Adopting a fingerprint verification system for mobile banking will benefit both operators and customers, the national regulator says.
The introduction of a voluntary fingerprint measure is aimed at preventing fraudulent mobile banking activities that are hampering the industry's growth, it said Tuesday.
National Broadcasting and Telecommunications Commission (NBTC) secretary-general Takorn Tantasith said the commission have been developing a mobile application for a fingerprint identification system for months.
Last month, NBTC's telecom committee approved a draft model for the fingerprint system and recommended holding a public hearing in October.
The system is expected to be launched by end of this year.
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"Please don't see this as the NBTC trying to create difficulties for mobile users. This will create more security for customers," Mr Takorn said.
He urged mobile operators to promote the system when it is launched.
Chakkrit Urairat, deputy director for regulatory issues at True Corporation, agreed the fingerprint system can boost security for mobile banking customers. He said the company is looking forward to seeing the full details and discussing them at the public forum in October.
Prinya Hom-Anek, Thailand Information Security Association's vice-president, had mixed feelings about the NBTC's idea.
Allowing users to identify themselves using their fingerprints could improve mobile banking security standards as well as boost customer confidence, he said.
However, he argued a more comprehensive plan should be drawn up before the NBTC pushes ahead with the system.
"The system should be easy to use," he said.
A system using biometrics isn't fail-proof either, Mr Prinya said, adding a customer wishing to use his own mobile-banking application could face problems if his phone fails to recognise his fingerprint.
There must also be a guarantee that users' data and fingerprints will be secure, as well as clear legislation in place as to who will be held responsible in case a central database is hacked.
More cooperation is needed between banks and the NBTC, he said. Public consultation would also help pinpoint users' needs and assess whether such a system is necessary and how it should be applied.
Last Friday, a family in Ayutthaya sought help from the Royal Thai Police to process a complaint they filed in July over the loss of nearly a million baht to an internet banking scam.
The alleged thief contacted True Move, the mobile phone operator which the victim used for internet banking at Kasikornbank (KBank).
The thief fooled True Move staff into issuing a new SIM card without asking to see an authentic ID card.
After getting the new SIM, the thief contacted KBank's call centre for a new passcode for the internet banking system that was later used to transfer money from the victim's account.
KBank insisted its cyber security system works well but the problem was that the fraudster was able to access personal accounts and personal information of the client.
The bank agreed to compensate the account holder in full.