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By Michael John
You probably would have heard this phrase if you've ever been involved in the world of cryptocurrency trading. This is a phrase used by traders every time their investment hits a significant profit. But this phrase might be troublesome if you get caught engaging in illicit activities. Hence, crypto exchanges have high-tech face scanner technology installed that can catch fraudulent activities instantly.
What is a Face Scanner and how is it used in crypto exchanges?
A face scanner is often confused with a single device. In reality, it is not a single device but a combination of a specialized camera and software that can study the facial features of an individual and detect if there is any sort of fraud taking place. So it is a computer with a brain that works on lie detection. But why does a crypto exchange need it?
As you know, a crypto exchange is a money-making business. Therefore, they need the technology for security purposes. They capture the faces using the face scanner and then compare them with the faces stored in the database. In the database, there is a collection or a list of people who are known as scammers or cheaters. Hence, whenever a banned individual tries to use the platform, the security is on red alert. And when the camera catches the person, the security forces are given alerts.
After having said all that, one question might bug you: do crypto exchanges need this tech? And is catching a couple of people who might engage in fraud such a big deal that the exchange needs to spend millions of dollars in installing this expensive tech?
And the answer to this question is Yes! But let's expound upon this concept so that it becomes more clear.
Why do crypto exchanges spend millions of dollars to get the best face 3D Scanner?
If you have ever used a crypto exchange, you would most certainly know that the environment is very dynamic and hectic. Hence, in this constant hustle and bustle, it's very difficult to keep a watch or look out for a suspicious person. Therefore, an effective online face scanner would act like an extra pair of eyes so that it can detect any sort of malicious activity taking place.
So let's elaborate on these points a bit;
1- Personal Security Assistant
As we discussed earlier, security is crucial for a crypto exchange. Hence, employing a 3D face scanner is imperative for the management. It not only acts as a personal security assistant but enhances the entire operations of the exchange.
The security department utilizes the face scanner online to help them detect criminals. The technology used is very efficient as it can find the culprit from hundreds and thousands of people stored in the database. So if any banned individuals are trying to use your exchange, the software will notify you and will also guide you in making decisions.
2- Keeping the Integrity Intact
As you are well aware, cryptocurrency trading is not a regulated activity in many places. Hence, it attracts people from every corner of the globe. It could be a wealthy individual trying to invest in digital assets, or it could be a person trying to launder money. This causes the security team to be on alert at all times. Hence, using a face scanner online allows exchanges to keep the integrity of the platform intact.
So if money laundering is taking place on the exchange, the software will instantly notify the relevant authorities, and the situation will be handled swiftly. Moreover, high-value traders can also be recognized by the software so that you can develop good relationships with them. This will create a level of trust with the management, and these high-value traders would prefer your exchange, knowing that their investments are safe.
3- The additional layer of security
A 3D face scanner is not just restricted to smartphones. It is an additional layer of security for any organization that is not willing to compromise the security mechanism of its operations. Moreover, there are areas within the exchange's operations that are for authorized personnel only. So if an unauthorized individual attempts to access these areas, they would be instantly flagged, and the security forces would be notified. This technology adds a layer of security.
How Can Crypto Exchanges Enhance Their Online Face Scanner Technology?
Exchanges can enhance their security mechanisms by implementing a robust online face scanner that matches the individual’s identity with those in the database. However, to sustain it for the long term, adequate resources need to be allocated to the purpose.
Conclusion
Face scanners are considered the future of crypto exchange security operations. By using this amazing technology, crypto exchanges have the power to improve their work processes and engage in honest trading.
Author Bio
Michael John is a technical writer who has a passion for exploring what's happening in the crypto industry, he mostly explores the frauds and scams happening in the cryptocurrency industry. It is worth mentioning that he has been writing about face scanner and how it is beneficial for cryptocurrency transactions.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.