Abstract
Overview
Financial institutions (FIs) must implement effective authentication solutions that address spe-cific, often mutually exclusive threats from different channels, while remaining in compliance with FFIEC guidelines which pertain to both telephone and online channels. With phone usage increasing over historical levels, this report provides comprehensive coverage and analysis of consumer preferences toward telephone banking, and evaluates the authentication methods currently being used by FIs for the phone channel. Building upon robust consumer data gener-ated from a survey of 3,215 respondents, Javelin also interviewed several top FIs and authenti-cation solutions providers to obtain qualitative input on current phone security efforts and market trends. Finally, Javelin investigates several well-known phone authentication products.
Primary Questions
- How can FIs secure the phone channel, while maximizing efficiency and reducing costs?
- Which phone authentication solutions provide the best security?
- What phone authentication solutions are FIs using?
- How many consumers conduct phone banking transactions (compared to other channels)?
- How secure do consumers feel using the phone 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
