“You are what you are and you ain’t what you ain’t” – Dear Abby, John Prine
“Basic” Security Isn’t Enough
When it comes to fraud prevention, this line from a John Prine song pretty much explains what it is fraud prevention technology tries to figure out. Preventing fraud over voice communications channels has its own challenges. Most companies have security measures in place to protect personal customer information.
There is a whole host of different secure authentication practices, something we’ve covered in this space before. For the voice channel, it’s common for companies, like banks and other financial services firms, to use automatic number identification (ANI) to validate customer identity.
The problem with this as a single layer of security is that the device doesn’t define the person or vice versa. Most people rely on mobile phones nowadays and while those devices certainly offer all kinds of convenience, they can also easily be lost or stolen. This raises the question: How do you know that the person on the other end of the phone is who it should be?
As a result, fraud experts suggest that companies treat these types of interactions as “person not present” cases. That term simply creates a distinction between a situation where a person is physically present and presents a card to complete a transaction versus one where the payer and the payee are in different physical locations. It’s the same idea as “card not present” in the payments industry.
Anti-Fraud Tech and IVR
Combining interactive voice response applications with additional fraud prevention technology mitigates these challenges. Fortunately, Plum’s cloud-based IVR technology makes it easy to use APIs to connect to these anti-fraud solutions.
Different fraud prevention services offer different solutions, but the realm of possibility is broad. For example, with location services enabled on a mobile device, fraud prevention technology can establish user location trends. This makes it possible to detect, based on the caller’s physical location, when someone is calling from home, work, the gym, or any other frequently visited location.
So, one option for fraud defense is to not only validate phone numbers against customer data but to also check to see if the caller’s current location matches one of the ‘frequent places’ associated with that particular customer.
If the caller’s location is outside the threshold established around their ‘frequent places’ then the system throws an error. At that point, you can decide what action to take, whether that involves locking an account, requiring additional security information, or something else altogether.
The point is that this type of technology delivers an added layer of protection, for companies and customers alike, by identifying potential issues in real-time before fraudsters can access customer data and wreak havoc.
To learn more how Plum’s IVR technology can help you reduce fraud threats, contact us today!