Managing complaints from Electronic Frauds

1. MANAGING COMPLAINTS FROM ELECTRONIC FRAUDS
AND ACHIEVING CUSTOMERS’ SATISFACTION
Talent Ajieh
Consumer Distribution
Ecobank Nigeria

2. AGENDA
Statistics
Trends
Cost of Fraud
Preventive Approaches
Fraud and Experience Management
Remediation and Recovery
Conclusion

3. FRAUD STATISTICS
Global Credit card and debit card fraud resulted in
losses amounting to $21.84 billion during 2015. Card
issuers and merchants incurred 72% and 28% of
those losses
Card issuer losses occur mainly at the point of sale
from counterfeit cards while merchant losses occur
mainly on card-not- present (CNP) when customers
buy online or pick up in a store

4. CARD FRAUD STATISTICS
50%
11%
23%
16%
Card Fraud
Crad Not Present
ID Theft
Cloned card
Stolen Card

5. GLOBAL CARD FRAUD IN 2016
0
10
20
30
40
50
60
Fraud Impact By Location

6. ELECTRONIC FRAUD DEFINED
E-Fraud is an umbrella term that covers
numerous activities across the Internet with
the common intent of which is to make money
or obtain services using illegally or
fraudulently obtained information.
Altering computer input in an unauthorized
way.
Destroying, suppressing, or stealing output to
conceal unauthorized transactions.
Altering or deleting stored data

7. TRENDS IN ELECTRONIC FRAUD – CUSTOMER
Identity theft
Internet Banking fraud
Social Engineering; Phishing and Vishing
Credit/Debit Card Fraud
Insider Collaborations with External Fraud
Syndicators

8. TRENDS IN FRAUD OPPORTUNITIES
 E-Commerce is the new “low hanging fruit”
for online fraud
 Account takeover and identity theft are on
the rise
 Mobile Lifestyle- Smartphones
 Get-Rich-Quick-Generation
 Economic Situation; Recession, High
unemployment and Global competition
 Ponzi Scheme prevalence
 Global market stolen customer information

9. CAUSES OF FRAUD

10. PRICE OF FRAUD
 Reputational Risk: Reputational risk, often called
reputation risk, is a risk of loss resulting from
damages to a firm's reputation, in lost revenue;
increased operating, capital or regulatory costs;
or destruction of shareholder value, consequent
to an adverse or potentially criminal event even
if the company is not found guilty. Reputational
risk can be a matter of corporate trust.
 High cost of Operations; Chargeback, Operations
overhead and IT Security Infrastructure
 Litigation
 Slow Adoption Rate/ Service Abandonment
 High Cost of Customer Acquisition

11. QUICK FIX: WINNING APPROACHES
 Integrating Customer design Experience and Fraud
Management
 Implementation Channel Fraud monitoring tools/fraud
Alerts.
 Empower the Customers with anti-fraud self-service
Tools
 Provide fast, easy recovery processes.
 Simplify and make fraud resolution process simple
and easy - it may curtail fraud-related attrition.
 Reassure your customers. Instilling confidence in your
process will minimize risk of non-use of replacement
cards or using cash alternatives.
 Educate consumers about fraud. The messages are
still not being heard.

12. ACHIEVING CUSTOMER SATISFACTION FROM
PRODUCT DEVELOPMENT
PRODUCT & APP
OWNERS
Less user friction overall
Better customer
experiences
More immediate access
Build brand loyalty
Ensure more time spent
on site
SECURITY &
FRAUD TEAMS
Reduce attack surface
Manage and minimize risk
Stop fraud & cheating
Leverage existing
capabilities, infrastructure
Real-time threat indicators

13. WAYS TO IMPROVE CUSTOMER EXPERIENCE
WHILE PROTECTING YOU & YOUR CUSTOMERS
Frictionless Fraud
Prevention
Customer
Authentication
Predictive Transaction
Insight/Monitoring

14. CUSTOMER INTELLIGENCE (CI) AS FRAUD CONTROL
TOOL
 Customer intelligence (CI) is information
derived from customer data that an
organization collects from both internal and
external sources
 The purpose of CI is to understand customer
motivations better in order to drive future
growth.

15. CUSTOMER DATA INSIGHT
Personal demographics, which include data such as age, income
level, debt level, educational profile and marital status. Such data
might be analyzed to explore Channels preference or behavior of
people in specific income brackets, changes in sales as people
age, or sales comparisons of homeowners and renters.
Geographic demographics, which include data aggregated from
specific locations. Such data might be analyzed to explore
Channels adoption pattern in rural areas, for example, or areas
where most residents are young professionals.
Attitudinal data, which includes any information about how a
customer -- or potential customer -- perceives a company

16. FEEL CUSTOMERS PULSE AFTER FRAUD
Act on feedback from
customers.
Understand the drivers of
customer satisfaction.
Recognize innovations in
market.
Monitor and track customer
retention and repurchase
intention

17. FIXING AND RESETTING CUSTOMER EXPECTATIONS
Anytime there is fraud incidence on customer’s
account customers satisfaction is negative and
expectations are damaged.
From time to time you are
going to fail to meet customers’
expectations. It’s the nature of
the beast

18. STEPS IN FIXING FRAUD DAMAGED
EXPECTATIONS
 Never argue about loss or pain
 Empathize with Customer
 Take Customer feedback and Appreciate it
 Fraud is a good example of failure to meet
customer expectations, then fixing it
 Internalized the Fix into your Process Improvement
Cycle

19. “The first step in exceeding your customer’s
expectations is to know those expectations.” – Roy
Hollister Williams