Don’t play catch up with telco fraud!

Luke Taylor
Author: Luke Taylor CCO & Deputy CEO
Date: 30th October 2014
Categories: Technology


It’s impossible to underestimate the speed of evolution in the smart phone market. Twenty years ago mobile data was an experimental new technology and no one has heard of a smartphone because they didn’t exist.  With this in mind it, surely its worth asking the question, are operators fraud systems evolving at the same pace.

Last year the CFCA estimated that total fraud losses for telecoms companies came in at a whopping $46.3 billion, a figure that is increasing due to the targeting of advances in wireless technology.

As new technologies come into existence, new fraud types come with them. Things like VOIP, PBX and Roaming fraud are becoming serious problems for operators and their very existence can be put down to evolution.  This shows one way a fraud system must be prepared, it must be flexible.  What good is a fraud system that cannot grow, adapt and change to cover a growing number of different types of fraud?

In addition to this the colossal amount of data one must analyse in order to correctly eliminate fraud within a network requires a combination of automation, real-time reporting and analytics. The days of manually attacking large data sets are over.  The solution instead needs to be one that allows the user access to all the data, but at the same time automates a large proportion of it.  This allows analysts to focus on cases that are more complex or borderline.

The first example of what might be called a popular smartphone is probably one that used NTT DoCoMo’s i-mode system. That was in 1999.  In the fifteen years that followed we’ve seen both Palm and Blackberry rise and fall.  To say the landscape has changed dramatically since the late 90’s is an understatement.  What is important is that mobile operators learn to change at a similar rate.


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