Matt Mascherin, Solutions Engineer, Enterprise Sales Americas, Syniverse
Texting has become a staple of modern life and is so pervasive that it even has its own language. Any communication channel that is so widely used is bound to be targeted by scammers. Despite increased public awareness, fraud continues to be a very real threat for businesses. In the U.S., the Federal Trade Commission reports over 120,000 cases of fraud accounting for $78.25 million in loss. And Citizens Advice states more than one third of adults in the UK have been targeted by fraudulent communications since the start of the coronavirus lockdown.
Scammers are constantly finding new and more sophisticated methods to gain access to customer data. Even languishing landlines left unused as part of broadband package deals are being recruited as part of a larger campaign. Scammers can reassign these numbers without the user’s knowledge and subsequently use them to commit fraud.
The challenge exists in how these incidents are handled and prevented. With numerous enterprises holding sensitive personal data, companies must implement tactics to mitigate fraud attempts and minimize the impact when incidents occur. Communication empowers the customers to understand how to prevent and manage fraudulent activity.
The value of immediate response
It is critical for enterprises to contact customers in real time to alert them to anomalous activity. When fraud strikes, rapid responses can alleviate identity issues for customers and financial loss for enterprises. A faster reaction to fraud can work to secure the account and prevent further fraudulent activity.
While faster response times add value, customers are seeking to engage with brands through their preferred channel. SMS provides unmatched reliability, security, and reach. 90% of text messages are read within three minutes, making this channel excellent for fraud alerts. Despite these benefits, not all consumers will prefer receiving text messages. It’s important to gather the preferred delivery method to best alert customers of suspicious behaviors along with an alternative to maximize key customer engagement during fraud situations.
Education for prevention
Suspected fraudulent alerts work to provide a solution during and after a possible incident. But empowering customers with knowledge of what to watch for can work to prevent fraud before it happens. As technology evolves, scammers morph their tactics to infiltrate personal data and systems. When companies learn of these new methods, they should communicate them to prevent customers from falling hostage to the attacks. For example, when the company learns of a scam attack, they can circulate images of the text as well as how customers should act if they receive a similar fraudulent message.
This information must be easy for all customers to access with clear instructions on what to do and who to contact if fraud is suspected. These training messages should be shared regularly to refresh customers’ knowledge and advise them on new attack tactics.
Next steps to minimize fraud
Working with customers to mitigate fraudulent activity’s impact and prevent subsequent cases establishes trust and loyalty. To continue to build upon this trust, companies must stay on top of technology trends, including new communication channels. And these companies don’t need to have all the answers. The best solution may be through partnering with a trusted company who understands fraud, communication channels and effective measures to reach customers. Working with a messaging partner allows companies to focus on their strengths while the messaging partner takes care of delivering content to customers with customizable reliability.
Ultimately, companies and their customers both play critical roles in fraud mitigation and prevention. By getting all parties dedicated to the cause, fraud can dramatically decrease and trust can intensify.
