Pindrop could not estimate the numbers for actual fraud loss at financial institutions because it's hard to trace back a particular theft to a specific phone call. As a result, while the average call exposes a retailer to $2.40 of potential risk, the actual average fraud loss is only $0.17 per call. In addition, scammers rarely try to max out a stolen credit card to avoid drawing attention to themselves. On the other hand, these retailers often have an advantage over financial institutions in that they typically have some time before shipping their product, time they can use to investigate and cancel suspicious orders. Fraud rates, in some cases, were as high as 1 out of every 300 calls. Retailers selling popular, expensive Apple products that can be easily resold on Craigslist or eBay were particularly favorite targets, he said. They then trick call center employees into giving them even more information, or impersonate the victim, steal money, or purchase products. Major breaches like those at Target and Anthem put more and more of this data into the hands of the bad guys. retailers switch their point-of-sale terminals for more secure systems, card-present fraud will become even more difficult and Pindrop predicts even higher rates of fraud at call centers.Ĭredit card processors had the highest rate of fraudulent phone calls, overall, with one out of every 900 calls coming from a scammer.Īccording to Dewey, scammers start with personal identifying information or credit card numbers. "People are starting to protect their websites, PCI is becoming effective - but the phone channel remains completely unguarded." MORE ON CSO: Four of the newest (and lowest) social engineering scams "We assume that the increase of fraud on the phone channel is correlated with the increasing presence of security mechanism on the online channel," said Pindrop head researcher David Dewey. In addition, the company reported over 86 million scam calls a month to U.S.
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Phone fraud aimed at finance and retail companies rose by 30 percent last year, according to a new analysis of several million calls by Pindrop Security.