Exploring Voice Biometrics and Banking Call Centers

In an increasingly digital world where users are accustomed to self-service banking through a website or app, banking call centers still play an important role in helping account holders with complex questions or critical transactions. Unfortunately, contact centers are also a prime target for account takeovers. Fraudsters often exploit human agents and the vulnerabilities of traditional authentication methods, such as security questions, PINs, or passwords, to gain unauthorized access to financial accounts. This is one reason voice biometrics and banking call centers are a hot topic. This is a key part of the digital transformation roadmap for many financial institutions today.

Call Center Fraud Is on the Rise

Contact center fraud is a significant and growing threat to financial institutions and those they serve. Fraudsters typically pose as account holders to manipulate contact center agents into divulging information or resetting account credentials. According to a 2022 report by Aite-Novarica Group, call center fraud attempts rose by 30% over the previous year, reflecting the increased sophistication of fraud tactics and vulnerabilities in existing systems. The same report estimated that call center fraud costs U.S. companies over $10 billion annually.

Traditional authentication methods like passwords and knowledge-based questions (e.g., “What’s your mother’s maiden name?”) are no longer sufficient to fend off these threats. Such methods rely heavily on information that fraudsters can easily acquire via social engineering or data breaches. As a result, many companies are turning to multi-factor authentication (MFA) and, increasingly, voice biometrics to mitigate these risks.

Best Practices for Call Center Authentication

Voice Biometrics in Banking for Authentication

Implementation of voice biometrics is a growing trend in call centers due to its convenience and effectiveness in preventing fraud. Unlike traditional passwords or security questions, voice biometrics uses the unique characteristics of an individual’s voice—what we might think of as pitch, tone, and speech patterns—to verify their identity.

The technology behind voice biometrics analyzes thousands of unique characteristics of the speaker’s voice every second, making it extremely difficult for fraudsters to replicate. Voiceprints cannot be easily stolen or guessed, and they work passively in the background, reducing friction during the authentication process. Even with the advent of deep fake technology, Illuma’s voice authentication has proven to be highly effective at differentiating between voice clones and real voices.

According to a report by Opus Research, 85% of consumers would prefer voice biometrics as a secure and seamless form of identification in call centers.

Behavioral Biometrics

Behavioral biometrics involves analyzing patterns in how a person behaves during interactions. This could include factors such as speech cadence or typing speed. While still an emerging technology, it could potentially add another layer of security that fraudsters find challenging to mimic.

When combined with other authentication methods, behavioral biometrics might alert call center agents to unusual behaviors during a conversation, such as an unusual voice pattern or pauses that indicate the caller might be reading from stolen information.

Knowledge-Based Authentication (KBA) — But with a Twist

Knowledge-based authentication (KBA) has been widely used in call centers for decades. However, its weaknesses have been increasingly exposed in the era of large-scale data breaches. Fraudsters can easily obtain personal information like birth dates, Social Security numbers, or previous addresses, rendering traditional KBA ineffective for fraud prevention.

To counter this, companies are turning to “dynamic KBA,” where questions are generated in real time based on data that fraudsters would find harder to access, such as recent transactions or account-specific information. This makes it more difficult for fraudsters to answer the questions, as the answers change frequently and are not widely available. However, some call center managers report that today’s fraudsters actually can access information about recent transactions, rendering dynamic KBA less effective than it might have first appeared.

Token-Based Authentication

Token-based authentication involves sending a one-time passcode (OTP) to a caller’s device, such as a smartphone, via SMS or email. The caller then provides this code to the agent to verify their identity. Token-based systems add an extra layer of security, as the code is only valid for a short period and is unique to each interaction.

While SMS-based OTPs have vulnerabilities—such as SIM swapping or interception—many call centers now use more secure alternatives, such as app-based authenticators (e.g., Google Authenticator), which might be harder for fraudsters to compromise.

Continuous Authentication

Continuous authentication monitors the caller’s behavior throughout the entire call rather than relying solely on initial authentication. This can include verifying the caller’s voice, location, or behavioral biometrics. If any suspicious activity is detected during the call, the system can trigger additional security measures, such as requiring further authentication or flagging the interaction for review.

Continuous authentication is particularly useful for combating social engineering attacks, where fraudsters might gain access to the account after the initial authentication stage. By monitoring interactions in real-time, businesses can identify and mitigate threats before any damage is done.

Multi-Factor Authentication (MFA)

Multi-factor authentication adds an extra layer of security by leveraging multiple types of identity verification. This can include something the account holder knows (password), something they have (one-time passcode sent via SMS or email), and something they are (biometric information like voice or fingerprint). By combining at least two of these factors, the likelihood of fraudsters successfully impersonating account holders is significantly reduced. There are also behind the scenes forms of authentication such as recognizing characteristics of the caller’s device that can be implemented to increase security.

MFA tends to be effective in call center environments because it creates more barriers for attackers. For example, even if a fraudster obtains an account holder’s password, they may still struggle to pass the second authentication factor, such as a voice biometric check or one-time code.

Benefits of Voice Biometrics in Banking for Fraud Prevention

Voice authentication offers several advantages for both call centers and account holders when it comes to fraud prevention:

Improved Security: Voiceprints are difficult to replicate in real-time on a live call, making it an ideal tool for fraud prevention. Since a person’s voice is unique, even a well-informed fraudster will have difficulty bypassing this authentication method.
Frictionless User Experience: Unlike traditional authentication methods, voice biometrics can authenticate a caller without requiring them to remember passwords or answer questions. This reduces friction during the experience, leading to higher satisfaction levels.
Cost Savings: Implementing robust authentication measures reduces the likelihood of fraud, which in turn lowers the financial impact on banks and credit unions. In addition to reducing fraud losses, passive voice authentication substantially reduces average handle time, positively impacting operational efficiency.
Fraud Deterrence: The presence of advanced security measures like voice authentication serve as a deterrent. Fraudsters are more likely to abandon their attempts if they know a banking call center uses sophisticated biometric tools that make impersonation and account takeovers difficult.
Compliance with Regulations: Stronger authentication practices can help organizations comply with regulatory requirements, such as the General Data Protection Regulation (GDPR) and Payment Card Industry Data Security Standard (PCI DSS), which mandate the protection of consumer data.

Ready to Explore Voice Biometrics and Banking Fraud Prevention?

Voice authentication from Illuma offers a seamless, secure, and cost-effective solution for preventing fraud in call centers. For financial institutions that want to implement stronger authentication, including MFA, voice biometrics in banking is the ideal place to start. Contact our team today to book a demo.