Fraudsters pass KBA better than genuine customers
Per Pindrop, data dealers have grown more sophisticated and now offer more services, better details and more organized information. As a result, 2021 was a record breaking year for data breaches. In fact, bad actors actually had better performance than genuine customers at answering security questions.
Data breaches and the dark web are compromising service providers’ abilities to use knowledge-based or out-of-wallet questions to authenticate customers. As board members demand better customer experience, it’s shown that customers prefer more advanced authentication methods than they are currently receiving over the phone.
Pindrop’s report suggest that it may be only a short matter of time before the adoption of more advanced authentication systems is no longer a question of deliberation a but a matter of necessity.