Customer Service is at Odds with Financial Data Security

//Customer Service is at Odds with Financial Data Security

Customer Service is at Odds with Financial Data Security

Social engineering tactics give fraudsters an advantage when dealing with your agents.

For credit unions, stellar customer service is a competitive advantage. In addition to coming for good rates and easy financial transactions, members choose credit unions because of the quality of the customer experience.

The Harvard Business Review found that while great customer service is important, it doesn’t always lead to increased loyalty the way most companies expect. What’s even more important to customer loyalty is the prevention of things that undermine the customer experience. In other words, the trick to customer loyalty is to have an effortless customer experience. If something goes wrong and customers must expend effort to resolve it, then they are likely to punish the company by taking their business elsewhere.

For credit unions, perhaps the biggest risk to a positive, effortless member experience is fraud. In fact, at least 84.4% of credit unions have suffered a local data break in the past two years. This has large ramifications on customer loyalty because 76% of consumers report that they would change financial institutions if they thought that their money would be safer. Credit unions are particularly vulnerable to social engineering fraud because it’s becoming easier for fraudsters to hack a customer service channel and bypass advanced cybersecurity measures.

Download free infographic: Fraudsters Rule!

In social engineering, fraudsters use cunning emotional acting to interact with call center agents in a way that helps them get the information they need to hack into an account. This works for them because credit union agents are trained and rewarded for exceptional customer service, and they are therefore unintentionally motivated to help a fraudster out.

This threat is very real. It’s estimated that at least 1 in every 867 calls to a financial institution are fraudulent, and this represents a 61% just in the past year! Despite credit union fraud prevention efforts, those numbers are only going up, and it’s because institutions have a significant blind spot in their security. Most prevention dollars are spent to shore up IT systems, while customer service channels remain at risk.

On average, fraudsters make up to five calls before trying to make a fraudulent transaction. They interact with different staff across the credit union and switch up their requests, making it difficult to catch. To fill this security gap, credit unions need a way to track all member interactions, thereby identifying when multiple calls are made about an account from different numbers, flagging suspicious activity in real-time to stop fraud before it happens.

For years, we’ve been the go-to solution for credit union customer interaction systems, and we’ve heard their concerns about social engineering fraud. Nothing existed in t

he market for credit unions to confidently prevent this type of fraud. That’s why we’ve developed Smart Track, a solution like no other to address this security risk and improve member experience.

Smart Track pulls account information and member interactions in one easy-to-use interface. Agents can then use that interface to see how many tim

es someone has called in about a certain account or tried to log in to an account online. If a fraudster starts asking probing questions and then calls in again to talk to another agent, that agent will be able to see the caller ID along with the warning signs present in the previous call.


The only way to maintain customer loyalty and preserve the credit unions’ competitive advantage of stellar customer service is to prevent fraud from occurring. To achieve that, credit unions need a tool that allows them to be proactive instead of reactive when it comes to identifying fraudsters and stopping them in their tracks. How prepared is your credit union for the threat that presents itself as a friendly voice on the phone?


By | 2017-08-16T05:08:35+00:00 August 15th, 2017|News and Events|0 Comments

About the Author:

After spending the previous 18 years at Interactive Intelligence, I came to Adapt to work alongside a VAR that I had admired over the years for their strong work ethic, family values, and the desire to radically improve the customer experience. As the SVP of Marketing & Sales, I get to work alongside not only some of the most talented people in the contact center industry, but also with some very great clients. My years in the contact center industry (more than 25 years and counting!) talking with analysts, media, prospects and clients alike have given me some unique perspectives on where this world of business communications is going.

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