VoIP fraud can affect any organisation which uses or sells VoIP services. In most cases, the fraud target is an enterprise. Most enterprises never realise that they have been hacked, refuse to pay the fraudulent charges and threaten to switch to a different service provider. The SIP service provider has little leverage over its international long distance vendors and is left to cover the bill.

Arbitrage diagram

Arbitrage is the exploitation of the differences in settlement rates between countries, the complexity of services and rates, and the multi-operator environment of VoIP.

VoIP fraud covers such diverse topics as arbitrage, buffer overflow, bypass/interconnect fraud, call transfer fraud, CNAM, false answer supervision, revenue pumping, PBX hacking, premium rate services, revenue share fraud, roaming fraud, shell companies, SIPVicious, subscription fraud, toll fraud, traffic pumping & unallocated number fraud, along with techniques for fighting VOIP fraud.

This fantastic overview from mybroadband covering the subject of VOIP fraud is well worth a read. It really highlights the complex area of VoIP fraud and the importance of great quality 24×7 network surveillance.

Fortunately, here at SmartIPX we can help with that – contact us for a conversation.

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