It’s clear fraudsters are always trying to stay one step ahead of their financial institution targets. So when financial institutions improved their abilities to identify a spoofed call, fraudsters began using virtual call platforms. Today, you need to prepare for every possible scenario you may face in the future.
There’s no magic bullet to fraud detection and prevention. Instead, the future for financial institutions must include a layered approach to identity authentication such as device-based authentication coupled with biometrics. What's clear is financial institutions will rely less on KBA and instead implement stronger authentications. The FFIEC even published guidance urging financial institutions to move away from KBA.
Fraud detection and prevention is a team sport against a common opponent. It’s only by working in tandem with other “good guys” financial institutions can become more proactive rather than reactive to criminal activity. By collaborating and sharing information such as call outcomes and failed authentication results, TransUnion and its financial institution customers can detect new patterns and clusters of attacks. Adapting in real time to emerging threats continually improves detection rates and reduces false positives.
This research report describes how you can use inbound call authentication to provide the experience customers expect without exposing your financial institution to sophisticated fraudsters. We look at why call centers are vulnerable to fraud and common criminal tactics, and provide best practices for balancing fraud with friction so customers have a great experience no matter which channel they choose.