Tag: call center

In today’s digital age, call center fraud is a growing threat that businesses can no longer afford to ignore. As fraudsters become increasingly sophisticated, it’s crucial for companies to implement robust security measures to protect both their operations and their consumers. Various forms of call center fraud can have a significant impact on businesses. To prevent this, companies can use effective strategies including multifactor authentication solutions and account takeover prevention techniques. But first, what is call center fraud? Understanding call center fraud Call center fraud occurs when fraudsters exploit vulnerabilities in customer service operations to gain unauthorized access to sensitive information and commit identity theft. This type of fraud can take many forms, including social engineering, which occurs when a fraudster manipulates a call center agent into providing information or access, and phishing, which occurs when fraudsters use deceptive tactics to obtain confidential details from unsuspecting individuals. One of the most concerning tactics used by fraudsters is impersonation, or pretending to be legitimate consumers to gain access to accounts. Once they have access, they can make unauthorized transactions, change account details, or even take over the account entirely—a scenario known as an account takeover. The impact of these fraudulent activities can be devastating, leading to significant financial losses, damage to brand reputation, and a loss of consumer trust. Key strategies for preventing call center fraud According to recent research, account takeover fraud has increased by 330% in the past two years, projecting to cost $6.24 billion globally.[1] In addition, the number of U.S. consumers who have experienced account takeover has increased from 22% in 2021 to 29% in 2023.[2] To effectively combat call center fraud, businesses must adopt a multi-layered approach that includes advanced technological solutions, comprehensive employee training, and real-time monitoring. Here are some of the most effective strategies: 1. Implementing multifactor authentication (MFA) solutions One of the most effective ways to secure consumer interactions is by implementing multifactor authentication (MFA) solutions. MFA requires users to provide two or more verification factors to gain access to an account or complete a transaction. This adds an extra layer of security, making it significantly more difficult for fraudsters to succeed even if they have obtained some of the consumer’s information. MFA can be integrated into call center operations in several ways. For example, businesses can use voice recognition as a biometric factor, requiring consumers to verify their identity through a unique voiceprint. Other methods include sending a one-time code via text message, which the consumer must provide during the call, or using mobile app verification, where consumers approve transactions directly through their smartphones. 2. Account takeover prevention Account takeover is one of the most serious threats to call centers, as they involve fraudsters gaining control of a consumer’s account, often with disastrous consequences. To prevent account takeover, businesses can employ a combination of technological solutions and best practices. First, understanding what account takeover entails is crucial. It typically begins when a fraudster obtains some of the consumer’s personal information—often through phishing, social engineering, or a data breach. They then use this information to impersonate the consumer and convince call center agents to provide them with access to the account. To combat this, businesses can employ several account takeover prevention techniques. Anomaly detection systems can flag unusual activities, such as login attempts from unfamiliar locations or devices, prompting additional verification steps. Behavioral biometrics is another powerful tool, analyzing patterns in how users interact with their devices to detect inconsistencies that may indicate fraud. Continuous authentication, where the system continuously verifies the user’s identity throughout the session, is also effective in catching fraudsters in the act. 3. Training and awareness Technology alone may not be enough to entirely prevent call center fraud—human factors are equally important. Regular training for call center staff is essential to ensure team members can recognize and respond to potential fraud attempts. Employees should be trained to identify common tactics used by fraudsters, such as social engineering, and to follow strict verification procedures before providing any sensitive information. Awareness campaigns can also play a significant role in preventing fraud. Internally, companies should run regular campaigns to remind employees of the importance of adhering to security protocols. Externally, educating consumers about the risks of fraud and encouraging them to use security features like MFA can help reduce the likelihood of successful attacks. 4. Real-time monitoring and analytics Real-time monitoring is a critical component of an effective fraud prevention strategy. By continuously monitoring calls and transactions, businesses can quickly identify and respond to suspicious activities before they escalate. Advanced analytics tools, including voice analytics and behavior analysis, can provide valuable insights into potential fraud, allowing companies to take proactive measures. Voice analytics, for instance, can detect stress or hesitation in a caller’s voice, which may indicate that they are not who they claim to be. Behavior analysis can track how consumers typically interact with their accounts, flagging deviations from the norm as potential fraud. Continuous improvement is key here—regularly reviewing and updating monitoring protocols ensures that businesses stay ahead of evolving threats. Preventing call center fraud in your business By using a multi-layered fraud approach through a variety of authentication solutions, your business can quickly detect call center fraud without disrupting your consumers’ experience. Identify the risk Identity-based risk detection can pinpoint when a specific identity may be in the hands of fraudsters. Device intelligence solutions can recognize the risk associated with a specific device used to attempt online access. Address the risk Knowledge-based authentication (KBA) can quickly authenticate users by asking questions only they can answer, which can deter fraudsters. MFA services can generate and deliver a one-time password to a consumer’s mobile device to verify their identity in real time. Document verification allows your business to collect and verify images of identity documents uploaded from a consumer’s mobile device. Protect your business and your consumers from call center fraud Call center fraud is a significant threat that requires a proactive and comprehensive approach to prevention. By implementing strategies such as multifactor authentication solutions, account takeover prevention techniques, and robust employee training, businesses can significantly reduce their risk of falling victim to fraud. In today’s fast-paced digital world, staying vigilant and proactive is the key to safeguarding your call center against fraud. Act now to protect your business and maintain the trust of your consumers. Enable your call center to detect risk quickly and effectively with our robust fraud prevention solutions. Get started Download our identity and fraud report This article includes content created by an AI language model and is intended to provide general information. [1] Worldmetrics.org, Account Takeover Statistics: Losses to Reach $6.24 Billion Globally, 2024. [2] Security.org, Account Takeover Incidents are Rising: How to Protect Yourself in 2024.

The COVID-19 pandemic has created unprecedented challenges for the utilities industry. This includes the need to plan for – and be prepared to respond to – changing behaviors and a sudden uptick in collections activities. As part of our recently launched Q&A perspective series, Mark Soffietti, Experian’s Senior Manager of Analytics Consulting and Tom Hanson, Senior Energy Consultant, provided insight on how utility providers can evolve and refine their collections and recovery processes. Check out what they had to say: Q: How has COVID-19 impacted payment behavior and debt collections? TH: Consumer payment behavior is changing. For example, those who paid as agreed, may not currently have the means to pay and are now distressed borrowers. Or those who were sloppy payers before the pandemic may now be defaulting on a more consistent basis. MS: As we saw with the last recession when faced with economic stress, consumer and commercial payment behavior changes based on their needs and current cash flow. For example, people prioritize their car, as they need it to get to and from work, so they’ll likely pay their auto bills on time. The same goes for their credit cards, which they need to make ends meet. We expect this will also be true with COVID-19. The commercial segment will face more dramatic and challenging circumstances, where complete or partial business closures and lack of federal relief could have severe ramifications. Q: What new restrictions have been put in place surrounding debt collection efforts and outbound calls? TH: To protect consumers who may be experiencing financial distress, most states have imposed new, stringent restrictions to prevent utilities from engaging in certain collections activities. Utilities are currently not charging any late payment fees and are instead structuring payment plans. Additionally, all outbound collections efforts have been suspended and there is fieldwork being executed of services for both commercial and consumer properties. As of now, consumer and commercial fieldwork will likely not commence until after the first year or when the winter moratorium concludes. MS: The new restrictions imposed upon collections activities will likely drive consumer payment behavior. If consumers know that their utilities (i.e. energy and water) will not be shut off if they miss a payment, they will make these bills less of a priority. This will dramatically increase the amount owed when these restrictions are lifted next year. Q: Can we predict how the utilities industry will fare post-COVID-19? TH: The volume of accounts in collections and eligible for disconnect will be overwhelming. Many utility providers fear the unpaid balances consumers and commercial entities accumulate will be nearly impossible to fit into a repayment schedule. Both analyzing internal payment segments and overlaying external factors may be the best way to optimize the most critical go-forward plan. MS: The amount of people who fall into collections is going to greatly increase and utility providers need to start planning for it now to weather the storm. They will need to use data, analytics and tools to help them optimize their tasks, so they can be more efficient with their resources. Like many other industries, the utilities sector will look to increasing digitalization of their processes and having less social interaction where possible. This could mean the need and drive for expediting current smart meter programs where possible to enable remote fieldwork to assist in managing this unprecedented level of activity that is sure to overwhelm field operations (where allowed by state regulators). Q: What should utility providers be doing to plan for an uptick in collections activities post-COVID-19? TH: With regulatory mandated suspensions of collections activities for utility providers and self-selected reductions due to stay at home orders and staff protection, the backlog of payments, calls and inquiries once business resumes as normal is set to overwhelm existing capacity. More than ever, self-service options (text/web), Q&A and alternative communication methods will be needed to shepherd consumers through the collections process and minimize the strain on call center agents. Many utility providers are asking for external data points to segment their consumers by industry or by those whose employment would have been adversely impacted by COVID-19. MS: Utility providers should be monitoring consumer data in order to prepare for when they are able to collect. This will help them strategize the number of resources they will need in their call centers and out in the field performing shut off activities. Given that the rise in cases will be more volume than their call centers can handle, they will need to use their resources wisely and plan to use them efficiently when they are able to resume collections. Q: How can Experian help utility providers reduce collections costs and maximize recovery? TH: Experian can help revise collections tactics and segmentation strategies by providing insight on how consumers are paying other creditors and identifying new segmentation opportunities as we emerge from the freeze on collections activities. Collections cases will be complex, and many factors and constraints will need to balanced against changing goals, making optimization key. MS: Utilizing Experian’s credit data and models can help ensure that resources are being used efficiently (i.e. making successful calls). There is also a need to leverage ability to pay models as well as prioritization models. By using these models and tools, utility providers can optimize their treatment strategies, reduce costs and maximize dollars collected. Learn more About our Experts: Tom Hanson, Senior Energy Consultant, Experian CEM, North America Tom is a Senior Consultant within the Energy Vertical at Experian, supporting regulated energy companies throughout the U.S. He brings over 25 years of experience in the energy field and supports his clients throughout the customer lifecycle, providing expertise in ID verification, account treatment, fraud solutions, analytics, consulting and final bill/field optimization strategies and techniques. Mark Soffietti, Analytics Consulting Senior Manager, Experian Decision Analytics, North America Mark has over 15 years of experience transforming data into actionable knowledge for effective decision management. Mark’s expertise includes solution development for consumer and commercial lending across the credit spectrum – from marketing to collections.

Part 2 in our series on Insights from the Vision 2016 fraud and identity track With the growing number of data breach incidents taking place the stolen data from those attacks is being used to carry out social engineering attacks used to commit call center fraud. A recent study stated that global call center fraud has increased more than 45% in the last three years as fraudsters use social engineering to steal data and turn profits. The same report found that criminals might make up to 5 calls to a center, pretending to be the victim, before completing a fraudulent transaction. The importance of  strong call center authentication procedures is greater than ever. At the 35th annual Vision Conference, Bobbie Paul from Experian’s Global Consulting Practice, Stefan Schubert from JPMorgan Chase and I led a session about call center authentication. After introductions and a discussion about existing call center identity authentication techniques, Stefan took the podium and provided an excellent overview of how his company approaches call center authentication. He made an interesting point — despite introducing friction into his process, he was not of the opinion that knowledge-based authentication (KBA) was going away any time soon because of how deeply it is embedded into their processes and its applicability to most consumers. He also called out the importance of reviewing KBA configurations regularly to adjust which questions are being asked and the positive implication to deterring fraudsters. Bobbie followed Stefan to discuss emerging call center authentication technologies, including a new take on an old tool — document imaging. She also discussed the notion of phone printing, which does not specifically evaluate the voice on the phone, but looks at the characteristics of the call itself, including the type of phone being used and the environment from which the call is being made. One of the highlights of the session was the interaction with the audience — including a demonstration of how, with a little distraction, it was easy to walk away with an audience member’s phone, how a fraudster could access and compromise a phone and how a gummy bear could be used to defeat fingerprint biometrics. What I, and many others, took away from this is that even with newer fraud detection tools available, incorporating tried-and-true methods like KBA is still an important step into a holistic fraud detection strategy.