Call Center Fraud Prevention: Tips and Tools for Credit Unions
By Jonathan Manousaridis, Marketing Manager, CEO, Eltropy
Call center fraud can be a significant threat to credit unions. Fraudsters use social engineering tactics, such as impersonation and pretexting, to gain access to member information or execute unauthorized transactions. The costs of call center fraud can be significant, including reputational damage, member loss and financial losses. In this article, we’ll explore the steps credit unions can take to prevent call center fraud.
According to a report by the American Bankers Association, community banks and credit unions pay an average of $4 for every $1 lost on fraud.
Implementing multifactor authentication is one of the most effective ways to prevent call center fraud. Multifactor authentication requires users to provide multiple forms of identification to access member information or execute transactions. This can include something they know, such as a password or PIN, and something they have, such as a token or mobile device. When combined with the power of a digital conversation tool that enables consumers to use channels like text, it takes your security to the next level.
Training employees in social engineering tactics is also critical. Fraudsters often use social engineering to trick call center employees into revealing sensitive information or executing unauthorized transactions. By training employees to recognize and respond to social engineering tactics, credit unions can reduce the risk of call center fraud.
Monitoring suspicious activity is another effective strategy for preventing call center fraud. This can include reviewing call logs and analyzing call patterns to identify unusual activity. Credit unions should also monitor for calls that are abnormally long or that involve unusual or sensitive transactions.
In addition to these measures, credit unions should also develop and implement a comprehensive fraud prevention plan. This plan should include policies and procedures for handling sensitive information, monitoring fraud and responding to suspected fraud. It should also include regular employee training and ongoing security assessments.
In conclusion, call center fraud can be a significant threat to community financial institutions. By implementing multifactor authentication, training employees on social engineering tactics, monitoring suspicious activity, utilizing fraud detection technology, and developing a comprehensive fraud prevention plan, credit unions can protect their members and their business from the costs and consequences of call center fraud. By taking proactive steps to prevent call center fraud, credit unions can safeguard their reputation and maintain the trust of their members.
Connect with Eltropy to learn more.
Eltropy enables credit unions to communicate with members over text message in a secure and TCPA-compliant way. Using Eltropy’s platform, lending, collections, sales, marketing, service, risk management, internal communications and other teams at credit unions can leverage text messaging to boost member engagement and enhance the member experience. Eltropy also integrates with IT systems, such as Symitar and Corelation, and provides member engagement insights.