Here’s how fraudsters try to beat the system:
- They obtain a constituent’s personal information from health records, data posted on social media, or old fashioned mail theft.
- Pretending to be a government program representative, they may contact the constituent to “validate account information.” The person is persuaded to reveal confidential information that can be used to unlock their accounts and steal funds.
- The fraudsters call the government program’s contact center and attempt to take over the constituent’s account based on this identity information. Many interactions take place via the IVR, while others involve speaking with an agent.
Multiple tactics demand multi-layer protection
Fraudsters are not only diverse—ranging from individuals to international gangs—but also use many different tactics to steal constituents’ information, benefits and funds. These people are smart, creative and incredibly persistent. They will eventually find a way to defeat any single defense against identity theft.I’ve spent the past few years watching our fraud and IVR experts dissect the caller data and analyze the results, and time and again the facts speak for themselves.
Fraudsters are clever, diverse, and constant. So we must be as well for the government Agencies we serve. It’s one thing to collect the data – which we do in Terabytes of volume – and another to understand and take effective action on it.That’s why State and Local Government Agencies and Programs need a multi-layer, adaptive approach to identify and stop fraudsters before they can take over constituent accounts via the IVR or by fooling a contact center agent. Such a solution should target three aspects of fraud we’ve found highly successful in reducing fraud previously passed through undetected:
Phone Number Reputation
This layer of the solution automated in the IVR compiles a database of phone numbers used by callers to the IVR, including geographic locations, network providers, phone types and any fraud activity history. It assigns a reputation score that can be used to flag suspect numbers. The solution also targets call spoofing, voice distortion and other tactics used to trick the system. For example, VoIP calls can indicate a suspect call. Only 1 percent of legitimate callers use VoIP, as opposed to nearly half of fraudulent callers. And while 10 percent of legitimate calls are international, about 40 percent of fraud calls come from another country.