Consumer scams, identity theft and fraud have boomed during the COVID-19 pandemic prompting superannuation funds to bolster fraud prevention strategy.

Upgrading from insecure pins, challenge questions and two-step code verifications is a critical security measure in the fraud prevention framework to protect member accounts from a multitude of current and imminent threats.

Unsurprisingly, the most common account takeover tactics extract personal information and financial details from individuals via email, SMS, cold calls, malware and stolen postal mail. Fraudsters typically pass off as financial advisors with investment opportunities or as representatives from super funds or government agencies offering benefits, early withdrawals and even using scare tactics.

Reclaiming power

It is vital that funds reclaim power by replacing information-based authentications with artificial intelligence and biometric technology.

These technologies are widely accepted as the fastest, most secure identity protection methods because they examine thousands of unique biological markers including how people sound, what they say and how they behave.

A critical function of the technology is real time anti-spoofing techniques including bots, remote access trojans (RAT), scripts, synthetic speech and so on.

Ideally, biometric authentication is streamlined across all channels to protect and personalise every interaction. A central source of authentication and fraud detection is vital to cost savings and efficient management.

Apart from unparalleled security benefits, biometric authentication offers big business benefits and is the overwhelming preference for contact centre agents and customers. Below is a summary of the top six reasons supporting the business case for super funds to make the switch to biometric authentication.

Six reasons to switch to biometric authentication

1. Protect member accounts 

   Offer dramatically enhanced account security, prevent identity theft and increase member trust by streamlining authentications with the latest technology across phone and digital channels.

   
   

2. Enhance member experience 

   Offer fast and frictionless omnichannel authentication that members expect. Empower secure self-service and high-value transactions. Enable quicker one-to-one resolutions with member servicing agents and ensure all members equal access with multi-language offerings.

   
   

3. Enhance employee experience 

   Remove tedious authentication tasks and energise member servicing agents with more fulfilling member interactions. Reduce agent stress by offering AI-driven compliance prompts across voice, social and web chat channels.

   
   

4. Reduce average handling time (AHT) and full-time equivalent (FTE) cost 

   Achieve marked reductions in AHT while reducing contact centre staff costs and resourcing requirements. Realise operational efficiencies across the board including fraud prevention resourcing.

   
   

5. Reduce cost and incidence of fraud 

   Reduce cost of fraud investigation, remediation and brand damage by preventing fraud or catching fraudsters in real time. Blacklist known fraudster voiceprints and identify potential threats who may have created accounts to learn how the fund works.

   
   

6. Reduce non-repudiation risk 

   Voice biometrics offers non-repudiation with online and phone channel authentication. It provides the fund with greater assurance that a member must accept the authenticity of their voiceprint when interacting with the fund.

Application of biometric authentication in Australia 

The most widely used application of this technology in Australia is the government’s active passphrase, “In Australia my voice identifies me” which was implemented by Nuance technologies at the Australian Tax Office in 2016 and soon after deployed at MyGov by the Department of Human Services.

The initiative has literally transformed the security capability, cost of fraud and experience outcomes for the Australian government and its clients, including reducing average handling time by 48 seconds.

Australian banks such as NAB have widely adopted the technology across phone and customer portal applications enabling faster AHT, encouraging secure self-service and enabling step-up security for high-value transactions.

Passive voice authentication in which customer identity can be authenticated by only a few seconds of natural speech is emerging as a preferred authentication method because it allows customers to talk immediately to their enquiry and be authenticated with no effort at all.

Increased identity protection and enhanced member experience are growing requirements for superannuation funds and their members. If your fund is interested in exploring artificial intelligence and biometric authentication technologies, QMV can help. Please contact QMV for further information on p +61 3 9620 0707.   

Co-authors 

Robert Schwarz – Managing Director, Australia New Zealand, Nuance 

Sunil Dargani – Lead Consultant, QMV 

QMV provides trusted advisory, consulting and technology to Australia’s leading superannuation, insurance, banking and wealth management organisations. For further information please telephone our office p +61 3 9620 0707 or submit an online form.

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