Survey Finds Call Center Threat Activity Rising; Legacy Authentication Methods Frustrate Customers and Fail to Prevent Fraud
20 September 2022 - 03:00PM
Business Wire
Latest Neustar research highlights how brands
are securing customer trust and fighting fraud across every
communication channel
The majority of call centers are seeing year-over-year increases
in fraud activity, according to the 2022 Omnichannel Authentication
Survey from Neustar, a TransUnion company. Fraudsters are
increasingly targeting agent-led authentication methods over the
phone channel, contributing to a $5.8 billion increase in consumer
fraud losses in 2021 – 70% more than the amount lost in 2020.
Survey respondents highlighted the vulnerability of agent
authentication with just one in 10 consumers reporting an increase
in meaningfully improved customer experience. Others reported
dissatisfaction with long wait times, answering repetitive
questions and impersonal interactions.
To combat fraud and customer dissatisfaction, most respondents
recognized the value of reducing their reliance on agent-led
authentication methods. Seven in 10 survey respondents preferred to
complete authentication with pre-answers or an interactive voice
response (IVR) system over agent-led authentication processes. Yet,
while the overwhelming majority of respondents (93%) wanted to
detect fraud activity before or during engagement in an IVR system,
only two in five have the tools in place to do so.
“A gap is opening between forward-thinking organizations that
have honed their authentication protocols for the benefit of
customers, and the organizations that have not,” said Shai Cohen,
senior vice president of global fraud solutions at TransUnion.
“Enterprising companies that innovate their authentication
approaches will not only improve the client journey, but extend
their advantage over less-innovative competitors.”
The Shift Towards Omnichannel
The 2022 Omnichannel Authentication Survey is the continuation
of Neustar’s research into the risks facing inbound call centers
and how call center leaders plan to use inbound caller
authentication to improve fraud detection, support seamless
customer experience and reduce operating costs. Previous iterations
of this study were known as The State of Call Center Authentication
Survey.
“Given that consumers increasingly expect organizations to
recognize and trust them as they move across channels and devices,
the survey has changed its name and expanded its scope beyond the
phone channel,” said Cohen. “While the solutions that protect
consumer identity and improve the customer experience continue to
change, we remain steadfast in our dedication to bringing forth
cross-industry insights that help organizational leaders better
serve consumers and mitigate fraud.”
Survey results show that over half of respondents plan to
implement multi-factor authentication (MFA). In doing so, these
companies also stand to improve customer experience by speeding up
services and by reducing false positive ad manual reviews. Over
half (60%) of financial institutions plan to supplement
knowledge-based authentication (KBA) with new technology to create
multi-factor authentication, while more than one-third of
non-financial organizations plan to replace KBA entirely.
Whether supplementing KBA or replacing it entirely, respondents
shared high expectations for new caller authentication approaches,
with 78% of respondents indicating ‘reduce agent time on
authentication’ as very important. Other priorities included
reducing operating costs (69%), improving agent job satisfaction
(69%), and delivering high authentication accuracy (67%).
These findings demonstrate that forward-thinking organizations
that invest in improved consumer authentication approaches meet
rising consumer expectations for safe experiences, mitigating
sophisticated fraud tactics and maintain operational
efficiency.
For additional insights, please access the full report here.
About the Survey
The 2022 State of Omnichannel Authentication report is based on
a May 2022 survey of 129 professionals working primarily in
operations, customer experience or information technology. The
primary markets represented by respondents were technology and
finance.
About TransUnion (NYSE: TRU)
TransUnion is a global information and insights company that
makes trust possible in the modern economy. We do this by providing
an actionable picture of each person so they can be reliably
represented in the marketplace. As a result, businesses and
consumers can transact with confidence and achieve great things. We
call this Information for Good®. A leading presence in more than 30
countries across five continents, TransUnion provides solutions
that help create economic opportunity, great experiences, and
personal empowerment for hundreds of millions of people.
https://www.transunion.com.
About Neustar
Neustar, Inc., a TransUnion company, is a leader in identity
resolution providing the data and technology that enable trusted
connections between companies and people at the moments that matter
most. Neustar offers industry-leading solutions in marketing, risk
and communications that responsibly connect data on people, devices
and locations, continuously corroborated through billions of
transactions. Learn how your company can benefit from the power of
trusted connections. home.neustar.
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Neustar Media Finn Partners for Neustar Rob Bitter
503-546-7854 Rob.bitter@finnpartners.com
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