SECURE ATM AND BANK TRANSACTIONS USING BIOMETRIC AND BLOCKCHAIN

Abstract

The conventional Automated Teller Machines in Nigeria have over the past few years been faced with inherent security challenges, which have mostly been attributed to the two-factor authentication structure (PIN and Card) of the ATM systems. The Nilson’s report (2016) reveals that over 72% of ATM frauds within the period of the review were from card frauds, ranging from counterfeiting to card snatches. This record was able to soar so high since the identity thief is left with only one security clearance (PIN) to provide once the card is obtained. This work focuses on a multifactor approach to authentication which requires the presentation of three authentication factors: a knowledge factor ("something only the user knows"), a possession factor ("something only the user has"), and an inherence factor ("something only the user is"). After the presentation, the first factor and either of the next two factors must be validated by the other party for authentication to occur. This is to give room for exigencies and unforeseen circumstances such as loss/unavailability of mobile phones or lost or damaged fingers through accidents and aging factors. Although the proposed system does not promise a total eradication of ATM card frauds, and implementation of this design, it will to a large extent, reduce the occurrence and frequency of loss of money through ATM and card fraud since it provides an additional level of security. This translates to a more secure user identity, more secured funds and resources for the user and a more difficult and a less probable unauthorized access to an individuals’ account.