In the complex and highly analytical realm of fraud detection and prevention, the best fraud strategies, rules, software and technologies are generally believed to have a considerable lifespan. Over time, however, many of these tools can be compromised or become less effective in fighting fraud as criminals figure out how they work and come up with new ways to evade detection. This is probably most evident on the Internet where, despite massive efforts to protect data, we frequently read about large-scale data breaches against even the most technologically advanced companies.
One of the biggest long-standing issues with fraud prevention has been the visibility of the programs to the public and, therefore, the criminals.
Most fraud strategies, including Card Activation and CVV/CVC2, are eventually compromised by criminals because of this visibility. Even in the highly sophisticated, data driven area of transactional processing, where models look at usage patterns or data elements like transaction amounts, SIC/MCC codes, transaction time and country code, these tools can be relatively easily tested by crooks. In all fairness, many of the fraud prevention programs like Card Activation are publicized because they require customer involvement or are instructional in nature (asking for the 3-digit code on the back of the signature panel) to good cardholders.
One of the primary benefits of the TrustID® Telephone FirewallTM solution, is that it is invisible to the criminals and undetectable to upstanding customers. Knowing what inbound calls are high risk prior to answering the call provides banks and other financial institutions a huge advantage over the criminals, and an opportunity to dramatically improve the customer experience through reduced interrogation, otherwise known as KBA (knowledge-based authentication).
Because the TrustID Firewall is completely transparent to both customers and criminals, and developed using data from a highly complex telephone network, it doesn’t provide crooks with any insight into how they are detected. As a result, customers go about their business without interruption and crooks have nothing to test against to breach the system.
Much like its historical predecessors (i.e. Card Activation Stickers, Falcon, Device ID, Caller ID), the TrustID Telephone Firewall transforms the way banks service their customers. It fundamentally changes how financial institutions authenticate customers and routes calls to reduce fraud losses, drive down operational expenses, and improve the overall customer experience.