Telecommunications fraud is an oft-talked about, but little-understood issue facing communications service providers (CSPs). Telecommunications fraud by its industry definition is the use of voice, data, or other telecommunication services by a subscriber with no intention for payment of that usage. Industry studies have estimated that fraud costs operators billions of dollars each year, with the costs of that usage having to be absorbed by CSP as passed down to both residential and commercial subscribers.
Although many operators have increased measures in recent years, to minimize fraud and reduce their losses, fraudulent actors continue to find new ways abuse communications networks and services.
The information below serves as a means for both subscribers and operators to better understand the different types of telecommunications fraud and the methods used to identify and prevent it.
OTT Voice Bypass Fraud
A Global Internet Phenomena Spotlight
As the use of Voice over IP (VoIP) grows due to its wide adoption as part of Over-the-Top (OTT) applications, its integration with the many decades old SS7 interconnect agreements are a growing cause of concern for end subscribers, regulators and obviously communication service providers.
This report is based on data collected from a fixed access network in a developing market and highlights how security flaws in the SS7 voice network have created security, privacy, and lost revenue risks that impact both subscribers and operators.
Sandvine’s Global Internet Phenomena Spotlight: OTT Voice Bypass Fraud examines an emerging market network to reveal a number of facts on OTT Voice Bypass fraud, the highlights of which include:
- “In Calling” features are often turned on by default in smartphone VoIP apps, resulting in both the person making the call and the person receiving the call potentially not being aware that their call is being intercepted. This lack of transparency represents a significant security and privacy risk to subscribers.
- Over 60% of the traffic from the leading VoIP app on the network examined was from OTT Voice Bypass calls enabled by an “In Calling” feature
- Based on the bandwidth observed, in a typical month, Sandvine estimates there are over five million minutes of fraudulent OTT Voice Bypass calls terminated on the network
- Based on publicly available figures for international call termination, five million fraudulent “In Calling” minutes each month could result in millions of dollars in lost revenue for the operator examined each year
Whitepaper: Application Zero-Rating: Considerations and Best Practices for Fraud Prevention
By adhering to these principles, CSPs will be able to launch successful zero-rated offerings that prevent fraudulent activities.
Best Practices for Application Zero-Rating
Due to increased competition for Internet subscribers, it is more important than ever for operators to launch new and differentiated services. One effective way that operators can differentiate their services and stand out from the competition is by zero-rating individual applications. But how can you successfully implement a zero-rated offering that grows revenue and minimizes revenue leakage?
In this session, you will learn about:
- Select the best applications to zero-rate
- Identify and enforce zero-rated application plans
- Prevent zero-rated fraud