Why Contact Centres Must Lead the Fight Against Fraud

Fraudsters are becoming increasingly sophisticated, and contact centres are a prime target in their schemes. Research from Smartnumbers reveals that 85% of companies report high levels of fraudulent activity in these channels. Yet many organisations still lack the proactive measures needed to combat this growing threat effectively. With the cost of fraud reaching £1.17 billion in the UK in 2023, the stakes have never been higher.

A Blind Spot in Fraud Prevention 

Fraud is often recognised only at the financial transaction stage, yet it frequently starts much earlier. Smartnumbers’ in-house data shows that 28% of fraudulent activity flagged by customers involves attempts to validate or steal data, while 59% relates to fraud set-up, such as suppressing account notifications. These early stages are critical. Without focusing on protecting customer data at this point, organisations risk significant financial losses later. 

Exploiting Human and Technological Vulnerabilities 

Contact centre agents, trained to be helpful and work under time pressure, are prime targets for social engineering. Fraudsters often impersonate customers to obtain personal information or use voice-changing technology to deceive agents. According to the survey, 40% of respondents identified social engineering as the most common tactic, while 32% reported voice disguise as a significant issue. 

However, the bigger challenge lies in automation. Fraudsters increasingly use bots to target IVR systems, conducting numerous calls to extract or validate data. These activities are largely invisible to businesses and difficult to detect without robust systems in place. As Matthew Addison, Chief Revenue Officer at Smartnumbers, explains: “Fraudsters exploit the IVR by making numerous attempts to extract or validate information, a process that can take multiple calls before they get what they need.” 

Gaps in Current Defences 

Despite growing threats, fewer than half of surveyed organisations have automated fraud-detection measures in place. Only 44% flag incoming calls from denylist  numbers, and just 39% monitor unusual behaviours like withheld numbers or repeated calls in quick succession.  

Additionally, a lack of integration between early fraud signals in contact centres and wider fraud-prevention strategies in other channels exacerbates the problem. As Tim Burton, Chief Product and Success Officer at Smartnumbers, notes: “Fraud signals should be fed into overall fraud-prevention strategies because they’re signs of reconnaissance or data acquisition.” 

A Shift in Focus 

To effectively combat fraud, organisations must prioritise protecting customer data at the earliest stages. By implementing proactive, automated systems and embracing collaboration, businesses can identify and disrupt fraudulent activities before they escalate. The cost of inaction is clear—billions in lost revenue and compromised customer trust. 

To find out more, read the report.