When we talk to senior executives of financial institutions about telephone spoofing and hacking, they often say they don’t believe spoofing happens very frequently. Like most of its other fraud counterparts (i.e., transactional fraud, card-not-present, identity fraud), telephone fraud is also the proverbial needle in the haystack. While phone fraud may or may not happen that frequently (I’m not sure anyone truly knows), but it does beg the question: What does spoofing actually cost the inbound call center industry? Or more directly: What does it cost your organization?
The call center industry in the United States will take over 50 billion inbound calls in 2012. Of these, nine billion will go into financial services companies. As many organizations recognize that the use of Automatic Number Identification (ANI) is no longer a viable method for validating caller identity, they’ve had to take precautionary steps to authenticate these 50 billion calls. So, while Caller ID spoofing may not be easily quantified and may be perceived as low risk, the very “fear of spoofing”, or need to know who is on the other end of the call, is forcing call centers in all industries to enhance their current level of authentication over the telephone channel. This new level of authentication has been brought on by the demise of Caller ID and ANI, and has added billions of dollars in costs that did not exist a few short years ago.
The two primary factors that have driven up costs include:
- Risk-based Verification: Organizations have deployed what they call “risk-based verification” processes. By this I mean inbound calls that typically could have been automatically handled in the IVR system without agent involvement and deemed high risk or a higher probability for fraud (for adding an authorized user to an account, address change with request for a card, ACH payment, etc.) are now routed to the floor for an agent to handle. This has created upwards of a 5-10% reduction in IVR servicing rates.
- Knowledge-based Authentication: Inbound calls that were historically answered via a live call center agent now take longer as phone reps run them through some kind of security interrogation or knowledge-based authentication (KBA) process that requires customers to provide non-predictive personally identifiable information (PII) to identify them over the telephone.
These steps, all created by the fear of spoofing, can cost inbound call centers an increase of 15-20% in operating costs. It has even spawned the voice biometrics industry and other forms of expensive authentication tools.
To counter these cumbersome, unnecessary procedures that are increasing costs and testing the customer’s trust and goodwill, inbound call centers need to deploy a caller authentication solution that enables them to restore the Caller ID and ANI as trusted sources for identifying and authenticating customers.
The TrustID® network-based Physical Caller Authentication eliminates highly intrusive phone interrogations by automatically validating the Caller ID and ANI before the call is answered. Deploying an innovative tool like TrustID allows call centers in all industries to once again increase self-service, reduce agent handle times, and most importantly, lower bottom line expenses.Tags: ANI, ANI Spoofing, automatic number identification, call center fraud, Caller ID Spoofing, KBA, knowledge-based authentication, personally identifiable information, Physical Caller Authentication, PII, risk-based verification, telephone channel, TrustID