Call Centers Need to Address Growing Fraud

  • Fraud Prevention, Identity Fraud

Woman calling into call center
<p>A <a href="http://www.darkreading.com/vulnerabilities---threats/call-centers-in-the-bullseye/d/d-id/1325508">report</a> issued last month reported a 45% increase in call center fraud between 2013 and 2015, along with an increase of losses from fraudulent call center transactions of 14%.&nbsp; This includes an increase in domestic fraud calls (calls originating from within the targeted country increased from 36% to 51%.</p> <p>There are three primary factors driving this increase in fraud through call centers.&nbsp; The first is the EMV rollout within the US which makes card-present fraud much more difficult, shifting fraudulent activity towards easier targets.&nbsp; The shift towards remote (customer not present) targets for fraud was largely <a href="https://www.electronicverificationsystems.com/blog/card-not-present-fraud-is-spiking-here-s-why">anticipated</a> based on trends seen after the UK adopted EMV more than 10 years ago.&nbsp; </p> <p>The second factor driving this increase in call center fraud is the ease of &ldquo;spoofing&rdquo;, or altering the number that is displayed for caller ID, phone calls.&nbsp; There are now hundreds of services, including free apps, which allow consumers to easily falsify the telephone number reflected on caller ID without having a high level of technical sophistication.&nbsp; &nbsp;</p> <p>While call centers are aware of the threat of fraud, traditional methods of verifying the caller (caller ID, verifying account information) are no longer sufficient to prevent fraudulent transactions.&nbsp; The combination of massive breaches and phishing scams has armed fraudsters with the information needed to get past these hurdles.&nbsp; </p> <p>To combat the increasing fraud, call centers need to remember what is driving the fraud shift &ndash; fraudsters are seeking the easier target.&nbsp; By adding additional layers to verification such as <a href="/phone-verification">outgoing one-time passcodes</a> or dynamic knowledge based authentication questions call centers can make their operations more difficult targets.&nbsp; Just as with the adoption of EMV, fraudsters will shift towards the targets that are still easy.</p>