Enterprises See 30 Percent Rise in Phone Fraud: Report

Thursday, June 25, 2015

Eduard Kovacs

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Based on data from its “telephony honeypot,” anti-fraud company Pindrop Security has determined that the number of scam calls aimed at enterprises has increased by 30 percent since 2013.

According to the State of Phone Fraud 2014-2015 report published by Pindrop on Wednesday, financial institutions are the most attractive target for fraudsters.

The company says card issuers are the most impacted, with a fraud call rate of 1 in every 900 calls. Banks and brokerages report a fraud call rate of 1 in every 2,650, respectively 1 in every 3,000 calls.

“The higher rate of phone fraud for card issuers can be attributed to the fact that credit cards are one of the most common ways for the public to complete transactions, and thus card numbers are at greater risk for theft,” Pindrop noted in its report. “Compared to credit card numbers, banking or brokerage account numbers are less widely distributed. The less an account number is distributed across channels, the less likely it is to be at risk for fraud.”

Financial institutions risk exposing an average of $7-15 million to phone fraud every year, the report shows.

Retailers, including online retailers, are also targeted by scammers. The average fraud call rate in the case of retailers is 1 in 1,000 calls, but the rate increases for products that are easy to resell, Pindrop Security noted.

Consumers are an attractive target for phone scammers. In the United States, consumers receive 86.2 million scam calls every month, with 2.5 percent getting at least one robocall each week. Pindrop says 36 million of the scam calls made to US consumers can be traced to one of the 25 most common schemes, such as technical support and IRS scams.

Read the rest of this article on SecurityWeek.com.

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