Mitigate Fraud and Consumer Friction with Integrated IDV
Contact centers face a delicate balancing act that pits the requirements of fraud mitigation against the concern that requisite authentication processes may frustrate legitimate consumers and drive operational costs higher. To further complicate matters, cybercriminals are becoming increasingly adept at exploiting the most widely accepted multi-factor authentication steps: 1) knowledge-based authentication (KBA), and 2) SMS text messaging. By spoofing the identifies of consumers via easily accessible PII and exploiting mobile devices via SIM swap, phone porting, and call forwarding techniques, cybercriminals are driving fraud rates higher and pressuring organizations to increase rather than reduce consumer friction.
Neustar commissioned Forrester Consulting in October 2018 to evaluate the current state of fraud prevention, as well as the offline, online, and device-based identity verification (IDV) methods firms deploy to tell legitimate customers' identity from those who are seeking to do harm or falsify intent.
Forrester conducted an online survey with 204 respondents with decision-making responsibility for fraud management, authentication, and customer experience (CX) to explore this topic. We found that while many firms are overconfident in their ability to protect themselves from fraud, without overburdening customers, firms expanding an integrated IDV strategy (employing a combination of offline, online, and device-based capabilities) are seeing differentiated success.
Download the full study to access Forrester Consulting's Key Recommendations and learn how the 204 financial services, retail, insurance, and contact center provider organizations in North America evaluated the effectiveness of their own fraud and authentication approaches.