Fraud Prevention with Accurate Dial Codes

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Fraud Prevention with Accurate Dial Codes
Prepared for

• Telcordia Contact
• Gabriela Lago
• Vice President, Latin America Caribbean
• Interconnection Solutions
• Telcordia Technologies, Inc.
• 1 703 628 5764
• glagomen_at_telcordia.com
• September 27, 2007

Comisión Interamericana de Telecomunicaciones
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Revenue Leakage gt12 of Total Revenue- Caused by
Fraud gt 1-3 of Total Revenue
Source Subex Azure/Analysys Research 2006
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What Does It Mean to Lose 1 of Revenue to Fraud?
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More Facts on Fraud

• Often involved international calls with Premium
  Rate Numbers or remote/small country destination
• Premium Rate Numbers, with high per-minute or
  one-time charge, are often fraud targets well
  documented with
• Roaming Premium Rate Service (PRS) Fraud
• Subscriber may roam to another network and incur
  costs without intention to pay for it
• Roaming International Premium Rate (IPRS) Fraud
• International Revenue Share Fraud
• Mobile Operators are vulnerable to Single Drop
  calls
• Short enough to generate a CDR in the TDM network
  but insufficient to generate a billable CDR
  within the Mobile network
• Operators may need to pay another party for call
  completion while not getting paid adequately or
  at all

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Impacts on Bottom Line Examples

• 1-3 of total revenue is lost due to fraud1
• Roaming fraud is at 24 of total fraud amount2
• 1 of an operators total revenue
• 28.6M loss from a survey of 37 operators
  (2004-05) due to roaming fraud losses
• Annual roaming fraud losses exceed 3.5B3
• Operators are being targeted by organized groups
  making a large number of fraudulent calls over a
  short time period

• Subex Azure/Analysys Research
• GSM Association
• Communications Fraud Control Association

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Crucial Step to Prevent Fraud Accurate Dial Data

• Know which dialled number is associated with
  which types of services
• Geographic (fixed) and Mobile numbers vs.
  Premium-Rate or Special-Service numbers
• Only accept and route calls with valid Dial Codes
• Only valid codes should be programmed into
  routing tables as traffic with invalid codes may
  still terminate in certain cases
• Require dial data globally as most fraudulent
  calls have international destinations
• Most operators do not have the most up to date
  dial codes globally (230 markets and 800K
  codes, with frequent changes in numbering plans
  globally)

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Benefits of Accurate Global Dial Data

• Prevent and minimize fraudulent activities
• Reduce revenue leakage by collecting previously
  unbilled revenue for resources used for service
  delivery
• Lower cost to bill and settle with trading
  partners
• Reduce costs by enabling route optimization

Going Beyond Fraud Prevention to Revenue Leakage
Reduction