Almost a third of all mobile phone calls are scams, and by next year that number will likely rise to almost half, according to a recent study by mobile technology firm First Orion. That could have serious consequences for credit union branches and call centers that want to call their members.
The Little Rock, Ark.-based company, which said it analyzed over 50 billion calls made in the past 18 months, reported that in 2017 just 3.7% of mobile calls were scam calls. In 2018, that number jumped to 29.2%, First Orion said; it projected that by early 2019 the number will reach a whopping 44.6%.
"Year after year, the scam call epidemic bombards consumers at record-breaking levels, surpassing the previous year and scammers increasingly invade our privacy at new extremes," First Orion CEO and Head Data Scientist Charles D. Morgan said. "Recently, the FCC joined forces with several technology companies, including First Orion, to find a way to combat these calls, but we still see rampant increases."
"Neighborhood spoofing," which happens when a scammer makes his or her call appear to be from a local number on the user's caller ID, was the most popular method of getting people to answer scam calls, the report said.
"Not only is this tactic harmful towards the person being called, the owner of the phone number used to make the call is often subjected to return calls from the recipient of the scam call. These return calls come as surprises since the owner of the number used to make the scam call is not aware a call was ever placed from their number, leading to frustration and confusion amongst all parties," the report said.
The rise in mobile scam calls could also make many consumers warier about taking phone calls from people claiming to be from their credit union.
John Buzzard, who is an industry fraud specialist at CO-OP Financial Services, said the primary challenge for credit unions is setting expectations for how, when and why members should expect to be contacted. Credit unions should be sure they act consistently, he added.
"We should just say in plain speak, 'If you aren't sure that you can trust a caller or sender of a text, ignore it and call us as soon as possible.' This method takes the sting away from being victimized, while still letting members know we absolutely want them to contact us when they have unusual or untrustworthy experiences," he said. "This isn't about a lack of trust; it's about cementing the relationship through devoted support."
"This is a teaching moment to guide the member toward digital channels for card controls and online banking," Buzzard added. "If a member calls in to say that a caller said their balance was NSF, one of the first things I would ask is, 'Did you already log into your banking app to verify your balance or do you want me to do that for you?' This resets the moment, creating a helpful and empowering conversation that becomes all about the credit union helping the member stay safer and wiser."
Another primary issue for financial institutions is the ease with which criminals can acquire personally identifiable information (PII), Buzzard said.
"Each time a consumer discloses PII, it makes it all the more difficult for the credit union to authenticate the member," he said. "The information becomes diluted in its effectiveness."
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