With the growing number of data breach incidents taking place, the stolen data from those attacks are being used to bypass traditional verification methods used by your call center agents who have to balance customer service with fraud prevention. It’s important for a customer service call center to take a true dynamic approach in identifying call center fraud in an era where all of our personal data is publically for sale on the dark web.
While many customer service call centers continue to use the knowledge-based authentication (KBA) approach by asking questions that are dynamically created and do not require a previous relationship with the consumer, Precognitive uses information that is “public” knowledge, free to obtain and not “sold” on the black market.
When it comes to delivering a satisfying customer experience on the phone, it can be a make-or-break opportunity for many organizations.
For those orders that require manual intervention, Precognitive believes merchants should be dynamic in the questions they ask because the fraudsters catch on quickly.
Merchants and financial institutions are continuing to use KBA in a manner that allows the fraudster to reverse engineer the answers. Because the information used for KBA has been breached, fraudsters have already gathered the information needed to pass a KBA customer service call. Not only is this liability expensive on the merchant’s part, but it introduces an increase in friction and a non-conversational approach.
In a 2016 study, researchers found 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.
At Precognitive, the importance of a strong call center authentication procedure is greater than ever.
An effective fraud prevention strategy uses a number of methods that are best suited for your business while keeping any customer burden—and losses—to a minimum.
Challenging fraudsters are an unfortunate aspect of accepting payments online and the best way to manage them is to prevent them from happening at all. It’s important for the questions being asked to have a positive implication to deterring fraudsters.
The most effective questions are questions that generate raw, unscripted and conversational answers such as:
- Could you verify the last time you made a purchase with us? (If applicable)
- What’s the name of a prominent landmark near the billing address, such as a school, stadium, park, or public pool?
- What color is your house? (If applicable)
- What is your state bird? (more challenging)
- What major highway is nearest to your house?
- What county do you live in?
At Precognitive, we guide merchants on best verification practices to ensure you’re prepared for any approach a fraudster will throw at you. Effective verification questions are important, but while the answers matter, the way it is answered can typically be much more affirming.
Additionally, creating a rapport with your customer while inadvertently authenticating them will increase loyalty and the customer lifetime value.
At the end of the day, merchants need a Fraud Provider that can reduce friction as much as possible by leveraging the right data points in real-time to quickly sift through the legitimate customers. Merchants also need to minimize the chances for a fraudster to socially engineer your business to their ends. The best data to do so is using the customer’s own past and current behavior, which can not be replicated nor purchased online.