GUEST POST:
Ann Cannon, vice president of CSG Systems’ Prairie Interactive Messaging

Sadly, some people are taking advantage of today’s economic news and fraud is reaching an all-time high. Crimes such as online identity theft, credit theft and so forth are all peaking. No matter what the economy is doing, this problem impacts consumers and companies of all economic cohorts and business domains.

If the worst does happen and someone steals your credit card account information to go on a buying spree, the consumer protection department of your credit card issuer will attempt to contact you, most commonly through voice, as that is the default for most consumers, especially older consumers. Email is also frequently used.

However, both voice and email introduce delays into a process where timely outreach is critical. If the number of record is a home landline, the message may not be picked up until well into the evening. Even if a business line or cell phone is being contacted, people often defer calls from unknown numbers to a more convenient time. Meanwhile, the fraudulent transaction which triggered the alert process may still go through. Even if it is declined, the identity thieves are free to try again. Conversely, if the transaction is legitimate and the account holder is unavailable to confirm it, the desired purchase may be stalled or declined.
This opens an opportunity for mobile messaging to become a value-add to consumers experiencing account fraud. SMS delivered to the handset is not just a fun way for friends to stay in touch — in cases like identity theft alerts it provides a valuable business benefit.

Many users who have adopted SMS as an ordinary communications channel will typically check their messaging as soon as possible – at a stoplight, on a meeting break, walking down a hallway – even in situations where they may not be willing or able to take a voice call.

The consumer whose account information is suspected to have been stolen can receive a text message to contact a fraud hotline immediately. Valuable time is saved in a fraud management process where minutes can count – minutes that can prevent further damage to the consumer’s credit.

Opt-In Strategies
The sticking point with commercial SMS messages in the U.S. is getting consumers to opt-in to receive such messages in the first place. A multichannel media strategy for garnering opt-ins can provide big payoffs for both lenders and consumers. Examples include SMS opt-in opportunities at the end of agented or automated voice calls, point-of-sale messaging at branch banks or lending offices, Web-based check-box options within the customer’s account profile, statement messaging or inserts and print advertising campaigns.

When consumers are given the opportunity to opt-in for fraud alerts via SMS, businesses can create stronger customer relationships through protecting everyone in the transaction chain – consumer, merchant, processor, and lender – while improving profitability through a more efficient fraud management process. A simple mobile messaging campaign, delivered in these difficult times, reaps dividends for everyone involved.