Question

1.     Research: Biometric Authentication

Do some research on biometric authentication of check-cashing and other financial transactions. What is biometric authentication? What technologies does it use? How is it being used to authenticate financial transactions? How much does it cost to implement? What are its advantages? Is anyone critical of it? Why?

Use the IRAC method to analyze the following case.

You Be The Judge: Messing v. Bank of America[1]

Facts: Jeff Messing attempted to cash a check for $976 at a Bank of America branch office. The check was made out to Messing and drawn on the Bank of America. A teller asked Messing to provide identification. Messing presented his driver’s license and a major credit card but Bank of America policy required a thumbprint signature from anyone wishing to cash a check who did not have an account at the bank. When Messing declined, the teller refused to cash the check.

You Be the Judge: Was the bank’s thumbprint policy permissible under the UCC? Had Messing provided reasonable identification?

Holding/Conclusion:

Question: Why didn’t Messing just deposit the check in his own checking account instead of trying to cash it at a bank where he had no account?

Question: Is there anything wrong with that?

Question: Why did Messing refuse to provide a thumbprint?

Question: What is the trade-off in this case?

Question: Who should win this case?

Answer 1

Biometric authentication is a security process that verifies the unique biological characteristics of an individual to find out that individual is correct person to access specified facility, device or service.

Following are the technologies used in biometric authentication:

1. Finger prints

2. Face recognition

3. Iris Recognition

4. Voice Recognition

5. Finger Vein Identification

6. Palm Vein Identification

7. Retina Recognition

The Technology tools used are:

1. Cameras and CCTVs alongwith sophisticated algorthims or facial recognition matching system.

2. Iris recognition device.

3. Sensors (optical, ultra sound, thermal)

4. Advanced softwares etc.

5. Smart cards.

6. Scanners

Biometrics in Financial Transactions:

1. For opening Bank Accounts

2. For accessing ATMs and cash withdrawals

3, For online banking through fingerprint scanning, facial recognition, voice recognition instead of passwords and PINs. This is an emerging technology.

4. Greatly reduces insider fraud in banking industry.

Cost:

It depends on the type of biometric verification selected and level of technogy adopted. Finger print authentication system is relatively low compared to iris and retina scan systems.Voice recognition system is cheaper after finger print system.

Advantages of authentication systems is security. Transaction is effected 100% to whom it is meant for. Besides reducing the time and process cost, it ensures the avoidance of errors and fraud. Greatly eliminates impersonifcation.

Yes, there is lot of opposition for biometric authentication. The main concern is privacy and misuse of biological data may lead to leakage to spammers and also possibility for other misuses.

Conclusion based on IRAC Method:

Issue:

Jeff Messing is declined to encash his cheque by the bank for his refusal for fingerprint signing.

Rule: Bank of America policy is fingerprint is needed for anyone to withdraw cash who is not having account with the bank.

Analysis:

Why didn’t Messing just deposit the check in his own checking account instead of trying to cash it at a bank where he had no account?

May be this bank is nearer to him.

Why did Messing refuse to provide a thumbprint?

any of the following: Privacy is concern to hime and in belief that documents provided by him is sufficient or he may be involved in fraud or forging.

Is there anything wrong with that?

May be or may not be but it gives suspicion about something is fishy.

What is the trade-off in this case?

Denial by messing might be provided doubt in the mind of teller. Moreover it's policy decision of the bank

UCC provides commercial code under under Articles 3and 4 relating to negotiable instruments and bankig.Safeguarding the interests of account holders from fraud is inherent duty for the banks.

Conclusion:

Bank of America is not denying the amount to Payee but it wants to establish the payee is genuine. Bank of America should win the case.