Telecom’s $30B Fraud Problem Addressed at Mobile 360 LATAM
iconectiv to highlight the need to stay one step ahead with proactive fraud techniques
BUENOS AIRES, ARGENTINA – November 30, 2018: Telecoms fraud is a multi-billion dollar business that costs service providers close to $30 billion* every year. Of course, that is only the perceived loss in revenue terms -- the real cost to the industry is much higher according to telecoms specialist iconectiv.
The ongoing threat of new fraud techniques and case study examples of the actual cost to service providers will be discussed by iconectiv’s John Haraburda during the GSMA Mobile 360 Congress in Buenos Aires, Argentina.
“The cost of fraud is not just the total amount of revenue stolen or diverted, though that is large enough,” said Haraburda. “It is also the operational expenses from writing off bad debt, increased customer care costs, loss of revenue from disenfranchised customers and the reputational damage to the brand.”
Haraburda estimates that the true cost to a service provider is nearly 50 percent more than the actual loss of revenue to fraudulent activity.
Describing the many different techniques used by fraudsters, Haraburda will show attendees how fraudsters typically test network connections to identify and store a path that could be exploited for fraud. Once found, fraudsters keep on attacking the route to divert funds or exploit consumers until the service provider’s network recognizes what is happening and blocks the path. This reactive-only approach can result in climbing costs and fraudsters continuing to reap the benefits of their activity.
By including proactive fraud management techniques, service providers can effectively stop fraud at the source, which in turn helps retain customers, protect revenue and preserve margin.
“It’s important to stay one step ahead of the fraudsters,” said Haraburda. “Simply reacting to their activity is not enough – identifying and blocking the techniques and the number groups at source is the best and surest method to reduce the impact of fraud.”
* According to global fraud survey by the Communications Fraud Control Association (CFCA)