Research has shown that most people cannot accurately identify an individual from a photo. For example, one study found that most people will accept an ID with any photo that has a picture of a person of the same gender and race as the presenter.
a. It has also been demonstrated that when photos are included on credit cards, the fraud rate drops significantly. Explain this apparent contradiction.
b. Your easily amused author frequents an amusement park that provides each season passholder with a plastic card similar to a credit card. The park takes a photo of each season passholder, but the photo does not appear on the card. Instead, when the card is presented for admission to the park, the photo appears on a screen that is visible to the park attendant.
Why might this approach be better than putting the photo on the card?
Suppose you are a merchant and you decide to use a biometric fingerprint device to authenticate people who make credit card purchases at your store. You can choose between two different systems: System A has a fraud rate of 1% and an insult rate of 5%, while System B has a fraud rate of 5% and an insult rate of 1%.
a. Which system is more secure and why?
b. Which system is more user-friendly and why?
c. Which system would you choose and why?
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