Posted on by

Fraud-Related Customer Support Volume and Costs

Store owner texting a client

Summary

As of 2023, industry surveys show over 56 million Americans (21% of adults) fell victim to phone scams, driving significant customer support volume related to identity theft, SIM swaps, phishing, and billing scams. For Telcos, this translates to over $1 million annually in direct support handling costs. The financial services sector faces even greater volumes, with U.S. banks managing millions of fraud-related contacts each year and spending over four times the direct fraud loss per case due to operational, staffing, and compliance demands. Fraud-related queries remain a major operational burden for both industries, requiring ongoing investment in secure, scalable customer support infrastructure.

Fraud-related support queries are a significant and growing concern for the North American telecom industry. As mobile services become more essential, Telcos are increasingly targeted by fraud involving identity theft, SIM swap attacks, phishing, and billing scams. In 2023 alone, U.S. consumers filed over 100,000 official complaints related to telecom fraud, including 43,000 mobile account takeovers and thousands of SIM swap incidents from 2020 – 2022.1

Customers text you. Your Ai Assistant replies. It’s that easy.

Identity Theft & Account Fraud: North American telecom providers handle tens of thousands of identity theft cases annually. In the U.S. alone, consumers filed 36,129 reports of mobile phone account fraud in 2022, a number that grew ~20% to 43,225 in 2023.2 These involve scammers opening new phone accounts or abusing existing ones in someone else’s name. Each incident typically generates multiple support interactions as victims contact carriers to regain control of accounts and dispute charges.

SIM Swap & Port-Out Scams: SIM swap fraud (where an impostor hijacks a user’s phone number) is a rising threat. The FBI’s Internet Crime Center received 1,611 SIM swap complaints in 2021, increasing to 2,026 in 2022​.3 The U.S. FCC also logged hundreds of consumer complaints directly: about 300 in 2020, 400 in 2021, and 500 in 2022 related to SIM swaps or number port-out fraud​.4 Each SIM swap incident can trigger numerous support queries – victims often call customer service repeatedly and visit stores to restore service​ (Notably, some complaints even alleged insider involvement by carrier employees​).

Phishing & Imposter Scams: Telecom customers are frequently targeted by phishing texts (smishing), scam calls, and impersonation scams. Many customers contact their carrier to verify suspicious messages or report scam attempts. The FTC reported 856,000 imposter scam complaints in 2023 (the #1 fraud category)​1 – these include scammers posing as trusted companies (like telecom operators) to steal information or payments. “Telephone and mobile services”–related fraud (e.g. billing scams, cramming, telemarketing fraud) accounted for 97,000+ consumer complaints in 2023​1. Each such complaint represents a customer query about a fraudulent charge or scam communication. Additionally, industry surveys show over 56 million Americans (21% of adults) fell victim to phone scams in 2023​5 – indicating a huge volume of scam calls/texts, many of which result in customers seeking help from either their phone company or authorities.

“56 million North Americans a year are victims of phone scams.“

– Truecaller U.S. Spam and Scam Report 2024

Total Volume: In aggregate, North American telcos likely field several hundred thousand fraud-related support contacts per year across phone, chat, email, and SMS channels. This includes victims reporting identity theft or account takeovers, consumers asking about phishing texts/emails, and customers seeking to confirm if a call or bill is fraudulent. For example, U.S. mobile carriers receive on the order of ~100k official fraud complaints annually (FTC/FCC data)​5, and the actual support query volume is higher when including unreported cases and direct inquiries to carriers. Fraudster-initiated calls are an additional burden – security analysts note that about 1 in every 750–1,200 inbound calls in 2022–2023 was a fraudulent attempt (e.g. a fraudster posing as a customer)​6, which means large carriers must handle thousands of malicious calls each year on top of assisting legitimate customers.

Financial institutions see even higher volumes of fraud-related customer inquiries. Banks and credit lenders must support customers through identity theft, credit card fraud, account takeovers, and scams.

Identity Fraud Incidents: The FTC recorded 426,000+ credit card identity theft reports and 145,000 bank account fraud reports in 2023 ​– each representing a consumer contacting their bank about unauthorized accounts or transactions (Total identity theft reports exceeded 1 million in 2023​).2 These cases generate significant call volume as victims call customer service to freeze accounts, dispute charges, and resolve fraud.

Fraudulent Transactions & Disputes: Large banks process thousands of fraud disputes monthly. One study notes financial firms “encounter thousands of fraudulent transactions monthly,” overwhelming call centers with investigations​.7 Every fraudulent credit card charge or suspicious bank transaction typically results in a support query (phone call or digital chat) from the customer to report or clarify the issue.

Contact Center Fraud Attempts: Banks also endure many fraudster-initiated calls. By 2023, roughly 1 in 700 calls into bank call centers was a fraud attempt (up from 1 in 1,000 a couple years prior).​6 Fraudsters impersonate customers to socially engineer access to accounts, so financial call centers must verify and often end such calls. This increases overall call volumes and handling time, as agents must differentiate legitimate vs. fraudulent callers.

Imposter Scams Targeting Customers: Many scam scenarios lead customers to contact their bank. For instance, “tech support” or government imposters often pressure victims into wiring money or sending gift cards – afterwards, victims may call their bank in panic. Imposter scams (some involving bank impersonation) caused $2.7 billion in reported losses in 2023,8 with hundreds of thousands of incidents. Each victim typically reaches out to their financial institution to report the fraud or seek reimbursement.

“Over 1 million North Americans submitted identity theft reports.“

– Federal Trade Commission 2023

Bottom line: The financial services sector handles a very high volume of fraud-related support interactions, likely in the millions of contacts annually across the industry. Every fraud event (fraudulent charge, account hack, scam transfer, etc.) translates into multiple customer service touchpoints – from the initial report to ongoing case updates.

Fraud imposes significant operational costs on both telecom carriers and financial institutions, stretching support teams, increasing handling time, and driving investment in specialized fraud management systems.

For Telcos, each fraud-related customer interaction—whether by phone, chat, or SMS—costs an average of $8–$10 to handle.9 With an estimated 100,000 fraud-related support contacts annually, that translates to $0.8–$1 million in direct support costs. These cases often involve multiple touchpoints, escalating the cost per incident. Beyond support calls, carriers must invest in fraud investigations, SIM replacements, law enforcement coordination, and internal recovery, contributing to the global telecom fraud loss of $38.95 billion in 2023 (2.5% of revenue).10 Fraud calls also tend to be longer, as agents must perform additional identity verification—raising labor costs even further.11 A Pindrop study found that fraudulent calls alone can cost businesses up to $27 million per year,12 underlining the financial drag fraud imposes on operational budgets.

For Financial Institutions, the cost is even higher. According to LexisNexis, for every $1 lost to fraud, banks and lenders spend approximately $4.41 to manage the aftermath—including investigation, customer support, legal, and compliance processes.13 In Canada, that multiplier is $4.45.14 Contact center fraud grew nearly 60% in two years,15 with average fraud-related call time increasing by 53% to 46 seconds.16 Banks have had to expand fraud teams, enhance verification protocols, and invest in transaction monitoring—all of which inflate support costs. With U.S. consumers reporting $10.3 billion in fraud losses in 2023,17 the total cost to financial institutions is likely over $40 billion. A large bank may field hundreds of thousands of fraud-related support contacts annually, translating to millions of dollars in agent time alone.13

“U.S. financial services firms spent over $43.5 billion in 2023 managing and responding to fraud, including support, remediation, and prevention.“

– LexisNexis® Risk Solutions

In both industries, fraud-related customer service is not only a cost center—it also diverts resources from growth and innovation.

The Case for AI-Driven Support

Fraud-related customer support inquiries represent a significant and growing operational burden for both Telcos and financial institutions across North America. As fraud tactics become more sophisticated and widespread—ranging from SIM swaps to phishing scams—the volume of customer queries and the associated costs continue to rise sharply. Telcos field hundreds of thousands of fraud-related contacts annually, while financial institutions contend with millions, incurring substantial labor, tooling, and remediation expenses. This reinforces the urgent need for scalable, AI-driven solutions like cliffhangerAi that can automate fraud detection support, reduce resolution times, and ease the workload on human agents—ultimately protecting both customers and the bottom line.

  1. FBI Internet Crime Complaint Center – SIM swapping victim counts (2021–2022)​ ↩︎
  2. Federal Trade Commission (Consumer Sentinel Reports, 2021–2024) – fraud and identity theft complaint statistics​ ↩︎
  3. FBI Internet Crime Complaint Center – SIM swapping victim counts (2021–2022)​ ↩︎
  4. Federal Communications Commission – SIM swap fraud complaints and rulemaking notes​ ↩︎
  5. Business Wire, Truecaller U.S. Spam and Scam Report 2024 ↩︎
  6. Pindrop Security Labs – contact center fraud rates and impacts (2022–2023 data)​ ↩︎
  7. LexisNexis Risk Solutions – True Cost of Fraud 2024 (Financial Services Edition)​ ↩︎
  8. Dialzara, Telecom Fraud Analytics: Key Trends 2024 ↩︎
  9. SQM Group, Average Call Center Cost per Contact, 2023 ↩︎
  10. 1Route Group, Global Telecom Fraud Loss Survey, 2023 ↩︎
  11. TSYS, Contact Center Fraud Metrics, 2023 ↩︎
  12. Pindrop, Voice Intelligence & Security Analysis, 2022 ↩︎
  13. LexisNexis Risk Solutions, True Cost of Fraud Study, 2024 ↩︎
  14. LexisNexis Risk Solutions, Canada Edition, 2024 ↩︎
  15. Pindrop, Voice Intelligence & Security Analysis, 2022 ↩︎
  16. TSYS, Contact Center Fraud Metrics, 2023 ↩︎
  17. FTC, Consumer Sentinel Network Data Book, 2023 ↩︎