Contact Center Solutions Featured Article

Partnership Provides Contact Centers Enhanced Fraud Prevention Solution

December 12, 2014

For frequent visitors to the contact center solutions community, you are well aware of the challenges contact centers are encountering regarding fraud. The bad guys are constantly working on ways to highjack customer accounts and work their mischief.  It amounts to hundreds of millions of dollars in losses every year, and major headaches for customers whose accounts have been compromised.  And, unfortunately, with call volumes swelling because of the holidays, contact centers make even more invited targets. 

Keeping up with the bad guys is always a challenge, however, for payment processors, card program managers, and large financial service institutions new help for fighting fraud has been announced in the form of Adaptive Fraud Protection from Reston, VA-based Contact Solutions. This is a multi-layered, proactive fraud management solution that combines capabilities from Contact Solutions and strategic partners, business intelligence provider IDology and identity verification and fraud protection company Pindrop Security

As the partners point out, fraudsters conduct sophisticated, multi-pronged attacks on enterprises. They use IVRs for surveillance and data-gathering as a precursor to phishing with agents that can eventually lead to account takeover. In fact, the process of fraud is exactly that which is why early detection is so critical. They also note that a typical medium-sized contact center can get more than a thousand fraudulent calls per month that go undetected until fraud actually occurs. 

A comprehensive approach to contact center fraud detection and prevention

The Adaptive Fraud Prevention solution as noted combines capabilities from all three strategic partners. Contributions are as follows:

  • Contact Solutions' Red Flag detection uses adaptive technology in the IVR to detect and tailor appropriate responses to suspicious activity or high risk ANIs using real-time analytics in the IVR platform.
  • IDology's ExpectID® IQ is integrated directly with the IVR to provide automated dynamic knowledge-based authentication (KBA) in which responses are verified in real time in the IVR to instantly authenticate the caller, for best IVR call disposition – providing increased automation that improves cost savings.
  • Automatic Number Identification (ANI) analysis from Pindrop Security's powerful Phone Reputation Service™ (PRS) has been integrated with the IVR enables a seamless process to recognize and prevent the probing activity and eventual account take-over by using real-time action in the IVR to disposition calls – stopping fraud with less burden on the enterprise.

The benefits of this integrated approach are cited as Adaptive Fraud Prevention helping organizations: discreetly detect and stop probing activity in the IVR ; provides heightened authentication for high risk automated transactions; reduces fraud losses and prevents account takeovers; and, adapts and responds to changes in fraud patterns.

The three strategic partners commented on their collaboration, highlighting the value of the solution and the reasons why this type of integrated approach can be a major deterrent for stopping contact center fraud efforts by those with malicious intent.

"Fraudsters are actively engaged to attack even the most secure systems and controls, with odds in their favor if no one is watching. Stopping fraudsters in their tracks by adapting to their changing patterns of behavior is part of our business. Contact Solutions has been successfully addressing fraud risk for programs with millions of card holders for many years. Our Adaptive Fraud Prevention Solution is based on an IVR specific threat matrix developed with industry experts, and validated through data mining" said Michael McShea, SVP, Marketing and Product Management, Contact Solutions. "Through strong partnerships with industry leaders IDology and Pindrop Security, we now have the ability to deliver more powerful fraud prevention in the IVR that benefits contact center operations, fraud managers, and our clients' bottom line."

"With identity theft, account takeovers, and phone fraud on the rise, customers are more at risk to falling victim to fraudulent attacks, and organizations are more focused on prevention and management than ever before," said Christina Luttrell, SVP of Product, Marketing & Client Solutions, IDology. "IDology has proven time and again that Knowledge Based Authentication, through a series of dynamically generated out-of-wallet questions, serves as one of our clients' best defenses to stop fraud. Providing KBA and our fraud prevention platform through Contact Solutions' adaptive IVR provides an easy integration path and reduces call center costs through automation resulting in an effective customer service experience. “

"One out of every 2,900 calls to a financial institution call center is fraudulent." said Greg Adams, VP of Product Management, Pindrop Security. "Recognizing and stopping fraudsters before they create havoc in the contact center is the power behind our Phone Reputation Service™ (PRS). Integrating PRS within Contact Solutions' IVR allows us together to dynamically and seamlessly catch fraudsters before they impact your customers and stop them in their tracks with real-time call flow modifications in the IVR. This partnership creates an easier, layered approach that increases security while improving service to our clients."

The Pindrop Security quote was saved for last here because the number of fraudulent calls cited is certainly one that should give any contact center administrator pause. This is particularly true given that without better visibility into what is happening with the IVR and authentication processes, finding out only when fraud has actually transpired is to say the least a bad thing.

While all IT security professionals will tell you that no security solutions is perfect, the goals of early detection, fast remediation and having business intelligence to anticipate future threats are the key to risk management in general and certainly are key to contact center fraud management. The idea is to not only make it hard for fraudsters to work their mischief but to increase the probabilities their success rates will be so low they will look elsewhere.

 In fact, take advantage of the opportunity to hear, see and discuss this and other contact center issues in person with peers and subject matter experts at ITEXPO East being held January 27-30, 2014 in Miami Beach.  

Edited by Maurice Nagle