Using the Phone Channel to Detect Money Transfer Fraud

2015 Pindrop Security™. Confidential.

USING THE PHONE CHANNEL TO DETECT MONEY TRANSFER FRAUDMatt GarlandVice President of ResearchPindrop SecurityOctober 14, 2015


NOTE

These slides are from a webinar held October

14, 2015.

You may view a recording of the webinar at

www.pindropsecurity.com/webcast-archive

http://www.pindropsecurity.com/webcast-archive

http://www.pindropsecurity.com/webcast-archive

2015 Pindrop Security™. Confidential.2015 Pindrop Security™. Confidential.

Physical PhoneOnline

THE WEAKEST LINK

1995 2010


PHONE VULNERABILITIES


CUSTOMER SERVICE REPRESENTATIVES

• Human Element• Social Engineering• Customer Experience


KNOWLEDGE BASED AUTHENTICATION

• Social Media• Previous Data Breaches

• Online Black Markets• Failure Rates


CALLER ID / ANI

• No longer reliable• Spoofing


THE THREAT IS GROWING


FRAUD CALL RATES

Avg. Call Center

Banks Brokerages Credit Card Retail Money Transfer

1 in 22001 in 2650 1 in 3000

1 in 900 1 in 1000

1 in 490


$800 - $1500Per Transaction

MissedOpportunities

FRAUD LOSS


PHONE CHANNEL ATTACKS


ATTACK STAGES

Reconnaissance Account Takeover Verification Intercept Monetize the Attack


RECONNAISSANCE

• Identify account holders• Collect or test KBA

answers


ACCOUNT TAKEOVER

• Change contact information• Reset password• Setup account


VERIFICATION INTERCEPT

• Verification Call Intercept• Preempting Verification


MONETIZING THE ATTACK

• The most direct way to monetize an attack


CONSUMER ATTACKS


BEST PRACTICES

Track Phone Fraud


BEST PRACTICES

Track Phone Fraud Detect Phone Fraud Authenticate Callers


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


CONCLUSION

• The phone channel is the “weakest link”

• Sophisticated criminals use the phone channel for reconnaissance, account takeover, and cross-industry attacks

• Best Practice• Use PhoneprintingTM to detect phone fraud and investigate attacks


PINDROP SECURITYPhone Fraud Stops Here.

For more information contact [email protected]

Using the Phone Channel to Detect Money Transfer Fraud

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