Biometrics is unlocking a vast world of potential as it becomes adopted on a larger scale. From unlocking phones with your face to checking into work with your fingerprint, it is steadily becoming the go-to solution for businesses looking to improve security and make life easier for customers. But while biometric tech promises convenience and safety, there’s a hidden challenge affecting users: bias. In other words, an algorithm operating in an unfair and inaccurate manner towards certain genders, races, disabilities and other groups of people.

When businesses ignore bias in biometric systems, they can face some pretty serious risks—risks that affect not just their bottom line, but their reputation and trust with customers. Let’s dive into why bias in biometrics is a problem that businesses can’t afford to overlook.

Bias in Biometrics

Imagine a facial recognition system that struggles to identify people with darker skin tones or flags women as mismatches more often than men. This isn’t science fiction—it’s happening today.

The US National Institute of Standards and Technology found that African-American and Asian faces experienced 10 to 100 times higher false positive rates, meaning the biometric system incorrectly matches two faces that are different. Female and younger faces also tended to experience higher rates of false negatives. This is where the biometric system fails to match two images of the same person. In a recent case of mistaken identity, facial recognition technology led to the wrongful arrest of a Black Georgian for purse thefts in Louisiana. Additionally, a person with a disability might walk or speak differently than the system expects, or they might have obstructions to their face or a missing fingerprint. In these instances, they might be unable to access services tied to recognition of fingerprints, gait, or voice.

When a company’s biometric tools are seen as unfair or inaccurate, it doesn’t just lead to frustration—it can damage the company’s reputation for good.

Loss of Business Opportunities and Customer Trust

When biometric systems fail due to bias, it’s not just a tech glitch—it’s a lost customer. Maybe the system doesn’t recognize someone because of their appearance, or maybe it incorrectly flags someone as a security risk. Either way, it’s a bad look for the business and a frustrating experience for the customer.

But the real danger goes beyond individual incidents. If a business’s biometric system consistently fails certain groups of people, it risks alienating entire demographics. Unhappy customers can influence friends, family and communities. In today’s world, a single negative experience can spread like wildfire on social media, impacting brand perception far beyond the initial incident. It’s a ripple effect that can lead to shrinking customer bases and missed business opportunities.

This isn’t just a PR issue—it’s a revenue problem. Alienated customers won’t stick around, and once they go, they’re hard to win back. Businesses that invest in fair, accurate biometric systems will keep their reputations intact and show consumers that they care about inclusivity.

Legal and Regulatory Liability

On top of the reputational risks, there’s another big reason to address bias: legal trouble. Regulations around biometric data are tightening worldwide, and companies are on the hook to comply. Laws like the General Data Protection Regulation (GDPR) in Europe and the Biometric Information Privacy Act (BIPA) in Illinois are just the beginning.

These regulations are designed to protect individuals from misuse of their biometric data. And when bias sneaks into these systems, companies open themselves up to lawsuits and heavy fines. Companies need to ensure that their biometric tools are not only effective but also fair and transparent. Falling short could mean facing time-consuming lawsuits, paying out fines, and losing customer trust in the process.

Protect Your Business by Tackling Bias Head-On

Bias in biometrics is a moral issue, but it’s also a business one. Ignoring it puts companies at risk of losing trust, getting hit with legal penalties, and missing out on new customers.

The solution? Businesses must prioritize fairness and transparency in their biometric systems.

This is where inclusive AI makes the difference. Solutions like Aware’s Knomi framework, powered by advanced algorithms, prioritize fairness by delivering bias-free biometric authentication. Tested and validated by NIST, Knomi ensures consistent performance across demographics, helping businesses avoid the pitfalls of outdated systems.

By actively working to reduce bias, companies can protect their reputation, stay compliant with regulations, keep customers happy, and, most importantly, do the right thing. It’s not just about avoiding risk—it’s about building a business that people trust and want to engage with.