Page 48 - Security Today, March 2018

Eliminating Fraud
Biometrics is a true friend to time, attendance for employers BTy Mohammed Murad
he challenge of accurately tracking who has worked, and for how long, has exasperated employers for centuries. It is easy to see why—payroll is the
single largest cost for most businesses.
A study by the American Payroll Associa- tion showed more than 75 percent of Ameri- can companies are hit by at least one form of payroll fraud. 2017 research found U.S. companies may lose $373 million each year to one of the most common payroll scams. Smaller companies are most at risk as they
have fewer resources to cover losses.
If there’s a way for people to scam a sys- tem, you can bet someone will find it. Pay- roll processing systems are no exception. For employers, the challenge is staying one step
ahead of scheming employees.
The Old Ways
Pen-and-paper time records can be easily forged or altered, sometimes to the benefit of employers. Mechanical time clocks, in use since the late 1800s and still being used today, were an improvement, but they’re slow and can lead to long lines as employees punch-in at least twice a day. For the past 20 years or so, electronic clocks using ID cards have been popular. Software lets human re- sources import payroll data, reducing tran- scription errors, increasing processing speed and accuracy.
Interesting, but where’s the security in- dustry connection? Access control systems have taken on a time-and-attendance role. Access systems note when an employee ar- rives and leaves the facility using either an ID card or a PIN. Employees are likely to already have a card or PIN for other identi- fication issues.
Cards and PINs can be easily shared, especially for one common payroll scheme known as buddy punching, which involves one employee clocking in and out for anoth- er. It might be for an hour, a day or an entire week. A recent survey of 1,000 employees found that 16 percent admitted to clocking in for a colleague at least once.
The key to stopping buddy punching is authenticating that the employee clocking in is the one authorized to carry the card or use the code. That’s where biometrics play a vital role. You’ve probably heard the saying about access control: A card is what you carry; a PIN is what you know; biometrics authenti- cate who you are.
Only biometrics can’t be borrowed, lost,
stolen or learned. Fingerprint, iris and fa- cial recognition systems integrate well with human capital management software, accu- rately capturing an employee’s daily hours. All take only a second or two to authenti- cate an employee’s identity. Biometrics are very effective in deterring buddy punching and other payroll fraud schemes—including ghost employees, a situation where supervi- sors and back office workers create non-exis- tent workers and pocket the pay.
Incorporating Technology
Major manufacturers of time-and-atten- dance systems have begun incorporating bio- metrics, typically fingerprint or iris readers. Both technologies record enrollment data then compare it to physical characteristics unique to each employee.
However, there can be problems using fingerprint technology in work environments involving substances such as grease, mud and paint—all capable of obscuring fingerprints. Jobs involving manual labor can result in finger cuts and scars. Both situations lead to frequent rejections and the need for re- enrollment. Also, fingerprint recognition is difficult in jobs where employees commonly wear gloves, such as healthcare, food service and warehouses.
Facial recognition technology also has downsides when used for time and atten- dance, changes in hairstyles, facial hair, glasses, hats and other factors can affect ac- curacy.
However, iris recognition addresses each of those challenges. The technology works only with the iris, the colored ring around the pupil of a human eye. It is fully formed by one year of age and doesn’t change throughout a person’s life. Also, every iris is as unique as a snowflake. Even genetic twins have different iris patterns. Few people can’t use the technology, as most individuals have at least one eye. Blind people have success- fully used iris recognition.
Iris recognition works with employees wearing contact lenses, eye glasses and safety goggles and no part of an employee’s body touches the time and attendance system.
To enroll, employees stands about 18 inches from an industry-standard camera and takes a picture of both irises. Integrated software creates a template with more than 240 points of identification. The resulting digital templates can’t be used to produce any type of visual image to spoof the time and attendance—or any other—system. This is not a retinal scan, there are no bright lights or lasers shined into a person’s eyes.
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0318 | SECURITY TODAY
TIME & ATTENDANCE