Automated Messaging

Automated Messaging

 

No longer is it just a concern to keep pass codes a secret in fear of someone stealing money from your funds and concealing your social security number isn’t the only way to keep someone from pretending to be you. The rate at which data theft and identity breaches are occurring is on the rise and no one is safe.

 

As usage and familiarity with technology increases, thieves are no longer looking to just steal account numbers to use in monetary transactions--they want more information--- they want your whole identity.

 

Stealing one's identity provides thieves with a way to open new accounts, file taxes, get a cell phone, get a job, or even a driver's license-- all in your name. And it's as easy as rummaging through your trash, checking your emails or accessing a computer's database.

 

Automated Messaging services provide alerts as soon as these breaches occur and ensure victims protection from further damages and losses—gaining their loyalty and saving both them and the company a lot in potential losses.

 

To better understand this growing threat and the benefits of alerts and notifications I asked Joellyn Sargent, marketing vice president for Alerts and Notifications Solutions at Premiere Global Services, to answer some questions on the topic:

 

 

 

 

Data theft is no longer just a serious threat, but a reality. Businesses of all kinds, including banks, government entities and universities, are reporting security breaches on almost a daily basis, and there is growing concern as to how to protect themselves from these “faceless” criminals. The increase in technological use over the years, combined with an increase in credit and debit cards as the preferred payment form when buyers go on-line to make their purchases, has provided an easy catalyst for thieves to advance their craft.   Not only are they interested in monetary information, such as credit card and pin numbers, but personal information making it possible to steal one’s identity. 

 

 

Companies owe it to their customers to alert them immediately once a breach has occurred. This type of due diligence is what sets apart a good company from a great company with which to conduct business. Banks, universities and government agencies are at a greater risk than most other companies are simply because they require very specific personal information. Most recently, the Department of Veteran Affairs received a blistering report from their inspector general’s office, which blamed agency officials for acting "with indifference and little sense of urgency" after the loss of the computer hardware in a house robbery. The theft occurred on May 3, but the secretary of Veterans Affairs was not notified until May 16, and Congress and veterans (about 26 million affected) did not hear of it until May 22, almost a month later. Anyone affected by a security breach most be alerted immediately, so that they may take the proper steps to protect their interests.

 

 

Stealing personal data can be as easy as going through someone’s trash for discarded credit information, to extremely sophisticated technical methods. Since the beginning of the Internet and the creation of databases, criminals have been devising ways in which to “hack” into and steal information from companies. These techniques continue to evolve as new securities are put into place, and include phishing, pharming and wireless hacking. Phishing is actually one of the most common types of data theft. E-mails designed to look like official messages from a bank or website are sent requesting the recipient to update account information. The data that is entered goes to the entity who designed the fake Web site. Pharming is a variation of phishing and occurs when a person types in a wrong Internet address. Once the wrong URL is entered, the victim is redirected to a Web site designed to look identical to the legitimate business. The site will then request personal information, such as login, password, credit card, or social security number. Finally, Wireless hacking has become increasingly common as wireless connections take off in the marketplace. These wireless connections, such as Wi-Fi and Bluetooth, create a platform for identity thieves to access personal data by tapping into them. All connections must be secure and encrypted to be protected. 

 

Like I mentioned, people operating on a wireless system that has not been encrypted and password protected are more at risk than those who operate on a secure system. Also, people should know that companies will never ask for personal information such as social security number or personal pin debit number over the Web, and whenever a person receives and E-mail requesting such information, a red flag should immediately go up. The E-mail and/or “fake” website should be reported immediately to the legitimate company.   Any company that requires personal information in order to conduct business over a Web site, such as universities, banks and utilities are at a greater risk of data theft, than one that is simply an informational Web site such as a newspaper.

 

 

Most definitely, the increase in both on-line shopping and wireless technologies has contributed to the rise in data theft. Additionally, there is no doubt that as people become more familiar with the Internet, they have a tendency to let their guard down and hand out information that shouldn’t be given quite so freely.

 

 

Early detection is one of the keys to minimizing the damage to both companies and their customers. Automated messaging notifications can alert customers to potential fraud indicated by irregular usage patterns or unusually costly transactions. With this information customers can detect and take actions to stop identity theft and fraud much sooner than if they learned about it through their credit card statements or calls from a collection agency.

Automated alerts can positively affect companies’ performance and efficiencies in the following ways:

• Alerting customers of potential fraud for early detection and intervention.

• Reducing losses that must be written off by stopping fraud faster.

• Increasing customer satisfaction and longevity with proactive communications that help customers protect themselves.

                 

For consumers, receiving proactive notification from their financial institution adds value to their relationship with the financial institution. Consumers prefer to deal with organizations they can trust. If they are able to stop identity theft in its early stages or even to catch the culprit responsible with the help of fraud alert notifications from a company in which they do business, that organization establishes a powerful bond with their customer.

 

A 2005 Research and Markets survey found the following:

 

• 73 percent of consumers surveyed highly value email alerts relating unusual bank account transactions.

 

• 72 percent of consumers surveyed want the ability to receive immediate electronic alerts of suspicious transactions in a credit or debit card account.

 

Increasingly, consumers will expect companies to be able to provide automated messaging fraud alerts. Surveys by the FTC and Javelin already recommend that consumers use alerts and notifications from their banks and credit card companies to protect themselves from identity theft.

 

Early detection is the key to minimizing the damage caused by fraud to both companies and consumers. Findings from the FTC survey show the following:

 

• When cases of identity theft were discovered in six months or more, thieves stole more than $5,000 44 percent of the time; however, when cases were discovered in five months or less, that number drops to 18 percent.

• When cases of identity theft were discovered within a month, thieves were able to open new accounts only 10 percent of the time.

 

One of the best ways to keep consumers aware of what’s happening to their accounts is through fraud alerts. Fraud alerts allow companies to automatically contact customers, using voice or SMS, when out-of-the-ordinary transactions occur on their account. For instance, a bank could generate an automated messaging fraud alert every time a transaction greater than $500 is performed using a customer’s credit card. A fraud alert notification might say, “Mr. Smith, a $500 charge occurred on your credit card on May 3. If you did not perform this transaction, press 1 now.”

 

An alert like this is minimally invasive to the customer if he did perform the transaction. If the customer did not perform the transaction, he has a jump-start on recovering from the fraud because he does not have to wait until he receives a bank statement or checks his credit report.

 

                       

Since companies, particularly financial institutions, bear most of the cost of identity theft and fraud, early detection cuts down on the costs. A single undetected case of identity theft has the potential to cost your financial institution thousands of dollars or more, and the longer a case goes undetected, the more the case may end up costing. A single phone call, email, or SMS notification can save thousands of dollars in potential losses. Additionally, fraud alert notifications can help companies comply with new laws requiring that they notify customers of potential security breaches regarding customer information. And automated messaging alerts for fraud are far less expensive than other costly methods, such as live callers or paper mailings.

 

 

 

Premiere Global Services’ Fraud Alerts offer an easy-to-use, customizable fraud alert notification system. Companies simply use their existing systems to upload a list of active notifications to Premiere Global Services. Premiere Global contacts each customer on the list, using the customer’s preferred contact method, and records the results of the contact for the company. Customers can even transfer directly to a live operator to take further action on the notification. Premiere offers a hosted solution, which means there is no equipment to buy. Enterprises only pay when they use the system, and volume-based pricing means that they get great value no matter how many notifications need to be sent.

 

 

For more information on fraud alerts please visit: www.premiereglobal.com

 

 

More information on identity theft can be found at The Federal Trade Commission's National Resource on Identity Theft.