Due to the rise of dark web crimes, Saudi Arabia is rolling out unique ATM prototypes that will eventually decrease credit card fraud.
A component of a five-factor authentication process, the cutting-edge technology is secured by a blockchain app. The Middle East's dominant ATM provider is currently a user of this app.
The biometric blockchain ATMs are expected to combat the deep-rooted danger of credit card fraud which is thriving on dark web marketplaces.
Credit Card Fraud on the Dark Web
From the very beginning, the dark web was a place people visited in order to purchase various illegal goods such as drugs, weapons, services and credit cards.
The crime rate on the dark web is increasing every day and credit card fraud is no exception.
A study by Gemini Advisory showed startling statistics. According to the study, it was found that 60 million credit cards were endangered and later sold on dark web marketplaces in the U.S.
The PIN system, although functional, proved to be simple and very easy to hack.
These credit cards were obtained in various ways, from phishing scams to the hacking of major companies' databases.
On the dark web, the acquired credit cards are sold for a price dependent on the spending limit, with prices ranging from $10-$450 per card.
For making digital purchases, buyers purchase the credit card details.
However, there are still a number of cases where buyers on the dark web purchase a physical duplicate of the actual credit card in order to make ATM withdrawals.
Although thousands of dollars have been stolen this way, the criminals are very hard to trace as they cover their faces when withdrawing cash.
The biometric blockchain ATMs have made their appearance in Saudi Arabia as a result of this common problem.
These machine prototypes include scanning of the cardholder's face in order for them to access their funds.
The Blockchain ATM Prototype
The biometric blockchain ATMs are a product of a partnership between ShoCard, a blockchain mobile-identity platform, and Alhamrani Universal (AU), the largest ATM solution provider in the Middle East.
In order to carry out facial scanning, each of these ATMs will use biometric scanners.
Further, the ATMs provide five-factor authentication along with other certification methods.
These methods will aim to verify the identity of every credit card user individually without actually accessing their bank accounts.
The five-factor authentication mechanism includes timestamps, ShoCard ID, session IDs, a barcode, and facial scanning.
The combination of all the processes do away with the conventional method of using four-digit PINs to access the funds.
The bank-agnostic design of the AU prototypes is considered to allow a perfect flow of information between many providers and institutions.
The technology behind ShoCard does not only protect the privacy of the users during the process of authentication, but it also provides authorization of the transaction, true-digital signatures, and frictionless login that does not require usernames or passwords.
According to the CEO of ShoCard, Armin Ebrahimi, this solution fits nicely into the existing ATM technology and could potentially solve the issue of ATM card fraud.
The protection of users and banks, Ebrahimi says, comes with the integrated blockchain technology that verifies the identity of users, therefore allowing only legitimate withdrawals.
The ATM prototypes, as an innovation, are also a part of a much larger national movement in Saudi Arabia to transform the nation digitally.
The CEO of Alhamrani Universal, Tariq Abdat, reported that the company is delighted to work with ShoCard regarding the development of these biometric blockchain ATMs, in part due to Saudi Arabia's Vision 2030 initiative, which aims to diversify the nation's economy.
This wider movement includes collaboration between partners in order to come up with solutions that will meet continual demands for innovative technology.
The blockchain-based biometric ATMs are still in their testing phase and are expected to be launched shortly by Alhamrani Universal.
