How Multifactor Authentication Can Be Used for Retail

Retail organizations face significant fraud losses yearly, with fraudsters continually finding ways to bypass conventional security. Contact centers, in particular, can become vulnerable when they rely on outdated methods to verify a caller’s identity.

While knowledge-based questions or one-time passwords (OTPs) can deter some unauthorized attempts, these techniques are no longer robust enough to withstand sophisticated attacks.

This is where multifactor authentication (MFA) in retail—especially voice-based approaches—can help companies strengthen security, maintain customer trust, and prioritize overall business resilience.

Voice call interactions remain critical in retail for customer service and high-stakes transactions such as refunds or major account updates. Although organizations may spend considerable time and resources confirming callers’ identities, these efforts can still fall short.

Multifactor authentication incorporating voice analysis can enhance customer verification and give time back to contact center teams.

Introduction to multifactor authentication in retail

Multifactor authentication is a security approach that requires users to present two or more verification forms before granting access to an account, transaction, or service.

Traditionally, these factors include something a user knows (e.g., a password or PIN) and a user has (e.g., a device or token). Voice-based authentication extends this framework even further, where voice analysis functions as an additional factor.

In retail, contact center agents often manage a high volume of sensitive requests, such as order cancellations, credit card updates, or loyalty account changes. Fraudsters can exploit weak layers of security—like knowledge-based authentication—to impersonate legitimate customers.

For instance, if a criminal knows basic account details or has intercepted an OTP, they can access an account and make unauthorized changes. MFA is pivotal for companies that want to close these security gaps.

Voice analysis in retail MFA

Voice analysis involves determining if a voice on the call matches the enrolled voice profile. When retail contact centers integrate MFA with voice analysis, they gain an additional authentication factor that criminals find challenging to compromise.

Upholding a smooth customer experience and reducing fraud losses is possible when security methods move beyond knowledge-based questions and OTPs.

Voice-based authentication methods

Voice-based authentication methods generally fall into two categories:

• Text-dependent authentication
  • Involves callers speaking a specific phrase (e.g., “My voice is my password”).
  • The system compares the spoken phrase to a voiceprint template and checks whether the words’ content and vocal characteristics match those of the enrolled user.
  • Useful for organizations that want a straightforward user experience. Callers can recite a single phrase, which the system quickly verifies.
• Text-independent authentication
  • Callers can speak naturally on any topic briefly (e.g., everyday conversation with an agent or IVR).
  • The system performs a voice analysis in the background, comparing the voice to the enrolled voice profile—there is no need for a specific phrase.
  • This is ideal for busy contact centers that want minimal disruption to the typical call flow. You can authenticate customers while they discuss their issue or request.

The choice between these two customer verification methods depends on your organization’s operational needs and desired level of reducing friction.

Benefits of voice authentication

Retailers stand to gain multiple benefits by incorporating voice authentication into their MFA strategy:

• Reduced fraud losses: Fraudsters can sometimes guess answers to security questions or intercept OTPs, but mimicking a voice is far more complex. A voice-based system can cut potential losses by catching suspicious calls early. 
• Better customer data protection: Voice authentication makes it more difficult for attackers to impersonate legitimate customers, which helps protect sensitive information like saved credit cards or loyalty program details.
• Time savings: Voice analysis can automate the initial verification phase, shortening authentication steps. Agents can then spend less time probing callers with security questions and more time resolving their requests.
• Enhanced brand reputation: Companies that adopt advanced data protection measures often gain a competitive edge. By prioritizing voice call security, retailers can show customers they value privacy and reliability, strengthening brand loyalty.
• Flexible integration: Retailers can integrate text-dependent or text-independent voice solutions into existing Interactive Voice Response (IVR) systems or customer support platforms. This modular approach allows contact centers to adapt without overhauling their technology stack.

Securing customer transactions with MFA

A retail contact center fielding credit card changes or large refund requests can integrate voice authentication into its verification flow. If the system flags inconsistencies (for instance, the voice doesn’t match the enrolled voice profile or the device signature appears risky), it can route the call to a higher-level review. This approach helps protect customer accounts and spares legitimate callers from overly intrusive questioning.

Combining MFA and passwords can also add an extra confirmation level. By monitoring call details alongside voice analysis, you can strengthen your ability to validate the caller.

Customer experience considerations: Balancing security and convenience

Striking a balance between user convenience and robust security can be a challenge. Customers often have limited patience for lengthy verification steps and expect quick interactions with your contact center.

A solution that incorporates multiple factors—like voice, behavior, and device analysis—allows you to validate a caller without forcing them to remember additional passwords or endure repeated prompts. Text-independent voice authentication, for example, can verify someone’s voice during a normal conversation, creating a more pleasant experience.

That said, if the system flags anomalies, giving agents a clear path for escalating calls is critical. If your processes are too rigid, genuine customers might be treated with unnecessary suspicion, damaging their impression of your brand.

Safeguard your customer’s data with Pindrop® solutions

Securing data is no longer optional for retail contact centers. As fraudsters become adept at bypassing knowledge-based questions or seizing one-time passwords, retailers need new methods to strengthen data security without sacrificing ease of use. That’s where Pindrop® Solutions can help.

Pindrop’s entire product suite bolsters contact center defenses by combining voice security, device analysis, and advanced risk detection. Here’s how each product supports MFA in retail:

• Pindrop® Passport
  • Reduce operational costs and lower average handle time (AHT) with multifactor authentication that allows you to accelerate call routing for authenticated callers while maintaining contact center security. Discover more about Pindrop® Passport.
• Pindrop® Protect
  • With near real-time fraud risk assessments, Pindrop® Protect can catch fraud early—better protecting customer accounts. It provides a comprehensive risk score for each call, starting in the IVR and continuing through the agent call stage. Learn more about Pindrop® Protect.
• Pindrop® Pulse
  • Enable your contact center agents to identify synthetic voices. This will provide critical protection against emerging threats caused by the rise of AI-generated content. Explore liveness detection with Pindrop® Pulse.

By adopting multifactor authentication—which may include voice analysis, device checks, or additional verification steps—your retail contact center can strengthen its security framework, benefiting both customers and agents. A layered approach also improves call handling times, lowers the risk of fraud, and bolsters customer confidence.

Ready for more details?

For more insights into the importance of advanced authentication, we invite you to see how other organizations have transitioned from legacy to modern authentication and learn why industry leaders are switching to Pindrop solutions by viewing The legacy letdown: Why industry leaders are moving to Pindrop.

Explore multifactor authentication to learn about our full range of solutions for retail contact centers.