Tips on How to Avoid Fraud in Loan Processing Call Center

Tips on How to Avoid Fraud in Loan Processing Call Center

A blog banner by Magellan Solutions titled Tips on How to Avoid Fraud in Loan Processing Call Center

A blog banner by Magellan Solutions titled Tips on How to Avoid Fraud in Loan Processing Call Center

How outsourcing a loan processing call center prevents high risk of fraudulent transactions?

Fraudulent transactions have been the main problem for any financial institution in the US. That’s why many businesses hope that outsourcing a loan processing call center can alleviate this situation.


In fact, the fraud call rate is one in every 1,400 calls in retail banks. Meanwhile, it is higher in credit card issuers at one per 800 calls. 


While this may sound small compared to what they’re getting, it’s larger when you get the total loss. Retail banks lose more than $11 million annually because of fraudsters. Furthermore, credit unions double it with a $29 million loss annually.


With this in mind, let’s take a look at how outsourcing in a call center company can prevent fraudulent transactions:

Predictive Analytics

Predictive analytics refer to the use of data to foresee tendencies of your clients. This data depends on the customers you encounter over the course of your operations.


For example, a legitimate loan applicant will ask for the data you need before proceeding with the transaction. 


Meanwhile, a professional fraudster already knows the paperwork needed. So, they will be more proactive about finishing the transaction faster.


You can analyze these behaviors based on isolated cases you have with fraud callers. That’s why BPO should have this procedure to ensure the legitimacy of every application.

Phone Printing

Caller ID is no longer a helpful feature to determine the legitimacy of the caller. Sometimes, fraudsters will just use skype to create a spoofed call ID that looks like customers’ number.


Some good things when using a phone printing is that you can detect where exactly the fraud is calling from. So, they may be using a local phone number but they’re calling all the way from Europe.


When detected, BPO companies will categorize the phone number as a blacklist phone number. They will use this to compare with other incoming calls.  They will use this blacklist phone number to compare with other incoming calls. 


It is essential to compare it as 70% of call center fraud in one company is the work of the same caller. So, blacklisting them will surely stop them from their overall scheme.

Call Biometrics

Speaking of comparison, call biometrics is a process of filtering the fraudsters’ voice.  Then, it will immediately route them to the blacklisted phone number. 


You can use this security feature by installing an internet voice response (IVR) to your hotline. Callers should answer this voice prompt before reaching a financial call center agent.


While doing it, your system can process whether the caller belongs to a blacklisted number.


Call biometrics is a perfect way to avoid fraud callers before the actual attack. Your agents no longer need to interact with and they might persuade them to process their loan.


Now, some might say that callers can use voice changer to alter what the system can detect. That’s why it is important that you have multi layered security like a combination of phone printing and call biometrics.


Effects of Fraudulent Transaction Credit Services Outsourcing

Aside from the monetary reason, fraudulent transactions in credit services affect financial institutions. Here are some of its negative effects:


  • Decreased in the Quality of Customer Service
  • Bad Credibility of your Institution
  • Additional Regulatory Risk
  • Brand Damage


These are all essential in order to keep business with your clients. There’s a tendency that they might look for another bank as they can’t trust your process due to all the fraud incidents you have.


What is the Future of Mortgage Processing Support Services?

The “New Normal” provides new challenges in processing mortgage applications. The US government passed a law that will protect applicants against high mortgage rates and other process fees.


That’s why a lot of lending companies outsource their function overseas.


Here are some innovations made by BPO companies to ease loan modification:

1.Faster Loan Processing Time. – This will help many small lending companies to gain more applicants as they can market their fast turnaround time. BPO companies can provide software to make the process easier and more convenient.

2. More Emphasize on Average Handling Time. – There is not much priority when it comes to the call center of a financial institution before a pandemic. But now, they’re taking time to answer calls as it’s the way of customers to ask for the status of their payment since no one can go outside.

3. Reduce the Risk of High Foreclosure Rate. – Lending companies are now hiring outbound agents to call customers about their existing balance. It removes any incident of any unreported abandoned property due to inability to pay the outstanding balance.


Financial Services Call Center Outsourcing Provider in the Philippines

If you are an SME looking to outsource your loan processing call center then go to Magellan Solutions. We have 17+ years of BPO experience with more than 100 clients all over the world. 


Our Business Developers can help you in setting up your key performance indicators (KPI). KPIs will guide you and monitor the progress of your business with us.


We also offer guaranteed flexible pricing options based. Magellan Solutions understands that start-up businesses have limited funds in outsourcing services.


Our security is also world class because of different standard certifications. Magellan Solutions also has an ISO/IEC 27001:2013 Certification. It ensures your company’s sensitive data is safe in our system. Our expert team provides security measures against phishing and data breach.

Contact us today and get a free 60-minute business consultation. Please fill out the contact form below.


Contact us today for more information.