In today’s highly virtual business environment, there are loads of opportunities for cybercriminals to execute fraud.

Since almost every function, operation, or transaction is done digitally, hackers can find it easy to pretend to be someone they’re not. Their goal is to access your customers’ information. 

Before 2020, call center agents worldwide observed that one in every 770 calls was fraudulent. In 2020, fraud attacks in call centers increased by 57%. There are several ways fraudsters perform this crime. One way is that they get in touch with the call center with specific details of a customer on hand. Then, they ask to gain complete control of the customer’s account or create a new account in someone else’s name. 

There’s no single industry target for call center fraud, as any industry or field can be a victim, but it’s more prevalent in businesses that work with call centers. Many organizations are aware of the influx and threat of fraud and security breaches, but they don’t have the proper mechanisms that can help mitigate scams infiltrating their company through call centers. 

It’s crucial that your business adopts fraud detection strategies and adjust them now and then, as fraudsters will always find ways to slip through the gaps in your security measures. Knowledge-based authentication (KBA) is one of the most common security procedures companies implement. However, solely relying on KBA isn’t enough. Fraudsters can easily access the information required for this authentication process. 

Combating fraud is a never-ending process, and a way to mitigate it is to understand everything there is to know about call center fraud. 

Why Are Call Centers a Common Target of Fraudsters?

Scammers target call centers because these companies are “soft” resources to learn details about a customer or pose as one. It can be challenging to trace back a fraud case to a call center, especially if you have data spread across multiple channels. Hence, many organizations overlook the signs and patterns of fraudulent activity. 

Without the right processes and customer identification tools, there’s the risk that call center fraud will continue to be rampant within your company and affect your relationship with your customers. 

The Hidden Costs of Fraud to your Business

The most obvious effect of fraud is the loss of funds. In addition to this, there are other forms of damage as a result of call center fraud. These include:

• Increased operational costs - In identifying fraudulent activity, agents will have to take more time to discerning callers, adding to the cost of each call. With this, you should start streamlining your authentication process. It can take a lot of resources at first, but the right ones can yield a high return on investment. 

• Greater legal risks - When fraudsters target financial call centers, the company can face several regulatory penalties, such as fines and legal fees. These costs can eat up a huge chunk of your profits. 

• Inefficient customer experience - Some businesses resolve fraud issues by asking customers to establish their identity through multiple complicated steps. When you do this and do not adopt sophisticated solutions to fraud, your customers can become frustrated and abandon your business, affecting your conversions. 

• Negative impact on brand reputation - Your organization can suffer from a negative brand image if fraud attacks and data breaches are publicly reported in your call center. Customers can easily switch to your competitors if they hear that their data isn’t safe with your business. Hence, you’ll have to handle reputation management, which can add more costs as you try to save your image. 

Summing up

You can prevent call center fraud from occurring in your organization. No matter how creative or innovative these cybercriminals get, if you’re educated and prepared, they are less likely to infiltrate your company and your customer’s data.