August 24, 2016
Report: Call-Center Fraud Rose 30% in 2014
June 22, 2015
Fraud attempts aimed at U.S. call centers serving retailers and financial institutions rose 30 percent from 2013 to 2014, according to a recent report from Pindrop Security. The Atlanta-based antifraud technology provider found that the call centers of large financial institutions and retailers averaged one fraud attempt for every 2,200 calls. That number was significantly worse for credit-card issuers, which experienced one fraud attempt for every 900 calls. U.S. call centers are exposed, on average, to $9 million in potential fraud losses each year (Pindrop defines “exposed” as the value of accounts in which an attacker was able to authenticate to the account).
“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, vice president of research and head of Pindrop Labs. “As major data breaches such as Anthem and Target have occurred, attackers have found the phone channel to be the vulnerable underbelly for corporations and consumers, allowing them to monetize the breaches through social engineering and account takeovers.”
Pindrop also found fraudsters make 86.2 million calls per month to U.S. consumers. And, 53 percent of those calls originate from VoIP lines compared to 7.8 percent of the general public who use VoIP.