Fraud Detection for Operators (FDO)

Introducing Datafusion Systems's FDO, a cutting-edge Fraud Management System created with the intricacies of the telecom sector in mind.

Fortify your network using FDO

Fighting fraud is an essential duty that telecom operators must perform in the ever-changing world of telecommunications in order to protect their networks and earnings. Fraud is a ubiquitous and dynamic problem that seriously jeopardises the financial stability and integrity of telecom services. The biggest fraud worry in 2024 will be Subscription (Application) Fraud, which presents a serious threat to the telecom sector. It represents a startling 14% of total telecom fraud, with a significant financial impact of almost $5.46 billion USD. This concerning figure emphasises how urgently the telecom industry needs strong security protocols and cutting-edge fraud detection techniques. With its cutting-edge AI integration and reliable, almost real-time detection Fraud Management System, Datafusion System's FDO is an advanced solution for preventing telecom fraud.

FDO Features:

  • Scalable Platform for Small and Medium Operators
  • Cloud-Native with Micro-Services Architecture
  • Near Real-Time Fraudulent Activity Detection and Proactive Blocking
  • Adaptability to Support New Fraud Scenarios
  • Simple Rule Configuration Tool
  • Advanced AI/ML-Powered Algorithms for Predicting and Detecting Outliers
  • Customisable System Implementations
  • Comprehensive Business Intelligence Dashboard
  • Case Management

Fraud Techniques and Types

Top 10 Fraud Techniques

  1. Subscription Fraud (Applications): 14%, or $5.46B USD
  2. Subscription Fraud (Credit Mule) – 13% – $5.07B USD
  3. PBX Fraud: 11%, or USD $4.29B
  4. Account Take Over: 7%, or $2.73B USD
  5. Abuse of Services and Equipment: 6%, or $2.34B USD
  6. Wangiri Fraud – 5%, or $1.95B USD
  7. Social Engineering: $1.56B USD, or 4%
  8. Phishing: 4%, or USD $1.56B
  9. Spoofing: 4%, or USD $1.56B
  10. SIM Swap: 4%, or USD $1.56B

Top 10 Fraud Types

  1. Resale of Devices and Equipment: 19%, or $7.41B USD
  2. False International Revenue Shares — 16%, or USD $6.24B
  3. Pumping Traffic: 13%, or $5.07B USD
  4. Voice Bypass: 13%, or US$5.07B
  5. Wholesale Fraud: 6%, or US $2.34B
  6. Data Resale – 6%, or $2.34B USD
  7. Domestic Revenue Share – 6%, or $2.34B USD
  8. Commission/Dealer – 3%, or $1.17B USD
  9. Arbitrage – $1.17B USD, or 3%
  10. Content fraud – $1.17B USD, or 3%

Navigating the Top Telecom Industry Threats

Call Fraud

This entails using an unapproved telecom network to send or receive messages or make calls without the required authorisation or money. To make fake calls, scammers frequently employ methods like breaking into phone networks, taking advantage of security flaws, or stealing login credentials. Telecom operators may suffer significant financial losses as a result of these calls.

Subscription Fraud

Subscription fraud is the practice of utilising stolen or fraudulent identities to get telecom services, such as internet or cell phone connections, by individuals or organised organisations. They could accrue large debts before going missing, leaving telecom companies holding the bag.

Mobile Money Fraud

Offering a comprehensive set of controls that can address all facets of the Mobile Money industry, such as compliance and fraud detection. It contains real-time detections for a range of mobile money fraud categories, including fake transactions, dealer fraud, registration fraud, internal fraud, and money laundering.

SIM Card Swapping

For the purpose of accessing a victim’s mobile phone service, thieves may switch SIM cards. This enables them to access data, send messages, and make calls on the victim’s behalf, frequently leading to unapproved charges.

Wangiri and PRS Fraud

Fraudsters create Premium Rate Service (PRS) phone lines or SMS services, then make Wangiri or “One Ring” missed calls and messages to persuade customers to call or text these numbers. Fraudsters profit from the inflated rates, and victims frequently aren’t aware of the outrageous fees they will be required to pay.

Roaming Fraud

When a user accesses foreign roaming services without authorisation, it’s known as roaming fraud. Because of the higher international tariffs and use charges, telecom providers may suffer large financial losses as a result.

International Revenue Share Fraud (IRSF)

Criminals who engage in IRSF put up expensive international phone lines and route calls through them. After that, the scammers demand enormous fees from telecom operators in exchange for a cut of the money made.

Compromised VoIP Services

VoIP (voice over internet protocol) services are susceptible to fraud and hacking, whereby thieves use hacked VoIP accounts or services to place unsanctioned calls.

Phishing and Spamming

Phishing emails, texts, or phone calls are used by scammers to deceive people into disclosing personal identification numbers (PINs) or account credentials. Criminals can use this information to access telecom accounts without authorisation and charge fraudulently.