It’s no secret that frictionless and trusted digital experiences are driving the reshuffling of the Fortune 500. In the face of intensifying competition to build the next generation of UX, instant gratification built on uninterrupted online experiences will have a dramatic impact on any type of service adoption, and will drive dramatic growth in sales across nearly all industries, spanning from financial services to healthcare to retail to insurance to high-tech.
But how can these new make-or-break standards be quantified? And how can brands see if they measure up?
3 Key KPIs to Measure Digital Trust
Taking these three KPIs into consideration, how does your company score when it comes to Digital Trust?
To learn how you can improve these KPIs for your business, contact us.
SIM swap fraud is one of the fastest-growing and most devastating fraud vectors plaguing companies and consumers today. From cryptocurrency exchanges to social media networks, all digital service providers that require users to log in are at risk of making headlines for falling victim to these increasingly common attacks if they do not have advanced preventative technology in place.
HOW SIM SWAP FRAUD WORKS
First, scammers trick victims into divulging personal information about themselves and then socially engineer customer service representatives in order to take over a victim’s phone number by having them transfer the number to a SIM card in their possession. Once they’ve done this successfully, the fraudster has full control over the unsuspecting victim’s phone number, allowing them full access to their accounts.
While victims are at risk of having their cryptocurrency accounts drained or having their social media handles taken hostage, the harm to the service providers who failed to protect their users against these kinds of attacks ranges from major reputational damage to liability for lost funds to the risk of losing users to more secure competitors.
WHAT COMPANIES CAN DO TO PROTECT THEMSELVES AND THEIR CUSTOMERS
Many proactive service providers are taking it upon themselves to secure their businesses with preventative technology, like Payfone’s Trust Score, to protect their customers against SIM swap fraud.
Payfone’s patented Trust Score provides a real-time check that allows service providers to see, at the time of a transaction, if a SIM swap has taken place. Here is a real-life example of how the Trust Score is being used today by a leading cryptocurrency exchange:
1) Fraudster steals cryptocurrency exchange username/password of victim through email phishing or similar method.
2) Fraudster takes over victim’s phone number by social engineering a customer service representative.
3) Typically at this point, the fraudster would then be able to log into the cryptocurrency exchange with the stolen credentials, and since they would have taken over the phone number as well, they would be able to receive any 2FA SMS one-time passcodes right to their own phone. However, with Payfone enabled, the cryptocurrency exchange would be able to call the Payfone Trust Score before sending an SMS OTP to see if a SIM swap has occurred on that account.
4) If a SIM swap has occurred, the cryptocurrency exchange routes the user to further inspection before granting them access to the account.
5) In almost all cases where accounts were locked due to insight from the Payfone Trust Score, victims confirmed that their accounts had, in fact, been taken over. Because accounts were locked before any damage could be done, the cryptocurrency exchange was able to safeguard the victims’ cryptocoins.
Note: There were some cases where accounts were locked despite no actual fraud having taken place. This was due to the fact that not all SIM swaps are nefarious. SIM swaps often occur for legitimate reasons–perhaps you dropped your phone in the toilet and wanted to activate an old phone you had in a drawer. However, all SIM swaps should be subject to additional scrutiny as a safety measure.
“We’re experts in mobile identity. We predicted that as chip cards rolled out in the U.S., fraudsters would attack two-factor solutions that secure banking, fintech and bitcoin services,” said Rodger Desai, Chief Executive Officer, Payfone. “Payfone’s patented Trust Score thwarts these types of attacks before they can do harm by detecting suspicious SIM swaps as soon as they occur.”
The Trust Score has an additional benefit of creating a more seamless experience for legitimate users. One of the main complaints that consumers have about accessing online services is that proving their identities through passwords, knowledge-based authentication and SMS one-time passcodes is cumbersome and time-consuming. Payfone overcomes this tradeoff by using advanced analytics to make logging into online accounts as easy for good users and impossible for scammers.
“Consumers expect digital services to be effortless and secure. Yet security can often be cumbersome,” said David Birch, Global Ambassador, Consult Hyperion. “With new, cutting edge attacks such as SIM swaps, businesses need more and better security, which could mean more friction and therefore fewer customers. Payfone’s technologies deliver the security without the friction.”
In addition to battling fraud and delivering better user experiences, there is one area that is becoming mission-critical to every organization: privacy.
If your company is looking for higher conversions, higher engagement, higher margins, and customer loyalty, contact us to discuss a proof-of-concept pass rate study.
Next week’s Did You Know? topic:
How to reverse the trend of lack of trust in the customer experience.
There are 700 million active consumer phone numbers in the U.S. and only 52% of phone lines are post-paid mobile phones; this means that coverage for ‘post-paid only’ phone numbers will miss almost half the country. Furthermore, 25% of total mobile phones are pre-paid, with landline and VoIP representing 23% and 14%, respectively, of all active phone numbers. The telco carriers can only provide partial coverage for pre-paid lines, and they do not provide any coverage for landline and VoIP.
Why does this matter?
High coverage directly impacts identity verification rates, which positively impact fraud levels, OPEX and the digital customer experience. Payfone provides coverage for post-paid, pre-paid, landlines and VoIP. We typically can verify identity for >90% of customers. A recent coverage study we completed for a major East Coast health plan demonstrated an improvement from 30% verified contact information for their members to a coverage rate of 91% verified contact information.
To learn how you can conduct a coverage study for your business, click here.
Next week’s Did You Know? topic:
THE ENROLLMENT PROCESS IS THE MOST CRITICAL ELEMENT FOR A GREAT CUSTOMER EXPERIENCE AND LONG-TERM LOYALTY
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