Revenue Assurance Punctured profits

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Revenue Assurance Punctured profits Fraud
Management
Presentation by Anil Kumar
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What impacts profits?

• Shrinking of the Top Line loss of revenues
• Increase in Cost lines
• Impact A Hole in the companys profits

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Examples..

• Enron, Worldcom and many more
• Impact collapse of organisations
• Also collapse of Audit Consulting firm
• Impact A Big Hole in the companys profits
• Investors losing their money, people rendered
• jobless

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Cycle of Telecom Services
Market products
Provide service
Account and report
Develop and price products
Rate and Bill
Manage customer carrier relations
Sell products
Manage Network Infrastructure
Manage receivables and fraud
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Revenue Leakage Possibilities

• Developing and pricing of Products
• Launch of products without adequate testing in a
  hurry to launch first e.g VAS.
• Launch products without technology support to
  ensure there is no revenue leakage.
• Tariff changes at short notice to counter
  competition.

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Revenue Risk Opportunities

• Selling of Products
• Sales without adequate verification of customers.
• Re entry of fraudulent customers.
• Fictitious activations/sales to earn more
  commissions.
• Provision of services without corresponding
  checks and balances to prevent high exposures.

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Revenue Risk Opportunities

• Network infrastructure
• Inadequate capacity deployment of sites at high
  contribution areas like roaming.
• Inaccurate usage capturing.
• Inadequate control over switch databases
• Inadequate controls over provisioning
• Fraudulent usage of test SIMS/phones

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Fraud Opportunities

• Manage Carrier Relations
• Roaming frauds
• Carrier contracts and billing

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Fraud Opportunities

• Service Provisioning
• Launch of new products/Value added services
• Inadequate controls over SIMS and recharge coupon
  pins.
• Recharging frauds.

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Revenue Risk Opportunities

• Rating and Billing
• Inaccurate configuration of tariff tables.
• Inadequate Controls over Bill plan changes
• Weak Controls over free airtime connections
• Inadequate Controls over rating of CDRs
• Weak Controls over bill generation
• Controls over customer files/balances
• International Long distance grey calling.

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Collection Fraud possibilities

• Manage Receivables
• Credit limit fixation
• Non-adherence to credit policy
• Non monitoring of high usage
• Cash management through Collection agencies
• Payments through credit cards
• Non allocation of cases to collection agencies.
• Non Barring of services to defaulting customers.

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Revenue Reporting Risks

• Account Report
• Improper subscriber nos. reporting
• Inflating revenue figures
• Under-reporting of bad debts

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Risks to Costlines

• Payments for leased lines not in use.
• Deployment of network elements with inadequate
  utilization.
• Inadequate controls over energy costs.
• Inadequate verification of Interconnect charges
  payable to other operators.
• Overcharging by content providers and call center
  agencies.

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Fraud Opportunities

• Account Report
• Improper subscriber nos. reporting
• Inflating revenue figures
• Under-reporting of bad debts

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Fraud illustrations
Area of Risk
Prevention techniques

• Non rating of Zero Duration Calls
• Non configuration of certain destinations in the
  IN platform
• Subscribers not billed for considerable period of
  time
• Free airtime given to distributors/subscribers
  without adequate authority
• Unauthorised bill plan changes

• Configuration checks
• Rejected call analysis.
• Reconciliation of active customers vs. billed
• Regular review of FAT connections.
• Control log for bill plan changes

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Fraud illustrations
Area of Risk
Prevention Techniques

• Activating roaming with call conferencing
  facility without proper credit verification
• Leakage of information regarding prepaid customer
  database to the competitors

• 1. Keeping activation of VAS as centralised.
• 2. No VAS activation without credit verification.
• 1. Stringent IT controls over data copying,
  mailing printing
• 2. Confidentiality clause with outsourced agencies

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Fraud illustrations NLD/ILD
Area of Risk
Prevention Techniques

• High termination charges in the case of Sex lines
  paid by the ILD operators for traffic on
  international lines. e.g. Deigo Garcia.
• Call routing

• Specific clauses in the agreement.
• Regular monitoring of high traffic to few
  numbers.
• Review of Least call routes and data analysis of
  call carrying.

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• How frequently are the IT security compliance
  results measured by your organisation?

• Source KPMG India Fraud Survey Report 2006

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• How was it detected?

• Source KPMG India Fraud Survey Report 2006

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• In which of these areas did the majority of Rupee
  losses occur?

• Source KPMG India Fraud Survey Report 2006

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• What is the medium available to employees to
  report wrongdoing in the organisation?

• Source KPMG India Fraud Survey Report 2006

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QUESTIONS ?
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THANK YOU