Consumer research ranks telecom service providers as the worst at handling fraud cases
A recent survey seeking to understand current consumer perceptions of fraud revealed that, in the US alone, more than 50% of the population reports having been a victim of some type of fraud or data breach.
The Consumer Fraud Perceptions survey findings were achieved by independent panel research firm, AYTM, and commissioned by Nuance Communications, Inc. Responses were generated from two surveys among 425 consumers each in the UK and the US. All respondents were over the age of 18, and the margin of error for the survey is put at +/-4%.
Communication service providers will want to take this risk seriously, as 25% of consumers say they stopped doing business with an organisation following a fraud occurrence. In all, 16% of consumers stopped doing business with an organisation following a fraud occurrence, even if they considered the organisation had handled the fraud incident well.
Perhaps unsurprisingly, 75% of consumer fraud involves a financial institution, including banks and credit card companies. Across the US and the UK, a total of 80% of consumers say they were “emotionally scarred” from the fraud incident
- 21% of consumers believe that the organisation poorly handled their fraud case – and this worsened their perception of the company.
- Telecom service providers were rated the worst at handling fraud cases
- Credit card issuers were considered the best at handling fraud cases.
With consumers around the globe increasingly impacted by fraud, hacks, and password breaches, Nuance is stepping up its use of biometric security solutions.
Today, at the Opus Research Intelligent Assistants Conference, Nuance announced expanded biometrics offerings to address the alarming rate of consumer fraud around the globe. With new capabilities in voice, facial and behavioral biometrics, Nuance’s Security Suite now takes fraud prevention beyond the contact centre by combining digital inputs to more accurately detect fraud across multiple channels resulting in millions saved each year.
“Fraud continues to be a serious global problem, and the impact on consumers is not to be ignored,” said Robert Weideman, senior vice president & general manager, Enterprise Division, Nuance. “Enterprises have a real opportunity, today more than ever, to take a more aggressive stance when it comes to fighting fraud to not only drive down the exorbitant costs related to fraud, but also to build consumer trust. Recent results shared with us by our customers showcase the multiple benefits to both the organisation and to the consumer.”
Biometrics technology is being embraced worldwide, not only to provide a more secure and seamless authentication experience, but also to reduce fraud with compelling results. A top five US telecom reportedly saw a 20% decrease in fraud losses within 30 days of deploying voice biometrics.
Nuance’s Security Suite has been adopted globally by organisations such as the Australian Tax Office, Barclays, ING Netherlands, Tangerine Bank, Tatra Banka, Turkcell, Santander Mexico and Vodacom South Africa.
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