The benefits of invisible caller authentication

Posted on: March 15th, 2017 by Art Barger

Social engineers spend much of their time evading fraud detection tools. They hide behind telephone anonymity to remain inconspicuous to contact center verification processes like knowledge-based authentication (KBA). This stealth-like ability is one of the biggest weapons in defrauding financial institutions over the telephone channel.

While maintaining a level of ambiguity has proven to be an effective strategy for fraudsters tricking banks and businesses into believing they are legitimate customers, what if the tables were turned? What if the customer identification process was invisible to callers, taking place behind the scenes without the caller’s knowledge? How effective would this be in identifying customers over the telephone channel?

For banking institutions, customer authentication tools help reduce fraud rates. But the benefits don’t stop at just catching crooks. Automatic out-of-band caller identification goes well beyond spotting and blocking fraud before it happens; it’s good for validating good customers, too.

Instead of relying on conventional KBA methods that interrogate customers on the phone and interrupt the banking experience, identifying callers upstream allows banks to make fast, real-time decisions that benefit banks and their customers, alike. Automatic and invisible caller authentication helps financial institutions:

  • Create a secure customer environment: Not relying solely on nonpredictive knowledge-based tools to verify customers mitigates a bank’s risk of falling victim to advanced social engineering scams.
  • Ensure a seamless banking journey: Proactive authentication doesn’t interfere with the customer journey. Instead, callers’ problems are resolved faster, resulting in a more satisfying customer experience.
  • Stop more social engineering scams: When high-risk calls are detected pre-call, banks can block them from entering the telephone system, before they can speak to a telephone agent.
  • Reduce operating costs: Removing spoofed and other high-risk calls in real-time eliminates unnecessary labor costs related to lengthy identity-interrogations, which can add 45 seconds to a minute or more to each call.
  • Meet federal compliance: Out-of-band authentication solutions can work in conjunction with other customer identification tools to help banks comply with multi-factor authentication requirements.

If your customer identification process has not validated the caller before a contact agent picks up the phone, your customer accounts and private data may be at a greater of risk. Caller identification tools like the TRUSTID® Physical Caller Authentication reduces this risk by invisibly verifying each call while the phone is still ringing.

As the caller waits for the phone to be answered, a credential is automatically sent to the bank to let them know if the call is coming from a valid customer, or if it poses a risk. Acting on this intelligence, good calls are instantly routed to an operator while spoofed calls are denied and removed from the telephone system in real-time. This allows banks to improve the overall customer journey, and at the same time, prevent criminal activity before it happens. That’s the power of invisible caller authentication.