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