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

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Phone Fraud Battlefield Morris Pentel

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Page 1: CXFO MorrisPentel IAssist London16 · Customers viewpoint Phone Attacks will have much more significant impacts on Customer Experience than Cyber Fraud because it happens to the Customer

PhoneFraudBattlefieldMorrisPentel

Page 2: CXFO MorrisPentel IAssist London16 · Customers viewpoint Phone Attacks will have much more significant impacts on Customer Experience than Cyber Fraud because it happens to the Customer

Telephonefraudisupby92%.Isthisarealthreatorjustsomemarketing hype

IsContactCentreaneasytarget?

IsContactCentreamorevaluabletarget?

HasFraudchanged?Whyisitimportant?

Page 3: CXFO MorrisPentel IAssist London16 · Customers viewpoint Phone Attacks will have much more significant impacts on Customer Experience than Cyber Fraud because it happens to the Customer

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

Isitnowanarmsrace?

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

Page 4: CXFO MorrisPentel IAssist London16 · Customers viewpoint Phone Attacks will have much more significant impacts on Customer Experience than Cyber Fraud because it happens to the Customer

HasFraudchanged?

IndustrialisationofFraud- ItsnowreallyBigBusiness

FocusofindustrialscaleinvestmentbyFraudsterstoexploitopportunitiesforfastreturns

Increasedattacksonconsumers &contactcentrefocusedongaininginformationtocreatethefinancialcrime

KPMG’sUKFraudBarometersawamarkedincreaseinfraudsterstargetingindividualsandfamilies,particularlythoseinfinancialdistress,stealing£156m.

Thisreflectsa300%increaseon2014whenjust£38.5mwaslostbyvulnerablevictims.

Page 5: CXFO MorrisPentel IAssist London16 · Customers viewpoint Phone Attacks will have much more significant impacts on Customer Experience than Cyber Fraud because it happens to the Customer

Whathaschangedarethesizeandscaleoftheoperations?

RiseinSocialEngineeringFraud

Attackersusingsocialengineeringhavefoundthephonechanneltobetheweakestlinkforcorporationsandconsumers.

Thistrendwillcontinuein2016asfraudschemesbecomemoreandmorecreative. Hackersimpersonatingcustomersupportpeople,IRSagents,andevensecurityspecialistsclaimingtohavedetectedfraudwillcontinuetobeasourceofstealingpersonalfinancialdata.

Page 6: CXFO MorrisPentel IAssist London16 · Customers viewpoint Phone Attacks will have much more significant impacts on Customer Experience than Cyber Fraud because it happens to the Customer

Whathaschangedarethesizeandscaleoftheoperations?

Assecuritysystemshaveimprovedinotherareasofbanking,fraudstershaveoptedtotargetconsumersdirectlybyphoningthemup,orusingonlinevulnerabilities.

Scammershavepretendedtobebankstaff,policeandfromfirmssuchasTalkTalk,andpersuadedconsumerstosendmoneytotheirbankaccounts,aidedbythefasterpaymentssystemandpreviouslylaxaccountopeningrequirementsatbanks.

Page 7: CXFO MorrisPentel IAssist London16 · Customers viewpoint Phone Attacks will have much more significant impacts on Customer Experience than Cyber Fraud because it happens to the Customer

Whathaschangedarethesizeandscaleoftheoperations?

Page 8: CXFO MorrisPentel IAssist London16 · Customers viewpoint Phone Attacks will have much more significant impacts on Customer Experience than Cyber Fraud because it happens to the Customer

Whathaschangedarethesizeandscaleoftheoperations?

GangFraud

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

RonHuff,acriminologyprofessorattheUniversityofCalifornia,Irvine,whostudiesgangs.

Page 9: CXFO MorrisPentel IAssist London16 · Customers viewpoint Phone Attacks will have much more significant impacts on Customer Experience than Cyber Fraud because it happens to the Customer

Overall$35,000aminute- USA

92%Increase

Page 10: CXFO MorrisPentel IAssist London16 · Customers viewpoint Phone Attacks will have much more significant impacts on Customer Experience than Cyber Fraud because it happens to the Customer

Whathaschangedarethesizeandscaleoftheoperations?

“Weknowthatitisaworseningproblemasthisyearwehaveseenadramaticincreaseinthenumberofreportsaboutdodgycalls.

Ithinkthattheyhavefoundustobe vulnerableandnowit’slike,thereisagangofthemhangingaroundoutsidethevirtualbordersofouroperationandourstaffaredevelopingasiegementality.Itsdifficultbecausetheyarenotstealingfromusinthetraditionalsensebutitisstillmakinglifemoreandmoreuncomfortable.”

ContactCentreDirector- MajorUtility

Page 11: CXFO MorrisPentel IAssist London16 · Customers viewpoint Phone Attacks will have much more significant impacts on Customer Experience than Cyber Fraud because it happens to the Customer

NewFocuses

AsconsumershavegoneOmni-ChannelsohasFraud

Theinboundtelephonechannelisnowbecomingafocalpointofattackforfraudsters

Increasedattacksonconsumers &contactcentrefocusedongaininginformationtocreatethefinancialcrime

Increaseinsecondaryattacks

IncreaseinvalueofdataforattacksonKBA (knowledge-basedauthentication) protectedfunds

Page 12: CXFO MorrisPentel IAssist London16 · Customers viewpoint Phone Attacks will have much more significant impacts on Customer Experience than Cyber Fraud because it happens to the Customer

NewTricksandOldones

Increasingevidenceofsophisticationintechnology

Maskedphonecallsroutedthroughcomplextechnologyandinternationalservices

Maskedvoicesthroughclevertechnologyorcheapappsoroldfashionedacting

Availableintheappstore

Page 13: CXFO MorrisPentel IAssist London16 · Customers viewpoint Phone Attacks will have much more significant impacts on Customer Experience than Cyber Fraud because it happens to the Customer

Fraudstersgetmorepracticethanagents– itstheirjob

Agentlistenscarefullybutitmaybeonlyoneinahundredorathousandcallsforthatoneagentwhilethefraudstermaylearnaweaknesstheycanexploitinatorrentofattackssotheycangetisinformation.

Fraudstershideinacrowd

BetterinformedFocusofattackonaSinglepointofweakness

CostofDefenceofwholefront

line

Strategicadvantage- BadGuys

MacroScaleadvantage

Theagentisanobvioustarget

Page 14: CXFO MorrisPentel IAssist London16 · Customers viewpoint Phone Attacks will have much more significant impacts on Customer Experience than Cyber Fraud because it happens to the Customer

Strategicadvantage- BadGuysEverysuccessfulattackfuelsthe

appetiteformoreandfundsthenextattack

OrganisationsfailedtoactquicklyenoughaboutCyberCrimeandnowarefundingbothsidesofthewar

WillwemakethemistakeofnotinvestingquicklyenoughfuellingthepaceofgrowthofKBAIntrusion

KBAIntrusionhasalowerprioritythanactualfinancialattackandisnotasnoticeableandhaslessdirectimpactinthetransactionalsence

Page 15: CXFO MorrisPentel IAssist London16 · Customers viewpoint Phone Attacks will have much more significant impacts on Customer Experience than Cyber Fraud because it happens to the Customer

ImprovementsinDetection

Innovationsinmanyconnectedfieldsarejoiningtogether

Phoneprintingtechnologytestsontheexistingphonecalls&datasometimes- 3or5timesthesizeoftheproblemtheythoughttheyhad

BehavioralscienceanalyticstechnologydetectingpatternsofFraudimproving

OthertechnologiessuchasBiometricsEMVetc.areallclosingloopholes

Page 16: CXFO MorrisPentel IAssist London16 · Customers viewpoint Phone Attacks will have much more significant impacts on Customer Experience than Cyber Fraud because it happens to the Customer

Isitnowanarmsrace?

Improvementsindetectiononotherchannelsmaymakethemlessattractiveandincreasetheappetiteforphoneattacks

IfCCOwnersfailtoactquicklyitwillbeperceivedasaneasytargetcreatinganincentiveforphonefraud

LongTermImpactoffailuretoinvest

MoreBattleswithFraudstersrequiringMoreInvestmentoveralongtimescale– Everyonewillhavetoinvestbutwhoeverinvestsmorefirstleadsthearmsraceandalsoifthewhitehatsmovequicklytheymaystifletheincentivetoinvestbycriminals

Page 17: CXFO MorrisPentel IAssist London16 · Customers viewpoint Phone Attacks will have much more significant impacts on Customer Experience than Cyber Fraud because it happens to the Customer

WhatistheCXRisk?

Theagentisanobvioustarget

Constantlybalancingbetweenbeinghelpfultodeliveragreatcustomerexperienceandfollowingprotocolandbestpracticeagentbehaviourcanbecomepredictable

Wasityouragentthatgavethelastpieceofinformationneededtocommitafraud?

HowaboutangryCustomers?

Page 18: CXFO MorrisPentel IAssist London16 · Customers viewpoint Phone Attacks will have much more significant impacts on Customer Experience than Cyber Fraud because it happens to the Customer

Customersviewpoint

PhoneAttackswillhavemuchmoresignificantimpactsonCustomerExperiencethanCyberFraudbecauseithappenstotheCustomer

Italsoimpactshowyoutreatyourcustomeronthephone– theirphoneexperience

KBAcostsincreaseandmustbecomelesseffective

IncreasedFraudwouldmeanincreasedovertsecurity

Page 19: CXFO MorrisPentel IAssist London16 · Customers viewpoint Phone Attacks will have much more significant impacts on Customer Experience than Cyber Fraud because it happens to the Customer

Consumersthatdon’ttrusttheirfinancialinstitutions(don’tusetheservicesofferedbythem)suffermoredamageiftheybecomefraudvictims.

Consumersthatdonottrusttheirfinancialinstitutionsarelesslikelytousetransactionmonitoring,emailalerts,creditfreezesandblackmarketmonitoring

-theirinformationbeingusedfor75percentlongerbyfraudsters

- incurringa185percentgreatermeanconsumerexpensethanthosevictimsthathavehightrustintheirfinancialinstitutionsSourceJavelin

Fraud=$35,000aminute- USA

Page 20: CXFO MorrisPentel IAssist London16 · Customers viewpoint Phone Attacks will have much more significant impacts on Customer Experience than Cyber Fraud because it happens to the Customer

CustomersCustomersarealreadybetteratdoingbusinesswithyou,thanyouareatdoingbusinesswiththem!

Youarecompetingtobethesourceofinfo

MoresourcesofinformationMoreuptodateMorein-depthInformationaboutyourpropositionMoreinformationaboutyouthanyourfrontlineEffectiveLanguage

Page 21: CXFO MorrisPentel IAssist London16 · Customers viewpoint Phone Attacks will have much more significant impacts on Customer Experience than Cyber Fraud because it happens to the Customer

Customersarealreadybetteratdoingbusinesswithyou,thanyouareatdoingbusinesswiththem!

Forthefirsttimeinhistory,consumersnowhavemuchbettertechnologythantheenterprisesthatservethem

Whereenterprisesarespendingbillions consumersarespendingtensoftrillions andthegapisgrowingThepaceofchangeiscreatingalargerandlargergapincapability

BYOD&BYOE(xperience)

Customers

Page 22: CXFO MorrisPentel IAssist London16 · Customers viewpoint Phone Attacks will have much more significant impacts on Customer Experience than Cyber Fraud because it happens to the Customer

Customersarealreadybetteratdoingbusinesswithyou,thanyouareatdoingbusinesswiththem!

ChoiceofTechnology(endpointdevicesuchasphoneortablet)isnolongerabarriertoexperienceorfunctionality

ChoiceofSupplier– AmazonUKhas100mlproductsandfastestgrowingbanksandTelcos’aretheSupermarkets

Customers

Page 23: CXFO MorrisPentel IAssist London16 · Customers viewpoint Phone Attacks will have much more significant impacts on Customer Experience than Cyber Fraud because it happens to the Customer

Customersarealreadybetteratdoingbusinesswithyou,thanyouareatdoingbusinesswiththem!

Howmanychannelsdoyouuseaswork?

AsDigitalCustomersweusemorethan6/7butorganisationswestrugglewith3

ThepaceofCustomeradoptionis18monthswhichislessthan half oforganisationaladoption

Customers

Page 24: CXFO MorrisPentel IAssist London16 · Customers viewpoint Phone Attacks will have much more significant impacts on Customer Experience than Cyber Fraud because it happens to the Customer

Ifcustomersarealreadybetteratdoingbusinesswithyouwhatabout…

Fraudsters

Page 25: CXFO MorrisPentel IAssist London16 · Customers viewpoint Phone Attacks will have much more significant impacts on Customer Experience than Cyber Fraud because it happens to the Customer
Page 26: CXFO MorrisPentel IAssist London16 · Customers viewpoint Phone Attacks will have much more significant impacts on Customer Experience than Cyber Fraud because it happens to the Customer

Whathappensifwedon’tact?

Willwestarttoexperienceairportlikeinconvenienceforourprotection?

ThinkabouttheimpactonCustomerExperienceandtheimpactonyourdaytodayrelationshipwithyourcustomer

Page 27: CXFO MorrisPentel IAssist London16 · Customers viewpoint Phone Attacks will have much more significant impacts on Customer Experience than Cyber Fraud because it happens to the Customer

Whatisthesolution?

• RelianceonKBAaloneisnolongeranoption

• AcontinuousprogrammeofactionacrossallchannelstocreateanOmni-Channelapproach

• Ablendedprocess&technologystrategyacrossallactivities–thinkingaboutFraudasaseriesofexperiencesratherthanasinglesmash&grabraid

Page 28: CXFO MorrisPentel IAssist London16 · Customers viewpoint Phone Attacks will have much more significant impacts on Customer Experience than Cyber Fraud because it happens to the Customer

Andfinally

ThereisanincreaseinFraudoverallandadramaticincreaseinphoneFraud

OurCustomerRelationshipsareatriskofphoneFraudbecauseitisahumanexperience

Wearenotyettreatingintrusionswiththesameseriousnessasattemptedtheft

Wearegettingbetteratdetectingitbecauseofnewtechnologies

Weneedtocreateashieldofalltypesoftechnologiesacrossallourchannelsorweak pointswillbecomefocal points

Page 29: CXFO MorrisPentel IAssist London16 · Customers viewpoint Phone Attacks will have much more significant impacts on Customer Experience than Cyber Fraud because it happens to the Customer

ThankYou

CustomerExperienceFoundation

Findmeon

@MorrisPentel

[email protected]

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