Pindrop, a global leader in voice technology, 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 actually 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.

Additional key findings include:

• Ninety-two percent of fraudsters passed knowledge based authentication (KBA) questions based on a national contact centre case study, while genuine customers only passed KBA’s forty-six percent of the time
• Organised crime rings have now set up storefronts on the dark web and have become illicit data vendors and even offer return policies
• Customer satisfaction with the identification process is higher online than via phone call
• Sixty-five percent of enterprise company board members expect customer engagement/loyalty to improve as a result of increased investment in IT, technology, and digital business capabilities
• Twelve percent of the time, retail and insurance company agents failed to verify customers’ identities

“With 2021 seeing a sixty-eight percent increase in data breaches, bad actors are compromising data easier and more efficiently,” said Vijay Balasubramanian, CEO and cofounder of Pindrop. “Now is a good time to change the locks and advance the way customers can open more worlds safely and privately with just their voice.”

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 have the ability to let in individuals who are not the user. To stay protected and secure, it is crucial to understand how bad actors rely on certain authentication methods to commit fraud.

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

To download the full report, visit: Voice Intelligence and Security Report

About Pindrop

In an increasingly digital world, Pindrop lets people use their voice to seamlessly connect to, enter and unlock new experiences while helping safeguard their privacy. Using its patented voice authentication technology, Pindrop is leading the way to the future of voice by establishing the standard for identity, security, and intelligence for voice interactions. Working with some of the world’s biggest banks, insurers, and retailers, Pindrop enables customers to quickly, conveniently, and securely connect to the information and resources they need. Its voice authentication technology analyses unique features within the human voice and surrounding audio that enables its customers to prevent fraud and deliver exceptional customer experiences in call centres, when obtaining information from smart devices, and even when activating cars. A privately held company, Pindrop is venture-backed by Andreessen Horowitz, Citi Ventures, Felicis Ventures, CapitalG, GV, IVP, and Vitruvian Partners.

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