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Top Risks in Face Recognition for Customer Authentication—and How to Fix Them

Top Risks in Face Recognition for Customer Authentication—and How to Fix Them

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From fintech startups to global airlines, businesses today are investing heavily in digital identity management systems. At the heart of this transformation lies face capture authentication—a technology that offers seamless, secure, and contactless access for customers. In sectors such as banking, retail, healthcare, education, travel, and law enforcement, facial recognition is streamlining onboarding processes, reducing fraud, and ensuring regulatory compliance.

With its unmatched convenience and enhanced security, face capture has quickly become a preferred method of customer authentication. The appeal is clear: faster check-ins, fewer forgotten passwords, and a substantial drop in identity fraud. But like any transformative technology, face authentication isn’t without risks.

In 2019, researchers demonstrated a bypass of Apple’s Face ID by exploiting weaknesses in liveness detection. By placing modified glasses on an unconscious person, they tricked the system into unlocking the device. While this attack was highly impractical for real-world scenarios, it underscored that even advanced facial authentication systems can be vulnerable to sophisticated spoofing if liveness detection is not robust. 

With the growing popularity of generative AI tools, fraud has assumed novel methods like deep fakes, AI morphs, face swaps, etc. While AI tool availability is the main reason behind the recent changes, fraud attempts will always take newer forms, if not AI, through some other means.
To combat security threats that are continuously evolving, enterprises need multi-modal identity management.

Identity Management Has Found Its Stride

We’ve come a long way since 2019. The field of identity management has seen great innovations, especially in the last couple of years. Biometric identity data is being used even by governments and banks, especially in the Middle East, for secure authentication.

However, scammers haven’t stopped in their attempts at trickery, especially entitlement fraud. With advanced liveness checks and multi-modal authentication, we can prevent fraud almost completely. Nevertheless, businesses should evaluate loopholes in systems regularly and upgrade legacy identity management systems.

A Few Complications and New Risks

While face capture authentication solves critical problems—like curbing cybercrime, eliminating password fatigue, and expediting customer service—it also raises significant concerns.

In 2024, an Australian facial recognition provider for bars and clubs suffered a major data breach that exposed over a million sensitive records, including facial biometrics, driver’s licenses, addresses, and club memberships. The breach occurred when former developers allegedly leaked the data in retaliation for unpaid wages. The incident prompted regulatory scrutiny and highlighted the dangers of storing large volumes of biometric data without adequate safeguards. Biometric data, by its very nature, is sensitive and irreplaceable. A compromised password can be changed; a compromised face cannot. Any biometric info should be handled in the most secure way possible. While raw facial images are less directly exploitable than biometric templates, the exposure of such data still poses significant risks for identity theft and entitlement fraud

Incidents like these can be prevented by more stringent biometric identity checks. Raw facial images should not be enough to authenticate a person. While facial recognition increases security and efficiency, it also adds layers of responsibility, both technical and ethical.

How Can Businesses Harness Face Capture While Managing Its Risks?

How can organizations strike the right balance between the power of face capture authentication and the potential pitfalls that come with it? How do they ensure that convenience and security do not come at the cost of privacy, inclusivity, and user trust?

A Smarter, Safer Approach to Face Authentication

Leading identity management companies are tackling these challenges head-on, with thoughtful design, layered safeguards, and responsible governance. Here’s how:

  1. Liveness Detection to Stop Spoofing
    To ensure a real human is in front of the camera—not a static image or a deepfake—many systems employ liveness detection. This can include requiring the user to blink, turn their head, or utilize 3D sensors to confirm depth and motion.
  2. Fallback Authentication Options
    When face authentication fails (due to lighting, hardware issues, or physical changes), users can still access services using fallback methods such as PINs, QR codes, multi-factor authentication, or human verification desks.
     
  3. Bias Testing and Inclusive Design
    To reduce errors and discrimination, vendors conduct regular bias testing across race, gender, and age groups. This testing is coupled with algorithmic improvements and quarterly audits to maintain fairness and reliability.
  4. Consent and Transparency
    Transparency is critical. Companies must clearly explain how biometric data is collected, stored, and used, ensuring informed consent from every user and compliance with global privacy laws like GDPR or CCPA.
  5. Advanced Data Security
    Storing facial data requires encryption, strict access control, and secure cloud or on-prem environments. Identity Management solutions store images in code and not as images. By treating biometric data as sensitive as financial records, companies can better protect it from breaches.

Secure Identity Begins with Thoughtful Collaborations

Face capture authentication is transforming the way we verify identities—making it faster, safer, and more seamless than ever before. But with great power comes great responsibility.

Organizations that wish to unlock the full potential of biometric authentication must adopt a proactive and ethical approach. By implementing liveness detection, fallback options, robust privacy policies, and continuous testing, businesses can protect both their customers and their reputations.

Biometric authentication usually involves collaborations between data sources and organizations. So, the security of authentication systems is also dependent on the honesty of your collaborations. We at TrueID understand the need for biometrics as well as the risks involved. With advanced biometrics, holistic identity management, transparent policies, and continuous upgrades, we support several businesses in domains like banking, governance, e-commerce, and insurance that leverage biometric identity management without worrying about risks and data breaches.

Want to explore how your business can implement secure, privacy-first face authentication? Watch this space for more biometric identity insights, real-world use cases, and a roadmap to responsible identity management.

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