The Power of a Black List, the Promise of a White List

© 2012 NACHA — The Electronic Payments Association. All rights reserved. No part of this material may be used without the prior written permission of NACHA. This material is not intended to provide any warranties, legal advice, or professional assistance of any kind.

Making  voice  biometrics  work  in  real  world  implementa5ons    

 AKA,  Beyond  the  bullet  point  

Mark  Lazar  CEO,  Victrio  

2 Proprietary © 2013 Victrio, Inc.

Victrio  Intro  

•  Emerging leader in passive voice biometrics

•  Team expertise in voice recognition and call center –  Ex-Nuance, BeVocal, Tuvox

•  Industry acclaim –  Gartner Cool Vendor 2013 for Security:

Identity and Access Management

–  RSA Most Innovative Company 2013 - Finalist

3 Proprietary © 2013 Victrio, Inc.

Deep  Experience  in  Voice  Biometric  ImplementaAons  for  Financial  Firms  

•  3 years of implementation experience

•  Clients include 3 of top 5 financial firms

•  Screening 100M calls in 2013

•  Largest global fraudster database in world

4 Proprietary © 2013 Victrio, Inc.

History  of  Industry’s  Voice  Biometric  Efforts  

1990’s  

Schwab  

Early  2000’s  

Mid  2000’s  

Late  2000’s  

HSN  

HarOord  Insurance  

MarrioP  

US  Bank  

AT&T  

Visa  

Bank  of  America  

First  Horizon  

Bell  Canada  

Bank  of  America  

ABN/AMRO  

Santander  

American  Express  

5 Proprietary © 2013 Victrio, Inc.

1990’s  

Schwab  

Early  2000’s  

Mid  2000’s  

Late  2000’s  

HSN  

HarOord  Insurance  

MarrioP  

US  Bank  

Visa  

AT&T  

Bank  of  America  

First  Horizon  

TERMINATED

TERMINATED

UNKNOWN

INTERNAL ONLY

INTERNAL ONLY

TERMINATED

INTERNAL ONLY

TERMINATED

TERMINATED

TERMINATING Bell  Canada  

Bank  of  America  

ABN/AMRO  

Santander  

American  Express  

Gap  Between  Theory  and  PracAce  

6 Proprietary © 2013 Victrio, Inc.

Today:  Even  More  ImperaAve  to  rescue  call  center  

Customers are increasingly frustrated…

Web Attacks vs. Phone Attacks

While professional fraudsters aren’t stopped

65%: Frustrated

Source: Opus Research 2012 Survey Source: RSA Client Study

50%: Too time- consuming

7 Proprietary © 2013 Victrio, Inc.

Passive  Voice  Biometrics:  Promising  Theory  

•  No customer interruption

•  Passive enrollment

•  Passive authentication

•  Alerts agent in real time –  Shorter call and AHT

–  Happier customer

–  Stronger fraud detection

8 Proprietary © 2013 Victrio, Inc.

Victrio ID Confidence Cloud

Voice Biometric Analysis

Account Data

Call & Behavioral

Data

Voiceprint Match

ID Confidence Reported to

Agent

High

Fraud

?

Low

Caller Voice

Call Center / IVR

Mobile

Passive Customer Voiceprints

Shared Fraudster

Voiceprints

Signal Analysis

Ideal  System  Overview  

9 Proprietary © 2013 Victrio, Inc.

Life  in  the  Trenches:  Fraud  DetecAon  

•  Call center infrastructure is never ready on Day 1

–  Call recording system poorly configured •  Association with accounts not always available •  Relevant metadata not available

–  Clients have to assert ownership of data

•  Need new people processes to support solution •  Poor flagging and capture of fraud interactions •  Poor understanding of call center “big data”

10 Proprietary © 2013 Victrio, Inc.

Life  in  the  Trenches:  Fraud  DetecAon  

•  Business Model?

–  Licensed product?

–  Managed service? •  Evolve system to anticipate evolving fraudster behavior

•  Track changing impact of factors in multi-factor scoring

•  Example: Growing usage of using $8 burner phones weakens

device detection; adjust weighting

11 Proprietary © 2013 Victrio, Inc.

Field  Results:  High  Repeat  Fraud  Rate  

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

BROKERAGE  71% 89%

BANK  ACCOUNT  FRAUD  42% 76%

CREDIT  CARD  FRAUD  72% 95%

12 Proprietary © 2013 Victrio, Inc.

0 20 40 60 80 100 120 140 160 180 200

Duke Kobayashi Jeffrey Johns

Tyler Miresh Charles Davis Robert Albert

Bill Koflin Josh Dumas Greg Barker Sally Davino Michael Lee

Shauna Koshik Alexandra Laurel

Patrick Donally Elizabeth Wright

Jerry Lucent Carla Gonzalez

Francis Montgomery Michael Henley Shauni Mccoy Mark Martigas

Brian Reed

Recurring  PaPern:  DramaAc  Fraudster  AcAvity  ConcentraAon  

TOP  20  FRAUDSTERS  

~ Half of fraud activity perpetrated by top 10 Fraudsters

Calling > 30 times per month

C A L L S

13 Proprietary © 2013 Victrio, Inc.

Average Number of Attacks From “Sharks” Drops (Study of Top 10)

17

20 21

10.5 12

5.5 6.5

1.5 2 1 1

0

5

10

15

20

25

Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12

Average Fraud Events Per “Shark" Per Month

Fraud Events

Trial and error period

Churn/abandonment period (fraudster frustration)

19 calls on average

Previously successful

fraudsters give up after Victrio is in

place

14 Proprietary © 2013 Victrio, Inc.

Case Study: Dramatic Impact of Voice Biometric Fraud Detection

•  3:1 false positive ratio exceeds industry standards

•  82% reduction in baseline fraud since Victrio launch

•  Strong endorsement from fraud operations

15 Proprietary © 2013 Victrio, Inc.

Life  in  the  Trenches:  AuthenAcaAon  

•  Affirm the need and business case –  What are the authentication metrics today? –  Translate differential into hard costs –  How to value soft benefits?

•  Better customer experience •  Top of wallet •  Churn and new customer acquisition cost

•  Resolve privacy considerations –  Engage legal and security early –  Design optimal “consent” strategy

16 Proprietary © 2013 Victrio, Inc.

Life  in  the  Trenches:  AuthenAcaAon  

•  “Dual screening” maximizes accuracy and speed to answer –  3X accuracy with combined blacklist & whitelist vs. whitelist alone

•  Multi-factor approach –  Voice biometric, call and behavioral, account data, signal analysis

•  Deliberate “graylist” process –  When do you trust a newly enrolled voiceprint?

•  Prepare organization with fraud detection first –  Low customer exposure while you address the above

17 Proprietary © 2013 Victrio, Inc.

Field  Results:  AuthenAcaAon  

•  Over 28M calls analyzed

•  Range of AHT reduction metrics

•  Leverage historical call recordings to kickstart process

•  Full customer base coverage over time

18 Proprietary © 2013 Victrio, Inc.

AuthenAcaAon  Accuracy:  Integrated  Approach  Drives  Performance

•  Whitelist: 3X accuracy with combined blacklist and whitelist versus whitelist alone

•  Whitelist: Additional 25% improvement in accuracy when combined with metadata

•  Blacklist: 2X lift in accuracy for blacklist when combining with metadata

19 Proprietary © 2013 Victrio, Inc.

Business  Impact  and  Customer  Experience  

?

2,000 calls

Legitimate Callers 9,998,000 calls

Scre

en 2

: Fr

auds

ter V

oice

prin

t Scr

een

Scre

en 1

: C

usto

mer

Voi

cepr

int M

atch

97% Legitimate Callers

3% Legitimate Callers

~15 -25 Seconds Faster Authentication: $60M savings

Current Authentication

Caught Fraud 1,992 calls

Uncaught Fraud 8 calls

Greater Fraud Detection: $40M savings

Fraudsters

Live Agent Calls 10M per Month

20 Proprietary © 2013 Victrio, Inc.

Further  materials  and  informaAon  

•  Web access to demos

•  White paper

•  Industry data

Mark Lazar, Victrio CEO

[email protected]