Call Center Fraud Attacks Up 45% Since 2013

Strong online and mobile security, coupled with the rollout of EMV chip cards in the United States means cybercriminals are changing tactics, exploiting the weakest link in the organization: the call center. The rate of call center fraud attacks has grown 45 percent since 2013, according to Pindrop's 2016 Call Center Fraud Report.

Other findings in the report include:

• In 2015, enterprises lost an average of $0.65 to fraud per call. This means a large call center that receives 40 million calls per year can expect to lose between $17 million and $27 million per year.

• U.K. financial institution call centers are being hit with very high levels of fraud attacks when compared to its counterparts in the United States. In the United Kingdom, fraud rates are at 1 in 700 calls, which is more than double the 1 in 1,700 calls in the United States.

• Fraud rate and exposure vary by industry. This past year credit unions had the potential to lose 29 million in fraud exposure. Life Insurance companies faced a greater risk of 31 million in potential loss, which is three times larger than the average of other financial institutions.

According to David Dewey, Director of Pindrop Labs, “There is an alarmingly large increase in attackers targeting call centers to gain access to funds and steal key assets including money, merchandise and proprietary information. This problem is not restricted to U.S. financial institutions, this is a growing problem on a global scale. The common thread is that criminals go where the likelihood of detection is lowest and the rewards are high.”

Read the report: https://www.pindrop.com/phone-fraud-report
 

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