News, Education and Events Decoding Digital Payments & Fraud

News, Education and Events Decoding Digital Payments & Fraud

Voice Fraud Surged 47% Last Year as Tech Opens New Doors for Fraudsters: Report

Voice Fraud Surged 47% Last Year as Tech Opens New Doors for Fraudsters: Report

Retailers, issuers, insurance companies and other organizations that accept payments via voice are experiencing increasing amounts of fraud being perpetrated in those channels. Companies have accepted payments over the phone for many years, but digital home assistants, the Internet of Things (IoT) and other technologies are adding channels that are operated by voice and—as always—fraudsters are leveraging them.

From 2016 to 2017, voice fraud climbed more than 47 percent to one out of every 638 calls, according to antifraud technology provider Pindrop. The company cited an increase in data breaches, new voice technology and fraud attempts across multiple channels.

“The opportunity for voice to serve as a primary interface is becoming a reality due to integrations with IoT devices, the takeoff of voice assistants and more,” said Vijay Balasubramaniyan, CEO of Pindrop. “In turn, advanced voice technology is falling into the hands of bad actors and we’re seeing a dramatic spike in voice fraud.”

While insurance and banking saw the highest year-over-year growth in fraud rates, retailers experience the highest voice fraud rates overall.

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