2015-12-21

Considered as one of the top 10 Fraud type in the Telecommunications industry, Bypass fraud represents several millions in revenue shortfall, even for small operators, in both emerging and developed markets. A never-ending cat and mouse game has been going on for years between fraudsters and operators. To beat bypass fraud the operator has no other choice than to block fraud early enough to make the fraudsters’ actions non profitable.

Here are some tangible facts:

  • Fraudsters are still a reality, meaning their activities are still (very) profitable
  • Operators are not seeing any increase in their interconnection revenues.

One of the reasons is that fraudsters are using sophisticated last generation methods called SIM Servers while Operators are still using detection tools from the previous generation.
SIM servers can manage thousands of SIM cards in the same array, with virtual call and IMEI scrambling capability, multi-location management (using physical gateways implemented in different regions across the same Mobile Network Country). Efficiency of Test Call Generation detection methods is deeply impacted, and traditional threshold-based detection methods are getting obsoletes.

A unique fraudulent SIM card will now generate a few calls, which is hidden within the network noise of genuine customers’ usages:

threshold

By the time a traditional Fraud Management System will detect the fraudulent pattern, the fraudster will have made sufficient revenue with the SIM card to keep his Business model profitable. A geolocation representation of the situation also helps to understand how impossible it is to discriminate in a very fast manner fraudulent SIMs from genuine customers:

How to detect fraudsters in the noise?

map green

A precise detection is possible!

fraud spot

Fraudulent methods give us a sign that it’s time for operators to bolster the Fraud mitigation process, using alternative next generation Fraud mitigation methods.

Intersec has built the unique Fast Data framework integrated from the ground up, that enables to spot fraudulent SIM cards and give a response early enough to affect the fraudster Business profitability in bypass Fraud, and beyond (account take over, International Revenue Share, etc.).


Intersec is a member of the Communications Fraud Control Association www.cfca.org