You know your customers better than anyone. You know their banking needs and how they prefer to interact with you. But when the phone rings, do you know if you are talking to a genuine customer or a bad actor?
According to the recent article, “Dialing Into Call Center Fraud,” call center fraud climbed 113 percent in 2016. Ironically, much of that was due to advancements in technology. As banks get better at stopping online fraud, social engineers are re-directing their efforts on what they perceive as vulnerable banking channels like the contact center, which to a certain degree still relies on human interaction to identify customers.
While contact center security and authentication have come a long way, some things haven’t changed. Many financial institutions continue to use knowledge-based authentication (KBA) to validate customers over the telephone channel.
These conventional methods were once key identifiers for verifying inbound calls, but things have changed. While asking callers a bunch of personal questions has been around since the early days of call center services, these tactics are no longer predictive or cost effective. And by interrupting the banking journey, telephone interrogations also have a negative impact on the overall customer experience.
With more criminals now setting their sights on ways to defraud call centers, it’s becoming mission critical to both the security and success of today’s banking institutions to quickly and accurately identify callers against more advanced forms of fraud.
The article also cites that 94 percent of call center scams use caller ID spoofing tools to trick interactive voice response (IVR) systems and trained telephone agents into divulging private customer data. Fraudsters collect this data to build customer profiles that they can use to sell on the underground economy or socially engineer financial institutions on many levels, including accessing legitimate banking accounts via the call center.
Today’s advanced forms of fraud and social engineering actually prey on banks that use KBA solutions. Why? These methods have become almost defenseless to recognizing impostors. Security questions are now easily defeated by criminals armed with the right personal information like Social Security numbers, date of birth and your mother’s maiden name collected on the internet and social platforms to answer standard questions designed to validate customers.
Having an authentication tool like the TRUSTID® Physical Caller Authentication in your call center’s fraud detection system is essential to spotting spoofed caller IDs to reduce social engineering scams that can lead to harmful activities like account takeovers, card-not-present fraud, and other evolving banking scams.
Using advanced telephone network forensics to analyze telephonic credentials in real-time, TRUSTID gives banks the intelligence they need to make instant decisions that streamlines the caller authentication process and reduces fraud and friction to help create a better overall experience for their customers.