By James Stewart, Fraud Product Manager
Telecoms fraud is a global business! It is also a constantly shifting problem, with fraud attacks migrating as soon as operators are able to identify and block particular forms of attack. It is the shifting nature of the problem that might also hold a key for its remedy. The tantalising possibility exists to identify global patterns of fraud, in order to detect issues faster.
The ITU estimates that global operator annual losses from fraud amount to approximately 6% of aggregated revenue[i] . Other industry organizations claim that the total might range between 3% to as high as 10% of revenue. Using these estimates, we can extrapolate an annual global operator loss representing anything between US$30Bn and US$50Bn.
Fraud types and their variations are well known and it is because of this that it is also possible to define patterns of attack. With the advent of analysis techniques associated with ‘Big Data’, that correlate multiple events and event sequences, we are able to identify fraud attacks.
If every telecoms organisation in the world shared information on fraud in real-time, we would collectively put the fraudsters out of business. This is an unrealistic ambition, but MACH is reaching towards that goal with its centralized intelligence hub, which allows us to detect fraud much faster than is achievable for operators who work alone.
[i] TIA 2011 ICT Market Review & Forecast, ITU, ENISA