26/04/2016

Fraud monitoring will be key for 2016

white paper shows cyber criminals are targeting Session Initiation Protocol (SIP)

Article by

Ole Steffen Hylby-Henriksen
Commercial Manager/Support Engineer
Steffen has 15 years of Telecoms experience primarily in customer services and marketing.
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Telecoms Fraud is Rapidly Changing

As we head into 2016 news on the fraud monitoring front is still as rapidly changing as ever.

A recent white paper from Panamax Inc – Tomorrow Starts Today: Security for SIP-Based VoIP Communications Solutions – makes it clear that IT practitioners need to understand that cyber criminals are continually looking to exploit Session Initiation Protocol (SIP) and that they need to be better prepared against these threats.

There is also a growing focus on how progressive companies can reduce capital and operating expenses, accelerate time to market for new services, and gain a new ability to scale services by deploying hosted (e)SBC facilities.

Adding TollShield to its product suite means SmartIPX – a London Docklands-based company which manages critical communications traffic across Telco, Private and Public Interconnects for Digital Service Providers, MVNO & SaaS organisations – is able to provide additional layers of protection for our clients and their customers.

SmartIPX’s shared services model is designed to leverage its investments with strategic partners. The addition of the TollShield fraud mitigation platform to the SmartIPX product suite is a progressive and exciting opportunity to deliver significant value added benefits for voice termination.

Providing the Protection

Deployed at the network border or point of interconnect, Session Border Controllers (SBCs) cover capabilities such as signalling and media security, service-level agreement assurance and regulatory compliance. These capabilities ensure that voice, video and data communications sessions are controlled, managed and protected in a carrier-grade manner.

At SmartIPX the company has invested in the highest quality systems to support real time demands from its MVNO and CSP partners, who are therefore able to rely on wholesale fraud management and prepaid credit management controls to minimise risk and protect customer relationships – building customer focused services on nextgen systems.

SmartIPX deploys Cataleya’s Orchid One, a Network Session and Application Manager, (an enhanced Session Border Controller (eSBC)), as one of the ways in which it provides a “frontier against fraud” for clients.

Cataleya recently announced it was expanding its telecoms voice fraud mitigation services within Orchid One. The company is working closely with operators on fraud related issues and developing solutions on the platform that can help mitigate fraud scenarios for operators. SmartIPX will be extending this enhanced capability into customer’s early in 2016.

The Communications Fraud Control Association reporting that mobile and fixed line carriers lose around $40b per year to fraud.

The latest reports break this down into more detailed descriptions and losses of different fraud types:

Roaming Fraud – $6.11 billion globally

Premium Rate Fraud – $4.73 billion globally

PBX Fraud – $4.42 billion globally

IMEI Reprogramming Fraud – $2.6 billion globally

Interconnect Bypass Fraud – $2 billion globally

International Revenue Share (IRSF) Fraud – $1.8 billion globally

Traditionally, Africa has been a common target for telecom fraud, because the termination costs can be very high and the regulatory environment may not be as mature

But here at SmartIPX, Steffen Hylby, responsible for managing the fraud detection products and reporting on fraudulent activity to clients, has seen these trends changing. Earlier in the year we reported on a trend in the hot fraud zones switching to Eastern European locations in the former Yugoslavia region, with Serbia heading the locations tree.

This has continued throughout Quarter 4 2015 with Serbia still accounting for 14% of all fraud activity locations, while 12% of fraud activity originated in Burkina Faso. Other top destination zones included Azerbaijan, Cuba, Macedonia, Liberia and Slovenia.

Noticeably, 78% of attacks continue to be out of hours which emphasises the importance of using a 24*7 Networks Operations Centre like that run by SmartIPX out of its London Docklands offices.

Hylby said there were a number of different processes and products the team uses to detect different types of fraud for traditional telcos, SIP customer and MVNOs, generally looking to identify abnormal traffic patterns.

“We work both pro-actively, anticipating risk and setting up surveillance strategies in advance to protect the client, but also reactively, if I see a pattern emerging from a “real fraud” destination as opposed to a “false negative”, then I know it’s likely to be carried out again and I can move a client into a higher risk fraud group,”

Steffen Hylby

SmartIPX monitor in real-time to prevent dial-through fraud. Fifteen percent of respondents to the 2013 Communications Fraud Control Association Fraud Survey already outsource their fraud management services, avoiding the massive capex of setting up and managing a fraud detection team 24×7.

If you’re not one of those 15% already, or you are unhappy with your current outsourced solution, contact SmartIPX and find out how the company can help.

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