Abstract
Background: This study investigated the end-users’ perceptions about the feasibility of deploying biometric authentication systems as intervention solutions to ameliorate card fraud in the South African payment card industry. Objectives: The objective of the study was to determine if the existing banking technology and telecommunications infrastructure were capable of supporting biometric payment systems. Method: In this qualitative research, interviews were conducted with 30 sample elements selected from commercial banks, telecommunications companies and other service providers. The sample included individuals working with banking back-end technologies, telecommunications service providers and credit card fraud experts. Results: The study established that banking technology and telecommunications infrastructure were capable of supporting biometric payment systems. It was revealed that the deployment of biometric systems would mitigate card fraud transactions. However, findings showed that introduction of zero-floor limits led to high traffic volumes, creating congestion on the telecommunications connectivity. Thus, there was a high likelihood that transaction processes would be slow during peak periods. Conclusion: The implementation of biometric systems required highly skilled information technology personnel to oversee and support these technologies. This was identified as a potential hindrance for banks. The study established that existing banking and telecommunications infrastructure was capable and supported biometric systems. Banks were not keen to invest in an outright biometric environment because of the huge costs that would be incurred in implementing advanced technologies.
Highlights
The credit card industry in South Africa has grown at an enormous rate over the past 20 years
The objective of the study was to determine the feasibility of deploying biometric authentication and zero-floor limits as a way of eradicating card fraud
The study sought to establish if the existing banking technology and telecommunications infrastructure were capable of supporting biometric payment systems
Summary
The credit card industry in South Africa has grown at an enormous rate over the past 20 years This rapid growth has created many new opportunities for cybercrime syndicates. The rapid increase in bank card fraud and cybercrimes is worrisome for financial institutions, merchants, credit card holders and issuers (whole economy). The South African Banking Risk Information Centre (SABRIC) Reports (2016a, 2017a, 2018a, 2019a) state that more than R2.5 billion was lost through card fraud, during the 2016–2019 financial period. Debit card fraud is on the rise despite Europay, MasterCard and Visa (EMV) compliance. This worrisome trend is expected to continue unless there are stringent measures put in place to mitigate it. This study investigated the end-users’ perceptions about the feasibility of deploying biometric authentication systems as intervention solutions to ameliorate card fraud in the South African payment card industry
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