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HR professionals have the opportunity to play a more strategic role in the business by keeping up to date with the latest HR innovations--technological, legal, and otherwise. This special report will discuss how HR managers can anticipate and address some of the most challenging HR issues this year.

Topics in this special report include:

  • Healthcare in 2012
  • FMLA Paid Leave Initiatives
  • Ethics
  • Social Media
  • Environmental Responsibility
  • Workplace Wellness
  • Classifying Employees
  • Retirement of Baby Boomers
  • Identity Theft
  • Communications

Make sure you have the information you need to know about these current HR challenges and how to most effectively manage them in your workplace.

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November 11, 2004
Employee Identity Fraud: Swipe It Away

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Technology offers employers the option of using unique personal identifiers that make it easy for security systems, time clocks, computer sign-in pads, and other types of security gatekeeping systems to positively confirm that an employee is who he says he is. All this is done without the assistance of a human once the data have been captured by an electronic system and saved in a secure database.

Biometric technology–the use of a personal identifier such a fingerprint or a voice, saved as a series of numbers in a central computer database–may just turn out to be the most cost-effective, accurate way for employees to sign into a time clock to start their workday. This method of authentication provides no doubt that a person is who she says she is.

Why is using biometrics for workforce management and access control for time clocks, buildings, computer equipment, and other security-sensitive machinery such a good idea?

James Bianco, executive vice president of Control Module, Inc. (www.controlmod.com), cites the results of a poll of 50 companies conducted by the American Payroll Association: "Three percent to 5 percent of annual payroll is lost to time that is logged by buddy punching or swiping–that’s a big number!"

Many companies, regardless of their workforce size, have already moved away from using traditional time clocks or paper time sheets and now use computer log-in personal identification numbers (PIN) or swiping of bar-coded employee ID cards in order to maintain better control of payroll costs. However, Bianco notes that bar codes and PIN numbers alone cannot prevent someone else from logging into the time system for another employee, since bar codes can be duplicated and PINs shared among staff.


Deploying biometric technology

How does a biometric finger scanner work? Bianco says that the most common use is identity verification. All employees present one or more fingers (generally the thumb or first finger of each hand) at a central processing station when the scanning system is first implemented. The finger scan is then associated with an employee PIN or time clock number to identify each employee and match the number to the image. The image of a section of the finger’s patterns–not a true fingerprint–is saved as a mathematical representation that measures the differences between ridges and valleys in the finger, explains Bianco. Since the scanner’s sensor is developed to read below the first layer of skin, cuts, bruises, and scrapes do not affect its accuracy.

Once the scanned image is preserved in the company’s central computer, the employee keys in a PIN and places the finger on scanners at approved locations to access entry to a department or building and/or to clock in as he begins work. It takes only a second or two for the scanner and computer software to match the image of the finger section against the captured mathematical representation housed in the central computer, acknowledging that the individual is who he claims to be.

Since biometric technology has been in existence for about 5 years now, Bianco notes that this is good news for small to mid-size employers. As emerging technology becomes more mainstream–and more common–the pricing generally goes down. Using his company’s BIOSCAN biometric finger-imaging system hardware as an example, Bianco explains, "The [scanning device] that originally might have cost about $2,000 is now about $200. Although a full enterprise biometric solution [for a huge corporation] could cost $500,000 or more [for both the hardware and corresponding software for implementation], a small employer [requiring only one reader] could probably implement the entire solution for just under $1,000."

When you contact a company that provides biometric technology hardware, Bianco explains, that firm may also be able to act as a facilitator to assist the employer in choosing the right computer software program and firm to meet the needs of the company. For example, if a company requires the use of the scanner for one location and only for the time and attendance system, there might be a few choices of software that employer can select from. For larger firms requiring the system for multiple uses, such as security access to specific areas and/or equipment and multiple locations, the software choices would be different.

Control Module is but one of a number of companies that offer scanners featuring biometric technology. If you are interested in using them at your company, you should do your homework to identify which company can best fit your needs and budget. One place to start is an online search on Yahoo! (www.yahoo.com), Google (www.google.com), or Dogpile (www.dogpile.com). Enter the phrase "biometric scanner." We did, and it resulted in plenty of hits.


Dealing with employee concerns

Employees often raise concerns about germs and bacteria on scanners, having fingerprints on file, and a wide variety of other somewhat "mythical" complaints. Any employer who wishes to access the articles, "Time and Attendance–Finger Imaging MYTHS and FACTS," or "Biometrics Brings Secure, Accurate Workforce Solutions," may request the articles from Bianco through e-mail at JWBianco@controlmod.com.

Using biometric technology cuts down on time and attendance fraud and saves payroll costs.


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