without being detected by biometric voiceprint technology. Traditional anti-fraud measures without the input of AI and machine learning will struggle to adapt to these new technological challenges. AI-based systems provide the flexibility and adaptability to allow businesses to keep up with these evolved techniques quickly, often with minimal human involvement.

 

How can speech recognition AI impact wider business goals?

The reach of AI is not limited to efficient fraud detection – important business goals such as the improvement of customer services also benefit significantly from the implementation of AI-based systems. Functions such as sentiment and emotion analysis now allow businesses to detect and interpret the nature of customer experiences, identifying positive and negative language and speech indicators. This enables businesses to gain a better understanding of their customer interactions and where improvements or reviews may be required. This form of analysis can also provide more detailed information about whether customers are displaying a sense of urgency, frustration, contentment, or confidence in response to their experience. Details provided by this analysis allows businesses to create more specific targets and methods to increase customer satisfaction.

Implementing wider behavioural analysis through AI systems also provides new opportunities for businesses to provide improved safeguarding for vulnerable customers. Employees can be notified when customers are displaying worrying indicators of being uncertain, confused, or concerned as a result of their interaction, and respond accordingly. These more vulnerable customers are often unemployed, young, or older adults that may require a more in-depth explanation of how the business can serve their personal needs. Follow up contact, reassurance, or in more extreme cases, welfare checks can be provided to these customers. The introduction of more thorough AI-based analysis can feel more intrusive to some customers – however, this technology also enables the provision of better customer care. The shift towards more analytical, adaptive technology increases our capabilities to care for the most vulnerable in society.

 

Nigel Cannings is the founder of Intelligent Voice, a company leading the international development of proactive compliance and technology solutions for various forms of media. His experience in both technology and law provides a unique insight into the future of these technologies and the legalities surrounding them.

Continue Reading

Technology

IS THERE A CASE FOR APPOINTING A DIGITAL TRANSFORMATION OFFICER?

Published

on

By

Stefano Maifreni, founder of Eggcelerate

Stefano Maifreni, founder of Eggcelerate

 

You can tell the business world’s direction by the new roles that start to pop up in the C-Suite. With titles like chief transformation officer, chief change officer, and digital transformation officer, it’s clear what’s on a business leader’s mind these days. Each of these roles is a response to rapidly changing market and customer trends and an avalanche of technological advances that are causing businesses to rethink the way they operate.

In this article, however, we’re going to take a closer look at the Digital Transformation Officer (DTO). This professional is specifically focused on an organisation’s digital strategy and transformation.

Not every company needs to hire someone for this position, however. Sometimes it’s better to get every senior officer involved and lead the company’s digital transformation as a team.

To help you decide whether to bring in a DTO, we’ll offer some points to consider below.

 

What is a DTO, and What Do They Do?

Today, an organisation’s success and long-term sustainability heavily depend on its digital infrastructure combined with a data-driven culture. Smart, automated IT systems enable critical modern business capabilities such as personalisation, adaptability, and innovation. A data-driven culture then leverages the business and market data captured and analysed by these systems to guide business decision making at all levels of the organisation.

Even technology-based businesses, such as fintech companies and SaaS providers, don’t always have the most effective and efficient digital infrastructure in place. Moreover, establishing a well-oiled data-driven culture takes much time, research, and consideration.

It is where a DTO comes in. A DTO is a member of a company’s senior management team. They are responsible for leading a business’s digital transformation in response to the emergence of new critical technologies, significant shifts in the market, or the development of new business products or services, among other events. These professionals work closely with the CEO and the C-suite, but at the same time, they must also collaborate with employees at virtually every level of the company.

Having a strong, focused senior leader at the helm of such an undertaking is thus critical to its success.

 

Three Necessary Qualities to Look for in a DTO

If you decide to hire a DTO, the person you choose for the role must possess several essential qualities to steer your company through a successful digital transformation. These qualities are in addition to technical expertise and general industry knowledge:

 

They can see the big picture.

A DTO must take in the whole picture of your company and determine the critical areas where people, data, and infrastructure interact. They can then leverage that knowledge to implement digital initiatives for every significant business process’s strategic innovation and business transformation.

They must be able to consider the customer’s experience and needs as the agent and driver for change, on the one hand, while understanding the unique needs and culture of your business on the other. It includes understanding how people and departments interact and how third-party vendors and service providers fit into the system. The goal is to balance the company-wide need for change and adaptation with consideration for employee needs for consistency, stability, and clarity.

 

They possess good communication and collaboration skills.

While the role requires a wide range of soft skills, abilities in communication and collaboration are at the top of the list. A DTO must speak to a broad spectrum of people at every level of the company. It is crucial not only for gathering information and feedback but for encouraging employee buy-in in response to change. It (almost) goes without saying that a big part of communication is not just speaking to others but listening to what is being said or reported honestly.

 

They are humble and able to learn from others.

This role involves gathering a lot of input from employees at the lowest ranks of a company, particularly those directly involved with customers, such as sales and customer service representatives. At the same time, DTOs must report to the CEO and collaborate with other C-Suite executives. To do this properly, a good DTO must be open and willing to learn from others, consider different ideas and opinions, and be ready to course-correct when an initiative goes off track.

 

Not Every Company Needs a DTO

While many companies may want to pass the responsibilities of a DTO on to a specific individual, so they are free to focus on other areas of the business, it may not be the best decision. Here are a few reasons why:

  • Unlike traditional C-Suite roles, the DTO is transient by design. It means that companies usually employ a DTO to get a digital transformation off the ground. Once the change is fully integrated into the company’s operations, the DTO is no longer needed. With the proper infrastructure and data-driven culture in place, digital transformation and innovation self-perpetuates.
  • Another issue is that companies typically hire an outsider to fill the role of DTO. While this may give the company access to a fresh perspective, an outsider working in a transitory position may not be willing or able to reach the level of understanding– whether of the company or the market it serves– needed to make the most effective decisions.
  • Because digital infrastructure and adaptability are key business competencies, direct involvement in the digital transformation process helps senior leaders improve their strategic decisions overall.

While companies that rely on analogue processes may benefit from a dedicated DTO, in many cases, appointing a DTO is not in the best interest of an already digitally aligned company. It may be much more effective to create a company-wide commitment with a team of senior leaders responsible for the digital transformation, rather than passing the details and management of the transition off to one individual.

 

Continue Reading

Magazine

Trending

HOW TO TELL IF YOU’RE OVERPAYING TAXES HOW TO TELL IF YOU’RE OVERPAYING TAXES
Finance19 hours ago

HOW TO TELL IF YOU’RE OVERPAYING TAXES

Paying taxes is a necessary act in our world, and with good reason. Our governments use taxes to build the...

Nigel Cannings the founder of Intelligent Voice Nigel Cannings the founder of Intelligent Voice
Technology3 days ago

HOW ARE SPEECH RECOGNITION AND AI FIGHTING FRAUD?

Nigel Cannings is the founder of Intelligent Voice   Speech recognition and AI provide innovative methods for businesses to significantly...

HOW CAN BUSINESSES BREAK INTO MARKETS BEYOND THE EU? HOW CAN BUSINESSES BREAK INTO MARKETS BEYOND THE EU?
Business3 days ago

HOW CAN BUSINESSES BREAK INTO MARKETS BEYOND THE EU?

Atul Bhakta, CEO of One World Express   The build-up and aftermath of Brexit impeded the long-term plans of businesses...

BUSINESS DEVELOPMENT + MARKETING + COMMUNICATIONS BUSINESS DEVELOPMENT + MARKETING + COMMUNICATIONS
News3 days ago

BUSINESS DEVELOPMENT + MARKETING + COMMUNICATIONS

Volante Technologies Recognized as Market Leader in Omdia Universe: Selecting a Payment Hub, 2021-22 Report Cloud payments company scores highest...

Dima Kats, CEO, Clear Junction Dima Kats, CEO, Clear Junction
Top 103 days ago

2022: A FUTURE FOR SIMPLE AND FRICTIONLESS CROSS-BORDER PAYMENTS

Dima Kats, CEO, Clear Junction   Even after 18 months of stuttered lockdowns, businesses are still learning how to navigate...

Christmas Gifts Christmas Gifts
Top 103 days ago

CHRISTMAS IS COMING: WHAT MAKES A GREAT ECOMMERCE STRATEGY FOR THE FESTIVE SEASON?

By Laura Lough, Director of Ecommerce Operations at Digital River   There is no doubt the year 2020 presented an...

Stefano Maifreni, founder of Eggcelerate Stefano Maifreni, founder of Eggcelerate
Technology3 days ago

IS THERE A CASE FOR APPOINTING A DIGITAL TRANSFORMATION OFFICER?

Stefano Maifreni, founder of Eggcelerate   You can tell the business world’s direction by the new roles that start to...

Business3 days ago

WHAT FIREFIGHTERS CAN TEACH FINANCIAL INSTITUTIONS ABOUT DATA COLLABORATION

Gabriele Albarosa, CEO, LiveDataset   Digital transformation can be difficult for any business, but in the financial services industry it...

Top 103 days ago

HIDDEN COSTS WHEN INVESTING… AND HOW NOT TO GET HIT

By Annie Charalambous, Head of Communications at ETX Capital   According to recent figures, Brits plan to increase their investments by almost...

INSURANCE TRENDS 2022 INSURANCE TRENDS 2022
Top 104 days ago

INSURANCE TRENDS 2022

The Insurance market will continue to grow in maturity based on the richness of solutions by InsurTech In 2022, we’re...

News4 days ago

ARTERIA AI SET TO ACQUIRE H4’S FINANCIAL SERVICES BUSINESS ASSETS

H4 Chairman and Co-founder Joe Seifert to join Arteria AI as senior advisor   Arteria AI, an award-winning global leader...

News4 days ago

PAYNET PARTNERS WITH CLEAR JUNCTION TO FACILITATE CROSS-BORDER PAYMENT SERVICES

Clear Junction announces new partnership with Paynet The partnership helps Paynet provide remittance services to typically underserved communities   Clear...

News4 days ago

GAME CHANGING: WORLD’S FIRST ON MOBILE DEVICE NEURAL TEXT-TO-SPEECH SYSTEM RELEASED BY CEREPROC

CereProc has today launched the world’s first on mobile device neural Text-to-Speech (TTS) system commercially available for Android and iOS operating...

News4 days ago

VIRGIN MONEY ADDS ACCELERATED PAYMENTS TO ITS FINTECH PARTNERSHIPS

An Invoice Finance provider addressing cash flow issues in business Partnership forms part of Virgin Money’s working capital health proposition Virgin Money...

Business4 days ago

B4B PAYMENTS PARTNERS WITH SENTINELS TO SUPPORT ANTI-MONEY LAUNDERING COMPLIANCE ACROSS EUROPEAN MARKETS

Sentinels’ risk-based model boosts accurate detection rates and provides flexibility to monitor transactions across all B4B Payments’ solutions Sentinels, Europe’s leading...

Business4 days ago

EPI: HOW TO BUILD TRUST AND ADOPTION AMONG CONSUMERS AND MERCHANTS

By Arnaud Crouzet, VP Security & Consulting at Fime   What is EPI? The European Payments Initiative (EPI) is aiming...

Interviews4 days ago

BATON SYSTEMS 2022 OUTLOOK

Responses provided by Jerome Kemp, President, Baton Systems   Q. Organisations are forecast to spend nearly $6.6 billion on blockchain...

Finance4 days ago

WHY THE EXPLOSION IN LOCAL RETAIL DEMANDS NEW PAYMENT METHODS

Kasper Enggaard Krog, CEO at mobile payment and business technology firm, Vibrant, explains why micro businesses are being badly let...

Business5 days ago

IS SCARCITY OF TALENT THREATENING THE UK’S FINTECH CROWN?

Opinion From Rafa Plantier, Head of UK and Ireland at Tink   From the Square Mile to Canary Wharf, London...

SET YOUR BUSINESS UP FOR SALES SUCCESS IN A POST-PANDEMIC WORLD SET YOUR BUSINESS UP FOR SALES SUCCESS IN A POST-PANDEMIC WORLD
Business1 week ago

SET YOUR BUSINESS UP FOR SALES SUCCESS IN A POST-PANDEMIC WORLD

Dean Fiveash, Head of FinTech Sales, IFX Without doubt the Coronavirus pandemic impacted every aspect of our lives and fundamentally...

Trending