July 26, 2019
Trends in Insurance | How Can We Prevent Fraud?
Across the board, insurers found they were experiencing a huge…
Voice is growing out of the call center, out of your telephone and is growing into the next interface. In previous years, we have released fraud reports revolving around the call center, but with the expansion of voice, and the fraud that follows, we have shifted our perspective to voice intelligence – after all, voice is everywhere: your digital assistant, your latest kitchen appliance, and even your car.
The eras of economies have passed us by, first characterized by digitalization, then the wave of mobile devices, and now by voice – paving the way to the conversational economy. These economies are accompanied by their own collection of problems – and fraudsters are not letting up. There has been a 350% increase from 2013 to 2017 in phone fraud, and a 47% increase from last year. Banks and the insurance industry are experiencing a higher level of fraud, with a 20% and 36% increase in fraud year over year respectively.
So how did we get to these increased fraud rates?
There have been an increasing amount of data breaches year over year; last year, there were 1,300 data breaches. These breaches make it easy for criminals to commit fraud – ultimately feeding into the $1.5 trillion cybercrime market. Additionally, a lot of enterprises rely heavily on KBAs, or knowledge-based authentication questions, which function as secrets for security. These “secrets” can be easily hacked through social engineering or through the black market.
The arrival of the omnichannel has not helped with containing fraud – consumers want to be able to contact a business through any channel, with the expectations for the experience to remain consistent. However, there are consequences for the omnichannel – it allows fraudsters to use resources from one channel to access an individual’s details in another channel. Lastly, as we build more tools to stop fraud, fraudsters are evolving quickly and learning how to combat these security measures.
Overall, fraud is the ultimate impact to customer experience – your customers have expectations for who they do business with, and if they expect their data to be safe with you, this should be upheld. We’re living in a world where consumers are likely to switch who they do business with if their customer experience expectations are fulfilled.
For more information on the future of voice, fraud in the voice channel, and the impact it has on customer experience, tune into our on-demand webinar here.