FB pixel

Pindrop report reveals states restricting biometrics are twice as vulnerable to fraud

Pindrop report reveals states restricting biometrics are twice as vulnerable to fraud

Consumers living in U.S. states that impose enhanced restrictions on biometrics are twice as likely to experience fraud, according to a new report from call center security vendor Pindrop.

The report was funded and compiled by the vendor.

The findings come from analyzing 5 billion phone calls and 3 million fraud cases involving financial institutions, insurers and retailers.

The report identified the states of California, Texas, Illinois and Washington – all jurisdictions with potent pro-privacy rules — as contributing to 33 percent of all fraud losses reported in the United States.

The link between the two trends is not backed up in a way that would make a confident decision by business owners.

“Today’s fraudsters are more equipped and creative than ever, using deep fakes, the regulatory landscape and self-service channels to help them successfully attack consumers and corporations,” says Vijay Balasubramaniyan, the CEO and co-founder of Pindrop.

According to the report, the risk of fraud also is increasing for consumers and corporations due to factors including the use of artificial intelligence, a rise in self-service channels and a trend toward regulation without security or fraud prevention exemptions.

The report also revealed that financial uncertainty has caused an increase in fraud offenses. But data breaches and retail fraud are growing rapidly. For example, payment fraud increased 40 percent from 2021 to 2022. And 3.6 percent of 2022 e-commerce revenue was stolen by fraudsters.

The report says that fraudsters are using data from the dark web to identify valuable accounts and coordinate attacks on them. The report also found that fraud is a significant problem in the retail industry, with one fraudulent call for every 347 calls.

“In addition to new technologies, fraudsters are reverting to pre-pandemic social engineering tricks, causing retailers and financial institutions billions in losses,” adds Balasubramanian.

Article Topics

 |   |   | 

Latest Biometrics News


EU AI Act should revise its risk-based approach: Report

Another voice has joined the chorus criticizing the European Union’s Artificial Intelligence Act, this time arguing that important provisions of…


Swiss e-ID resists rushing trust infrastructure

Switzerland is debating on how to proceed with the technical implementation of its national digital identity as the 2026 deadline…


Former Jumio exec joins digital ID web 3.0 project

Move over Worldcoin, there’s a new kid on the block vying for the attention of the digital identity industry and…


DHS audit urges upgrade of biometric vetting for noncitizens and asylum seekers

A recent audit by the DHS Office of Inspector General (OIG) has called for the Department of Homeland Security (DHS)…


Researchers spotlight Russia’s opaque facial recognition surveillance system

In recent years, Russia has been attracting attention for its use of facial recognition surveillance to track down protestors, opposition…


Estonia digital identity wallet app from Cybernetica lifts off

Tallinn-based Cybernetica has submitted the minimum viable product (MVP) for Estonia’s national digital identity wallet to the Estonian Information System…


Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Most Read This Week

Featured Company

Biometrics Insight, Opinion

Digital ID In-Depth

Biometrics White Papers

Biometrics Events