With identity theft and consumer fraud rising, and more frequent and sizable data breaches in the news, consumers need more protection than ever. The 2014 Javelin Strategy & Research Study reported 13.1 million victims of identity fraud in the United States during 2013, or one victim every two seconds.
Financial institutions that take a multi-channel approach in fighting fraud can reduce fraud losses, in addition to maintaining customer loyalty and satisfaction. Proactive financial alerts, quickly give customers the necessary information and the tools to help combat fraud. Mobile plays a critical role by enabling you to effectively reach customers at any time and regardless of their location via interactive voice response (IVR), or text (SMS) alerts.
Leveraging proactive alerts and multi-channel communications can help minimize the fraud costs faced by your financial institution.
The growth in fraud is harmful not only because of dollars lost, but also because of the emotional impact on the affected customers. Victimization generates fear and a loss of confidence in existing organizations, leading many customers to avoid certain merchants, alter their use of payment types and channels, and sever relationships altogether. Eighteen percent of those victimized by fraud switch credit card companies, 17 percent switch primary banks or credit unions, and 31 percent switch forms of payment.
As customers become accustomed to, and come to expect, real-time financial information, the demand for multi-channel communication will be a necessity. Mobile devices in particular will enable customers to know where they stand financially anytime, anyplace — and to take action using the cost-effective banking channels they consider most practical, be it SMS messaging, email, voice, or going into a banking location.
This was excerpted from a new Genesys white paper, State of Fraud Today, available for free on insideARM.com. Download it now to learn how financial institutions are handling fraud alerts and what they might expect from their ARM outsourcing partners.