The Power of Proactive and Reactive Fraud Protection

Anyone in the fraud prevention space implicitly understands the need to continually adapt and improve Fraud Management Systems (FMS) to be able to react to fraudsters’ latest innovations. The Voice Telecommunications industry is no exception.

To ensure that the iBasis Fraud Management System, FraudAlert, can react to the latest innovations in Fraud, we have enhanced and improved FraudAlert. The enhanced FraudAlert now combines reactive and proactive elements for better detection and prevention of voice fraud techniques such as International Revenue Share fraud (IRSF) and the Wangiri/One-ring scam.

Exclusive Reactive Algorithm

A patented, unique algorithm is at the core of our FraudAlert solution. Our in-house developed algorithm is fed with “real-time” active call details, enabling our new technology to monitor, analyze, and evaluate calls while in session. Unlike traditional FMS which only analyze call data records (CDRs) once a call is completed (i.e. CDRs), the enhanced FraudAlert system significantly reduces fraud detection processing, which at the end of the day minimizes our customers’ fraud related losses.

Proactive Fraud Detection and Prevention

iBasis is working with iconectiv, integrating its authoritative numbering data into our FraudAlert system for fraud detection and prevention. iconectiv provides robust, reliable and accurate numbering data that includes unallocated, IPRN and other high-risk number ranges which are often used for terminating fraud traffic. Invalidating calls to these high-risk ranges at the ingress of our network, ensures that our customers’ traffic is protected.

 

By combining our FraudAlert algorithm with iconectiv’s authoritative number data, our customers benefit from a comprehensive, state of the art, fraud prevention solution.

To learning more about iBasis’ FraudAlert capabilities and schedule a demonstration please email us at fraudalert@ibasis.net

The Link Between Long Tail Destinations And Telecom Fraud

Agents at a travel agency specializing in trips to the Pacific islands were surprised one day to no longer be able to reach their on-island hotel, resort and tour operator contacts by phone – clearly a serious problem for their business. The travel agency concluded that they needed to make a change from the local carrier that provided their hosted PBX service.

What happened?
The local carrier suffered a series of fraud attacks involving hacked PBXs and high-volumes of calls to several Pacific Islands. After multiple confrontations with angry customers who had been billed for calls they never made, the carrier had taken the drastic, but logical decision to completely block all calls to these destinations, including legitimate calls like those made by the travel agents.

Long Tail Destinations
It is no secret that in order to avoid the expense of noncollectable invoices due to fraud, carriers are increasingly blocking outbound international calls to certain high-risk destinations. These destinations are often part of the “long-tail” of country destinations with low traffic volumes and higher termination rates.

These high-risk destinations are attractive to perpetrators of International Revenue Share Fraud (IRSF) due to their high termination rates. But naturally, not all traffic to high-risk destinations is fraudulent. According to iBasis estimates, less than 10% of total call attempts to high-risk destinations are fraudulent. This means that carriers blocking an entire country destination are missing significant revenue and margin opportunities.

iBasis FraudAlert
With iBasis fraud management solution, called FraudAlert™, carriers of any size can capture and profitably monetize the legitimate traffic streams to higher-risk destinations. FraudAlert analyzes voice traffic sent through iBasis’ network 24×7, automatically blocking IRSF traffic. Further, FraudAlert can help carriers avoid aggravating legitimate business customers, thereby helping to minimize customer churn.

If you are interested in learning more about iBasis’ FraudAlert capabilities or would like to schedule a demo, please contact Product Manager Guillermo Hurtado (ghurtado@ibasis.net).

The True Cost of Fraud: Who Pays When the Bad Guys Win?

Telecom Fraud was a hot topic at ITW last month, and rightly so given the magnitude of the losses. Despite the considerable attention that has been brought to International Revenue Share Fraud (IRSF) over the past few years, significant increases in IRSF-related losses are evidence that the industry as a whole has fallen short of effectively managing this type of fraud.

According to a survey conducted by the Communications Fraud Control Association (CFCA), overall fraud-related losses have dropped by close to 18% globally between 2013 and 2015, from $46.3bn in 2013 to $38.1bn in 2015. However, IRSF-related losses have increased by 501% globally over the same period, from $1.79bn in 2013 to $10.76bn in 2015, making of IRSF the most lucrative, the least protected and fastest growing type of fraud. What these big numbers obscure is the true cost to victims, which include both consumers and operators/carriers.

Who really pays?

All operators, irrespective of location or size, are vulnerable to IRSF fraud. Some of the horror stories about telecom fraud describe carriers sending six-figure bills to enterprise customers who have been victimized by PBX hacking and then actually suing those customers for payment. The alternative, which is more common among large carriers, is to take the hit themselves and absorb the loss.

For established operators the consequences of falling victim to IRSF go beyond revenue loss; it can also lead to customer churn, damaged reputation, drain of resources and lost opportunities. For smaller operators falling victim to IRSF could ultimately lead to the company going belly up.

Certainly, the best course is to avoid the fraud or at least minimize its impact. Early detection, prevention and continuously improved algorithms are the only winning strategies.

iBasis developed our FraudAlert™ system to help operators of any size prevent and dramatically reduce losses due to IRSF attacks. This tool provides users with the visibility and control required to combat fraud attacks.

  • Complementary to your ecosystem: iBasis’ FraudAlert is a non-invasive fraud management tool – nothing needs to be installed in your system – it works as another layer of defense in your fraud management ecosystem.
  • Alerting and Control: FraudAlert immediately alerts the customer via SMS/email when fraudulent traffic is detected. Its user-friendly graphical interface provides detailed information on each alert so you can gain insight and actively manage automatic blocking thresholds.
  • Automated Blocking: By analyzing call detail records 24×7 in near real time, your business is protected during off-peak times when most fraudulent attacks are generated, using a sophisticated proprietary algorithm. Fraudulent attacks are automatically blocked based on customizable thresholds and can be fully adapted according to your needs.

The risks of IRSF are only increasing, raising the urgency for operators to strengthen their fraud management ecosystem. If you are interested in learning more about iBasis’ FraudAlert capabilities or would like to schedule a demo, please contact Product Manager Guillermo Hurtado (ghurtado@ibasis.net).

For more information on FraudAlert, visit our FraudAlert Service Page.