Cyber attacks are problem enough but insurers are also now targets for call center fraud. Pindrop is a telephone security firm and it finds, believe it or not, these people are successful.
The process — by the way — now has a name. It’s “social engineering” says Pindrop’s David Dewey as he commented to Insurance Business America about his company’s report called the 2017 Call Center Fraud Report.
It found insurers are taking huge hits from phone fraud. Life insurance policies and policies for mobile phones are the most targeted. Dewey said:
• One in every 12,000 calls to life insurers is fraudulent and of those 20% are successful
• One in every 200 calls for mobile devices is fraudulent and 20% of those are successful
The problem is centered in the sheer volume of calls. Determining who is the real deal among often disgruntled callers is a monumental task.
Dewey said one of the most devious and costly life insurance scams is when a caller tricks the call center employee into giving a loan on a policy or claim some cash from the policy. “And a lot of times these things can go unnoticed for years, because how often do you really look at your life insurance policy? It happens a lot more frequently than we would think,” he said.
How is it possible to scam trained call center employees? Easy, Dewey said. They will target a customer and then do background research on where they live, where they went to school, family connections, what things look like where they live and so on. These are things that might be asked in security questions.
A bunch of correct answers and the call center operator may end up thinking they’re talking to the real person.
“The major failing is in the knowledge-based authentication questions. The problem is they just don’t work. It’s very often that the legitimate customer doesn’t know the correct answers to the questions. And those call centre operators are used to dealing with legitimate customers who don’t know the answers. They’ll oftentimes help them [the customers] work through it,” Dewey said.
The Pindrop report also points out that scammers know all about how automatic phone systems work. They can call again and again and again until they have the answers they need and then can ask for a live phone operator.
“By far, the highest fraud rate of any single industry is seen in the device insurance sector. For companies that provide payments to consumers whose mobile phones are lost or stolen, one in every 194 calls is fraudulent. That rate increased 55% over 2015, when device insurance already had the highest phone fraud rate of any vertical,” the report said.
Dewey said the solution to phone fraudsters is employing phone security technology. That technology often features voice recognition or what Pindrop calls “phone printing” in which the system identifies the phone’s signature.
If that signature doesn’t match what’s on file, then it will let call center employees know that a fraudulent call is in progress.
Source link: Insurance Business America