In this work; we present a automatic fingerprint identification system based on Level 3 features. Systems based only on minutiae features do not perform well for poor quality images. In practice, we often encounter extremely dry, wet fingerprint images with cuts, warts, etc. Due to such fingerprints, minutiae based systems show poor performance for real time authentication applications. To alleviate the problem of poor quality fingerprints, and to improve overall performance of the system, this paper proposes fingerprint verification based on wavelet statistical features & co‐occurrence matrix features. The features include mean, standard deviation, energy, entropy, contrast, local homogeneity, cluster shade, cluster prominence, Information measure of correlation. In this method, matching can be done between the input image and the stored template without exhaustive search using the extracted feature. The wavelet transform based approach is better than the existing minutiae based method and it takes less response time and hence suitable for on‐line verification, with high accuracy.

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