We sat down with Eric Kraus, VP and GM of FIS’ Fraud Risk and Compliance Business and asked him to share some of his thoughts around the recent report that FIS developed in partnership with Javelin Strategy and Research. The report, “Reducing attrition through fraud resolution”, dives into how customers currently feel about their financial institution’s efforts on resolving fraud when it occurs and how to be more proactive when it comes to detecting fraud.
In the study, Javelin found that nearly 4 in 10 (38%) identity fraud victims feel compelled to close their accounts when they do not feel their financial institution sufficiently resolved the fraud incident. What are consumer expectations on what “sufficiently resolved” means and how can FIs get to that point?
It really comes down to delivering the best possible experience to a customer who is dealing with a serious and often traumatic financial issue. As fraud management professionals, we deal with these situations all the time, but for the individual consumer, this is (hopefully) not something they will have experienced previously and it can obviously be very troubling. That means how they and their case are treated during the resolution process will stick with them for a very long time, helping shape their opinion of their financial institution during this critical juncture where trust is key.
So whether they feel that their case was “sufficiently resolved” actually goes deeper than just recovering financial losses that may have occurred. Based on the study, we have seen that customers now expect to have the complete burden of a fraud attack taken off their plate. This means that your customers will not accept making multiple calls to your help center and want to make one call to get the issue resolved. There also needs to be a personal touch to this process. We have seen consumers respond positively to a “concierge” like approach, for example, where they have one point of contact for questions, data research, filing of necessary claims information, etc.
With a three hour increase in average fraud resolution time in 2020, consumers clearly need resolution guidance from their financial institutions. How can FIs better guide their customers in the event of a fraud attack on their account?
During a recent webinar, our partners at Javelin shared an idea around the potential creation of a simple “Fraud Resolution” landing page that could be embedded within their website. I thought this was a great idea. Within this landing page, hyperlinks could be embedded that would make it easy for consumers to find resources to help with fraud questions and potential claims. For example, you could include a link for lost and/or stolen card reporting. Maybe include links to some of the largest online retailers and their dispute intake process. Other links to maybe consider could include law enforcement, US Postal Inspector, FTC, US.gov Scam Information Centers, AARP Scam Tracker, etc. Having this type of resource on your financial institution’s website can provide a centralized conduit for your customer to get in touch with the right party and is a great resource to alleviate the burden on their shoulders.
The study mentions a “culture of security empowerment”, what does that mean to you and how can FIs build that with their customers?
Creating a culture of security empowerment means that financial institutions need to proactively educate their customers on what we often call “proper cyber-hygiene”. This includes instructing customers to:
- Use strong, complex passwords, not reusing passwords
- Don’t overshare on social media
- Use multi-factor authentication
- Take advantage of mobile account controls
- Actively monitor account activity
- Lockdown credit reports
In addition, this means educating their customers on what type of personal data you will request and under what situations, along with clearly showing them the appropriate path to follow in the event of fraud attack.
What type of fraud technology solutions can FIs look to invest into both to prevent fraud from happening as well as better assist customers in the event of a breach?
Fraud technology providers such as FIS are focused on solutions that remove sensitive personal data from the authentication process, such as leveraging biometrics on a mobile device. We are seeing more predictive, AI based models focused on screening for stolen and synthetic identities. Call centers are even adjusting with the integration of “step up authentication” capabilities that allow for additional validation of inbound callers through a One-Time Passcode. Specifically, at FIS, we launched a Digital Risk Protection platform for proactive monitoring of the dark web and social media where fraudsters trade sensitive account and personal data. Together, these types of solutions can help more holistically protect consumer assets and maintain their confidence in their financial institution’s security.