Online fraud complaints jumped 23 percent in 2009 to 336,655 with a total loss of $560 million, more than doubling the $265 million in losses from 2008, according to an article in the May 2010 edition of Bank Technology News. Additionally, a recent Gartner survey found “nearly half of people who don't use online banking listed security as a reason.” The item goes on to say that financial institutions will probably seek out-of-band security solutions (e.g., voice biometrics) as an additional factor of authentication.
This should be music to the ears for voice biometrics vendors. After all, voice biometrics is an ideal way to remotely authenticate online banking customers – and the technology is beginning to get some legs. For example, a recent posting in my blog mentioned that the top three banks in Israel have all implemented public-facing voice biometrics solutions.
One cautionary note comes from George Tubin, senior research director, TowerGroup, who says “voice biometrics still needs work. There's background noise and connection issues. There's also the matter of how well it functions." I’ve been hearing these concerns since I entered the space five years ago – and they continue to be a serious hurdle. It is incumbent upon the voice biometrics industry to find a way to overcome these legitimate concerns. The potential remote authentication market is just too big!
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