Leveraging voice technology to combat cyber-fraud | 30th December 2022 | UPSC Daily Editorial Analysis

Please Share with maximum friends to support the Initiative.

What's the article about?

  • It talks about adopting voice technology (VT) as an identification tool in the financial system to combat cybercrime.


  • GS3: Science and Technology- Developments and their Applications and Effects in Everyday Life;
  • GS3: Basics of Cyber Security; Money-Laundering and its prevention;
  • Prelims


  • Bank and cyber frauds in India are on the rise.
  • According to data by the RBI, frauds have cost the country an estimated ₹100 crore a day over the last seven years.
  • The frauds reported in 2021-22 were 23.69% higher than in the previous year (9,103 cases reported compared to 7,359 in 2020-21)
  • The main reasons for the rise in fraud include greater use of digital payments, telephone banking, and online banking services.
  • One way to reduce losses is by adopting Voice Technology (VT), which encompasses voice biometrics or voice/speech recognition technology.

Basics of user-identification/recognition technologies:

  • In the present digital world, financial institutions generally employ the following types of user-recognition technologies/methods:
  • Knowledge-based authentication methods:
    • user information such as password, date of birth, OTP, or personal questions, etc are used to recognise the user.
    • These methods have inherent flaws. Thus they are not effective in preventing cybercrimes (81% of hacking-related breaches involve weak passwords).
    • Almost 90% of current user-identification in the financial institutions in India is based on these technologies.
  • Biometrics-based authentication methods:
    • Biometrics is the measurement and statistical analysis of people's unique physical and behavioral characteristics.
    • These include retina, fingerprint, voice or unique behaviour of the users to recognise them. One of the best examples of this method is the Aadhar based identification system.
    • These methods are generally considered foolproof and help to reduce cybercrime.
  • Thus Voice Technology (VT) comes under Biometrics-based authentication methods. In this technology the user's voice and related parameters are used to recognize him/her. The technology creates a digital voiceprint and compares it to a caller’s voice.

Advantages/features of Voice Technology (VT):

  • Voice authentication can significantly improve security over knowledge-based authentication methods.
  • Compared to other biometrics, voice use is the cheapest technology, and does not require a reader or special device.
  • It is also non-invasive, portable and affords remote identification. A
  • Unlike a password, a customer’s voice is impossible to spoof or copy, and is far more challenging to hack.
  • VT verifies a caller swiftly in seconds by analysing the caller’s voice and flags suspicious calls.
  • VT allows privacy because it does not require users to reveal personal information.
  • The voice biometrics industry is growing exponentially now. Experts expect the market to reach a market size of $3.9 billion by 2026, with a compound annual growth rate of 22.8%.
  • Voice could be an excellent tool for the Government to disburse money for various schemes and verify the proof of life of pensioners from their homes.
  • In February 2019, HSBC became the first bank to take the revolutionary leap in introducing voice recognition for mobile banking customers — telephone banking fraud cases fell by over 50%.

Way Forward:

  • Voice biometrics tech is making waves in the world of fraud protection by providing an extra layer of protection for data.
  • Although the technology is not yet perfect, the potential benefits are significant. Once it is in place, user establishments can reap the benefits from a substantial reduction in fraud, making the technology an essential feature in the security toolkit of the future.

Please Share with maximum friends to support the Initiative.

Download the Samajho App

Join 5 lakh+ students in downloading PDF Notes for 2000+ Topics relevant for UPSC Civil Services Exam. &nbsp Samajho Android App: https://bit.ly/3H9hva1 Samajho iOS App: https://apple.co/3H8ZJE2 &nbsp Samajho IAS Youtube Channel (300K+ Subscribers): https://www.youtube.com/@SamajhoIAS