What’s the “golden key” for call center fraud?

Posted on: October 09th, 2014 by Art Barger

Personal information is valuable to your business. It helps link your customers to their private accounts, allowing them to perform a variety of remote banking transactions. But be aware: as valuable as sensitive customer data is, it can also be used by criminals to defeat your call center defenses.

According to the recent Watchdog.org post, “Calling on fraud,” personal information is the “golden key” to perpetrating identity theft and other fraud over the telephone channel.

Every call center hosts a wealth of personal data. This alone makes telephone operations a target for fraud. This is why call centers need to educate themselves about fraud attacks coming from the outside, and within the company.

Much has been disclosed from a group of scammers accused of mishandling sensitive customer data from within an organization. A contact center employee did so by providing co-conspirators outside of the organization with customer information like Social Security numbers (SSN), birth dates, credit and debit card numbers and passwords, which can all be used to access private accounts.

This is particularly alarming for contact centers that still use knowledge-based authentication (KBA) tools to validate customers and protect their private banking accounts. Relying on security questions to authenticate customers over the telephone not only interrupts the customer experience, it increases the risk of potential fraudulent activity such as identity theft and account takeovers.

Raising awareness of fraud — whether it originates from the outside or within — can help call centers build stronger processes around how employees interact and handle sensitive customer data. At the same time, deploying a “pre-call” authentication solution like the TRUSTID® Physical Caller Authentication, which doesn’t rely on personal information to verify if the call is trustworthy or high-risk, is an effective way to protect your confidential business information to ensure your customer accounts are safe from fraud and other malicious activity.

As today’s banks and business implement stronger tools to increase their defenses against telephone fraud, keeping an eye on both your call center’s inbound and outbound activity can play a direct role in the overall financial and operational success of your call center.