#Japan #Tokyo #LIQUID #FIDO2 #GMO Aozora Bank

Enhanced Security for Online Banking Accounts

In a significant move to elevate online banking security, GMO Aozora Bank has partnered with Liquid, a specialist in identity verification solutions, to implement an innovative biometric authentication system. This new framework is designed to strengthen user verification processes, providing a more secure banking experience for customers.

Overview of the New Security System

The collaboration utilizes Liquid's advanced personal verification technology to create a streamlined system for user identification, ensuring that account access is limited to authorized devices alone. This initiative involves the use of the “JPKI+ (Facial Recognition)” feature, which incorporates the My Number Card for identity verification. After the initial verification step, face recognition technology binds the banking services to specific devices, thereby minimizing the risk of unauthorized access.

At the core of this system is the adoption of FIDO2 protocol, which relies on a passwordless authentication strategy. This conforms to international standards for online verification, allowing users greater flexibility while maintaining strict security measures. With the integration of biometric authentication—specifically through smartphones—customers will no longer have to remember complex passwords, significantly mitigating the risks associated with password breaches.

Pioneering Implementation

The implementation of this biometric authentication system is particularly noteworthy, as it represents the first instance within GMO Aozora Bank of utilizing Liquid's facial recognition technology to limit specific devices during account access. This initiative aims to create a safer online banking environment, providing users with peace of mind against identity theft and financial fraud.

Starting this winter, the new security features will be gradually available to most bank accounts held at GMO Aozora Bank. The goal is to furnish all customers with enhanced authentication protocols, thereby boosting the robustness of online banking security.

Responding to Rising Fraud in Online Banking

As the frequency of identity theft and phishing attacks increases, the need for rigorous identity verification mechanisms has never been more critical. According to reports from the National Police Agency, there were 4,369 incidents of online banking fraud in the year 2024 alone, leading to substantial financial losses amounting to 8.69 billion yen, primarily attributable to phishing scams.

In light of these statistics, the Financial Services Agency has revised its supervisory guidelines, making it mandatory for financial institutions to deploy authentication methods like passkeys that resist phishing attempts during logins and fund withdrawals. This evolution demonstrates a pressing need for the financial sector to adopt more secure verification practices, beyond traditional methods reliant solely on usernames and passwords.

Components of the New Identity Verification Framework

The new identity verification system comprises three synergistic components:

1. Initial Account Opening: Leveraging the IC chip of the My Number Card alongside facial recognition for identity verification, minimizing the chances of fraudulent applications.
2. Device Registration with Passkeys: Using face recognition to restrict service access exclusively to the authorized user's devices.
3. Service Utilization: Employing passkeys for login, effectively thwarting impersonation attempts during service access.

Changing devices due to upgrades will still require users to initiate the verification process again. Subsequent logins can utilize the newly established passkey system.

Unique Aspects of Liquid's Personal Authentication Solution

Liquid's proprietary identity verification solution stands out due to several innovative features:

• - JPKI+ (Facial Recognition): This function allows for the simultaneous capturing of facial images during public personal identification verification, which is not available in traditional systems. This technology ensures that the person applying for services is the legitimate account holder.
• - Utilization of Initial Account Data: Liquid retains facial images collected during account opening and employs them to verify identities during service usage, reducing risks associated with third-party access.
• - Adoption of FIDO2 for Passkeys: The unique structure of Liquid's system requires face recognition for unregistered devices, ensuring that even in the event of account takeover, unauthorized transactions are prevented.

Comments from Company Leaders

Ukichiro Iwaki, Executive Officer of GMO Aozora Bank:

“We have consistently integrated cutting-edge technology to balance convenience and security in internet banking. Our collaboration with Liquid to establish safeguards against unauthorized account creation and usage is a significant step towards securing our customers' online banking experience.”

Takaki Hasegawa, CEO of Liquid:

“As identity theft methods become increasingly sophisticated, there is a higher demand for secure yet convenient identity verification solutions. Our collaboration aims to set a new standard in authentication by combining strict identity checking with advanced facial recognition and passkey technology.”

Conclusion

Through the implementation of these advanced security measures, GMO Aozora Bank and Liquid are committed to creating a secure online banking environment that prioritizes customer safety and convenience. The financial industry is evolving rapidly in response to emerging threats, and this partnership represents a proactive approach towards enhanced security protocols.

Both companies are setting a precedent for future innovations in identity verification solutions, aiming to further strengthen customer trust and security in financial services.