UAE Residents Raise Privacy Concerns as Banks Shift to Mandatory Biometric Verification

Government

UAE Residents Raise Privacy Concerns as Banks Shift to Mandatory Biometric Verification

As banks across the UAE continue to strengthen digital security measures, many have fully transitioned from traditional one-time passcodes (OTPs) and security PINs to in-app authentication systems that rely on biometric verification, including facial recognition and fingerprint scanning.

The move comes amid a rise in phishing attacks, financial scams, and online fraud incidents, with financial institutions aiming to provide customers with more secure methods of accessing banking services and approving transactions. However, the increasing reliance on biometric authentication has sparked concerns among some UAE residents regarding privacy, consent, and data protection.

Dubai resident Ann M. expressed support for enhanced banking security but questioned the growing trend of making biometric authentication mandatory.

“I understand why banks are strengthening security measures, especially with the increase in scams and fraud. However, making biometric authentication compulsory raises concerns about consent, privacy, and responsibility,” she said.

According to Ann, while biometric verification may reduce the risk of remote fraud, customers could still be vulnerable to physical coercion and other forms of security threats. She emphasized that consumers should retain the right to choose how they secure their financial accounts and devices.

Cybersecurity experts acknowledge the advantages of biometric systems but caution that evolving artificial intelligence technologies are creating new challenges.

Maher Yamout, Lead Security Researcher at Kaspersky, explained that biometric authentication generally offers stronger protection than OTPs. However, advancements in AI-powered tools are making it increasingly possible for cybercriminals to imitate or exploit biometric identifiers.

“Banks and financial institutions must ensure that biometric information is encrypted and securely stored to prevent unauthorized access,” Yamout said.

He noted that unlike passwords or PIN codes, biometric data cannot be easily changed once compromised, making its protection even more critical.

“Since biometric information cannot simply be replaced like a password, organizations have a responsibility to implement the highest security standards to safeguard it from misuse and unauthorized access,” he added.

The UAE Central Bank's regulations require financial institutions to protect customer credentials from vulnerabilities and unauthorized access while continuously monitoring biometric authentication systems for potential security breaches.

Yamout further recommended adopting multi-factor authentication methods that combine biometrics with PINs, passwords, or other verification factors.

“Using a combination of something a user is and something a user knows significantly strengthens security and reduces the likelihood of unauthorized access to sensitive financial information,” he explained.

Similar concerns were echoed by Rihea Sadarangani, Founder and CEO of marketing agency Iconic Episode, who questioned the growing lack of alternatives to biometric verification.

“My fingerprint is not something I can change, and there are times when it does not even work properly during authentication,” she said.

Sadarangani noted that customers are increasingly being encouraged—and in some cases effectively required—to enable biometric verification when using banking applications.

“There should always be an option to use a PIN or another authentication method. While biometrics offer convenience, banks should allow customers to decide what level of privacy and security trade-offs they are comfortable with,” she said.

As UAE banks continue their digital transformation efforts, the debate surrounding biometric authentication highlights the challenge of balancing enhanced security with customer choice, privacy, and trust in an increasingly digital financial landscape.