What’s Next for Consumer Data Security?

Posted on September 29, 2017 by Laura Lam

For Equifax, the fallout from its massive data breach is far from over.  The company is facing numerous inquiries from government agencies and even lawsuits.  The breach exposed serious flaws in the financial system’s consumer data security framework.  So how can the financial services industry protect against fraud in the future?  How can they make things safer?

According to a new report from ratings agency DBRS, the answer to making things safer is to further embrace technology.  Specifically, DBRS states that it believes the financial services industry needs to move towards biometric security, which would provide additional layers of protection that a Social Security number can’t provide.

“DBRS believes it is likely that some type of authentication feature will eventually be introduced into the credit process so that lenders can ensure that the person applying for credit is legitimate,” said DBRS Managing Director Kathleen Tillwitz.  “These verifications may include fingerprints, palm prints, retina iris authentication, voice identification and/or facial recognition.”

Basically, the idea is that it would be more difficult to perpetrate financial fraud if financial services companies also required biometric security measures.  According to Tillwitz, many government agencies and companies are already moving towards biometrics so adoption should not be that difficult.  “Since the technology for these security practices is readily available and currently being used by many companies, including the FBI, law enforcement, department stores, hospitals and Apple, DBRS believes the timeline for implementation could be quick if a company wanted to incorporate these security features into their processes,” she states.

“Therefore, in addition to increased cybersecurity measures, DBRS anticipates some type of biometrics will eventually be incorporated into the credit approval process at many firms as companies try to find new and innovative ways to save them the millions of dollars currently being lost due to fraud,” Tillwitz adds.

Source:  HousingWire