10/05/2016

New insights into fraud hot spots from SmartIPX

2013 Communications Fraud Control Association Fraud Survey
2013 Communications Fraud Control Association Fraud Survey

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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Responsible within SmartIPX for managing the fraud detection products and reporting on fraudulent activity to clients.

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Telecoms Fraud Increased by 15% Between 2011 and 2013

According to the 2013 Communications Fraud Control Association Fraud Survey international revenue share fraud is costing the telecoms industry around $10 billion a year from a total annual fraud loss of $46.3 billion –  a 15% increase from 2011.

Traditionally, Africa has been a common target for telecom fraud, because the termination costs are very high and regulation is not as stringent as in other parts of the world.  However, the 2011 study found that the top five countries from which fraud originates are the United States, India, the United Kingdom, Pakistan, and the Philippines. The top five fraud terminating countries were Cuba, Somalia, Sierra Leone, Zimbabwe, and Latvia.

“Recently we have seen a trend in the hot fraud zones switching to eastern European locations in the former Yugoslavia region, with Serbia heading the locations tree when it comes to clients we are providing a full 24*7 monitoring and surveillance service for.

“Other top destination zones in the same region include Albania, Bosnia, Macedonia, and there have also been rises in attacks coming from Cuba and Mali.”

Stephen Hylby.

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

Fraud attacks by country

Providing the Protection

Deployed at the network border, 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.

The Cataleya team continue to review how best to enable real time decision making from their market leading service analytics capability and how that may enhance fraud and risk management services.

Independent network consultancy testing and analysis company Miercom recently put Cataleya’s Orchid One through their rigorous industry-standard evaluation process before awarding the product a Performance Verified Certification.

One of the key findings was that the system exhibits a high level of resiliency, successfully fending off over a dozen malicious assaults and Denial-of-Service attacks. What’s more, in an active-standby configuration, an eSBC Orchid One fail-over resulted in just a single failed call.

As important as the industry leading tools used to monitor and detect fraud, is that there is a 24 hour, 7 day a week team in place to monitor and respond to these alerts working from the heart of London’s Docklands in the SmartIPX Network Operations Centre.

The team understands each client and their usual traffic patterns and are able to make intelligent decisions about how best to respond, whether to take direct action, to alert clients, to monitor activity or implement some other action.

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,

Stephen Hylby.

Recent changes introduced by telecommunications industry watchdog Ofcom to the way in which NGCS (none geographic call services) are charged has meant they have become a key target for overseas fraudsters re-routing calls via these high value numbers – those beginning 084, 087, 09 and 118 – without the carrier or caller being aware of the switch.

SmartIPX monitor in real-time to prevent dial-through fraud. Fifteen percent of respondents to the CFCA 2013 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.

Carriers World/IPX Summit

* SmartIPX will be at Carriers World/IPX Summit in London this week (September 30 – October 1) at The Tower – A Guoman Hotel, along with partners Epsilon and Cataleya, who are sponsoring the Carrier World Awards 2015 drinks event on Wednesday evening.

Epsilon has developed something of a reputation in the industry for knowing how to throw a good party. “These things can sometimes turn into product launches. Epsilon just strictly has drinks and talking. No presentations,” says CEO Andreas Hipp.

Epsilon are also one of the finalists in the in a number of awards including Most Innovative Wholesaler, Best Carrier and Hipp has also been nominated in the Wholesale Personality of the Year category.

SmartIPX manages telco, public and private cloud interconnects for communication service providers, MVNO and SaaS organisations enabling unified communications for the B2B and Enterprise sectors.

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.

The Cataleya team continue to review how best to enable real time decision making from their market leading service analytics capability and how that may enhance fraud and risk management services.

Independent network consultancy testing and analysis company Miercom recently put Cataleya’s Orchid One through their rigorous industry-standard evaluation process before awarding the product a Performance Verified Certification.

One of the key findings was that the system exhibits a high level of resiliency, successfully fending off over a dozen malicious assaults and Denial-of-Service attacks. What’s more, in an active-standby configuration, an eSBC Orchid One fail-over resulted in just a single failed call.

As important as the industry leading tools used to monitor and detect fraud, is that there is a 24 hour, 7 day a week team in place to monitor and respond to these alerts working from the heart of London’s Docklands in the SmartIPX Network Operations Centre.

The team understands each client and their usual traffic patterns and are able to make intelligent decisions about how best to respond, whether to take direct action, to alert clients, to monitor activity or implement some other action.

“Our shared services model aligns our people and expertise, with agile, best in class infrastructure solutions, to reduce our customers’ capex and opex costs.

“We have continued to invest in our operational engagement with Epsilon, the leading carrier neutral global operator, which consistently enables us to surpass our customers’ expectations on performance agility and delivery time frames.

“The deployments of Cataleya’s Orchid One reflects our commitment to delivering the highest quality services for our customers and proactively enhancing our network capabilities. Our managed services partners rely on us to deliver IP communications that are not just ‘best effort’ but industry–leading.”

Paul Tindley,  CEO SmartIPX.

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