Understanding How Call Spoofing and Fraud Impact Consumer Behavior
In a world inundated with robocalls and scams, a new study by TransUnion (NYSE: TRU) reveals the staggering impact these nuisances have on consumers. The research, featured in a recently released eBook, unveils a startling statistic: seven in 10 consumers (72%) avoid answering phone calls out of fear that it’s yet another robocall or scam. The consequences of this growing apprehension? Many individuals end up missing important calls they genuinely need.
The Toll of Ignoring Legitimate Calls: How Fear of Robocalls and Scams Is Shaping Consumer Behavior
The impact of consumers avoiding legitimate phone calls is far-reaching, affecting both enterprises and individuals. James Garvert, Senior Vice President of TruContact Communications Solutions at TransUnion, highlights the repercussions, stating, “When customers don’t answer legitimate phone calls, everyone suffers. Enterprises experience poor right-party contact rates, decreased efficiencies, and reduced revenues. In addition, the negative impact of call spoofing on brands can be devastating. Consumers suffer because they miss important calls they may really need. The good news is solutions are available to address these issues.”
Fraud Findings: The Call Impersonation Conundrum
The research brought to the forefront various concerning issues related to fraud:
- 61% of respondents reported receiving at least one call in the past three months where the caller appeared to be impersonating someone else or misrepresenting their identity (known as call spoofing).
- A significant 38% of participants stated that they had fallen victim to a scam or fraud on their mobile phones.
Call Authentication Findings: Regaining Trust in the Phone Channel
Understanding the importance of call authentication, the research also unearthed key insights:
- A staggering 62% of respondents expressed a high likelihood of answering calls on their mobile phones when they were certain about the caller’s identity.
- 76% of participants indicated their willingness to answer calls from recognized businesses if these calls displayed the company’s name and logo on the caller ID.
- 57% emphasized the importance of verifying that a call hasn’t been spoofed as a top feature.
- The addition of a brand’s name and logo to the mobile display was deemed favorable by 56% of respondents.
The implications of these findings are far-reaching, underlining the need for innovative solutions to tackle the growing menace of robocalls and scams, or call spoofing. TransUnion has taken a proactive approach to address these challenges through solutions such as TruContact™ Branded Call Display and Spoofed Call Protection, both powered by Neustar®. These offerings are part of TransUnion’s TruContact Trusted Call Solutions suite.
In an era where trust in the phone channel is paramount, TransUnion’s research underscores the urgent need for consumer-focused strategies and technological innovations to combat fraud and restore faith in legitimate phone communication.