Innovative Fraud Prevention for Business Assurance
February 7, 2020
With 5G in sight, CSPs are facing a revolution that offers huge opportunities but will carry its burden of challenges. More than ever, they will need to tackle an increasing complexity and investment amount whereas new business models and decreasing ARPU call for improved operation efficiency and business assurance.
This revolution, commonly referred to as “CSP Digital Transformation” include new disruptive ways of doing things such as big data engineering, cloudification of architectures, integration of AI and machine learning techniques in all processes or massive connectivity for nearly everything.
This context is ideal for people whose imagination is focused on leveraging neglected areas to earn money at all means. Fraudsters have identified mobile industry as an easy target for their business that can be easily hidden for operational teams overwhelmed by the complexity and the massive volume of information to be analyzed, in respect of regulation related to personal privacy. While traditional revenues are shrinking due to customer pressure and alternative offers from OTT services, fraud adds to revenue loss with an estimate of billions of dollars going annually in fraudster pockets.
An interesting example is the Wangiri fraud that most people is experiencing, some daily. (see this article). Fraudsters generate numerous calls to subscribers but hangs up before the victim can even notice the call. As the article states and based on the Fraud Control Association’s report from November 2019, this fraud is estimated to cause a 2-billion-dollar revenue loss for operators.
If the subscriber unwisely calls back this unknown displayed number, he takes the risk to be charged for an international or premium number. A part of the cost will be transferred to the fraudster, thanks to international call routing complex magic. Even if the unitary cost is rather low (but some people have been charged more than the equivalent of $50), the addition of all calls will allow fraudster to thrive.
Surprisingly, it is rather easy to detect (only) obvious cases of such fraud by looking at basic statistics based on network logs. The fact that operators do not react actively is only the demonstration that fraudsters have won the war and that CSPs consider that they have no efficient mean to fight. The reasons commonly given are:
– Fraudster can spread the calls on numerous fraudulent numbers that mimic normal subscriber activity
– Detection is useless without prevention, but false positive in detection could raise legal issues which terrify CSPs
– Detection must be nearly immediate to avoid fraudster to earn enough money to maintain a lucrative business
Thanks to its unique technology developed for Service Assurance, Expandium has collaborated with partners to design a disruptive solution that meets these challenges. Combining its real-time visibility on network and customer behavior with world leading fraud expertise, it is now possible to detect Wangiri in real time, avoiding false positive and taking immediate action to block any Wangiri fraud attempt. Incidentally, this technology is also applicable for other types of fraud such as SimBox or IRSF frauds.
This real-time Wangiri fraud detection is the latest disruptive solution designed by Expandium.
Expandium has 15 years of track-record for innovation. Expandium already disrupted service assurance 5 years ago with its dedicated big data platform to handle massive volume of information generated by its passive probe system. This platform provides users with a unique capability to create their own personalized KPIs through a flexible and easy to use graphical interface.
Expandium is now powering this platform with AI and machine learning to make data monetization real and help CSPs to modernize their Operations Support System and Business Support System.