Steve Cook - Bioecom - Ethereum London

let me just explain Who I am I'm a consultant in biometrics and FinTech space I've been in the biometrics industry for about eight years now I consult with banks FinTech startups anyone that's getting interested now in the the biometric space and basically help them with their business strategy from a global point of view and how they develop this tech and how they roll it out I'm currently assisting the new fin tech company based in the u.s. called face tech I will tell you a little bit about them in the presentation as it as it comes up I started a LinkedIn group called biometrics for e-commerce this was started in 2011 I thought that I would get about five hundred members to this to explain a little bit about the biometrics market and it's now grown to around 23,000 members and you're welcome to join this group as well ok so we hit one more so biometrics who's heard of biometrics first of all sure ok good next one now so what we're seeing in the biometrics space is that it's being rolled out into many different verticals and I'm sure you're aware that smartphones in particular having endorsed biometrics with regard to a simple login being able to open up your phone instead of using your username password or PIN another key area where biometrics is being used is obviously at airports with airport security using your biometric passport to identify you as well as being is using it for egauge many countries have adopted what they call frictionless biometrics and that is being able to walk through the terminal be recognized by facial recognition and you can actually on board an aircraft as long as the system recognizing you this has been piloted in a few countries right now in particular Australia are experimenting with this and we all have had bad experiences with airports and queues and this is becoming an issue because more passengers more travel is is obviously happening and this is primarily where I think we're going to see by metrics taking a strong lead there are other areas on here it's it's creeping into healthcare education vehicles new terminals us vehicles it as well whereby you know as a driver you'll be able to access the system we're using your fingerprint or your face and they experimenting with these types of cars in in all places Las Vegas right now and it's been rolled out again in in certain areas wearables is another strong area and I'm sure some of you are using variables for maybe health reasons or maybe for jogging all these kind of areas where by capturing your your heart rate and this kind of data is is being used for that as well as accessing the tube all these kind of areas are wearable you can go through on certain gates with thing a ring on your finger and that again is going to be more prevalent as well guess we're gonna have to switch another slide so I'm going to talk one particular area of where biometrics is really being rolled out again and it's particularly in digital banking you may recognize some of these banks these are the top 50 digital only banks in the market right now what's their difference why why are they gaining ground in this area well the investment in these banks is quite significant and some of these brands you will recognize some you won't because they're in different markets so north is not so well known particularly with regard to the likes of mons oh I'm sure you've come across a rover Valu who's got accounts with some of these brands up here sounds reason summer lower the banks tandem have got significant investment chime is a US company the second second one there is based in Brazil and it's doing phenomenal business in terms of rolling out their mobile only bank and using just a simple touch ID on their phone okay let's go again so why what's happening here and you'll probably won't come as any particular surprise here is to see how consumer trends are changing from the traditional branch banking and telephone banking that we've been used to ten years ago the shift is all going mobile mobile banking is becoming very very prevalent okay so by the next couple of years we're going to see nearly two billion people using a biometric component as part of their credentials when opening up either their bank account or doing transfers and so on some of you might be doing this already today but this for not this number is quite phenomenal when you look at the number of people that are unbanked in the world and don't have digital identity so obviously in the predominant markets USA Europe and particularly in Asia you're starting to see a very strong take-up of biometric technology I'd have to go again Kemp okay we're gonna have to sweep 3d put these all down yet okay so certainly in the next couple of years we are going to see mobile banking overtake all other forms of banking in particular you know telephone and online that is the way the trend is moving these statistics from UK finance found that 22 million customers were currently using their phones to just access their current bank accounts doing limited transactions without the necessary risk but it's as you can see more popular with Millennials that age group is very much in do you want to come through well they come in particularly you're starting to see these Millennials you know with their obviously with smartphones with tablets being able to enjoy the experiences of mobile banking and if you have a legacy account let's say you know the H of C's Barclays ascent and there's the Lloyds the RBS is in the UK they are trying their best to catch up because they have focused on their traditional branch banking and you know there's a statistic in the UK at the moment that around 50 banks per week are closing their branches because of the competition from the digital-only banks that they weren't worried about nearly five years ago were they're worried about them now so what can they do they're starting to look at their mobile offering with their banking and they're trying to make the whole process a lot more easy and frictionless when it comes to logging in and you're also also start to see sort of the the Z generation say start to take this up as well in this particular area okay let's switch again so here's just a an interesting perspective for a chart where you're starting to see obviously Millennials take it up again so what's driving who's driving this was certainly Apple when they launched iPhone 4 in 2014 the first time they launched a biometric a touch ID was really one of the driving forces into the consumer market making people aware of what how easy it was to open up their phone or make a make a payment with Apple pay and now Apple have decided they're going to abandon the fingerprint completely and they they see face ideas being prevalent and probably over the next few years as well facial-recognition will become the standard the virgo two application for a digital identity okay and particularly in the tech market you are seeing all devices have a biometric component and certainly over the next couple years every single device that will come out will have some form of biometric earth syrtis enablement okay it's a bit strange here's a bit of boring stuff now only a couple of slides I could have talked about this for another hour but what you're seeing in the EU is that you can bring it all down actually now you can we've seen any use regulation coming into play something called PSD to which is the payment services directive GDP are you probably have heard about so general Data Protection Act and the anti anti money laundering Act as well but in particular with regard to payments which affects everybody in this room now that's going to be something called strong customer authentication this is coming into force and will be law in September next year it will mean that all banks or we commerce companies retailers will have to comply with these EU rules it doesn't matter about Brett Briggs it has no impact on this standard because it doesn't matter where the payment originates if the one leg is in the EU this has to be adopted strong customer authentication what that means two-factor authentication you've heard a two-factor authentication so it's combining a minimum of two factors into a payment process to verify who you are in a payment transaction there are certain exemptions for example contactless payments will not come fall under this remit but the majority of payments that you do online or on your phone will go through this process and you think well crikey there's gonna be a lot of friction here how am I going to get my you know my shopping done and but going through this process there were just too these items that are needed for strong customer authentication this means that something you know is a knowledge-based thing this is something you're probably using already a pin password a secret any of these kind of knowledge-based things that has to be independent of something you own the the possession factor relates to like your smartphone your tablet your device or it can also mean your bank card as well and you're starting to see biometric cards come out mask art of experimenting again with biometrics instead of a PIN number because it's just easy to hold your thumb on top of the card and do a contactless payment that way and the other area of course is what I'm here for to talk about is inherent biometrics these these elements have to be independent one can't breach the other and if it does there are some serious finds when it comes to the bank's themselves so they're all in a race to get this done by September I won't tell you about the RTS that's kind of the technical standards that form the basis of this implementation and the FC the SCA have laid down the ground rules for this implementation this does affect tech companies by the way I have to tell you because the FCA have to vet these kind of Tech's as well I'll come on a little bit about that later if we move on again so the process of dynamic linking between those different modalities with an inherent code that is positioned in the transaction and this happens automatically as the process then you're probably thinking Jesus got to do this every time I buy a coffee no it's not it's not that difficult to do a selfie for example if you're doing something online with your phone or with your desktop with the device that you have let's move on again so I can let's talk about what you are in terms of a inherits so by matrix them cells fall into two categories the physical side that lets you are and the perl side and behavioral biometrics are starting to put also play a huge role in your session online and you may not be aware that your session has been monitoring you wondering why do I get all these pop-ups to actually sell me something I might like well that's because your behavioral your behavior is being monitored online and when you click cookies and click your GP and our statement that's where behavioral is actually starting to understand what kind of things you're doing what you're looking at kind of webpages you're going I've got into and so behavioral is quite important because it's passive the majority of physical biometrics require a task so selphie requires you to do something fingerprint requires you to do something new technologies like palm and vein technologies are coming through as well you know about iris down the road where we see DNA as being a way of your digital identity and your credentials you know we'll have to see okie-dokie so these are kind of what the trends were last year face really only made up about 7% it's kind of increased to around 10% but solium predominantly the number of people in that are using smartphones today still have iPhones with touch ID so who's using a biometric component on their phone to log in so using a finger but anybody using it got iPhone 10 please use your iPhone 10 so you are quite used to using your face to log into your phone or maybe you just prefer pin however this is kind of where the market has been hasn't really changed a great deal at the moment face still isn't kind of getting that traction Apple are pushing it Samson pushing it from the tech perspectives but the banks are going to rely on it because it's probably the most reliable off the biometrics apart from iris iris is the strongest but there is not the hardware in the market to really capture the data and the signals that are needed for iris so face is probably the next best thing okay this was survey by Jimmy I do sorry scared you there so you'll start in there to see bye make sure is to tell you a significant role in financial services and obviously mobile access probably going to go through these a little bit quicker now so what are the challenges so it's not a hundred percent science it's a probability you know that a password is either right or it's wrong a biometric relies on probabilities is that you that's definitely you and the there are issues around biometric technologies for in particular banks to rely on particularly because fingerprint is held on the device they don't actually know that's you they know that that device belongs to you but they're not sure about that fingerprint the bank tells you only to register one fingerprint for your bank account but of course our kids are on our phones all the time and they've registered their fingerprints too so there are vulnerabilities with fingers obviously we've all experienced these these these kind of situations where our fingers are too dry we can't get into our phone we get frustrated there are conditions and that kind of thing the identification area in terms of you know the space captured on your phone it's very very small my note can that be compromised well it's been proved that they can a latent print can be pulled from the phone and it can actually get into the person's phone many hack have done it it's very simple to do the vulnerabilities and conditions that affect voice if you're in a very noisy area it's very difficult to log into your bank account and say my my voice is my password so there are issues around voice is not as reliable because it can be mimics and it's been that's also been hacked as well there was a couple of BBC twins from clique that managed to hack into each other's count simply by their voice they did actually have eight goes before they were able to get in that was mainly the bank's fault for not actually challenging them maybe after two or three but nevertheless it does have vulnerabilities face suffers from these things as well if it's too bright if there's too much sunshine even the iPhone 10 suffers in bright sunshine to actually take a 3d map of your face and if it's too dark some facial recognition systems also are vulnerable in those situations to the other thing about face and I'll talk about face because that's my specialist area is that face can be spoofed the last three technologies that have been on the market have shown that photos video playbacks masks ai and 3d models have all proved that they can get into an account by simply one of those methods we can move on as well and again so it's something going to talk about spoofing are you aware what spoofing is yes so impersonating somebody it shows that spoofing was really came to the fore about a year ago simply because tech companies had developed this technology was all well and good doing as selfie but actually how do we know that's really you how do we prove it and so spoofing technologies started to come onto the market like this detection there's one particular area as well okay so photographs were quite easily to get past systems and again sorry and again and your typical froster knows this and I say typical the most sophisticated fraudsters use the dark web in order to gain all the information that they need to do to not just hack accounts but actually work out how to get past certain systems okay let's go again I'm going to play you a video now and show you how easy this is to spoof and this is all you need doing this was done in about a minute just like the example shows and it's going to generate a basic mesh so on this step we can spend as much time as we want adjusting all these control points to be as accurate as possible adjusting it to our picture we're going to keep it simple and just make some very simple Corrections and our mod is going to be ready to go but you can spend more time if you like and you're gonna get a more realistic result once you're ready just click Next adjust the orientation of your picture now we can start animating it if you want so for example if I want to import a talking animation and the sculpture already have many examples there we go step we can just load it and our model is ready to go and it's talking another example of what we can do is control it real time so for example I can move my mouse and it will make the model look around and I can click and only you could imagine that for liveness technologies that use this type of indicator whether the subject is blinking or smiling or looking around I could be just holding my phone right here moving my mouse and responding to whatever the software asked me to do so as you can see it's it's pretty easy to do foresters know this and they are able to do this in onboarding processes I'll talk about that in a minute we've got time on conscious at the time and five minutes or so okay let's move on their camp so I'm going to talk about this company because I'm now representing them here in the UK there are many biometric companies have that have sold the spoofing issue it's very very difficult it's difficult text so the only way biometric companies have been able to do this is to get third-party testing done by a lab like NIST which is an approved lab run by the US government and the DHS as well and they have lots of different labs related to them one is IBT which you can see here and this company has actually gone through a vigorous test over the last year to build technology that is basically a liveness check that stops all kinds of spoofing it went through 1,500 different spoofing attempts it never failed once and it's become very clever and this is the standard now that biometric companies are trying to get to to make sure that your credentials are safe and move on so I'm not going to talk about this too much we could who's in to the blockchain space here yes everyone ok figured ok well I don't need to tell you any of this then really but certainly when it comes to digital ID entity blockchain is becoming quite prevalent and sitting alongside the blight the biometric technology there is a place for what trained in the digital identity space there is no question that looking at the more secure channels of the way blockchain operates this is going to be the future so I think you all in the right space think about how they this - and what you have to understand as well and as you all nice and young any agency is that when you talk to commercial companies their understanding of biometrics is quite limited let alone understanding what but blockchain can do and you have a lot of stakeholders in in in these billion billion dollar banks that really can't get their heads around this and what I've been doing is consulting with a lot of banks to kind of get across why they need to think about it all this new tech is all coming down the stream so it's it's certainly becoming more and more prevalent when it comes to digital identity and having a more central repository camp because we can move on here and I'll probably move on here but the only statistic here is there's still over billion people in the world that do not have any form of official identity themselves and I think blockchain has a goal here to reach out to the unbanked people of the world because the Western world for sure yeah we we are online all the time we're connected to everything so let's move on skip this one because this would be in my presentation which you can have you can email me or talk to cam about having this as well again so passwords aren't we fed up with passwords I mean we have to have so many passwords for so many things we're supposed to change them regularly we don't we use the same ones we use variations of the same ones we forget them it's all the usual friction it's last century's technology still in play today if you open a bank account with any of the top five banks you've got to create a password you create two or three secret quest if you don't write them down you've forgotten them so password resets are a major issue so both biometrics and blockchain has a role here we want to get rid of passwords passwords have been dead we're just reluctant to kind of move on okay and they're problematic as you can see they cost companies a fortune to maintain the average percentage to a call center to reinstate your account is around it's around 20 25 percent of the company's costs replace that with your face your fingerprint or something that you're never going to forget you are the password it becomes an issue to companies to maintain the password technology ok we can move on the other area of course is we're familiar with data breaches all over the place our data is out there on the dark web for sale it's it used to be quite expensive to get your credentials now it's easy getting your username passwords to certain things credit card details it's all out there I was speaking to an expert in who dealt with the Chinese market and he said he said Steve he said don't worry they just haven't got around to you they've got your details but they haven't got around to you so feel lucky and that's the situation all our details are out there we're in the connected world there are so many incidences where we've got accounts with if you've got Instagram if you've got Facebook if you've got all these social media accounts they've all been hacked they've all been hacked your details are out there so how can we protect ourselves in the future you know using yourself as a credential it's probably one of the ways ok just quickly about onboarding onboarding when you set up a Monzer account for example you'll go through this easy process of them capturing your passport you go through a Selfy process you then go off to a kyc where they check your credentials with third-party organizations and in your account is approved we can move on here now that's a typical photograph of a passport that you would take the monser would take this is a fraud passport think about how easy that looks from the point of view that doesn't cost much to do and so force us know this when they use that they can a I the face model they can clean it up they can then go for the onboarding process of a passport capture selfie and animate the selfie and set up an account now all these bands that you saw they're all being hit by fraud tons of it yeah how can that be protected more and more so going back to the company I was talking about liveness detection proven that is a photograph that is animate animated a long model that is being used to portray a video of you in Monza you have to nod your head left right the technology companies that sit behind these big companies are racing to get more done in this in this situation one company has addressed it and that is Jun me Oh Jimmy o have looked at liveness technology they've integrated face text into this process and so far they've not had one incident of onboarding fraud and this is a signal that they are trying to clean up the security elements of onboarding so okay here we go I think I'm times up roughly I've got five okay so yeah I've more or less come to the end so really the here it stands the reason why banks are thinking about employing byte matrix in terms of its going to incur increase the customer engagement the brand is going about better it's going to reduce its cause it's going to increase its security elements around its protocols and so on so I couldn't expand a bit more on that but I'm going to leave some time for some questions I didn't have a nice video at the end of this but I'll leave it in the presentation which you can all enjoy at a ladies day okay next one you're on the video now it's about five minutes he's your typical online user it's on the presentation so is that are you using biometrics are complimentary but into block Jen I'm trying to understand how people should actually well it's it's a component of the process so it acts to the security of the the public and private keys which are issued on the device for example self something right as opposed to the bank having my face toward the bank of my face I'm okay maybe with my device having my face the kind of technology that you are pushing or is it more around the bank having well I'm an advocate of biometrics so if it's pushing it into the self sovereign area and it does work in certain markets for that for sure it's it's a good opportunity but it's not the only thing because it's regulation connected to this technology as well self sovereign might work in some markets but in markets which are not regulated there could be issues with understanding how that's regulated who's holding those components when you say self sovereign you know what where are your credentials actually held they're held on the blockchain can the blockchain be compromised well I've heard it can well if they're held on the device your device certainly can be compromised this potentially make anybody lose their keys okay on last question we're all looking hmm well live liveness liveness does have an issue I mean you know it's like the law enforcement trying to break into it as well you know when a citizen doesn't give their permission to use their biometrics it's the same thing there it's as I said its style of the talk we're not talking about perfect science we're talking about this technology coming into play for convenience at the consumer the biggest bug bear is passwords that it's trying to get past in terms of all our accounts that we have right now why can't you just use your fingerprint face voice that can be on the device that can be stored in the cloud or it can be in the case of Bank on their service where they need to identify you in that their people actually the technology that face tech developed was tested with dead people and even dead people did not break the system so they used everything from corpses and so on a dead person should not be able to authenticate yeah I think absolutely okay guys so yeah come play your video for you but it's in my presentation