Since 2022, at least 4.6% of global digital transactions were potentially fraudulent
In 2023, identity theft emerged as the top financial crime concern for financial institutions.
According to a survey conducted by Sanction Scanner, 42% of respondents identified identity theft as the most pressing threat, followed by cyberattacks and data breaches (28%), payment fraud and transaction manipulation (19%), and insider fraud (11%).
These results are chilling and reflect the growing vulnerability of financial institutions and their customers to the many types of fraud and financial crime that are making their way in.
Thus, there is an urgent need to implement advanced solutions to combat these threats and keep customers’ data and financial products safe.
Discover the advanced solution against identity fraud: Voice Biometrics
The Identity Fraud Crisis
Identity theft entails a significant financial loss for institutions and severely affects customer trust.
In an environment where digital transactions are becoming the norm, protecting users’ identities has become crucial. The 1,300% increase in ransomware attacks during 2023, increased phishing campaigns, and the growing practice of weak authentication (or at least not as secure as we have been led to believe) have worsened this issue.
Voice Biometrics: Innovation in Authentication
One of the most promising solutions to combat identity fraud is voice biometrics. Unlike traditional passwords and security questions, voice biometrics uses unique characteristics of a person’s voice to verify their identity. This not only improves security but also provides a smoother and more efficient user experience.
But is voice biometrics really that secure?
The answer is that, believe it or not, voice biometrics is one of the most secure authentication methods, as it is based on the analysis of characteristics unique to each person, such as pitch, frequency, speed of speech, or intonation patterns. These factors are difficult to replicate, which makes voice biometrics a powerful tool for authentication.
And what advantages does voice biometrics offer over other methods?
- Enhanced Security: Voice biometrics are difficult to spoof. Even if an attacker manages to record a person’s voice or use deepfake techniques to mimic a voice by artificial intelligence, advanced voice biometrics technologies can detect spoofing attempts.
- User Experience: Unlike passwords and PINs, which can be forgotten or stolen, voice biometrics offers a frictionless method of authentication. Users simply speak to verify their identity, which means a better experience and greater confidence in the services being accessed.
- Versatile Deployment: Voice biometrics can be integrated into multiple channels, including phone systems, mobile applications, and online services, and can be used as a single authentication method or as a second step in multi-factor authentications, providing an additional layer of security at all points of interaction.
- Saving operational costs and verification time: The reality is that voice biometrics not only offers benefits for users, but also leads to savings in operational costs and verification times, especially when applied in Contact Centers of financial institutions. Here is this calculator so you can have an on-the-spot estimate of the potential savings when implementing voice biometrics in your service.
Find out how much you save tby implementing Voice Biometrics with our Voice Biometrics ROI Calculator
Voice Biometrics Use Cases
Many may wonder what the real applications of this authentication method are. There are a multitude of applications, but for financial institutions, some of them are detailed below:
- Contact Center Authentication: Customers can be quickly authenticated when they call a customer service center, reducing verification time and improving the security and experience of users who call, in many cases, to make transactions that involve sensitive data.
- Mobile Banking: Accessing our banks’ mobile applications can sometimes be tedious. Thanks to this type of solution, banks can use voice biometrics to authenticate sensitive transactions, such as fund transfers or changes to account settings.
- Fraud Prevention: Voice biometrics systems can monitor interactions to detect unusual patterns or fraud attempts, alerting financial institutions in real time. For example, organizations can detect fraudulent individuals who are blacklisted or even prevent subscription fraud by users trying to benefit from a campaign again.
Other AI Solutions to Combat Fraud
In addition to voice biometrics, financial institutions can benefit from other AI technologies to combat identity fraud and other financial threats.
- Voice and Sentiment Analysis: Voice and sentiment analysis can identify suspicious behavior during telephone interactions. By analyzing the tone, rhythm, and emotions in the speaker’s voice, AI systems can detect signs of stress or deception, helping to prevent fraud before it occurs.
- Transaction Anomaly Detection: AI algorithms can analyze large volumes of transactional data to identify unusual patterns or anomalies.
In a world where identity fraud remains a significant threat, voice biometrics stands out as an innovative and effective solution. If you would like to learn more about how AI solutions can protect your financial institution against fraud, you can find more information here.