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2015 Pindrop Security™. Confidential.
TRANSACTIONAL INSURANCE FRAUD THREATS
Matt Garland, Vice President of ResearchPindrop SecurityAugust 26, 2015
2015 Pindrop Security™. Confidential.
NOTE
These slides are from a webinar held August 26,
2015.
You may view a recording of the webinar at
www.pindropsecurity.com/webcast-archive
2015 Pindrop Security™. Confidential.2015 Pindrop Security™. Confidential.
Physical
THE PHONE IS THE WEAKEST LINK
1995 2010
2015 Pindrop Security™. Confidential.2015 Pindrop Security™. Confidential.
Physical Online
THE PHONE IS THE WEAKEST LINK
1995 2010
2015 Pindrop Security™. Confidential.2015 Pindrop Security™. Confidential.
Physical PhoneOnline
THE PHONE IS THE WEAKEST LINK
1995 2010
2015 Pindrop Security™. Confidential.
PHONE VULNERABILITIES
2015 Pindrop Security™. Confidential.
CUSTOMER SERVICE REPRESENTATIVES
• Human Element• Social Engineering• Focused on customer
service
2015 Pindrop Security™. Confidential.
KNOWLEDGE BASED AUTHENTICATION
• Social Media• Online Black Markets• Data Breaches• High Failure Rates (15-
15%)
2015 Pindrop Security™. Confidential.
CALLER ID / ANI
• Easy and cheap to spoof caller ID and ANI
2015 Pindrop Security™. Confidential.
VOICE BIOMETRICS
• Voice Distortion• Background Noise• Call Quality• Enrollment• Privacy Issues
2015 Pindrop Security™. Confidential.
THE GROWTH OF PHONE FRAUD
2015 Pindrop Security™. Confidential.2015 Pindrop Security™. Confidential.
RISING PHONE FRAUD
2015 Pindrop Security™. Confidential.2015 Pindrop Security™. Confidential.
PHONE FRAUD RATES
Avg. C
all C
enter
Banks
Brokera
ges
Credit C
ardReta
il
Mobile
Dev
ice In
suran
ce1 in 2200 1 in 2650 1 in 3000
1 in 900 1 in 1000
1 in 300
2015 Pindrop Security™. Confidential.2015 Pindrop Security™. Confidential.
FRAUD EXPOSURE
Banks Brokerages Credit Card Mobile Device Insurance
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
2015 Pindrop Security™. Confidential.2015 Pindrop Security™. Confidential.
OTHER LOSSES
Reputational Risk
2015 Pindrop Security™. Confidential.2015 Pindrop Security™. Confidential.
OTHER LOSSES
Customer Privacy /Data Breaches
Reputational Risk
2015 Pindrop Security™. Confidential.2015 Pindrop Security™. Confidential.
OTHER LOSSES
Customer Privacy /Data Breaches
Customer ExperienceReputational Risk
2015 Pindrop Security™. Confidential.
PHONE FRAUD TECHNIQUES
2015 Pindrop Security™. Confidential.
PHONE FRAUD STEPS
Reconnaissance Account Takeover Fraud Triggers Monetize the Attack
2015 Pindrop Security™. Confidential.
PHONE FRAUD STEPS
Reconnaissance Account Takeover Fraud Triggers Monetize the Attack
2015 Pindrop Security™. Confidential.
PHONE FRAUD STEPS
Reconnaissance Account Takeover Fraud Triggers Monetize the Attack
2015 Pindrop Security™. Confidential.
PHONE FRAUD STEPS
Reconnaissance Account Takeover Fraud Triggers Monetize the Attack
2015 Pindrop Security™. Confidential.
RECONNAISSANCE
• Identify policy holders• Determine policy value• Collect KBA answers
2015 Pindrop Security™. Confidential.
ACCOUNT TAKEOVER
• Change contact information• Reset password• Setup online account
2015 Pindrop Security™. Confidential.
REDUCE FRAUD TRIGGERS
• Verification intercept
2015 Pindrop Security™. Confidential.
MONETIZING ATTACKS
• Loans or surrenders of policies
• Loans or liquidation of retirement accounts
• File fraudulent claims
2015 Pindrop Security™. Confidential.
DETECTING PHONE FRAUD
2015 Pindrop Security™. Confidential.2015 Pindrop Security™. Confidential.
BEST PRACTICES
Track Phone Fraud
2015 Pindrop Security™. Confidential.2015 Pindrop Security™. Confidential.
BEST PRACTICES
Track Phone Fraud Detect Phone Fraud
2015 Pindrop Security™. Confidential.2015 Pindrop Security™. Confidential.
BEST PRACTICES
Track Phone Fraud Detect Phone Fraud Authenticate Callers
2015 Pindrop Security™. Confidential.2015 Pindrop Security™. Confidential.
LOSS• Packet loss • Robotization • Dropped frames
SPECTRUM• Quantization • Frequency filters• Codec artifacts
NOISE• Clarity• Correlation • Signal-to-noise ratio
147 audio features
UniquePhone
Geo-Location Risk Factors
PHONEPRINTING™
Phoneprint™
Call AudioRequires 15 seconds
of call audio
Risk Score
Call Type
2015 Pindrop Security™. Confidential.2015 Pindrop Security™. Confidential.
RISK BASED AUTHENTICATION
Quick verification of good calls reduces call
time and improves customer satisfaction
Bad callers are flagged and losses stopped
2015 Pindrop Security™. Confidential.2015 Pindrop Security™. Confidential.
CONCLUSION
• The phone channel represents the weakest link for transactional fraud attempts
• Phone channel fraud is a significant and increasing risk for insurance providers
• Best Practices• Monitor and track fraud back to phone channel• Use PhoneprintingTM to detect phone fraud• Implement risk-based authentication
2015 Pindrop Security™. Confidential.
PINDROP SECURITYPhone Fraud Stops Here.
For more information contact info@pindropsecurity.com
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