PINDROP BLOG

June 19 – The Week in Phone Fraud

TWIPF2This week in phone fraud, enterprise phone fraud incidents are up 30% since 2013, and the FCC allows consumers to block robocallers.

On Wednesday, Pindrop released our annual report on the State of Phone Fraud. We examined several million calls to understand fraud tactics, frequency of attacks, and potential consequences of fraud. We found that since 2013, phone fraud at enterprise call centers has risen 30%, and U.S. consumers receive over 86 million scam phone calls per month.

On Thursday, the FCC made news by allowing consumers to block robocalls, auto-dialers, and spam texts. According to the write-up in Fortune, it the FCC gave the green light to ‘Do Not Disturb’ technology, allowing telecom companies greater autonomy to implement features that could block automated communication.

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Full Breakdown of This Week’s Phone Fraud News

BankInfoSecurity: Breached PII: Growing Fraud Worry – We need more device identification, and we need to do a better job of making sure that the behavior of that applicant makes sense, Pascual says. “We can’t rely on PII to authenticate users anymore. That data has been breached, and ultimately is worthless.”

American Banker: Banks’ New Digital Battlefront: The Customer Experience – Biometrics could make identifying customers easier. The technology, talked about for decades, is increasingly seen as a way for banks to spare consumers from having to remember passwords and lessen reliance on account credentials that are easily lost or stolen.

Tech Crunch: Entrepreneurs Should Strike A Balance Between Old And New – While phone fraud may not be as headline grabbing as cyber crime, security on the phone channel has remained static for nearly 40 years, and Pindrop’s technology enables them to futuristically secure voice.

Research & Markets: Voice and Speech Recognition: Market Analysis and Forecasts – Speech and voice recognition, sometimes referred to collectively as speaker recognition, are a microcosm of the entire biometrics market: mature technology that is finally finding a market, with abundant opportunity over the next 10 years.

ComputerWorld: Card-not-present fraud rises to $299.5m – Card-not-present fraud increased from $210.4 million in 2013 to $299.5 million in 2014 according to a new report by the Australian Payments Clearing Association. ‘CNP fraud occurs when details of credit or debit cards are entered online, over the phone or by post.

CTV: How phone scammers prey on fears of the taxman calling – A man is calling himself “Officer Jean” from the “crime investigation department.” He speaks quickly and in a foreign accent about your “CRA” and how you’re going to lose your passport and citizenship – unless you let him check your credit for the Canada Revenue Agency.

NPR: Scammers Turn To Caller ID ‘Spoofing’ To Pose As Police – Basically, to get rid of spoofing at this point would take an entire retooling, re-architecture of telephony networks across the world, he says. “You are talking about multi, multi, multi billions of dollars, and it’s just not practical.”

Pindrop Blog: Welcome to Pindrop Labs! – We work with the latest technologies, algorithms and methodologies, and figure out how to use them to fight fraud, spam and other bad actors out there, all while contributing to the cutting edge in the technologies we are working with.

WPMI: New Report: Increase in Phone Scams – Along with citizens, scammers are targeting corporate call centers for retailers and financial institutions across the country. The reason is to gain access to money, merchandise and your personal information.

SC Magazine: Study: 86.2M consumer calls scams, enterprise incidents up 30 percent – “When attackers are able to pass knowledge-based authentication, financial institutions risk major monetary losses, as well as regulatory compliance and privacy issues,” the report said.

Kim Komando: Phone scams spreading like wildfire – Chances are you have been on the receiving end of one of the one billion scam phone calls made in the US last year. Phone security company Pindrop Security, made that estimate in its annual Phone Fraud report.

eWeek: Phone Fraud Is on the Rise, Pindrop Security Reveals – “In phone fraud, it’s a lot more personal. The attacker isn’t just trying to impersonate a user’s laptop—the attacker is actually trying to impersonate the real use,.” David Dewey, at Pindrop Security, told eWEEK.

NBC News: Phone Scammers Trick Sales Reps Into Giving Out Your Personal Info – Criminals are targeting corporate call centers for retailers and financial institutions across the U.S., trying to gain access to money, merchandise — and your personal financial information.

Security Week: Enterprises See 30 Percent Rise in Phone Fraud: Report – Based on data from its “telephony honeypot,” anti-fraud company Pindrop Security has determined that the number of scam calls aimed at enterprises has increased by 30 percent since 2013

CSO: Report: Scam phone calls up 30% – “People are starting to protect their websites, PCI is becoming effective — but the phone channel remains completely unguarded,” said Pindrop head researcher David Dewey.

Help Net Security: 86.2 million phone scam calls delivered each month in the U.S. – These attackers are sophisticated, using a variety of tactics, including automation, working in criminal rings and using both the phone and cyber channel to make tracking their actions more difficult,” said Matt Garland.

Beta News: US consumers receive over 86 million scam phone calls per month – You might think that today’s scammers spend most of their effort on the Internet, but a new report by call center authentication specialist Pindrop Security reveals that phone fraud is still big business.

American Banker: Phone scams Rise 30% as Bank Fraud Goes Low-Tech – Customers all tell us the same thing: the call center reps are trained to give the customer a delightful experience, they’re not trained to be fraud analysts.

The Washington Post: The FCC is cracking down on annoying telemarketers and robo-calls – The measures approved by the Federal Communications Commission Thursday allow consumers to put a stop to telemarketing simply by telling the companies not to call again or by any other “reasonable way at any time.”

Idaho Satesman: Sophisticated scam takes couple’s life savings – Frank seemed to have unfettered access to their accounts. If the couple wrote a check he would call, sometimes the same day, give them the amount and check number and ask if they had written the check.

Consumerist: FCC Votes To Give Consumers The Right To Block Annoying Spam Robocalls And Texts – The discussion of the robocall proceeding delved heavily into the legal technicalities surrounding the definitions of autodialers and what, exactly, is covered under the TCPA. Specifically, however, the FCC concluded that carriers are free to block unwanted robocalls.

Bloomberg: America’s Most-Hated Dinnertime Interruption Facing New Test – The FCC expanded permission for robocalls from banks, health-care providers and pharmaceutical companies, which no longer need to get consent from a consumer before dialing. “They get a loophole,” Rosenworcel said.

Consumer Affairs: FCC beefs up consumer protections against robocalls, auto-dialers and spam texts – Today’s action addresses almost two dozen petitions and other requests that sought clarity on how the Commission interprets the Telephone Consumer Protection Act (TCPA), closing loopholes and strengthening consumer protections already on the books.

Fortune: The FCC just gave consumers the right to block annoying robocalls – The proposal implements stricter definitions of “autodialing,” and it also gives the green light to ‘Do Not Disturb’ technology, allowing telecom companies greater autonomy to implement features that could block automated communication.

The Register: Phone scamming up 30 percent last year: Report – The 2014 findings are based on some 86 million scam calls a month picked up by Pindrop Security in which attackers aimed to obtain personal information on potential victims.

Info Security Magazine: Time to Hang Up: Phone Fraud Soars 30% – Phone-based fraud increased by 30% over the past year among financial and retail firms, exposing the average call center to $9m in fraud, according to a new report from industry specialist Pindrop Security.

Bank Info Security: Call Center Fraud Targets Processors – We found that the fraudster will call in and say, ‘I am the cardholder, and I am about to make a big transaction; something I think you would try to block. But this is really me, so please let the charge through.’

SurfWatch: Cybercrime and Business Podcast – This week’s guest is David Dewey, director of research for Pindrop security, and we chat about their recent State of Phone Fraud Report. The interview starts at 13:15.

Contact Center World: Phone scamming up 30 percent last year – he 2014 findings are based on some 86 million scam calls a month picked up by Pindrop Security in which attackers aimed to obtain personal information on potential victims.

Credit Union Times: Call Center Fraud Rises – The Atlanta, Ga.-based anti-call center fraud solution provider Pindrop Security announced it found a 30% rise in enterprise attacks and more than 86.2 million attacks per month on U.S. consumers in its annual Phone Fraud Report.