The Value of Biometrics in Protecting Financial Transactions Made Online

Abstract

The evolution of IT in the concept of online banking has made it easier and faster for account holders to transact online. When it comes to safeguarding one's financial identity, the legislation governing both technology and the financial sector must be considered. As a result, most modern online banks provide some level of transaction security upon customer entry to the login page of websites, along with a warning about the possibility of fraud. However, there has been an increase in the frequency of reports of online banking fraud. The customer's account might be hacked and used for fraudulent purchases on the internet. One of the most rapidly expanding subsets of consumer fraud is identity theft. Protecting the identities of consumers during international internet transactions necessitates the widespread use of biometric technologies like fingerprint scanning. Biometric technology is an example of cutting-edge engineering since it offers the possibility of using digital evidence for legitimate law enforcement purposes. This article employs a qualitative empirical legal research using a multidisciplinary research strategy by examining the norms set out in the Indonesian Law on Information and Transaction Electronic. In this study, we look at how biometric technology may be used to help prevent fraud using stolen identities in online banking. This research found that implementing biometric measures into financial systems is crucial. Biometrics may be used for electronic verification as hard proof of an authorized user's identity. As a Measure taken to safeguard its customers, it would support banking security measures.