Table of content:
Occurrence of telecom fraud
Types and methods in which this fraud can be detected
How to avoid.
What is telecom fraud detection?
Any activity that aims to take advantage of telecommunications products and services to gain an advantage over telecom companies by deceit (fraudulent activities) or calculated attacks is considered a form of telecom fraud. Telecom fraud can occur using landlines, mobile phones, cloud services, and on-premise PBX systems, among other things. This kind of fraud, often known as telco or telecom fraud, can also involve service theft or hacking, costing consumers unanticipated expenses while operators suffer revenue losses. The amount of telecom fraud is increasing. Despite the rapid evolution of fraud attacks, telecom fraud is unique in that it is generally anticipated, and the operator’s revenue covers the losses. Telcos typically do not incorporate sophisticated fraud management systems into their architectural designs.
Telecom companies also distribute their services among local networks and carriers for resale, making fraud mitigation more challenging.
Larger telecom security network providers are becoming targets of second-hand fraud as mobile network technology becomes more widely accessible, making it harder to spot. There are two types of fraud that are regularly committed against either the provider or the customer.
How can you tell a telecom fraud number?
Using machine learning to spot fraud-
Using machine learning (ML) based classifiers for fraud detection is a sensible initial step to enhance rules. Several ML techniques can be used to learn from data in a supervised manner to categorize fraud by giving verified fraud cases and their accompanying features (usage and non-usage attributes). This will undoubtedly be more effective than rules because it allows for the inclusion of many features that would otherwise be challenging for an analyst to understand and incorporate into a rule. The thresholds would be developed using data from well-known fraud incidents, enhancing their accuracy. Regular training will guarantee the thresholds’ continued efficacy.
Detecting outliers:
Finding outliers and then looking for fraud in those outliers might be a better strategy than looking for a collection of fraud tendencies. An outlier can be found by looking at the subscriber’s current usage, such as the volume of calls, the length of parallel calls, the frequency of missed calls, etc. In addition to monitoring consumption, behavioral patterns such as excessive calls made outside of a person’s social network, unusual geographical changes, changes in active hours, etc., should also be kept an eye on.
Noise cancellation-In addition to detecting fraud, outlier identification will also locate non-fraudulent outlier cases. Unlike typical users, subscribers who use their subscriptions heavily exhibit outlier behavior. A telemarketer who quickly phones many fresh, distinct persons is an outlier, just like a businessperson who makes lengthy calls to a foreign country late at night. These are legitimate paying clients who should not be subject to any punishment. Applying noise reduction will eliminate these non-fraud cases and enhance the accuracy of outliers found.
What is INTERNATIONAL REVENUE SHARE FRAUD (ISRF) fraud?
For telecommunications businesses, IRSF is one of the trickiest fraud problems. A CFCA analysis estimates that revenue share theft costs the telecom sector between $4 billion and $6.1 billion annually. Attackers use premium phone rates in this type of fraud attempt. Here’s how it works:
The attacker pays a premium for a phone number.
The attacker then uses the business’s phone system to place several calls to the premium rate number.
These calls are frequently placed for a long time to raise the phone bill.
Large phone bills are generated and paid for by the firm, and 25% of those costs are in the attackers’ pockets.
Usually, these calls come in after work hours. Most businesses are unaware they have been hit until it is time to pay the phone bill.
What is revenue assurance in the telecom industry?
Revenue assurance ensures that the commercial agreement with customers bills all products and services the Telecom Service Provider provides by ensuring billing and configuration integrity and accuracy across all relevant systems. This is done to increase profits, revenues, and cash flows. Revenue assurance is inextricably linked to billing assurance.
The revenue chain of a telecom organization is typically a very complex set of interconnected technologies and processes that provide a seamless set of services to the end consumer. The likelihood of failure increases as the set of products, technologies, and business processes grows more complex.
The revenue chain of a telecom organization is typically a very complex set of interconnected technologies and processes that provide a seamless set of services to the end consumer. The likelihood of failure increases as the set of products, technologies, and business processes grows more complex. When a telco organization cannot bill correctly for a given service or receive the correct payment, this is called revenue leakage. The likelihood of revenue leakage increases as an organization grows.
What is the role of security companies in avoiding such fraudulent activities?
Attackers are constantly devising new ways to breach systems, so fighting telecom fraud requires a proactive approach. There are some golden countermeasures that MNOs and MVNOs should always use to prevent telecom fraud. Always use strong passwords, preferably a combination of alphanumeric characters, to protect your software systems. Lenses.
However, it is critical to remove all junk files and folders from the system and disable unused features such as extensions. A business must cross-check and validate the details of its subscribers to filter out the fake ones. Using two-factor or multi-factor authentication is another step toward ensuring security.
A business can monitor fraudulent activity by analyzing how much expenditure occurs in a month. Many businesses do not do this, but keeping track of your expenses can help deter telecom scammers.
Security software is critical in covering all bases when it comes to security. To keep telecom attacks at bay, use intelligent security software such as REVE Session Border Controller. REVE SBC is a Carrier-grade Cloud SBC that protects software switches from attacks such as DoS (Denial of Service Attacks). It also includes an intelligent firewall and cutting-edge encryption techniques to protect a business from service theft.
To avoid the occurrence of continuous fraud and detection of network closures by hackers, security companies like Secgen are technically strengthening their existing methods to help commoners, business personalities, and other users from getting into such frauds time and again.
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