By Joseph George, Director of Product Management, Fraud and Revenue Assurance
Awareness of fraud and the drive to protect against it has never been higher in the collective conscious. High profile cases of fraud in recent years, such as the rogue trader accused of the biggest fraud in banking history, have shone a spotlight on the issue. Against the backdrop of a harsh economic climate and stringent cutbacks across all industries, the impetus to thwart fraudulent activity and stem revenue leakage is of utmost importance to today’s businesses. The telecoms industry is no exception and with figures estimating that global telecoms fraud costs operators up to $40 billion annually, it is clearly among the top industries targeted by fraudsters.
Telecoms operators face a very real challenge when it comes to the management of fraud and the protection of revenue. Shrinking margins, however, dictate that this is not a problem operators can simply throw money at. Every invested penny needs to be justified and it is for this reason that managed services and cloud-based approaches to revenue protection are gaining in popularity. Telcos are looking for means of driving down capital and operational costs while keeping fraud in check.
There is no single, simple solution to managing fraud risk. Rather, it is a continuous effort that involves a comprehensive, layered fraud reduction strategy. This approach combines the use of a variety of risk tools, strategies, and fraud controls that will mitigate incidents of fraud without restricting business development. To this end, operators and OSS/BSS vendors are changing the way they look at fraud. Traditionally, fraud management was dealt with in isolation, but increasingly it is being more closely aligned with revenue assurance.
MACH has a global view of fraud through its established roaming fraud practice and can help operators identify and respond to new fraud patterns quickly. The recent acquisition of Optel Informatik has allowed us to evolve our existing roaming fraud and revenue assurance services towards a complete and industry-leading revenue protection platform offering. This includes domestic and international fraud management, revenue assurance and data retention, provided either through a licensed software model or as a SaaS option.
MACH enables proactive fraud and revenue leakage detection through the vast amounts of data that can be processed in a matter of seconds. The volume of data we process means the operator has 99% of the information they need to identify a high risk subscriber. Our solutions mean that a fraudster has just 4 hours to commit fraud instead of 40 hours, vastly reducing the risks for operators.
The explosion of mobile services and the smart phones market has opened up a whole new realm of opportunity for criminals in the telecoms fraud market – as well as new challenges for revenue assurance professionals. In the face of these threats, operators cannot risk not being up to date with the latest anti-fraud strategies and revenue protection solutions.