Financial services companies are finding out that they can reduce fraud loss by quickly detecting imposters. But that is just the start of the story. Learn how the combination of multiple factors can lead to lower financial losses. -- Mark Lazar, CEO, Victrio, Inc.

1. © 2012 NACHA — The Electronic Payments Association. All rights reserved.
No part of this material may be used without the prior written permission of NACHA.
This material is not intended to provide any warranties, legal advice, or professional
assistance of any kind.
Making
voice
biometrics
work
in
real
world
implementa5ons
AKA,
Beyond
the
bullet
point
Mark
Lazar
CEO,
Victrio

2. 2Proprietary © 2013 Victrio, Inc.
Victrio
Intro
• Emerging leader in passive voice biometrics
• Team expertise in voice recognition and call center
– Ex-Nuance, BeVocal, Tuvox
• Industry acclaim
– Gartner Cool Vendor 2013 for Security:
Identity and Access Management
– RSA Most Innovative Company 2013 - Finalist

3. 3Proprietary © 2013 Victrio, Inc.
Deep
Experience
in
Voice
Biometric
ImplementaAons
for
Financial
Firms
• 3 years of implementation experience
• Clients include 3 of top 5 financial firms
• Screening 100M calls in 2013
• Largest global fraudster database in world

4. 4Proprietary © 2013 Victrio, Inc.
History
of
Industry’s
Voice
Biometric
Efforts
1990’s
Schwab
Early
2000’s
Mid
2000’s
Late
2000’s
HSN
HarOord
Insurance
MarrioP
US
Bank
AT&T
Visa
Bank
of
America
First
Horizon
Bell
Canada
Bank
of
America
ABN/AMRO
Santander
American
Express

5. 5Proprietary © 2013 Victrio, Inc.
1990’s
Schwab
Early
2000’s
Mid
2000’s
Late
2000’s
HSN
HarOord
Insurance
MarrioP
US
Bank
Visa
AT&T
Bank
of
America
First
Horizon
TERMINATED
TERMINATED
UNKNOWN
INTERNAL ONLY
INTERNAL ONLY
TERMINATED
INTERNAL ONLY
TERMINATED
TERMINATED
TERMINATING
Bell
Canada
Bank
of
America
ABN/AMRO
Santander
American
Express
Gap
Between
Theory
and
PracAce

6. 6Proprietary © 2013 Victrio, Inc.
Today:
Even
More
ImperaAve
to
rescue
call
center
Customers are
increasingly frustrated…
Web Attacks vs. Phone Attacks
While professional
fraudsters aren’t stopped
65%: Frustrated
Source: Opus Research 2012 Survey Source: RSA Client Study
50%: Too time-
consuming

7. 7Proprietary © 2013 Victrio, Inc.
Passive
Voice
Biometrics:
Promising
Theory
• No customer interruption
• Passive enrollment
• Passive authentication
• Alerts agent in real time
– Shorter call and AHT
– Happier customer
– Stronger fraud detection

8. 8Proprietary © 2013 Victrio, Inc.
Victrio ID Confidence Cloud
Voice
Biometric
Analysis
Account
Data
Call &
Behavioral
Data
Voiceprint
Match
ID Confidence
Reported to
Agent
High
Fraud
?
Low
Caller Voice
Call Center
/ IVR
Mobile
Passive
Customer
Voiceprints
Shared
Fraudster
Voiceprints
Signal
Analysis
Ideal
System
Overview

9. 9Proprietary © 2013 Victrio, Inc.
Life
in
the
Trenches:
Fraud
DetecAon
• Call center infrastructure is never ready on Day 1
– Call recording system poorly configured
• Association with accounts not always available
• Relevant metadata not available
– Clients have to assert ownership of data
• Need new people processes to support solution
• Poor flagging and capture of fraud interactions
• Poor understanding of call center “big data”

10. 10Proprietary © 2013 Victrio, Inc.
Life
in
the
Trenches:
Fraud
DetecAon
• Business Model?
– Licensed product?
– Managed service?
• Evolve system to anticipate evolving fraudster behavior
• Track changing impact of factors in multi-factor scoring
• Example: Growing usage of using $8 burner phones weakens
device detection; adjust weighting

11. 11Proprietary © 2013 Victrio, Inc.
Field
Results:
High
Repeat
Fraud
Rate
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
BROKERAGE
71% 89%
BANK
ACCOUNT
FRAUD
42% 76%
CREDIT
CARD
FRAUD
72% 95%

12. 12Proprietary © 2013 Victrio, Inc.
0 20 40 60 80 100 120 140 160 180 200
Duke Kobayashi
Jeffrey Johns
Tyler Miresh
Charles Davis
Robert Albert
Bill Koflin
Josh Dumas
Greg Barker
Sally Davino
Michael Lee
Shauna Koshik
Alexandra Laurel
Patrick Donally
Elizabeth Wright
Jerry Lucent
Carla Gonzalez
Francis Montgomery
Michael Henley
Shauni Mccoy
Mark Martigas
Brian Reed
Recurring
PaPern:
DramaAc
Fraudster
AcAvity
ConcentraAon
TOP
20
FRAUDSTERS
~ Half of fraud activity perpetrated
by top 10 Fraudsters
Calling > 30 times per month
C A L L S

13. 13Proprietary © 2013 Victrio, Inc.
Average Number of Attacks From “Sharks”
Drops (Study of Top 10)
17
20
21
10.5
12
5.5
6.5
1.5 2
1 1
0
5
10
15
20
25
Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12
Average Fraud Events Per “Shark" Per Month
Fraud Events
Trial and error
period
Churn/abandonment
period (fraudster frustration)
19 calls on
average
Previously
successful
fraudsters give up
after Victrio is in
place

14. 14Proprietary © 2013 Victrio, Inc.
Case Study: Dramatic Impact of
Voice Biometric Fraud Detection
• 3:1 false positive ratio
exceeds industry
standards
• 82% reduction in
baseline fraud since
Victrio launch
• Strong endorsement
from fraud operations

15. 15Proprietary © 2013 Victrio, Inc.
Life
in
the
Trenches:
AuthenAcaAon
• Affirm the need and business case
– What are the authentication metrics today?
– Translate differential into hard costs
– How to value soft benefits?
• Better customer experience
• Top of wallet
• Churn and new customer acquisition cost
• Resolve privacy considerations
– Engage legal and security early
– Design optimal “consent” strategy

16. 16Proprietary © 2013 Victrio, Inc.
Life
in
the
Trenches:
AuthenAcaAon
• “Dual screening” maximizes accuracy and speed to answer
– 3X accuracy with combined blacklist & whitelist vs. whitelist alone
• Multi-factor approach
– Voice biometric, call and behavioral, account data, signal analysis
• Deliberate “graylist” process
– When do you trust a newly enrolled voiceprint?
• Prepare organization with fraud detection first
– Low customer exposure while you address the above

17. 17Proprietary © 2013 Victrio, Inc.
Field
Results:
AuthenAcaAon
• Over 28M calls analyzed
• Range of AHT reduction metrics
• Leverage historical call recordings to kickstart
process
• Full customer base coverage over time

18. 18Proprietary © 2013 Victrio, Inc.
AuthenAcaAon
Accuracy:
Integrated
Approach
Drives
Performance
• Whitelist: 3X accuracy with combined blacklist
and whitelist versus whitelist alone
• Whitelist: Additional 25% improvement in
accuracy when combined with metadata
• Blacklist: 2X lift in accuracy for blacklist when
combining with metadata

19. 19Proprietary © 2013 Victrio, Inc.
Business
Impact
and
Customer
Experience
?
2,000 calls
Legitimate Callers
9,998,000 calls
Screen2:
FraudsterVoiceprintScreen
Screen1:
CustomerVoiceprintMatch
97%
Legitimate Callers
3% Legitimate Callers
~15 -25 Seconds
Faster Authentication:
$60M savings
Current
Authentication
Caught Fraud
1,992 calls
Uncaught Fraud
8 calls
Greater Fraud
Detection:
$40M savings
Fraudsters
Live Agent Calls
10M per Month

20. 20Proprietary © 2013 Victrio, Inc.
Further
materials
and
informaAon
• Web access to demos
• White paper
• Industry data
Mark Lazar,
Victrio CEO
mlazar@victrio.com