I received a call on my cell phone the other day. It was my bank calling because a transaction outside of my normal behavior pattern tripped a flag in their fraud models. “Hello!” said the friendly, automated voice, “I’m calling from [bank name] and we need to talk to you about some unusual transaction activity on your account, but before we do, I need to make sure Monica Bellflower has answered the phone. We need to ask you a few questions for security reasons to protect your account. Please hold on a moment.”
At this point, the IVR (Interactive Voice Response) system invoked a Knowledge Based Authentication session that the IVR controlled. The IVR, not a call center representative, asked me the Knowledge Based Authentication questions and confirmed the answers with me.
When the session was completed, I had been authenticated, and the friendly, automated voice thanked me before launching into the list of transactions to be reviewed. Only when I questioned the transaction was I transferred, immediately – with no hold time, to a human fraud account management specialist. The entire process was seamless and as smooth as butter.
Using IVR technology is not new, but using IVR to control a Knowledge Based Authentication session is one way of controlling operational expenses. An example of this is reducing the number of humans that are required, while increasing the ROI made in both the Knowledge Based Authentication tool and the IVR solution.
From a risk management standpoint, the use of decisioning strategies and fraud models allows for the objective review of a customer’s transactions, while employing fraud best practices. After all, an IVR never hinted at an answer or helped a customer pass Knowledge Based Authentication, and an IVR didn’t get hired in a call center for the purpose of committing fraud.
These technologies lend themselves well, to fraud alerts and identity theft prevention programs, and also to account management activities. Experian has successfully integrated Knowledge Based Authentication with IVR as part of relationship management and/or risk management solutions.
To learn more, visit the Experian website at: http://www.experian.com/decision-analytics/fraud-detection.html?cat1=fraud-management&cat2=detect-and-reduce-fraud).
Trust me, Knowledge Based Authentication with IVR is only the beginning. However, the rest will have to wait; right now my high-tech, automated refrigerator is calling to tell me I’m out of butter.