Telephone Banking Authentication: Practical Approaches to Securing a Popular yet Vulnerable Channel

Table of Contents

• Overview
• Primary Questions
• Findings and Analysis
• Over One-Third Of Consumers Bank By Phone: Channel Security Is Critical
• Confidence High In Telephone Banking Safety Despite Fraud Potential
• Expect Growth In Telephone Fraud With Advent Of VOIP
• Weak, In-Wallet Authentication Prevails On The Phone Channel
• Fortify Phone Authentication With Risk Scoring, Voice Biometrics And KBA
• Vendor Solutions By Need: Comprehensive Or Component
• What' s The Bottom Line
• Related Research
• Appendix A: 15% Of Fraud From In-Store, Mail Or Telephone Purchases
• Appendix B: Online Bill Payers Have Higher Rates Of Phone Contact Then Non-Bill Payers
• Appendix C: Telephone Channel Usage Increasing Over Historical Levels
• Appendix D: Two-Thirds Of Consumers Use Telephone Channel
• Appendix E: Passwords And Voice Recognition Are The Top Phone-Based Solutions

Table of Figures

• Figure 1: Used a Phone Operated System to Perform a Banking Function
• Figure 2: Spoke By Phone with a Bank or Credit Union Representative
• Figure 3: How Consumers Rate the Safety of Using a Phone Automated System
• Figure 4: How Consumers Rate the Safety of Speaking with a CSR
• Figure 5: Telephone Authentication Factors Used By Top 23 US FIs
• Figure 6: Phone Authentication Model
• Figure 7: Sources of Identity Fraud
• Figure 8: Financial Activities in Past 12 Months by Bill Payer at Bank Web Site
• Figure 9: Consumer Financial Activities by Type and Time Period
• Figure 10: Percentages of Online Consumers Who Have Ever Used these Channels
• Figure 11: Consumers' Preferred Methods of Authentication for Online Accounts