Record Fines For Compliance Failure

Financial Services Compliance – Record fines in excess of £472m were issued by regulators in 2013 a 52% increase on 2012.

Whether your business is regulated in the US or in Europe the scale and number of fines from financial regulators are increasing dramatically.

Call Compliance Must Become Standard

For financial institutions call recording compliance must now be regarded as a basic cost of doing business. However not all solutions are created equal. Key issues and features define how easy (or not) a voice recording solution is to implement and operate. These differences can be significant terms of the cost of ownership and level of adherence in terms of compliance.

Contact Centers Struggle with Call Recording Compliance

For contact centers selling finance, insurance, mobile phone contracts, utility contracts or even tasked with debt collection and many others, there are certain key statements which have to be said when talking to customers over the phone. Achieving consistent call recording compliance is high on the agenda of most regulated organizations due to the increasing risk of crippling financial penalties.

The shocking extent of the mistrust of contact centers was laid bare recently in research that found just 5% of people are totally confident that their personal financial data will be safe when given to a customer service agent over the phone.

Lack of Customer Confidence

The survey of 1,000 UK consumers conducted by OnePoll on behalf of Eckoh showed that a shocking 86% of consumers believe agents will misuse their personal card details.

It is surprising just how many UK contact center operators are still unsure about the specifics of payment card industry compliance standards and how they impact their customer transactions. According to data collected during a seminar series, a third of respondents believed that their contact center operations were still non-PCI compliant. This is obviously a particular concern for businesses that have to record their calls for FSA compliance reasons, but don’t have any means of consistently halting recordings during the exchange of sensitive payment card data.

Costly Fines

Non-compliant operations may lose the right to accept credit card transactions or be fined. In the US, for example, Mastercard has recently updated its merchant compliance plan, with fines for a fourth PCI DSS violation now ranging up to $400,000 for non-compliant merchants.

The question now remains are regulators simply becoming more comfortable with their role and issuing bigger fines or are we seeing a genuine change to a much more punitive approach to enforce compliance. If this second scenario is correct then most organizations will urgently have to review their compliance solution at a time where call center helper published their concerns that most organizations did not have a clear grasp of the impact of PCI compliance on call recording. This is not the first time where compliance has been ignored as an issue. During the implementation of TCF (Treat Customers Fairly) there was a significant lag between the date where compliance became a requirement and in most cases when organizations started to act upon the new rules.

Financial regulators are not the only ones showing their teeth more readily. Only recently in the UK market the Office of Fair Trading and Trading Standards officers issued fines to retailers who claimed misused the word “Sale” in their ads and promotion also generating fines in millions of GBP.

We must now question whether or not organizations will now need to review how urgent compliance deadlines are and what business as usual really means to ensure they are more prepared to deliver compliance.

“It appears that there is a significant growth in the sales of voice recording and PCI compliance technology. This tells me 2 things. Firstly that many organizations are not currently compliant and have been relying on the inactivity of regulators in terms of enforcement. The second thing that this trend demonstrates is that when organizations are deploying technology they are finding measurable benefits, from the reduction of risk to the reduction of cost” said Tony Porter, EVP at Eckoh. He went on to say “ Our nVoice customers have found that it is not only easy to deploy but the use of this kind of automation has very quickly increased efficiency and produced some meaty cost savings as well”.

nVoice from Eckoh revolutionizes monitoring & testing of call recording compliance.

It provides an independent, verifiable view of the performance of call recording compliance solutions, for both compliance and business improvement. It even allows you to monitor SLAs and proactively intervene to avoid SLA breaches and will save you money.

nVoice is a leading automated, data-driven voice recorder testing and monitoring platform with real-time dashboards, SLAs and reporting for the financial sector. It can significantly reduce the time and cost of call recording compliance, and provide peace of mind by automating both the testing process and the test audit trace.

Some organizations find that although they have invested in the right technologies they have not deployed them in a way that makes them fully compliant. Our expertise helps ensure that your deployment design delivers call recording compliance rather than the appearance of compliance.

By: Tony Porter, Head of Global Marketing
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Posted by eckoh at 2:21 PM on Mar 6, 2015

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