Industry Research : Phone Fraud Attempts Double in 1H 2013
Pindrop Security, a provider in phone fraud prevention and call center authentication for banks and enterprise call centers, announces the release of a new report, "KYF: Know Your Fraudster - Phone Fraud in Financial Institution Call Centers 1H 2013." The report provides a view into the risk that phone fraud poses to financial institution call centers through the analysis of phone fraud activity during the first six months of 2013.
"Phone fraud is a significant vector for organized cybercrime, and the impact that it has on financial institutions and other enterprises will only continue to grow as phone fraudsters scale their efforts," said Vijay Balasubramaniyan, co-founder and CEO of Pindrop Security. "Financial institutions need to familiarize themselves with best practices to mitigate phone fraud in order to prevent their customers' accounts from a future breach."
Phone fraud is a multimillion-dollar industry led by professional, organized attackers. Financial institution call centers are a leading target for phone fraudsters, and attackers use a variety of social engineering and account manipulation techniques to steal via wire transfers, Account Clearing House (ACH), and cards. Financial services companies lose millions of dollars each year due to phone fraud.
Key findings from the report include:
- Phone fraud has a significant financial impact: Pindrop analysis revealed that 1 in every 2,500 calls into a financial institution's call center is fraudulent, and for every phone call into a financial institution call center there is a $0.57 loss. The average loss per financial account was $42,546.
- Phone fraud is organized and scaling: Individual phone fraudsters targeted anywhere from 5-10 accounts to as many as 200-300 accounts, often working in groups ranging from 2 to 12 members.
- Fraudsters are increasingly targeting consumers directly: During 2012, Pindrop counted over 2.4 million consumer complaints of phone fraud attempts. By comparison, during the first six months of 2013 Pindrop detected 2.3 million complaints -- a significant increase in fraud activity.
Data for the report was collected using Pindrop Security's Phoneprinting™ technology, which analyzes the audio content of a phone call.
Posted by Veronica Silva Cusi, news correspondent
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Published: Monday, September 2, 2013