protecting customer experience while controlling contact centre fraud

P r o t e c t i n g C u s t o m e r E x p e r i e n c e W h i l e C o n t r o l l i n g C o n t a c t C e n t r e F r a u d© Brainfood Consulting 2016

Protecting Customer Experience While Controll ing Contact Centre Fraud

P r o t e c t i n g C u s t o m e r E x p e r i e n c e W h i l e C o n t r o l l i n g C o n t a c t C e n t r e F r a u d© Brainfood Consulting 2016 2

C a u s e s & I m p a c t s


Why CX Matters


“We found that compared to detractors….

• Promoters are more than five times as likely to repurchase from a company

• More than five times as likely to forgive a company if it makes a mistake

• More than seven times as likely to try a new offering shortly after its introduction

• They recommend the company to about four times as many people”

Why CX Matters


Why Fraud Matters

2015£755m26% +


Why Fraud Matters

An estimated 5.1 million frauds took place in the UK during 2015An estimated 3.8 million adults in England and Wales were victims of some form of online fraud during 2015 112% year-over-year increases in account takeover attacksInternet banking fraud rose 64% to $133m during 2015£32m was lost in 2015 as a result of employees transferring funds following instructions from a “bogus boss” email


The CatalystThe World Of Real-time Connectivity Has Turbo-charged The Level Of Fraud In Recent Years


An unknown hacker broke through the simple MD5 hashing algorithm securing the website and gained access to a 9.45GB file containing all of the websites information

Even Hackers Get Hacked!

IP addresses, email address and conversations for 473,000 registered users


A recent test to determine the speed at which compromised data travels discovered the following

It took just 12 days for the account information of 1,500 “employees” to travel from California to 22 countries and 5 continents

In the first few days, the information was viewed over 200 times and in 12 days over 1,000 times

In comparison, it takes an average of 205 days for most organisations to detect a breach has taken place


Impact On Contact Centres

1 in 700 UK contact centre calls to financial service organisations is fraudulent (compared with 1 in 1,700 in the US)£0.51 is lost to fraud on every UK call. (the US equivalent is £0.40)45% growth is the rate of fraud for US financial service clients between 2013-15


Customer Response to Fraud

41% blame the brand while 30% blame the payment card company for the fraud happening



70% state that payment card fraud would seriously impact their future purchasing behaviour with 4 out of 10 saying they would never buy from the brand again



A further 27% would avoid the brand ‘for a while’, leaving those consumers open to competitive offers



85% of fraud victims would tell someone about what had happened16% would take to social media to amplify their story



In the context of customer experience ambitions this makes terrible readingBrands are blamed, shamed and punished for failing to protect customers from fraud


M e t h o d s & S c e n a r i o s


Contact Centres Must Get Smarter

Currently the most vulnerable touch point


KnowledgeBasedAuthentication

Points Of Entry


SocialEngineering

Points Of Entry


IVRs

Points Of Entry


Omni-channel

Points Of Entry


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Fraudster gathers and completes a personal profile over multiple interactions

Uses stolen ID to transact online

Classic Scenarios


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Fraudster creates an emotional trigger and call to action

Details of security screening between bank and customers are recorded

Stolen KBA details used at later timeto defraud acct

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Classic Scenarios


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Fraudster uses stolen acct # and DOB to repeatedly call to eventually guess PIN

Statistically, one third of all codes can be guessed by trying just 61

distinct combinations

Classic Scenarios


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Fraudster requests a change to home address details

Fraudster is collecting, testing or adding to what they already know

Issuer sends new card

Classic Scenarios


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Fraudster tries to lower standards on KBA

Pressurise the contact centre

Classic Scenarios


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Fraudsters intercept and modify an automated, proactive messageCreate emotional trigger and call to action

Customer logs into fake personalised portal

Classic Scenarios

Fraudster drains account


Communication Preferences

Mobile fraud is the communication channel of choice in 64% of instances Source: Pindrop UK research


Unknown Caller



ID Masking



Pay As You Go



S o l u ti o n s & S t r a t e g y

The Way ForwardContact centre managers now need an approach that knits together customer experience and security management

Secure, low-effort engagement is the goal

This means the client can trust you to keep their identity and money secure

The Way ForwardDeeper collaboration is needed between contact centre, customer experience, IT and security experts

An open, secure and smart customer engagement strategy - from overarching objectives to effective technology, workflow and training

The security platforms must meet today’s expectation for real-time experience management in a world of increasing connectivity


Understand Fraudster BehaviourWe should be educating ourselves about the fraudsters’ journey in much the same way we think about customer journeys


How and when is the contact centre involved in this broader activity?

Understand Fraudster Behaviour


We should be mapping and updating it in the same way we track our constantly evolving customer experience

Understand Fraudster Behaviour


Raise awareness with customers and advisors

Educate Stakeholders


1.A unified approach that secures the entire ecosystem of customer touch points as well as the unique challenges of each individual touch point

Strategy Building Blocks


2. A multi layered approach to security technology (e.g. voice biometrics plus phoneprinting)



3. Recognition that omni-channel contact centres need both text and voice surveillance (ideally integrated)



4. The ability to track both live assistance and self service



5. Active participation with national security agendas for improved responsiveness



6. The visualisation of fraud journeys to improve internal understanding



7. A programme on education for staff and customers



8. A communication and compensation strategy in the event of fraud taking place



Thank You

protecting customer experience while controlling contact centre fraud

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