Fraud management is as important as cybersecurity for telecom service providers as unauthorized network access by fraudsters cause significant loss of revenue to telcos. The most common types of network fraud plaguing the telecommunication ecosystem include:

• Subscription and provisioning fraud
  • Problem- Involves call selling operations (Setting up a false identity to access network services and use it without charges)
  • Typical Solution- Advanced subscriber verification, maintenance and control of employee activity and access control logs, and a reconciliation system for subscribers with services and with mechanisms to block unauthorized services
• Unauthorized network access by changes in configuration of the VoIP firewall for VoIP traffic
  • Problem- Involves breaching the VoIP firewall to allow bypass through incoming traffic (International) without accounting for termination charges
  • Typical Solution- IP tracing and log analysis to find out any changes made in the firewall by any overseas operator, monitoring and analysis of gaps in access control, security architecture and log management in the operator network
• Misconduct in international long distance services of the telco
  • Problem- Involves providing favorable voice call rates to ILD (International long distance carriers) causing revenue loss to telcos
  • Typical Solution- Continuous monitoring of traffic to identify carriers providing rates lower than base rates for the network provider, blacklisting mechanisms and control management for any carrier with a history of violations
• Misuse of m-commerce platforms or promotional schemes
  • Problem- Fraudulent money value uploads on m-commerce wallets and similar misuse of promotional schemes for recharges and payments
  • Typical Solution- Continuous review of system frauds and audit trails to identify fraudulent recharges, proactive monitoring of retailer activity on m-commerce platforms