Fraudsters are more likely to pass knowledge-based authentication questions

Monday 25 April 2022 12:44 CET | News

Pindrop, a provider of voice technology, has released its annual Voice Intelligence & Security Report uncovering how companies might be accidentally inviting fraud, threat mongers from the dark web, and bad actors better prepared to pass authentication.

Data dealers are growing more sophisticated, offering more service, more details, and more organised information. Because of this, 2021 was a record-breaking year for data breaches. In fact, Pindrop found that bad actors had better performance than genuine customers at answering ‘security questions’. The data illustrates this security weakness when used as an authentication method, as well as the impact on genuine customers who will often fail to pass authentication with this security system.

Data breaches and the dark web are destroying a provider’s ability to use knowledge-based or out-of-wallet questions to authenticate customers. As board members demand better customer experience, it’s shown that customers prefer more advanced authentication methods than they are currently receiving over the phone.

The report examines how authentication and identification technology that allow people the right access have a dual nature. While the systems are designed to let users in, these programs also can let in individuals who are not the user.

Data was based on confidential Pindrop analysis of a large sample of contact centers across several industries, fraud calls, and total call volumes. Additionally, KBA statistics were based on a controlled Pindrop study with two national contact centers over a period of three months. 

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Keywords: report, online authentication, fraud prevention, data, cybersecurity
Categories: Fraud & Financial Crime
Companies: Curity, Pindrop
Countries: World
This article is part of category

Fraud & Financial Crime




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