NEW YORK, NY--(Marketwired - August 12, 2016) - SmartMetric, Inc. (OTCQB: SMME) -- SmartMetric, the maker of fingerprint biometric payments and security cards, says that some misconceptions exist about biometrics and more specifically , fingerprint biometrics.
One of the first misconceptions is that a credit card or ATM cards PIN number is safer than fingerprint biometrics because someone can copy a persons fingerprint. Reality, PIN's and passwords have been proven to be so poor security methods that the ease of hacking PIN's and passwords has contributed greatly to the credit card fraud disaster. It is reported that credit card fraud annually in 2104 in the United States alone was $8 billion.
Copying a persons fingerprint in order to "spoof" it so as to use the copied fingerprint to unlock a biometric protected credit card may be able to be done theoretically but in reality it is far harder to do this then hacking a persons PIN. It is a recognized fact in the computer security world that biometrics, including fingerprint based biometrics are substantially more secure than PIN's and passwords.
Some have even said that fingerprint secured devices will lead to a rash of people having their fingers chopped off so thieves can then use the dismembered finger to unlock the persons credit card. Cracking a persons card PIN is far easier than having to run around catching people and chopping off their fingers. Practically speaking, the "butchering" thieves would need to cut off all of a persons fingers on both hands so as to be sure they have the correct finger that the card holder uses to unlock their credit card. Then you have the biggest hurdle. The SmartMetric fingerprint scanner senses body temperature. Stopping dead in their tracks the human digit thieves. Pun intended.
Another misconception is using a 3D printer to make a copy of our a persons fingerprint. In the time it would take for the 3D printer to copy a persons fingerprint a thief could have stolen a hundred credit card numbers with associated PIN's and be on the street using newly minted fake credit cards. Like the cutting off of fingers scenario the fingerprint replicators will be stopped again by the readers internal sensing technology and defenses.
Dealing with the question of the affordability of this technology a misconception is that it would be too expensive for banks. If you just compare the cost of a standard credit card or even chip card then yes it is more expensive. But the economics of credit cards for Banks goes way beyond the cost of the piece of plastic. The cost of acquiring new customers, the cost of replacing customers cards when they are hacked, the cost of losing customers who following a credit card security breach stop using the Banks credit card and start using a competitors. And then you have the cost of fraud itself and it's impact on the Banks bottom line. When one analyses the cost benefit for a credit card issuer the benefits clearly outweigh the initial cost.
Having said all that, consumers were asked in a recent consumer survey of credit card holders in the USA if they would be prepared to "pay" for a biometric safer credit card. Nearly 2/3rds (67%) said they would. The same survey said that 80% of credit card holders are concerned about credit card fraud. So in reality if the Bank chooses to offer the card as a new paid for card they could issue these new biometric cards without cost to the Bank and still reap the economic benefits flowing from substantial fraud mitigation.
It has been said that mobile phones will replace credit cards so why bother with this technology. Reality is different then the perception of some. A well known mobile phone manufacturer who launched "mobile payments" on its phone has after a great deal of hype and promotion been able to only convince 3% of its phone users to use mobile payments. And none are using their phone exclusively for all card payment situations. Then you have the fact that there are more than 4.8 Billion credit cards with chips on them already issued by Banks around the world. Cards have not been replaced by mobile phones. Reality shows that cards for payments are not going away any time soon.
Yet another misconception is that it would be expensive and logistically difficult for Banks to put new equipment for these biometric credit cards in all the retailers around the world. Surprise, the SmartMetric biometric fingerprint card has the fingerprint scanner built inside the card and it does not need additional equipment for the card to work. The SmartMetric card works with existing chip card readers and ATM's and does not need additional hardware or software to be added by the Banks or retailers.
There are some technically misinformed people in the industry who lack even the basic knowledge of how biometrics work and how it can positively impact an organization such as a Bank. Being ignorant of the fundamentals of the technology itself and only repeating urban myths rather than knowledge based facts, said today SmartMetric's President & CEO, Chaya Hendrick.
Given the urban myths and lack of understanding of the new biometric based credit cards is something found only amongst low level industry persons. When we talk with senior security experts and Banks executives about our technology, the economics and the market research showing the obvious consumer demand for better security, we are seeing a ready acceptance and recognition by Banks of the game changing nature of our technology, said Chaya Hendrick.
SmartMetric is the creator of the in-the-card fingerprint scanner for chip credit cards. It uses a SmartMetric developed miniature and super thin fully functional fingerprint reader that sits inside the credit card. The biometric reader is used to turn on the card's surface chip following a fingerprint match and prior to being inserted into card readers or ATM's.
The SmartMetric solution overlays biometric protection on top of the new chip card technology now being issued across the United States. There are now more than 4.8 billion chip payments cards issued globally.
SmartMetric officially launched its groundbreaking biometric payments card this April at the Smart Card Alliance Payments Forum in Orlando, Florida. The company is now in talks with card issuing Banks around the world.
To view a video of the SmartMetric biometric chip card follow this link:
SmartMetric Biometric Payments Card -- https://youtu.be/zSX59uHoHqU
To view the company website: www.smartmetric.com
*research figures from ACI Worldwide research report as published by Business Intelligence, July 2016
Safe Harbor Statement: Certain of the above statements contained in this press release are forward-looking statements that involve a number of risks and uncertainties. Such forward-looking statements are within the meaning of that term in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those indicated in the forward-looking statements as a result of various factors.