Zachary Amos is the Features Editor at ReHack.com. His tech insights have been featured in VentureBeat, TalentCulture, ISAGCA, Unite.AI, HR.com, and numerous other publications.
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Biometric authentication has become pivotal in fintech because it allows users to access banking apps with a simple fingerprint, facial scan or iris recognition. This technology enhances user experience while significantly reducing fraud. However, as security measures evolve, so do cybercriminal tactics.
Biometric hacking has become a growing concern. Unlike passwords, this type of data is permanent and cannot be reset if compromised, making breaches more dangerous. This rising threat highlights the need for app developers to implement advanced measures. These upgrades must outpace dynamic cyberthreats while ensuring a smooth and secure user experience.
What Is Biometric Hacking?
Biometric hacking exploits weaknesses in authentication systems to gain unauthorized access to sensitive accounts or data. As banking apps and fintech platforms increasingly rely on fingerprint scanning, facial recognition and voice authentication, cybercriminals find new ways to manipulate these systems.
Beyond security risks, reliance on biometric technology raises bias concerns and data protection issues. Poorly designed systems are less accurate for specific demographics, leading to discrimination and access issues.
Additionally, the lack of transparency around data collection leaves users vulnerable to misuse and surveillance. Stronger safeguards, ethical practices and bias-free technology are essential to protecting consumers and ensuring fair, reliable authentication.
How Biometric Hacking Threatens Banking Apps
Biometric hacking jeopardizes banking apps, exposing users and financial institutions to fraud, identity theft and costly breaches. In 2023, the average incident response cost for a ransomware attack was estimated at $4.54 million, highlighting the high stakes of cybersecurity failures. Here are some of the ways this cyberattack threatens apps:
- Spoofing attacks: Hackers use fake fingerprints, masks or high-resolution images to trick biometric scanners into granting unauthorized access.
- Data breaches: Malicious actors can sell stolen data from poorly secured databases on the dark web or use them for identity fraud.
- Replay attacks: Cybercriminals intercept and reuse authentication data to impersonate legitimate users.
- Man-in-the-middle attacks: Hackers intercept data during transmission, manipulating the authentication process to gain access.
- Malware exploits: Malicious software can compromise banking apps, capturing credentials without the user’s knowledge.
- AI-powered deepfakes: Advanced artificial intelligence tools can generate hyper-realistic facial or voice deepfakes to bypass biometric verification.
- Regulatory and compliance risks: Failing to secure data properly can lead to legal consequences, regulatory fines and loss of customer trust.
5 Ways Banking App Creators Can Prevent Biometric Hacking
As biometric hacking techniques become more sophisticated, app creators must take proactive steps to strengthen security and protect user data. Here are strategies to reduce the risk of breaches while ensuring a seamless user experience.
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Encrypt Biometric Data End-to-End
Securing biometric data with strong encryption protects users from fraud and identity theft, but centralized storage systems remain a prime target for hackers. App developers can adopt decentralized storage solutions that distribute data across secure networks to reduce breach risks.
Blockchain technology is a leading example. It offers transparency, decentralization and immutability — making it much harder for cybercriminals to compromise user data. Leveraging this tool can ensure credentials are secure and under the user’s control, which eliminates the need for third-party data management. This approach reduces the risk of mass breaches while reinforcing consumer trust in biometric authentication.
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Implement Multilayered Security Measures
Relying solely on biometrics for authentication leaves banking apps vulnerable to sophisticated hacking attempts. Developers can create a more robust security framework by combining biometrics with PINs, passwords or behavioral authentication — such as keystroke dynamics or device usage patterns.
In addition, enforcing multifactor authentication for all remote access to an organization’s network — as well as privileged or administrative accounts — reduces the likelihood of damaging cyber intrusions in banking sectors. This extra security barrier makes it exponentially harder for hackers to exploit stolen credentials, enhancing overall system integrity.
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Regularly Update Security Protocols
Frequent software updates strengthen banking app security by patching vulnerabilities and preventing emerging threats. Cybercriminals constantly change tactics, and outdated systems create openings for biometric hacking attempts. Regularly updating security protocols allows apps to avoid potential exploits and reduce the risk of breaches.
Implementing AI-driven anomaly detection adds a layer of protection by identifying unusual login behavior in real time. This technology can detect suspicious activities — such as logins from unrecognized devices or abnormal access patterns — and trigger additional authentication steps to block unauthorized access.
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Use Liveness Detection Technology
Banking apps must integrate liveness detection technology to prevent spoofing attacks and differentiate between real and fake human features. Advanced liveness detection solutions process data using 3D scanning, analyzing depth, movement and other subtle characteristics to verify authenticity.
This AI-powered approach improves the system’s efficiency by detecting attempts to bypass biometric authentication with photos, masks or deepfake technology. By continuously learning from real-world interactions, AI-driven liveness detection becomes more effective at identifying fraud attempts while maintaining a seamless user experience.
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Limit Biometric Data Storage
Storing biometric data locally on a user’s device instead of cloud storage minimizes security risks and protects sensitive information. With a 71% increase in cyberattacks using stolen or compromised credentials in 2024, centralized databases have become prime targets for hackers looking to exploit authentication systems.
Keeping this data on the device can reduce the risk of large-scale breaches while giving users greater control over their personal information. Implementing cryptographic hash functions enhances security by ensuring raw biometric data is never in its original form. This makes it nearly impossible for cybercriminals to reconstruct or misuse it.
The Future of Biometric Security and Fintech’s Responsibility
Fintech companies must implement advanced encryption and AI-driven fraud detection to protect users from emerging threats. As biometric technology becomes more complicated, financial institutions must stay ahead of malicious actors to create a safer and more seamless banking experience.
