SOURCE: Pindrop Security

November 21, 2013 06:00 ET

Phone Fraud Attempts Double in 1H 2013

Pindrop Security Finds Financial Institutions Lose $.57 per Fraudulent Call in Latest Report

ATLANTA, GA--(Marketwired - Nov 21, 2013) -  Pindrop Security, the pioneer in phone fraud prevention and call center authentication for banks and enterprise call centers, today announced the release of a new report, "KYF: Know Your Fraudster - Phone Fraud in Financial Institution Call Centers 1H 2013." The report provides a unique view into the risk that phone fraud poses to financial institution call centers through the analysis of phone fraud activity during the first six months of 2013.

"Phone fraud is a significant vector for organized cybercrime, and the impact that it has on financial institutions and other enterprises will only continue to grow as phone fraudsters scale their efforts," said Vijay Balasubramaniyan, co-founder and CEO of Pindrop Security. "Financial institutions need to familiarize themselves with best practices to mitigate phone fraud in order to prevent their customers' accounts from a future breach."

Phone fraud is a multimillion-dollar industry led by professional, organized attackers. Financial institution call centers are a leading target for phone fraudsters, and attackers use a variety of social engineering and account manipulation techniques to steal via wire transfers, Account Clearing House (ACH), and cards. Financial services companies lose millions of dollars each year due to phone fraud.

Key findings from the report include:

  • Phone fraud has a significant financial impact: Pindrop analysis revealed that 1 in every 2,500 calls into a financial institution's call center is fraudulent, and for every phone call into a financial institution call center there is a $0.57 loss. The average loss per financial account was $42,546.
  • Phone fraud is organized and scaling: Individual phone fraudsters targeted anywhere from 5-10 accounts to as many as 200-300 accounts, often working in groups ranging from 2 to 12 members.
  • Fraudsters are increasingly targeting consumers directly: During 2012, Pindrop counted over 2.4 million consumer complaints of phone fraud attempts. By comparison, during the first six months of 2013 Pindrop detected 2.3 million complaints -- a significant increase in fraud activity.

Data for the report was collected using Pindrop Security's Phoneprinting™ technology, which analyzes the audio content of a phone call. With Phoneprinting, Pindrop is able to measure 147 unique characteristics of the phone caller's audio signal to form a unique fingerprint for the phone call, and determine where the call originated and whether the call was made from a landline, mobile phone, or specific Voice over Internet Protocol (VoIP) provider. Phoneprinting routinely identifies over 80% of inbound fraud calls to enterprise contact centers, saving millions of dollars in losses and contact center expenses each year.

Online Resources

  • Download a copy of the Phone Fraud report here
  • Follow Pindrop Security on Twitter
  • Visit our blog

About Pindrop Security
Pindrop Security, headquartered in Atlanta, Ga., is a privately-held company that provides enterprise solutions that help prevent phone-based fraud. Its breakthrough phoneprinting technology can identify phone devices uniquely just from the call audio thereby detecting fraudulent calls as well as authenticating legitimate callers. We have helped enterprises eliminate financial losses and reduce operational costs on their phone channel. Pindrop's customers include two of the top five banks and one of the leading online brokerages. Named SC Magazine 2013 Rookie Security Company of the Year, a Gartner "Cool Vendor" in Enterprise Unified Communications and Network Services for 2012 and one of the 10 Most Innovative Companies at the 2012 RSA conference, Pindrop Security's solutions restore enterprises' confidence in the security of phone-based transactions.

Contact Information

  • Media Contact
    Fitzgerald Barth
    LEWIS PR for Pindrop Security
    (415) 432-2457
    Email Contact