Returns are a standard part of retail, but they’re not without risks. Fraudulent returns can cost businesses a significant amount of losses annually. While restricting returns might seem like the only way to fight against retail fraud, there are better ways to help reduce fraud losses that don’t sacrifice the customer experience. 

Leveraging an advanced voice biometrics analysis solution can help protect customer accounts, spot fraudulent returns, and streamline the call experience. This article will explore the types of return fraud and how to combat it with advanced voice security.

Understanding return fraud

Return fraud involves customers exploiting return policies for personal gain. It comes in various forms, from returning stolen items to abusing liberal return policies. 

According to the National Retail Federation, return fraud costs billions annually and contributes to operational inefficiencies. Retailers often face challenges balancing customer satisfaction with fraud detection.

The most common types of fraud in retail include:

  • Receipt fraud: Customers use fake receipts or receipts from other items to return merchandise
  • Wardrobing: Buying an item, using it briefly, and returning it as “new”
  • Stolen goods returns: Returning stolen goods for refunds or store credits
  • Refund fraud: Manipulating the system to receive more than the value of the returned item

What is voice biometrics in retail?

Voice biometrics is a technology that identifies individuals based on unique vocal characteristics. It analyzes various features of a person’s voice, such as pitch, tone, and rhythm.

This technology can help protect retail contact centers from refund fraud, offering a secure and efficient means of verifying customer voices during transactions, including returns.

Unlike traditional authentication methods, such as passwords, voice biometrics provide an additional layer of security by leveraging something inherently unique to each individual—their voice. When used in tandem with other authentication factors, this advanced technology can assist retailers in combating fraudulent returns while helping create a faster and simpler returns process.

How voice biometrics can detect return fraud

Voice biometric analysis brings multiple benefits to retailers, helping to reduce fraud and improve operational efficiency. 

Real-time authentication

With voice biometrics, you can authenticate customers in real-time, helping to ensure that the person initiating a return is the purchaser. This technology can be particularly useful in contact centers, where authenticating customers through traditional methods is more challenging.

By using multifactor authentication, stores can drastically reduce fraudulent return attempts. This process also minimizes disruptions for genuine customers, maintaining a smooth and efficient return experience.

Fraud detection

Voice biometrics can identify suspicious behavior patterns by the individual attempting the return.

Multifactor authentication 

You can use voice biometrics as part of a multifactor authentication (MFA) approach, combining content-agnostic voice verification with other verification methods like PINs or SMS codes. 

With this approach, even if one method fails, or if some credentials are lost or stolen, you still have a method to detect fraudulent activity.

Secure transactions

Voice biometrics can help create a secure environment for customers during their transactions. Once the system receives authentication information on the customer, it can securely process the return, significantly reducing the chances of refund fraud. This helps protect the retailer from loss and can provide customers with peace of mind, knowing their information is securely handled.

Accelerating return transactions

When using traditional authentication methods, customers can often find the process tedious. Voice biometrics help speed up return transactions, as customers can skip more lengthy verification procedures.

This helps create a faster, hassle-free return process, contributing to a better overall customer experience.

Data protection

Retailers can use voice biometrics to enhance data protection protocols, maintaining their consumers’ trust.

Implementing voice biometrics in your retail system

Integrating voice biometrics into your retail system in a way that’s effective and user-friendly requires careful planning.

Evaluate current systems 

Start by evaluating your existing return processes and fraud detection strategies. Understanding where current vulnerabilities lie will help identify how voice biometric analysis can fill those gaps.

Select a reliable voice biometrics solution provider

Partnering with a reliable voice biometrics provider is crucial. Look for vendors with experience in retail security, a track record of success, and robust data protection measures.

Integrate voice biometrics seamlessly into retail systems

Ensure that voice biometrics integrate smoothly with your existing retail systems. This will reduce disruption during the implementation phase and allow both customers and staff to adapt quickly to the new system.

Train staff on using voice biometrics system 

Training your staff members on how to use the voice biometrics system effectively is critical. Otherwise, no matter how good the technology is, there’s an increased risk of human error that could eventually lead to return fraud. 

Training should include knowing when and how to use the technology and troubleshooting potential issues to prevent delays in the returns process.

Monitor system performance and optimize processes 

After implementation, regularly monitor the system’s performance to ensure it functions as expected. Make necessary adjustments to optimize the system’s capabilities and improve its accuracy and efficiency in supporting fraud prevention efforts. 

Additional benefits of voice biometrics in retail

Beyond helping prevent return fraud, voice biometrics offer additional advantages that enhance the overall retail experience.

  • Reduced fraud costs: By minimizing fraudulent returns, retailers can significantly reduce the financial losses associated with them. This helps merchants optimize their operations, improve profitability, and focus resources on serving genuine customers.
  • Convenience: Voice biometrics streamline the return process by eliminating the need for physical IDs or receipts. Customers can complete their returns quickly and easily, leading to a better shopping experience.
  • Trust and loyalty: Implementing voice biometrics builds trust with customers, as they feel confident that their identities and transactions are secure. This increased level of trust enhances customer loyalty and encourages repeat business.
  • Transparency: Maintaining transparency with customers about the use of voice biometrics for fraud detection can foster confidence. Clear communication regarding how voice analysis is used will help consumers understand the purpose and benefits of this technology.

Adopt a voice biometrics solution to help prevent return fraud

Return fraud is a serious issue affecting retailers worldwide, leading to losses of billions of dollars each year. While strict return policies may be somewhat helpful, retailers need to find better, customer-friendly alternatives. One such approach is voice biometrics, which offers additional defenses against fraudulent returns while improving the customer experience.

Voice biometric solutions can help merchants secure their return processes, reduce fraud costs, and build stronger relationships with customers. Adopting such a technology may seem like a significant shift, but its long-term benefits, both in fraud detection and customer trust, make it the perfect choice for small and large retailers.

More and more incidents involving deepfakes have been making their way into the media, like the one mimicking Kamala Harris’ voice in July 2024. Although AI-generated audio can offer entertainment value, it carries significant risks for cybersecurity, fraud, misinformation, and disinformation.

Governments and organizations are taking action to regulate deepfake AI through legislation, detection technologies, and digital literacy initiatives. Studies reveal that humans aren’t great at differentiating between a real and a synthetic voice. Security methods like liveness detection, multifactor authentication, and fraud detection are needed to combat this and the undeniable rise of deepfake AI. 

While deep learning algorithms can manipulate visual content with relative ease, accurately replicating the unique characteristics of a person’s voice poses a greater challenge. Advanced voice security can detect real or synthetic voices, providing a stronger defense against AI-generated fraud and impersonation. 

What is deepfake AI?

Deepfake AI is synthetic media generated using artificial intelligence techniques, typically deep learning, to create highly realistic but fake audio, video, or images. It works by training neural networks on large datasets to mimic the behavior and features of real people, often employing methods such as GANs (generative adversarial networks) to improve authenticity.

The term “deepfake” combines “deep learning” and “fake content,” showing the use of deep learning algorithms to create authentic-looking synthetic content. These AI-generated deepfakes can range from video impersonations of celebrities to fabricated voice recordings that sound almost identical to the actual person.

What are the threats of deepfake AI for organizations?

Deepfake AI poses serious threats to organizations across industries because of its potential for misuse. From cybersecurity to fraud and misinformation, deepfakes can lead to data breaches, financial losses, and reputational damage and may even alter the public’s perception of a person or issue.

Cybersecurity 

Attackers can use deepfake videos and voice recordings to impersonate executives or employees in phishing attacks. 

For instance, a deepfake voice of a company’s IT administrator could convince employees to disclose their login credentials or install malicious software. Since humans have difficulty spotting the difference between a genuine and an AI-generated voice, the chances of a successful attack are high.

Voice security could help by detecting liveness and using multiple factors to authenticate calls. 

Fraud 

AI voice deepfakes can trick authentication systems in banking, healthcare, and other industries that rely on voice verification. This can lead to unauthorized transactions, identity theft, and financial losses.

A famous deepfake incident led to $25 million in losses for a multinational company. The fraudsters recreated the voice and image of the company’s CFO and several other employees. 

They then proceeded to invite an employee to an online call. The victim was initially suspicious, but seeing and hearing his boss and colleagues “live” on the call reassured him. Consequently, he transferred $25 million into another bank account as instructed by the “CFO.”

Misinformation

Deepfake technology contributes to the spread of fake news, especially on social media platforms. For instance, in 2022, a few months after the Ukraine-Russia conflict began, a disturbing incident took place. 

A video of Ukraine’s President Zelenskyy circulated online, where he appeared to be telling his soldiers to surrender. Despite the gross misinformation, the video stayed online and was shared by thousands of people and even some journals before finally being taken down and labeled as fake.

With AI-generated content that appears credible, it becomes harder for the public to distinguish between real and fake, leading to confusion and distrust.

Other industry-specific threats

The entertainment industry, for example, has already seen the rise of deepfake videos in which celebrities are impersonated for malicious purposes. But it doesn’t stop there—education and even everyday business operations are vulnerable to deepfake attacks. For instance, in South Korea, attackers distributed deepfakes targeting underaged victims in an attack that many labeled as a real “deepfake crisis.”

The ability of deepfake AI to create fake content with near-perfect quality is why robust security systems, particularly liveness detection, voice authentication, and fraud detection, are important.

Why voice security is essential for combating deepfake AI

Voice security can be a key defense mechanism against AI deepfake threats. While you can manipulate images and videos to a high degree, replicating a person’s voice with perfect accuracy remains more challenging.

Unique marker

Voice is a unique marker. The subtle but significant variations in pitch, tone, and cadence are extremely difficult for deepfake AI to replicate accurately. Even the most advanced AI deepfake technologies struggle to capture the complexity of a person’s vocal identity. 

This inherent uniqueness makes voice authentication a highly reliable method for verifying a person’s identity, offering an extra layer of security that is hard to spoof. 

Resistant to impersonation

Even though deepfake technology has advanced, there are still subtle nuances in real human voices that deepfakes can’t perfectly mimic. That’s why you can detect AI voice deepfake attempts by analyzing the micro-details specific to genuine vocal patterns.

Enhanced fraud detection

Integrating voice authentication and liveness detection with other security measures can improve fraud detection. By combining voice verification with existing fraud detection tools, businesses can significantly reduce the risks associated with AI deepfakes.

For instance, voice security systems analyze various vocal characteristics that are difficult for deepfake AI to replicate, such as intonation patterns and micro-pauses in speech. These systems can then catch these indications of synthetic manipulation.

How voice authentication mitigates deepfake AI risks

Voice authentication does more than just help verify identity—it actively helps reduce the risks posed by deepfake AI. Here’s how:

Distinct voice characteristics

A person’s voice has distinct characteristics that deepfake AI struggles to replicate with 100% accuracy. By focusing on these unique aspects, voice authentication systems can differentiate between real human voices and AI-generated fakes.

Real-time authentication

Voice authentication provides real-time authentication, meaning that security systems can detect a deepfake voice as soon as an impersonator tries to use it. This is crucial information for preventing real-time fraud attempts.

Multifactor authentication

Voice authentication can also serve as a layer in a multifactor authentication system. In addition to passwords, device analysis, and other factors, voice adds an extra layer of security, making it harder for AI deepfakes to succeed.

Enhanced security measures

When combined with other security technologies, such as AI models trained to detect deepfakes, voice authentication becomes part of a broader strategy to protect against synthetic media attacks and fake content.

Implementing voice authentication as a backup strategy

For many industries—ranging from finance to healthcare—the use of synthetic media, such as AI-generated voices, has increased the risk of fraud and cybersecurity attacks. To combat these threats, businesses need to implement robust voice authentication systems that can detect and help them mitigate deepfake attempts.

Pindrop, a recognized leader in voice security technology, can offer tremendous help. Our solutions come with advanced solutions for detecting deepfake AI, helping companies safeguard their operations from external and internal threats.

Pindrop® Passport is a robust multifactor authentication solution that allows seamless authentication with voice analysis. The system analyzes various vocal characteristics to verify a caller. 

In real-time interactions, such as phone calls with customer service agents or in financial transactions, Pindrop® Passport continuously analyzes the caller’s voice, providing a secure and seamless user experience.

Pindrop® Pulse™ Tech goes beyond basic authentication, using AI and deep learning to detect suspicious voice patterns and potential deepfake attacks. It analyzes content-agnostic voice characteristics and behavioral cues to flag anomalies, helping organizations catch fraud before it happens. 

Pindrop® Pulse™ Tech provides an enhanced layer of security and improves operational efficiency by spotting fraudsters early in the process. For companies that regularly interact with clients or partners over the phone, this is an essential tool for detecting threats in real time. 

For those in the media, nonprofits, governments, and social media companies, deepfake AI can pose even more problems, as the risk of spreading false information can be high. Pindrop® Pulse™ Inspect offers a powerful solution to this problem by providing rapid analysis of audio files to detect synthetic speech. 

The tool helps verify that content is genuine and reliable by analyzing audio for liveness and identifying segments likely affected by deepfake manipulation. 

The future of voice security and deepfake AI

As deepfake AI technologies evolve, we need appropriate defense mechanisms.

Voice authentication is already proving to be a key factor in the fight against deepfakes, but the future may see even more advanced AI models capable of detecting subtle nuances in synthetic media. With them, organizations can create security systems that remain resilient against emerging deepfake threats.

Adopt a voice authentication solution today

Given the rise of deepfake AI and its growing threats, now is the time to consider implementing voice security in your organization’s security strategy. 

Whether you’re concerned about fraud or the spread of misinformation, voice authentication provides a reliable, effective way to mitigate the risks posed by deepfakes.

Working alongside the Webex Contact Center team, Pindrop has certified Pindrop® Passport and Pindrop® Protect and added them to the Webex App Hub

We are dedicated to helping our customers quickly and easily authenticate inbound calls, drive automation in the IVR (Interactive Voice Response system), and detect fraud. 

With voice-based authentication methods, contact centers can reduce caller frustration, shorten resolution times, and improve security and compliance.

Using the Pindrop® API Connector within the Webex Contact Center, we seamlessly integrate into contact center call flows, enabling quick setup and easy deployment.

How it works

In any partner integration, Pindrop® Technologies captures a copy of an inbound call and runs a thorough analysis. The analysis of an inbound call is predicated upon a deep, carrier-style integration where the Pindrop® Solution ingests the call audio, metadata, keystroke presses, and other signaling. 

This approach allows our technology to perform an accurate, multifactor analysis of the inbound caller’s voice, device, behavior, network, risk, and liveness. This will help you determine if the caller is a genuine consumer or a fraudster.  

For more insight into how fraudsters operate, check out our article on the fraudster playbook

Webex Contact Center: Customer SIPREC integration

The diagram below showcases the robust architecture of the Webex Contact Center + Pindrop integration. It illustrates a scenario where a customer using a premise-based Session Border Controller (SBC) routes calls to Pindrop. Pindrop also supports a flexible Bring Your Own Carrier (BYOC) model, allowing you to route calls directly from your carrier. Contact Pindrop to determine if your carrier is supported.

A high-level architectural diagram illustrating the call flow from an SBC to the Cisco Webex Contact Center and then to the Pindrop network for voice authentication and fraud detection.
This is a high-level architectural diagram illustrating the call flow from an SBC to the Webex Contact Center and then to the Pindrop network for voice authentication and fraud detection.

Key elements of the Webex CC + Pindrop integration

1. Pindrop® API connector

The Pindrop® API Connector enables your organization to establish a secure trust relationship between your Pindrop account and the Webex Contact Center, allowing you to access Pindrop’s voice authentication and fraud detection services seamlessly. 

Once the trust relationship is established, integrating Pindrop’s capabilities is as straightforward as making HTTP requests within your Webex CC call flows. These requests allow you to initiate voice authentication, detect fraud, capture key data points for analysis, and make intelligent routing decisions.

2. Easy-to-use agent UI

Pindrop has constructed a pre-built agent user interface, delivered through the Webex Contact Center agent desktop. 

This helps implement Pindrop intelligence and policy-driven instructions to Webex Contact Center agents as clearly and intuitively as possible. This user-friendly interface helps agents easily understand and apply Pindrop’s capabilities in their daily operations. 

A view of Pindrop's pre-built agent user interface. It showcases call risk status, phone number, call duration, and more.
A view of Pindrop’s pre-built agent user interface. It showcases call risk status, phone number, call duration, and more.

 3. Supportive resources for self-guided implementation

To simplify the process, we have authored a detailed user guide that provides clear, step-by-step instructions to help contact center administrators implement Pindrop® Solutions in their Webex Contact Center environment. 

Additionally, Pindrop resources are readily available for support and guidance, ensuring a smooth and successful integration. 

Real-world success

Some of the largest banks, credit unions, insurance companies, and healthcare providers in the world trust Pindrop to combat fraud and deliver secure, efficient customer service. To read more about how Pindrop integrates with other leading contact center platforms, check out our posts on Five9 + Pindrop authentication and fraud detection or how to integrate Pindrop® Solutions and Genesys Cloud CX.

Ongoing collaboration and future development

At Pindrop, we’re committed to continuous innovation and close collaboration with the Webex Contact Center. We adapt our solutions to address evolving customer needs. Our teams actively monitor and enhance the current integration, exploring new capabilities to support future use cases.

Do you have a call center challenge you’d like Pindrop and Webex Contact Center to address? We’d love to hear from you.

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5 Insights in 15 Minutes: 2023 Authentication Trends

After significant research from 2022 data, our experts have predicted 5 compelling authentication trends looking into 2023 and beyond. Whether you’re considering optimizing customer experience, are concerned with recent deepfake news, or wondering how the rise of voice assistants will affect customer security, this webinar will touch on how consolidated market research shows the top trends to be mindful of as you consider your authentication strategy.

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Whether you’re a seasoned IT professional or curious to learn more about the mechanics behind deepfake detection, join our panel of Pindrop voice security experts for a live Ask Me Anything (AMA) session where you’ll have the opportunity to ask questions and gain invaluable knowledge around how your business can navigate the complexities of this evolving digital landscape.

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Consumer sentiment around deepfakes and voice clones

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How pop culture plays a role in AI technology sentiment

Strategies to combat the threat of deepfakes and voice clones

Meet the Speakers

Amit Gupta

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Brett Kinsella

Founder, Editor, CEO & Research Director

Annual Report

2024 Voice Intelligence and Security Report

Fraudsters have a new tool for gaining entry into contact centers and extracting private data: voice deepfake technology. Discover data-driven solutions to protect your business and customers from advanced fraud techniques.

  • Contact center fraud has grown 60% in the last two years with rising data breaches, ID thefts, account reconnaissance, and now Generative AI.
  • Financial institutions continue to see the highest number of fraud attempts, but fraud in the e-commerce sector is growing rapidly.
  • Deepfakes are already in contact centers. Fraudsters are testing the waters and learning to scale their attacks.
  • The average contact center authentication process has increased from 30 to 46 seconds (+53%) from 2020 to 2023, resulting in higher costs and lower customer satisfaction ratings.

What’s in the Report

Learn how to navigate the emerging threats in voice security’s evolving landscape and equip your business with robust tools to combat fraudsters and authenticate your customers effectively.

Fraud continues to rise as data breaches and ID thefts show no sign of abating. Dive into Pindrop’s annual contact center fraud research to get to the root of the problem and figure out the best way to protect your brand, consumers and business.

Deepfakes are not new, but they have become particularly treacherous due to advancements in Generative AI. Fraudsters are becoming more equipped to createat creating deepfakes. If not stopped, this could balloon into a $5 billion problem. Read this report to find out how.

Fraud rates in e-commerceEcommerce are 3x more than in financial services and are forecasted to grow by 166% in 2024. Contact centers are at the epicenter of this fraud spike. Find out what you can do to protect yourself and your customers.

Fraud and authentication are two sides of the same coin. While fraud has spiked in the last two years, authentication has become more expensive, costlier, and time-consumingtime consuming. Read this report to discover how you can balance both these challenges effectively.

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The rise of advanced audio manipulation and generative AI technology has sparked concerns over digital deception, fraud, and disinformation. In response, we launched Pindrop® Pulse last month, offering real-time deepfake detection for contact centers.

 

Whether you’re a seasoned IT professional or curious about deepfake detection, join our Pindrop voice security experts for a live Ask Me Anything (AMA) session. It’s an opportunity to ask questions and gain valuable insights on how your business can navigate the complexities of this rapidly evolving digital landscape.

Real-world examples of deepfake attacks on businesses, and how Pindrop Pulse can help

How Pindrop’s liveness detection technology works to help protect organizations and their consumers

The biggest security threats of 2024 and how you can stay ahead

Your expert panel

Amit Gupta

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Elie Khoury

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Aarti Dongargaonkar

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Sarosh Shahbuddin

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Read Pindrop’s new report on consumer sentiment surrounding deepfakes and voice clones.

  • Learn more about consumer concerns regarding deepfakes and synthetic voice, with 90% od surveyors expressing worry.
  • Discover which industries face the highest levels of concern about deepfake risks.
  • Explore how pop culture influences AI sentiment and strategies to combat deepfakes effectively

ON-DEMAND WEBINAR

5 Insights in 15 Minutes: 2023 Authentication Trends

After significant research from 2022 data, our experts have predicted 5 compelling authentication trends looking into 2023 and beyond. Whether you’re considering optimizing customer experience, are concerned with recent deepfake news, or wondering how the rise of voice assistants will affect customer security, this webinar will touch on how consolidated market research shows the top trends to be mindful of as you consider your authentication strategy.

Users want options for convenience

Multifactor is no longer optional

OTP risks cause push to contact center

Authentication must evolve for deepfakes

Hands-free highlights need to secure voice

Your expert panel

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Take the first step toward a safer, more secure future
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