Stopping the fraud avalanche with a plastic spoon?

“Although there's no way to stop an avalanche, some can be prevented or turned aside.”

You’re faced with a white wall of snow hurtling down the mountain towards you, as you stand there with only a plastic spoon for protection. Thinking that everything will be okay would be pure insanity.

Yet, when it comes to stopping the avalanche of professional fraudsters targeting the contact center, most organizations are still taking this “plastic spoon” approach. They rely on a set of highly fallible authentication questions to protect their customers, while most of this information is freely available on the internet and social networks. In fact, a recent Aite white paper found that 47% of organizations are still using static questions such as birthdate and mother’s maiden name to verify the identity of callers.

Give me just a couple of minutes on the Internet and you’ll be amazed at what information I can gather about you. Check out what Mat Honan, senior writer for Wired, was able to learn from hackers after he himself was hacked.

Fraud Avalanche

Fraudsters are professionals – the same Aite report found that 90% of fraud is perpetrated by organized fraud rings or professional individuals. Service reps – who are trained to give good customer service – simply don’t stand a chance, as fraudsters target these unsuspecting individuals to gain the final pieces of the puzzle that will help them carry out a successful account takeover. The American Bankers Association Journal details just how easy it is for the bad guys: If call center agents use the same questions each time, fraudsters will call in repetitively until they get the answers to those questions.

So how can we stop these bad guys from taking over our wallets and our lives? An article in the latest edition of SpeechTech magazine details best practices for fighting back, by taking the following actions:

  • Get multi-layered fraud prevention technology– by combining voice biometrics, speech analytics, and transactional data, enterprises can gain greater insight into whether a caller is legitimate or poses a risk, enabling them to create a more robust first line of defense
  • Protect across all customer channels – to catch fraudsters, companies must track cross-channel schemes in the same way they are being orchestrated – across phone, online, credit card, etc
  • Maximize the customer experience– to avoid treating all customers as suspects, organizations should identify high-risk interactions and focus on them

Leveraging voice biometrics to identify fraudulent callers and speech analytics to identify social engineering tactics are two easy-to-implement fraud fighting tools that can help you protect your contact center and organization in the face of the precipitous fraud avalanche. 

To learn more about contact center fraud prevention, join us at Interactions 2014, the industry’s leading customer conference.


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