December 17, 2018
Retails’ Nightmare Before Christmas
With the stresses of Black Friday and Cyber Monday shopping…
Pindrop® Labs has analyzed hundreds of millions of calls, collecting data from the top eight U.S. banks, top five insurers, and additional enterprise call centers. These calls have allowed us to identify call center fraudsters and recurring techniques utilized by these fraudsters. Last week, Pindrop’s Director of Fraud Prevention and Strategy, Shawn Hall, formerly the Director of Fraud Operations at E*TRADE Clearing, hosted a webinar examining real-life fraudsters and the techniques they leverage in effort to access to accounts and personal information.
According to Gartner, “By 2020, 75% of omnichannel customer facing organizations will sustain a targeted, cross-channel fraud attack with the contact center as the primary point of compromise.” This becomes evident when looking at the global fraud trend: call center fraud has increased 160%, from January 2016 to August 2017.
Several drivers are responsible for this increase, including attacker sophistication as well as the availability of information from ongoing massive data breaches.
Data breaches give fraudsters a starting point, once large amounts of data have been extracted, fraudsters use data dealing as a tactic to collect and repackage profiles. The fraudster who exemplifies this technique is The Racketeer, who is known for monetizing and reselling data to other fraudsters.
Fraudsters understand the weaknesses in single-factor solutions, and they often call into a call center at least five times before making any transactions or changes to the account they are attempting to takeover. Examples of these attacks include those like that of Mr. Roboto, a fraudster specializing in reconnaissance, uses bots to verify thousands of accounts through IVR in order to get around the security roadblocks. In a very short time, Mr. Roboto is able to determine the most attractive accounts out of various profiles.
To learn more about the cost of fraud and additional tactics leveraged by fraudsters like the Mad Russian, Mr. & Mrs. Smith, and Mommy Dearest, tune into our on-demand webinar Call Center Vectors & Fraudsters Analyzed.