cxfo morrispentel iassist london16 · customers viewpoint phone attacks will have much more...

PhoneFraudBattlefieldMorrisPentel

Telephonefraudisupby92%.Isthisarealthreatorjustsomemarketing hype

IsContactCentreaneasytarget?

IsContactCentreamorevaluabletarget?

HasFraudchanged?Whyisitimportant?

ItwasrecentlyannouncedthatPhoneFraudisupby92%thisyear.ResearchbytheFinancialFraudActionUK(FFAUK)foundthatfivemillionfraudsoccureveryyearacrossEnglandandWales,costingtheUKaround£24bn.

Isitnowanarmsrace?

June2015- Overall,morethan86.2millioncallspermonthintheU.S.arephonescamsPindrop

HasFraudchanged?

IndustrialisationofFraud- ItsnowreallyBigBusiness

FocusofindustrialscaleinvestmentbyFraudsterstoexploitopportunitiesforfastreturns

Increasedattacksonconsumers &contactcentrefocusedongaininginformationtocreatethefinancialcrime

KPMG’sUKFraudBarometersawamarkedincreaseinfraudsterstargetingindividualsandfamilies,particularlythoseinfinancialdistress,stealing£156m.

Thisreflectsa300%increaseon2014whenjust£38.5mwaslostbyvulnerablevictims.

Whathaschangedarethesizeandscaleoftheoperations?

RiseinSocialEngineeringFraud

Attackersusingsocialengineeringhavefoundthephonechanneltobetheweakestlinkforcorporationsandconsumers.

Thistrendwillcontinuein2016asfraudschemesbecomemoreandmorecreative. Hackersimpersonatingcustomersupportpeople,IRSagents,andevensecurityspecialistsclaimingtohavedetectedfraudwillcontinuetobeasourceofstealingpersonalfinancialdata.

Whathaschangedarethesizeandscaleoftheoperations?

Assecuritysystemshaveimprovedinotherareasofbanking,fraudstershaveoptedtotargetconsumersdirectlybyphoningthemup,orusingonlinevulnerabilities.

Scammershavepretendedtobebankstaff,policeandfromfirmssuchasTalkTalk,andpersuadedconsumerstosendmoneytotheirbankaccounts,aidedbythefasterpaymentssystemandpreviouslylaxaccountopeningrequirementsatbanks.

Whathaschangedarethesizeandscaleoftheoperations?

Whathaschangedarethesizeandscaleoftheoperations?

GangFraud

“Thesumsofmoneyinvolvedarestaggering- Eventhoughit’sasmallminority...thepotentialamountofmoneyinvolvedanddamagetopeople’sfinancialaccountsisgreatlyoutofproportiontoothergangcrimes.”

RonHuff,acriminologyprofessorattheUniversityofCalifornia,Irvine,whostudiesgangs.

Overall$35,000aminute- USA

92%Increase

Whathaschangedarethesizeandscaleoftheoperations?

“Weknowthatitisaworseningproblemasthisyearwehaveseenadramaticincreaseinthenumberofreportsaboutdodgycalls.

Ithinkthattheyhavefoundustobe vulnerableandnowit’slike,thereisagangofthemhangingaroundoutsidethevirtualbordersofouroperationandourstaffaredevelopingasiegementality.Itsdifficultbecausetheyarenotstealingfromusinthetraditionalsensebutitisstillmakinglifemoreandmoreuncomfortable.”

ContactCentreDirector- MajorUtility

NewFocuses

AsconsumershavegoneOmni-ChannelsohasFraud

Theinboundtelephonechannelisnowbecomingafocalpointofattackforfraudsters

Increasedattacksonconsumers &contactcentrefocusedongaininginformationtocreatethefinancialcrime

Increaseinsecondaryattacks

IncreaseinvalueofdataforattacksonKBA (knowledge-basedauthentication) protectedfunds

NewTricksandOldones

Increasingevidenceofsophisticationintechnology

Maskedphonecallsroutedthroughcomplextechnologyandinternationalservices

Maskedvoicesthroughclevertechnologyorcheapappsoroldfashionedacting

Availableintheappstore

Fraudstersgetmorepracticethanagents– itstheirjob

Agentlistenscarefullybutitmaybeonlyoneinahundredorathousandcallsforthatoneagentwhilethefraudstermaylearnaweaknesstheycanexploitinatorrentofattackssotheycangetisinformation.

Fraudstershideinacrowd

BetterinformedFocusofattackonaSinglepointofweakness

CostofDefenceofwholefront

line

Strategicadvantage- BadGuys

MacroScaleadvantage

Theagentisanobvioustarget

Strategicadvantage- BadGuysEverysuccessfulattackfuelsthe

appetiteformoreandfundsthenextattack

OrganisationsfailedtoactquicklyenoughaboutCyberCrimeandnowarefundingbothsidesofthewar

WillwemakethemistakeofnotinvestingquicklyenoughfuellingthepaceofgrowthofKBAIntrusion

KBAIntrusionhasalowerprioritythanactualfinancialattackandisnotasnoticeableandhaslessdirectimpactinthetransactionalsence

ImprovementsinDetection

Innovationsinmanyconnectedfieldsarejoiningtogether

Phoneprintingtechnologytestsontheexistingphonecalls&datasometimes- 3or5timesthesizeoftheproblemtheythoughttheyhad

BehavioralscienceanalyticstechnologydetectingpatternsofFraudimproving

OthertechnologiessuchasBiometricsEMVetc.areallclosingloopholes

Isitnowanarmsrace?

Improvementsindetectiononotherchannelsmaymakethemlessattractiveandincreasetheappetiteforphoneattacks

IfCCOwnersfailtoactquicklyitwillbeperceivedasaneasytargetcreatinganincentiveforphonefraud

LongTermImpactoffailuretoinvest

MoreBattleswithFraudstersrequiringMoreInvestmentoveralongtimescale– Everyonewillhavetoinvestbutwhoeverinvestsmorefirstleadsthearmsraceandalsoifthewhitehatsmovequicklytheymaystifletheincentivetoinvestbycriminals

WhatistheCXRisk?

Theagentisanobvioustarget

Constantlybalancingbetweenbeinghelpfultodeliveragreatcustomerexperienceandfollowingprotocolandbestpracticeagentbehaviourcanbecomepredictable

Wasityouragentthatgavethelastpieceofinformationneededtocommitafraud?

HowaboutangryCustomers?

Customersviewpoint

PhoneAttackswillhavemuchmoresignificantimpactsonCustomerExperiencethanCyberFraudbecauseithappenstotheCustomer

Italsoimpactshowyoutreatyourcustomeronthephone– theirphoneexperience

KBAcostsincreaseandmustbecomelesseffective

IncreasedFraudwouldmeanincreasedovertsecurity

Consumersthatdon’ttrusttheirfinancialinstitutions(don’tusetheservicesofferedbythem)suffermoredamageiftheybecomefraudvictims.

Consumersthatdonottrusttheirfinancialinstitutionsarelesslikelytousetransactionmonitoring,emailalerts,creditfreezesandblackmarketmonitoring

-theirinformationbeingusedfor75percentlongerbyfraudsters

- incurringa185percentgreatermeanconsumerexpensethanthosevictimsthathavehightrustintheirfinancialinstitutionsSourceJavelin

Fraud=$35,000aminute- USA

CustomersCustomersarealreadybetteratdoingbusinesswithyou,thanyouareatdoingbusinesswiththem!

Youarecompetingtobethesourceofinfo

MoresourcesofinformationMoreuptodateMorein-depthInformationaboutyourpropositionMoreinformationaboutyouthanyourfrontlineEffectiveLanguage

Customersarealreadybetteratdoingbusinesswithyou,thanyouareatdoingbusinesswiththem!

Forthefirsttimeinhistory,consumersnowhavemuchbettertechnologythantheenterprisesthatservethem

Whereenterprisesarespendingbillions consumersarespendingtensoftrillions andthegapisgrowingThepaceofchangeiscreatingalargerandlargergapincapability

BYOD&BYOE(xperience)

Customers

Customersarealreadybetteratdoingbusinesswithyou,thanyouareatdoingbusinesswiththem!

ChoiceofTechnology(endpointdevicesuchasphoneortablet)isnolongerabarriertoexperienceorfunctionality

ChoiceofSupplier– AmazonUKhas100mlproductsandfastestgrowingbanksandTelcos’aretheSupermarkets

Customers

Customersarealreadybetteratdoingbusinesswithyou,thanyouareatdoingbusinesswiththem!

Howmanychannelsdoyouuseaswork?

AsDigitalCustomersweusemorethan6/7butorganisationswestrugglewith3

ThepaceofCustomeradoptionis18monthswhichislessthan half oforganisationaladoption

Customers

Ifcustomersarealreadybetteratdoingbusinesswithyouwhatabout…

Fraudsters

Whathappensifwedon’tact?

Willwestarttoexperienceairportlikeinconvenienceforourprotection?

ThinkabouttheimpactonCustomerExperienceandtheimpactonyourdaytodayrelationshipwithyourcustomer

Whatisthesolution?

• RelianceonKBAaloneisnolongeranoption

• AcontinuousprogrammeofactionacrossallchannelstocreateanOmni-Channelapproach

• Ablendedprocess&technologystrategyacrossallactivities–thinkingaboutFraudasaseriesofexperiencesratherthanasinglesmash&grabraid

Andfinally

ThereisanincreaseinFraudoverallandadramaticincreaseinphoneFraud

OurCustomerRelationshipsareatriskofphoneFraudbecauseitisahumanexperience

Wearenotyettreatingintrusionswiththesameseriousnessasattemptedtheft

Wearegettingbetteratdetectingitbecauseofnewtechnologies

Weneedtocreateashieldofalltypesoftechnologiesacrossallourchannelsorweak pointswillbecomefocal points

ThankYou

CustomerExperienceFoundation

Findmeon

@MorrisPentel

m@pentel.me

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