Selfie-Based Identity Verification OK... Kakaobank Launches Self-Camera OTP Service

Selfie OTP, Transfer Limit 100 Million KRW per Transaction and 500 Million KRW per Day

[Asia Economy Reporter Yu Je-hoon] KakaoBank announced on the 9th that it has launched a Self Camera One-Time Password (OTP) service. This service refers to a system that verifies identity simply by taking a selfie without the need for a physical OTP device.

The selfie OTP introduced by KakaoBank is issued by having customers register a selfie photo, which is then compared with their ID photo to confirm their identity. When using the OTP later, the registered selfie photo is compared with a real-time selfie to verify the user.

Currently, at KakaoBank and most other banks, OTP authentication is mandatory for high-value transfers exceeding 10 million KRW. To do this, customers must either receive a physical OTP (card or token type) or use a mobile OTP that requires entering a PIN. Physical OTP issuance involves a complicated process including delivery, and mobile OTPs that only require PIN entry have raised some security concerns.

In response, KakaoBank enhanced convenience by allowing high-value transfers without a physical OTP, while strengthening security by using actual facial recognition rather than simple number input. Additionally, during issuance, a process is conducted to verify that the ID has not been forged or altered, and facial spoofing prevention technology is also incorporated to prevent face theft. All selfie authentications are monitored to check for fraudulent use, and security will be further enhanced by integrating an abnormal transaction detection system (FDS).

With improved security, KakaoBank’s selfie OTP offers transfer limits of up to 100 million KRW per transaction and 500 million KRW per day, compared to typical mobile OTPs which usually provide limits of 10 million KRW per transaction and 50 million KRW per day.

Furthermore, for customers who have been using physical OTPs, KakaoBank allows simultaneous use of both selfie OTP and physical OTP. Previously, when a mobile OTP was issued, physical OTP use was often not possible.

A KakaoBank official stated, "KakaoBank has already introduced account opening services using selfie authentication and has accumulated various know-how and technology related to selfie authentication," adding, "Based on these capabilities, we expect the selfie OTP service to contribute not only to customer convenience but also to enhanced security."