2017 global fraud loss survey - itweb...2017 survey on average, fraud departments reported 10% fewer...

2017 Global Fraud Loss Survey

Agenda Survey Type and Methodology

Review of Results Fraud Management

Organizational Snapshots

Work Loads

False Positive Rates

Fraud Trends

Top Fraud Methods and Types

Emerging Fraud Methods and Types

Where Is It Coming From?

2017 Global Fraud Loss Estimate

Executive Summary

Appendix 2017 Fraud Loss Estimate Details by Method, Type, CSP Size & Region

Fraud Method and Type Definitions

2

Survey Type & Methodology

Panel of Experts Survey: Surveys taken from fraud and security experts working within

the industry who are directly involved in identifying and

stopping communications fraud

Responses were received from:

Communications Service Providers (CSPs) located throughout the

industry and around the globe

Both Small (<1K employees) and Large (100K+) CSPs

Wireless, wireline, broadband, and narrowband CSPs

Voice, data, financial services, content distribution and Internet of Things

(IoT) service providers

3

2017 CFCA Survey Results

4

2017 Survey

In which region are you located?

Note: Local, Regional, National and International CSPs participated in the survey

5

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

Asia SouthPacific

Centraland

SouthAmerica

NorthAmerica

WesternEurope

EasternEurope &

Russia

Africa MiddleEast

8.9%6.3%

12.7%

34.2%

15.2%

8.9%7.6%

6.3%

2017 Survey

6

How many employees are in your company?

<1,00018.75%

1,001 to 5,00029.17%

5,001 to 10,00014.58%

10,001 to 50,00020.83%

50,001 to 100,0008.33%

100,001 +8.33%

2017 Survey

7

How many subscribers does your company have?

<10,0008.70%

10,001 to 1,000,00010.87%

1,000,001 to 10,000,000

32.61%

10,000,001 to 25,000,000

10.87%

25,000,001 to 50,000,000

15.22%

50,000,001 +17.39%

Wholesale Only (no end user subscribers)

4.35%

2017 SurveyWhere is your fraud department situated?

Compared to 2015, Customer Care, Operations and Security each grew by approx. 4%.

Whereas Finance shrank by 10%+ (57% in 2015). Some Fraud departments also reported

moving to Revenue Assurance, Collections, Business Intelligence or Infrastructure orgs.

8

6.98%

46.51%

2.33%

9.30%

9.30%

25.58%

Customer Care

Finance

IT

Operations

Risk Management

Security

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

2017 SurveyWhat functions apply to your current role and

responsibilities?

9

Compared to 2015, 20% less time is being spent investigating fraud and working with law

enforcement. 5% more time is going to detecting fraud and 14% more time is going to

Customer Care, Billing and Revenue Assurance functions.

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0%

Systems Administrator

Fraud Investigation

Sales/Marketing

Operations

Security/Physical

End User

Fraud Detection

Customer Service

Finance/Billing/Revenue Assurance

Legal/Regulatory

Security/Network

Law Enforcement

Vendor/Consultant

Internal Fraud Investigation

10.2%

81.6%

8.2%

20.4%

8.2%

2.0%

89.8%

18.4%

36.7%

14.3%

16.3%

12.2%

2.0%

38.8%

2017 SurveyHow many are in your Fraud department?

Departments with <3 employees decreased by 8% since 2015. However, organizations with

3 to 20 employees reported a 4% increase in staff. Departments with >21 employees

reported the same staffing levels. 50% reported they outsource some of their job functions.

Note: Some departments reported overlapping responsibilities including R.A., Subpoena

Compliance and Victim Assistance. Some reported as little as one staff member.

10

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Analysts Investigators Administrative &Case Management

Outsourced

< 3 3 to 5 6 to 20 21 to 50 51 +

2017 SurveyHow many are in your Fraud department?

11

# Subscribers

Average #

Employees

Average #

Outsourced

Average Total

Department Size<10,000 5 1 6

10,001 to 1,000,000 6 3 9

1,000,001 to 10,000,000 9 1 10

10,000,001 to 50,000,000 19 2 21

50,000,001+ 67 14 81

Wholesale Only

(no end user subs)6 1 7

2017 Survey

When is your fraud department staffed?

Compared to 2015, Fraud departments are working 30% more extended and non-

business hours–including holidays. Off-hours coverage by other organizations also

remained unchanged in 2017.

12

42%79% 66%

41%47%

32%

23%

58%29%

44%25%

42%

45%

45%

37%53% 44% 55%

23%

11%18% 22% 22% 19%

10% 5% 8% 6% 6% 6%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Holidays Holidays Weekdays Weekdays Weekend Weekend

2015 2017 2015 2017 2015 2017

Off-Hours CoverageProvided by AnotherExternal Organization

Off-Hours CoverageProvided by AnotherOrganization

Non-Business Hours (24Hours)

Extended BusinessHours

Business Hours

2017 SurveyWhere are job functions are outsourced?

Compared to 2015, 8% of outsourced jobs have moved to external

organizations.

13

20.51%

28.21%

5.13%

46.15%

Internally (e.g: NOC,Group Shared ServiceCenter))

Externally (e.g. Vendor)

Other (Please Specify)

None

2017 Survey

New Fraud Department Positions:

• Cyber Security Professional

• Data Scientist

• Internal Fraud Analyst

• Data Visualization SME

• Additional headcount

14

Have you created any new positions or new

job functions within your organization? If so, what?

2017 Survey

Many CSPs reported being a member of more than one organization

15

Are you a member of any other organizations?

CFCA, 28%

GSMA (FF, FASG, SEGP),

32%

FIINA, 14%

ETNO, 3%

ATFRA, 4%

TUFF, 4%

ACFE, 1%

CINNA, 1%NCFTA, 1%

TRMA, 5%

DFF, 3%

ITSFF, 1%RAG, 1%

CCSG, 1%

ATIS, 1%

CFCA Partners

Work Loads

16

2017 Survey

On average, fraud departments reported 10% fewer cases per month since

2015. The majority of cases are reported by North American and Western

European service providers.

17

How many fraud incidents does your department

handle per month?

40.91%

4.55%

27.27%

6.82%

20.45%

< 50

51 to 100

101 to 500

501 to 1,000

1,001 +

2017 Survey

18

# Subscribers

Average Total

Department Size

Average # Incidents

per Month<10,000 6 51 to 100

10,001 to 1,000,000 9 51 to 100

1,000,001 to 10,000,000 10 101 to 500

10,000,001 to 50,000,000 21 501 to1,000

50,000,001+ 81 1001+

Wholesale Only

(no end user subs)6 101 to 500

How many fraud incidents does your department

handle per month?

On average the # incidents per month have decrease by 10%.

However, this masks the fact that the number of attempted fraud has

increased significantly since 2015.

2017 Survey

Overall, 12% more cases are being reported to law

enforcement than in 2015.

19

How many cases does your department refer

to law enforcement per YEAR?

< 10, 48.78%

11 to 100, 31.71%

101 +, 4.88%

None, 14.63%

2017 Survey

In 2017, 7% fewer cases resulted in prosecution—down from 90% in

2015.

20

Of the cases reported to law enforcement, how

many result in a law enforcement action per YEAR?

0

2

4

6

8

10

12

< 1 1 to 5 6 to 10 11 to 100 101 +

# R

esp

on

se

s

# Cases

Investigation Initiated Prosecution

2017 Survey

Some investigations and prosecutions can take more than a year to

complete.

21

Of the cases reported to law enforcement, how many

were related to internal fraud investigations that

resulted in a law enforcement action per YEAR?

< 1 1 to 5 6 to 10 11 to 100 101 + None

0%

5%

10%

15%

20%

25%

30%

35%

40%

Investigation Initiated Prosecution# Cases

% R

esp

on

se

s

2017 Survey

Since 2015, 15% more CSPs report a lack of interest or understanding by law enforcement

and resource constraints. It is difficult to justify the lawyer/court costs involved. As a result

CSPs are focusing their efforts on fraud detection and mitigation.

22

Why do you think cases are not reported to law

enforcement?

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

11.1%8.3%

11.1%

0.0%

52.8%

11.1%

0.0%

5.6%

0

Debt recovery pursued through civil means

No faith in the judicial system to administerthe right punishment to deter others

No perceived value to the business

Not referred due to lack of evidence

Perceived lack of interest or understandingby law enforcement to take the case

Lack of expertise or resources

Lack of executive support

Inability to show financial loss

False Positive Rates

23

2017 Survey

24

What is your False Positive Rate*?

*False Positive Rate = Number of non-fraud incidents / Number of fraud incidents investigated

Fraud Detection Process

Low False

Positive Rate

High False

Positive Rate

Average False

Positive Rate

Fraud Management System 1% 97% 12.1%

Manual Controls or Reports 1% 95% 5.5%

Other Systems or Processes 1% 60% 1.9%

% False Positive Rate

1 7

13

19

25

31

37

43

49

55

61

67

73

79

85

91

97

FMS

1 7

13

19

25

31

37

43

49

55

61

67

73

79

85

91

97

Manual

1 6 111621263136414651566166717681869196

Other

2017 Survey

What is your False Positive Rate*?

*False Positive Rate = Number of non-fraud incidents / Number of fraud incidents investigated

25

Fraud Detection Process <1,000,0001,000,001 to

10,000,000

10,000,001 to

25,000,000

25,000,001 to

50,000,00050,000,001 +

Wholesale Only (no end

user subscribers)

Fraud Management System 2.4% 3.9% 1.3% 1.8% 2.1% 0.5%

Manual Controls or Reports 1.1% 1.8% 0.6% 0.8% 1.0% 0.2%

Other Systems or Processes 0.4% 0.6% 0.2% 0.3% 0.3% 0.1%

Fraud Detection Process AsiaSouth

Pacific

Central

and South

America

North

America

Western

Europe

Eastern Europe &

RussiaAfrica

Middle

East

Fraud Management System 0.9% 0.4% 1.5% 5.3% 2.0% 0.9% 0.7% 0.4%

Manual Controls or Reports 0.4% 0.2% 0.7% 2.4% 0.9% 0.4% 0.3% 0.2%

Other Systems or Processes 0.1% 0.1% 0.2% 0.8% 0.3% 0.1% 0.1% 0.1%

By Size (#Subs)

By Region

Smaller carriers have higher rates

NA & EU have higher false + rates

2017 Survey

26

How much time do you spend on average working

false-positive cases per week?

Although false positive cases vary by fraud function and type of fraud, approx.

50% of CSPs reported that they did not monitor them nor how much time they

spend on them.

0%

5%

10%

15%

20%

25%

Less than 1Hour

1-2 Hours 2-3 Hours 3-4 Hours 4-5 Hours 5-10 Hours More than10 Hours

% T

ota

l R

esp

on

ses

Fraud Trends

27

2017 Survey

28

Over the past 12 months, do you think GLOBAL

fraud losses have trended up, trended down, or stayed

the same?

Trended UP Stayed the SAME Trended DOWN

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

64.3%

7.1%

28.6%

% T

ota

l Re

sp

on

se

s

2005 2008 2011 2013 2015 2017

Compared to 2015, 18% fewer CSPs reported Global fraud had increased or

stayed the same.

2017 Survey

Over the past 12 months, has fraud IN YOUR

COMPANY trended up, trended down, or stayed

the same?

Since 2015, 6% fewer CSPs reported fraud had increased or stayed the same.

29

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

Trended UP Stayed the SAME Trended DOWN

39.5%

27.9%

32.6%

% T

ota

l Re

sp

on

se

s

2006 2009 2011 2013 2015 2017

2017 Survey

30

In 2015, the top five were: PBX Hacking, IP PBX Hacking, Subscription Fraud

(Application), Internal Fraud/Employee Theft, and Subscription Fraud (Identity)

What do you view as the top 5 fraud methods

GLOBALLY? 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0%

Subscription Fraud (Identity)

PBX Hacking

IP PBX Hacking

Subscription Fraud (Application)

Subscription Fraud (Credit Muling/Proxy)

Abuse of Service Terms and Conditions

Account Takeover

Internal Fraud / Employee Theft

Phishing / Pharming

Payment Fraud

% of Total Responses

2017 Survey

31

In 2015, the top five fraud methods were PBX Hacking, IP PBX Hacking,

Subscription Fraud (Application), Dealer Fraud and Subscription Fraud (Identity)

What do you view as the top 5 fraud methods

at YOUR COMPANY?0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0%


PBX Hacking

IP PBX Hacking




Account Takeover


Phishing / Pharming

Payment Fraud

2017 Survey

32

In 2015, the top five threats were: PBX Hacking, Subscription Fraud (Identity), IP

PBX Hacking, Abuse of Network or Device Weaknesses and Account Take Over.

What do you view as the top 5 EMERGING

fraud methods at YOUR COMPANY?6.0% 6.5% 7.0% 7.5% 8.0% 8.5%

IP PBX Hacking

Phishing / Pharming

Account Takeover



2017 Survey

33

0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0%


PBX Hacking

IP PBX Hacking




Account Takeover


Phishing / Pharming

Payment Fraud

Abuse of network, device or configuration weakness

Spoofing (IP or CLI/ANI)

Dealer Fraud

Social Engineering

Wangiri (Call Back Schemes)

Robocalling

Signalling Manipulation

Brand Name / Logo Abuse

Mobile Malware

Pre-Paid Equipment & Services

SMS Faking or Spoofing

Voicemail Hacking (Not associated with PBX Hacking)

IMEI Reprogramming

Clip-on Fraud

SIM Cloning

Fraud Methods in YOUR COMPANY

2017 SurveyWhat do you view as the top 5 fraud types at

GLOBALLY?

In 2015, the top fraud types were: IRSF, Interconnect Bypass, Premium Rate

Service, DRSF, Arbitrage, Payment Fraud and Device/Hardware Reselling.

34

(In-Network) (Roaming)0% 5% 10% 15% 20%

International RevenueShare Fraud (IRSF)

Interconnect Bypass (e.g.SIM box)

Arbitrage

Premium Rate Service

Commissions Fraud


0% 5% 10% 15% 20% 25%



Arbitrage

Theft / Stolen Goods

Domestic Revenue Share(DRSF)


2017 SurveyWhat do you view as the top 5 fraud types at

YOUR COMPANY?

In 2015, the top fraud types were: IRSF, Interconnect Bypass, Arbitrage, Premium

Rate Service, Device/Hardware Reselling and Theft/Stolen Goods

35

(In-Network) (Roaming)0% 5% 10% 15% 20%



Arbitrage



0% 10% 20% 30%


Interconnect Bypass(e.g. SIM box)

Arbitrage



2017 Survey

(In-Network)

In 2011, the top five fraud types were: PBX/VM Fraud, International Revenue

Share Fraud, Bypass Fraud, Arbitrage and Subscription Fraud.

36

(Roaming)

What do you view as the top 5 EMERGING

fraud types at YOUR COMPANY?

0% 5% 10% 15% 20%


Interconnect Bypass(e.g. SIM box)


Domestic RevenueShare (DRSF)

Arbitrage

0% 5% 10% 15% 20% 25%


Arbitrage



Domestic Revenue Share(DRSF)

2017 Survey

37

(In-Network) 0% 2% 4% 6% 8% 10% 12% 14% 16%

International Revenue Share Fraud (IRSF)

Interconnect Bypass (e.g. SIM box)

Arbitrage



Commissions Fraud

Device / Hardware Reselling

Wholesale Fraud

Domestic Revenue Share (DRSF)

Denial of Service (DoS) and Distributed Denial of…

Friendly Fraud

Cable or Satellite

Private Use

Service Reselling (e.g: Call Sell)

Theft / Compromise of data (e.g. logins)

Theft of Content


2017 Survey

38

0% 5% 10% 15% 20% 25% 30%



Arbitrage





Friendly Fraud

Private Use

Wholesale Fraud

Cable or Satellite


Commissions Fraud

Denial of Service (DoS) and Distributed Denial of…


Theft of Content

Fraud Types (YOUR COMPANY)(Roaming)

Where is the Fraud Coming

From?

39

2017 Survey

In 2015, the top 3 countries were United States, Pakistan and Spain.

40

Top 10 Countries That ORIGINATE Fraudulent Calls:

0%

1%

2%

3%

4%

5%

6%

2017 Survey

41

Top 10 Countries Where Fraud TERMINATES:

In 2015, the top 3 countries were Cuba, Somalia and Bosnia & Herzegovina

0%

1%

2%

3%

4%

5%

6%

7%

8% 8%

5%

4% 4% 4%3%

3% 3% 3%3%

Fraud Loss Estimates

42

2017 Survey

In 2017, approx. 5% of CSPs report >30% of their bad debt was related to

fraud.

43

What percentage of bad debt is a result of fraud

in YOUR COMPANY?

78.1%

9.8%7.3%

2.4%0.0%

2.4%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

< 10% 10-20% 21-30% 31-40% 41-50% > 50%

% T

ota

l Re

sp

on

se

s

2013 2015 2017

2017 Survey

In 2013, a majority of CSPs believed fraud losses were between 1-2%. In 2015

and 2017, the consensus shifted to between 2-3%.

44

What percentage of the total GLOBAL telecom

revenue base do you think is fraud?

< 1% 1-2% 2-3% 3-4% 4-5% 5-10% > 10%

2013 12.3% 26.3% 15.8% 17.5% 8.8% 10.5% 8.8%

2015 18.9% 16.2% 21.6% 16.2% 13.5% 10.8% 2.7%

2017 17.1% 17.1% 22.0% 19.5% 9.8% 4.9% 9.8%

17.1% 17.1%

22.0%

19.5%

9.8%

4.9%

9.8%

0%

5%

10%

15%

20%

25%

30%

% T

ota

l R

esp

on

ses

2017 Survey

Smaller CSPs generally think fraud losses are higher globally.

45

Of the Global telecom revenue base, what

percentage do you think is fraud?

< 1%1-2%

2-3%3-4%

4-5%5-10%

> 10%

0%

1%

2%

3%

4%

5%

6%

7%

8%

<1,000,000

1,000,001 to 10,000,000

10,000,001 to 50,000,000

25,000,001 to 50,000,000

50,000,001 +

Wholesale Only (no end user subscribers)

0%-1% 1%-2% 2%-3% 3%-4% 4%-5% 5%-6% 6%-7% 7%-8%

2017 Survey

46

Comparison Between 2011-2017 Survey

Results in YOUR COMPANY

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

< 1% 1-2% 2-3% 3-4% 4-5% 5-10% > 10%

62%

21%

8% 8%

0%3%

0%

2011 2013 2015 2017

Since 2013 CSPs have report fewer fraud losses per year. In 2015, 60% of

CSPs reported losses less than 2%. In 2017, 82% reported losses less than 2%.

2017 Survey

Smaller CSPs generally report higher fraud losses.

47

What percentage of YOUR COMPANY’S

revenue base do you think is fraud?

< 1%1-2%

2-3%3-4%

4-5%5-10%

> 10%

0%

2%

4%

6%

8%

10%

12%

14%

16%

<1,000,000

1,000,001 to 10,000,000

10,000,001 to 50,000,000

25,000,001 to 50,000,000

50,000,001 +

Wholesale Only (no end user…

0%-2% 2%-4% 4%-6% 6%-8% 8%-10% 10%-12% 12%-14% 14%-16%

2017 SurveyOf the global telecom revenue base, what

percentage do you think is fraud?*

Fraud

Loss as a

% of

Revenue <1,000,000

1,000,001

to

10,000,000

10,000,001

to

50,000,000

25,000,001

to

50,000,000 50,000,001+ Wholesale

% Total

Responses

< 1% 12.04% 20.07% 6.69% 9.37% 10.70% 2.68% 61.55%

1-2% 4.01% 6.69% 2.23% 3.12% 3.57% 0.89% 20.51%

2-3% 1.50% 2.51% 0.84% 1.17% 1.34% 0.33% 7.69%

3-4% 1.50% 2.51% 0.84% 1.17% 1.34% 0.33% 7.69%

4-5% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

5%-10% 0.50% 0.83% 0.28% 0.39% 0.45% 0.11% 2.56%

> 10% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

*Note: Percentages taken from CSP self-reported losses.

Fraud Losses by # of Subscribers

48

2017 Survey

2017 Estimated Global Telecom Revenues*:

$2.30 Trillion (USD)

2017 Estimated Global Loss:

$29.2 Billion (USD), or 1.27%

Loss Calculation: ∑((CSP Size x % by Group) x Group Midpoint)/100) x

Global Telecom Revenues

Note: Fraud losses were weighted based on CSP size to avoid bias created when small and large CSP responses were combined.

*Source: The Insight Research Corporation – http://www.insight-corp.com/reports/review15.asp

(Estimate for 2015)

49

http://www.insight-corp.com/reports/review10.asp

2017 SurveyComparison to Previous Surveys

2008 2011* 2013 2015 2017 % Var

Estimated Global

Revenues

$1.7 Trillion

(USD)

$2.1 Trillion

(USD)

$2.2 Trillion

(USD)

$2.25 Trillion

(USD)

$2.30 Trillion

(USD)+2.2%

Estimated Global

Fraud Loss

$60.1 Billion

(USD)

$40.1 Billion

(USD)

$46.3 Billion

(USD)

$38.1 Billion

(USD)

$29.2 Billion

(USD)-23.3%

% Loss* 3.54% 1.88% 2.09% 1.69% 1.27% -0.4%

*Note: In 2011 losses were recalculated using a weighting methodology.

50

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

2008 2011 2013 2015 2017

% Loss (Company) % Loss (Global)

0

500

1,000

1,500

2,000

2,500

2008 2011 2013 2015 2017

Bil

lio

ns

Est. Global Telecom Revenues Est. Global Fraud Loss

Executive Summary

2017 Survey Highlights:

Global Fraud Loss Estimate*: $29.2 Billion (USD) annually

The 23.3% decrease from 2015 was a result of communications companies reporting fewer fraud losses as a percent of revenue.

1.27% of global telecom revenues The 0.42% decrease from 2015 is attributed to several factors including:

Increased collaboration and coordination within the industry and with law enforcement

Cessation of casual dialing on major US carrier networks

Shifting of cost base from TDM to VoIP networks which have lower tariffed rates

Increased focus on cybersecurity issues, which are harder to associate with revenue losses

71% said global fraud losses had increased or stayed the same–a 18% decrease from 2015.

67% said fraud had trended up or stayed the same within their company—an 6% decrease from 2015

For more information please visit: www.cfca.org/fraudlosssurvey/51

Executive Summary

For more information please visit: www.cfca.org/fraudlosssurvey/

*Note: Combined results shown; Beginning in 2015 fraud types were divided between In-network and Roaming.

52

Top 10 Fraud Methods:

$2.03 B – Subscription Fraud (Identity) $1.94 B – PBX Hacking $1.94 B – IP PBX Hacking $1.93 B – Subscription Fraud (Application) $1.75 B – Subscription Fraud (Credit

Muling/Proxy) $1.66 B – Abuse of Service Terms & Conditions $1.66 B – Account Take Over $1.47 B – Internal Fraud / Employee Theft $1.38 B – Phishing / Pharming $1.38 B – Payment Fraud

http://www.cfca.org/fraudlosssurvey/

Executive Summary

Top 10 Fraud Types*:

$6.10 B – International Revenue Share Fraud (IRSF)

$4.27 B – Interconnect Bypass (e.g. SIM Box) $3.26 B – Arbitrage $3.02 B – Theft / Stolen Goods $2.39 B – Premium Rate Service $2.10 B – Device / Hardware Reselling $1.35 B – Domestic Revenue Share (DRSF) $1.30 B – Wholesale Fraud $1.27 B – Friendly Fraud $1.03 B – Private Use

The top 5 fraud types accounted for 65% of all fraud losses.

For more information please visit: www.cfca.org/fraudlosssurvey/

*Note: Combined results shown; Beginning in 2015 fraud types were divided between In-network and Roaming.

53

http://www.cfca.org/fraudlosssurvey/

Thank You

54

Appendix

55

2017 Survey

56

Subscription Fraud (Identify); $2.0

PBX Hacking; $1.9IP PBX Hacking; $1.9

Subscription Fraud (Application); $1.9

Subscription Fraud (Credit Muling/Proxy); $1.8

Abuse of Service

Terms and Conditions; $1.7

Account Takeover; $1.7

Internal Fraud / Employee Theft; $1.5

Phishing / Pharming; $1.4

Payment Fraud; $1.4

Abuse of network, device or configuration weakness; $1.3 Spoofing (IP or

CLI/ANI); $1.3

Dealer Fraud; $1.1 Social Engineering; $1.0

Wangiri (Call Back

Schemes); $1.0

Robocalling; $0.9

Signalling Manipulation;

$0.8

Brand Name /

Logo Abuse; $0.6Mobile

Malware; $0.6

Pre-Paid Equipment & Services; $0.6

SMS Faking or Spoofing; $0.6

Voicemail Hacking

(Not associated with PBX Hacking); $0.6

IMEI

Reprogramming; $0.6

Clip-on Fraud; $0.5

SIM Cloning; $0.4

2017 Estimated Fraud Losses by Method(in $ USD Billions)

2017 Survey

57

$2.03

$1.94

$1.94

$1.94

$1.75

$1.66

$1.66

$1.47

$1.38

$1.38

$1.29

$1.29

$1.11

$1.01

$1.01

$0.92

$0.83

$0.65

$0.65

$0.65

$0.65

$0.65

$0.55

$0.46

$0.37

Subscription Fraud (Identify)

PBX Hacking

IP PBX Hacking




Account Takeover


Phishing / Pharming

Payment Fraud


Spoofing (IP or CLI/ANI)

Dealer Fraud

Social Engineering

Wangiri (Call Back Schemes)

Robocalling

Signalling Manipulation

Brand Name / Logo Abuse

Mobile Malware

Pre-Paid Equipment & Services

SMS Faking or Spoofing


IMEI Reprogramming

Clip-on Fraud

SIM Cloning

$- $1 $1 $2 $2 $3

2017 Estimated Fraud Losses by Method(in $ USD Billions)

2017 SurveyEstimated Fraud Losses by Method by Size

Fraud Method <1,000,000

1,000,001 to

10,000,000

10,000,001 to

50,000,000

25,000,001 to

50,000,000 50,000,001 +

Wholesale Only

(no end user subs)


$0.38 $0.63 $0.21 $0.29 $0.34 $0.08

Abuse of Service Terms and Conditions $0.22 $0.36 $0.12 $0.17 $0.19 $0.05

Account Takeover $0.11 $0.18 $0.06 $0.08 $0.10 $0.02

Brand Name / Logo Abuse $0.20 $0.33 $0.11 $0.15 $0.18 $0.04

Clip-on Fraud $0.20 $0.33 $0.11 $0.15 $0.18 $0.04

Dealer Fraud $0.13 $0.21 $0.07 $0.10 $0.11 $0.03

IMEI Reprogramming $0.13 $0.21 $0.07 $0.10 $0.11 $0.03

Internal Fraud / Employee Theft $0.29 $0.48 $0.16 $0.22 $0.26 $0.06

IP PBX Hacking $0.32 $0.54 $0.18 $0.25 $0.29 $0.07

Mobile Malware $0.25 $0.42 $0.14 $0.20 $0.22 $0.06

Payment Fraud $0.38 $0.63 $0.21 $0.29 $0.34 $0.08

PBX Hacking $0.32 $0.54 $0.18 $0.25 $0.29 $0.07

Phishing / Pharming $0.13 $0.21 $0.07 $0.10 $0.11 $0.03

Pre-Paid Equipment & Services $0.38 $0.63 $0.21 $0.29 $0.34 $0.08

Robocalling $0.07 $0.12 $0.04 $0.06 $0.06 $0.02

Signaling Manipulation $0.13 $0.21 $0.07 $0.10 $0.11 $0.03

SIM Cloning $0.27 $0.45 $0.15 $0.21 $0.24 $0.06

SMS Faking or Spoofing $0.34 $0.57 $0.19 $0.27 $0.30 $0.08

Social Engineering $0.18 $0.30 $0.10 $0.14 $0.16 $0.04

Spoofing (IP or CLI/ANI) $0.27 $0.45 $0.15 $0.21 $0.24 $0.06

Subscription Fraud (Application) $0.13 $0.21 $0.07 $0.10 $0.11 $0.03

Subscription Fraud (Credit Muling/Proxy) $0.09 $0.15 $0.05 $0.07 $0.08 $0.02

Subscription Fraud (Identify) $0.25 $0.42 $0.14 $0.20 $0.22 $0.06


$0.40 $0.66 $0.22 $0.31 $0.35 $0.09

Wangiri (Call Back Schemes) $0.16 $0.27 $0.09 $0.13 $0.14 $0.04

Total $5.72 $9.53 $3.18 $4.45 $5.08 $1.27

58

(In Billions $ USD)

2017 SurveyEstimated Fraud Losses by Method by Region

59

(In Billions $ USD)

Fraud Method Asia South Pacific

Central and

South America North America Western Europe

Eastern Europe &

Russia Africa Middle East


$0.14 $0.07 $0.25 $0.84 $0.32 $0.14 $0.11 $0.07


$0.08 $0.04 $0.14 $0.48 $0.18 $0.08 $0.06 $0.04

Account Takeover $0.04 $0.02 $0.07 $0.24 $0.09 $0.04 $0.03 $0.02

Brand Name / Logo Abuse $0.07 $0.04 $0.13 $0.44 $0.17 $0.07 $0.06 $0.04

Clip-on Fraud $0.07 $0.04 $0.13 $0.44 $0.17 $0.07 $0.06 $0.04

Dealer Fraud $0.05 $0.02 $0.08 $0.28 $0.11 $0.05 $0.04 $0.02

IMEI Reprogramming $0.05 $0.02 $0.08 $0.28 $0.11 $0.05 $0.04 $0.02

Internal Fraud / Employee Theft $0.11 $0.05 $0.19 $0.64 $0.24 $0.11 $0.08 $0.05

IP PBX Hacking $0.12 $0.06 $0.21 $0.72 $0.27 $0.12 $0.09 $0.06

Mobile Malware $0.09 $0.05 $0.16 $0.56 $0.21 $0.09 $0.07 $0.05

Payment Fraud $0.14 $0.07 $0.25 $0.84 $0.32 $0.14 $0.11 $0.07

PBX Hacking $0.12 $0.06 $0.21 $0.72 $0.27 $0.12 $0.09 $0.06

Phishing / Pharming $0.05 $0.02 $0.08 $0.28 $0.11 $0.05 $0.04 $0.02

Pre-Paid Equipment & Services $0.14 $0.07 $0.25 $0.84 $0.32 $0.14 $0.11 $0.07

Robocalling $0.03 $0.01 $0.05 $0.16 $0.06 $0.03 $0.02 $0.01

Signalling Manipulation $0.05 $0.02 $0.08 $0.28 $0.11 $0.05 $0.04 $0.02

SIM Cloning $0.10 $0.05 $0.18 $0.60 $0.23 $0.10 $0.08 $0.05

SMS Faking or Spoofing $0.13 $0.06 $0.22 $0.76 $0.29 $0.13 $0.10 $0.06

Social Engineering $0.07 $0.03 $0.12 $0.40 $0.15 $0.07 $0.05 $0.03

Spoofing (IP or CLI/ANI) $0.10 $0.05 $0.18 $0.60 $0.23 $0.10 $0.08 $0.05

Subscription Fraud (Application) $0.05 $0.02 $0.08 $0.28 $0.11 $0.05 $0.04 $0.02


$0.03 $0.02 $0.06 $0.20 $0.08 $0.03 $0.03 $0.02

Subscription Fraud (Identify) $0.09 $0.05 $0.16 $0.56 $0.21 $0.09 $0.07 $0.05


$0.15 $0.07 $0.26 $0.88 $0.33 $0.15 $0.11 $0.07

Wangiri (Call Back Schemes) $0.06 $0.03 $0.11 $0.36 $0.14 $0.06 $0.05 $0.03

Total $2.12 $1.06 $3.72 $12.75 $4.78 $2.12 $1.59 $1.06

2017 Survey

60

(Combined)

Arbitrage; $3.3

Cable or Satellite; $0.7 Commissions Fraud; $1.0

Denial of Service (DoS) and Distributed Denial of

Service (DDoS); $0.6

Domestic Revenue Share (DRSF); $1.4

Device / Hardware Reselling; $2.0

Friendly Fraud; $1.3

Interconnect Bypass (e.g.

SIM box); $4.3

International Revenue Share Fraud (IRSF); $6.1

Premium Rate Service; $2.4

Private Use; $1.0

Service

Reselling (e.g: Call Sell); $0.5

Theft / Compromise of data (e.g. logins); $0.2

Theft / Stolen Goods; $3.0

Theft of Content; $0.2

Wholesale Fraud; $1.3

2017 Estimated Fraud Losses by Type(in $ USD Billions)

2017 Survey

61

(Combined)

$6.1

$4.3

$3.3

$3.0

$2.4

$2.0

$1.4

$1.3

$1.3

$1.0

$1.0

$0.7

$0.6

$0.5

$0.2

$0.2



Arbitrage





Wholesale Fraud

Friendly Fraud

Private Use

Commissions Fraud

Cable or Satellite

Denial of Service (DoS) and Distributed Denial of Service (DDoS)



Theft of Content

$- $1 $2 $3 $4 $5 $6 $7

2017 Estimated Fraud Losses by Type (in $ USD Billions)

2017 Survey

Fraud Type Asia South Pacific

Central and

South America North America

Western

Europe

Eastern

Europe Africa Middle East

Arbitrage $0.24 $0.12 $0.42 $1.42 $0.53 $0.24 $0.18 $0.12

Cable or Satellite $0.05 $0.03 $0.09 $0.30 $0.11 $0.05 $0.04 $0.03

Commissions Fraud $0.07 $0.03 $0.12 $0.42 $0.16 $0.07 $0.05 $0.03

Denial of Service (DoS) and

Distributed Denial of Service

(DDoS)$0.05 $0.02 $0.08 $0.28 $0.10 $0.05 $0.03 $0.02

Device / Hardware Reselling $0.10 $0.05 $0.17 $0.59 $0.22 $0.10 $0.07 $0.05

Domestic Revenue Share (DRSF) $0.15 $0.07 $0.26 $0.88 $0.33 $0.15 $0.11 $0.07

Friendly Fraud $0.09 $0.05 $0.16 $0.56 $0.21 $0.09 $0.07 $0.05

Interconnect Bypass (e.g. SIM

box)$0.31 $0.16 $0.54 $1.86 $0.70 $0.31 $0.23 $0.16

International Revenue Share

Fraud (IRSF)$0.44 $0.22 $0.78 $2.66 $1.00 $0.44 $0.33 $0.22

Premium Rate Service $0.17 $0.09 $0.30 $1.04 $0.39 $0.17 $0.13 $0.09

Private Use $0.08 $0.04 $0.13 $0.45 $0.17 $0.08 $0.06 $0.04

Service Reselling (e.g: Call Sell) $0.03 $0.02 $0.06 $0.20 $0.07 $0.03 $0.02 $0.02

Theft / Compromise of data (e.g.

logins)$0.02 $0.01 $0.03 $0.10 $0.04 $0.02 $0.01 $0.01

Theft / Stolen Goods $0.22 $0.11 $0.38 $1.32 $0.49 $0.22 $0.16 $0.11

Theft of Content $0.02 $0.01 $0.03 $0.10 $0.04 $0.02 $0.01 $0.01

Wholesale Fraud $0.09 $0.05 $0.17 $0.57 $0.21 $0.09 $0.07 $0.05

Total $2.12 $1.06 $3.72 $12.75 $4.78 $2.12 $1.59 $1.06

62

(In Billions $ USD)Combined Est. Fraud Losses by Fraud Type by Region

2017 Survey

63

(In-Network)

Arbitrage; $1.3

Cable or Satellite; $0.5Commissions Fraud; $1.0

Denial of Service (DoS) and Distributed

Denial of Service (DDoS); $0.6

Domestic Revenue Share (DRSF); $0.7



Interconnect Bypass (e.g. SIM box); $1.5



Private Use; $0.4

Service Reselling (e.g: Call Sell); $0.2

Theft / Compromis

e of data (e.g.

logins); $0.2





2017 Survey

Fraud Type <1,000,000

1,000,001 to

10,000,000

10,000,001 to

50,000,000

25,000,001 to

50,000,000 50,000,001 +

Wholesale Only

(no end user

subs)

Arbitrage $0.26 $0.44 $0.15 $0.21 $0.23 $0.06

Cable or Satellite $0.09 $0.16 $0.05 $0.07 $0.08 $0.02

Commissions Fraud $0.19 $0.31 $0.10 $0.14 $0.17 $0.04



(DDoS)

$0.12 $0.21 $0.07 $0.10 $0.11 $0.03

Domestic Revenue Share

(DRSF)$0.14 $0.23 $0.08 $0.11 $0.12 $0.03

Device / Hardware Reselling $0.19 $0.31 $0.10 $0.14 $0.17 $0.04

Friendly Fraud $0.12 $0.21 $0.07 $0.10 $0.11 $0.03


box)$0.30 $0.49 $0.16 $0.23 $0.26 $0.07


Fraud (IRSF)$0.40 $0.67 $0.22 $0.31 $0.36 $0.09

Premium Rate Service $0.22 $0.36 $0.12 $0.17 $0.19 $0.05

Private Use $0.08 $0.13 $0.04 $0.06 $0.07 $0.02

Service Reselling (e.g: Call

Sell)$0.05 $0.08 $0.03 $0.04 $0.04 $0.01

Theft / Compromise of data

(e.g. logins)$0.05 $0.08 $0.03 $0.04 $0.04 $0.01

Theft / Stolen Goods $0.22 $0.36 $0.12 $0.17 $0.19 $0.05

Theft of Content $0.05 $0.08 $0.03 $0.04 $0.04 $0.01

Wholesale Fraud $0.17 $0.28 $0.09 $0.13 $0.15 $0.04

Total $2.64 $4.40 $1.47 $2.05 $2.35 $0.59

64

(In Billions $ USD)In-Network Est. Fraud Losses by Fraud Type by Size

2017 Survey


Central and

South America

North

America

Western

Europe

Eastern


Arbitrage $0.10 $0.05 $0.17 $0.59 $0.22 $0.10 $0.07 $0.05





(DDoS)$0.05 $0.02 $0.08 $0.28 $0.10 $0.05 $0.03 $0.02


(DRSF)$0.05 $0.03 $0.09 $0.31 $0.12 $0.05 $0.04 $0.03


Friendly Fraud $0.05 $0.02 $0.08 $0.28 $0.10 $0.05 $0.03 $0.02


box)$0.11 $0.05 $0.19 $0.66 $0.25 $0.11 $0.08 $0.05


Fraud (IRSF)$0.15 $0.08 $0.26 $0.90 $0.34 $0.15 $0.11 $0.08


Private Use $0.03 $0.01 $0.05 $0.17 $0.06 $0.03 $0.02 $0.01



logins)$0.02 $0.01 $0.03 $0.10 $0.04 $0.02 $0.01 $0.01


Theft of Content $0.02 $0.01 $0.03 $0.10 $0.04 $0.02 $0.01 $0.01

Wholesale Fraud $0.06 $0.03 $0.11 $0.38 $0.14 $0.06 $0.05 $0.03

$0.98 $0.49 $1.72 $5.89 $2.21 $0.98 $0.74 $0.49

65

(In Billions $ USD)In-Network Est. Fraud Losses by Fraud Type by Region

2017 Survey

66

(Roaming)

Arbitrage; $1.9

Cable or Satellite; $0.2

Commissions Fraud; $0.0

Denial of Service (DoS) and Distributed

Denial of Service (DDoS); $0.0Domestic Revenue Share (DRSF); $0.6



Interconnect Bypass (e.g. SIM box); $2.8



Private Use; $0.6

Service Reselling (e.g: Call Sell); $0.2

Theft / Compromise of data (e.g. logins); $0.0





2017 Survey

Fraud Type <1,000,000

1,000,001 to

10,000,000

10,000,001 to

50,000,000

25,000,001 to

50,000,000 50,000,001 +

Wholesale Only

(no end user

subs)

Arbitrage $0.37 $0.62 $0.21 $0.29 $0.33 $0.08

Cable or Satellite $0.04 $0.07 $0.02 $0.03 $0.04 $0.01

Commissions Fraud $0.00 $0.00 $0.00 $0.00 $0.00 $0.00



(DDoS)$0.00 $0.00 $0.00 $0.00 $0.00 $0.00


(DRSF)$0.12 $0.21 $0.07 $0.10 $0.11 $0.03

Device / Hardware Reselling $0.21 $0.35 $0.12 $0.16 $0.18 $0.05

Friendly Fraud $0.12 $0.21 $0.07 $0.10 $0.11 $0.03


box)$0.54 $0.90 $0.30 $0.42 $0.48 $0.12


Fraud (IRSF)$0.79 $1.32 $0.44 $0.61 $0.70 $0.18

Premium Rate Service $0.25 $0.42 $0.14 $0.19 $0.22 $0.06

Private Use $0.12 $0.21 $0.07 $0.10 $0.11 $0.03

Service Reselling (e.g: Call Sell) $0.04 $0.07 $0.02 $0.03 $0.04 $0.01


logins)$0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Theft / Stolen Goods $0.37 $0.62 $0.21 $0.29 $0.33 $0.08

Theft of Content $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Wholesale Fraud $0.08 $0.14 $0.05 $0.06 $0.07 $0.02

Total $3.08 $5.13 $1.71 $2.39 $2.74 $0.68

67

(In Billions $ USD)Roaming Est. Fraud Losses by Fraud Type by Size

2017 Survey


Central and

South America

North

America

Western

Europe

Eastern


Arbitrage $0.14 $0.07 $0.24 $0.83 $0.31 $0.14 $0.10 $0.07





(DDoS)$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Domestic Revenue Share (DRSF) $0.05 $0.02 $0.08 $0.28 $0.10 $0.05 $0.03 $0.02


Friendly Fraud $0.05 $0.02 $0.08 $0.28 $0.10 $0.05 $0.03 $0.02


box)$0.20 $0.10 $0.35 $1.21 $0.45 $0.20 $0.15 $0.10


Fraud (IRSF)$0.29 $0.15 $0.51 $1.76 $0.66 $0.29 $0.22 $0.15


Private Use $0.05 $0.02 $0.08 $0.28 $0.10 $0.05 $0.03 $0.02



logins)$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00


Theft of Content $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Wholesale Fraud $0.03 $0.02 $0.05 $0.19 $0.07 $0.03 $0.02 $0.02

Total $1.14 $0.57 $2.00 $6.86 $2.57 $1.14 $0.86 $0.57

68

(In Billions $ USD)Roaming Est. Fraud Losses by Fraud Type by Region

2017 Survey

69

What is your False Positive Rate?

Fraud MethodFraud Management

System

Manual Controls or

Reports

Other Systems or

ProcessesAbuse of network, device or configuration weakness 0.5% 0.2% 0.0%

Abuse of Service Terms and Conditions 0.7% 0.3% 0.0%

Account Takeover 0.7% 0.3% 0.0%

Brand Name / Logo Abuse 0.3% 0.1% 0.0%

Clip-on Fraud 0.2% 0.1% 0.0%

Dealer Fraud 0.5% 0.2% 0.0%

IMEI Reprogramming 0.2% 0.1% 0.0%

Internal Fraud / Employee Theft 0.6% 0.3% 0.0%

IP PBX Hacking 0.8% 0.4% 0.0%

Mobile Malware 0.3% 0.1% 0.0%

Payment Fraud 0.6% 0.3% 0.0%

PBX Hacking 0.8% 0.4% 0.0%

Phishing / Pharming 0.6% 0.3% 0.0%

Pre-Paid Equipment & Services 0.3% 0.1% 0.0%

Robocalling 0.4% 0.2% 0.0%

Signalling Manipulation 0.3% 0.2% 0.0%

SIM Cloning 0.2% 0.1% 0.0%

SMS Faking or Spoofing 0.3% 0.1% 0.0%

Social Engineering 0.4% 0.2% 0.0%

Spoofing (IP or CLI/ANI) 0.5% 0.2% 0.0%

Subscription Fraud (Application) 0.8% 0.4% 0.0%

Subscription Fraud (Credit Muling/Proxy) 0.7% 0.3% 0.0%

Subscription Fraud (Identify) 0.8% 0.4% 0.0%

Voicemail Hacking (Not associated with PBX Hacking) 0.3% 0.1% 0.0%

2017 Survey

70

What is your False Positive Rate? Fraud Type (In-Network)

FMS

Manual

Controls

Other

Systems

Arbitrage 1.2% 0.5% 0.2%

Cable or Satellite 0.4% 0.2% 0.1%

Commissions Fraud 0.9% 0.4% 0.1%



(DDoS)

0.6% 0.3% 0.1%

Domestic Revenue Share (DRSF) 0.6% 0.3% 0.1%

Device / Hardware Reselling 0.9% 0.4% 0.1%

Friendly Fraud 0.6% 0.3% 0.1%

Interconnect Bypass (e.g. SIM box) 1.4% 0.6% 0.2%

International Revenue Share Fraud

(IRSF)1.8% 0.8% 0.3%

Premium Rate Service 1.0% 0.5% 0.2%

Private Use 0.4% 0.2% 0.1%

Service Reselling (e.g: Call Sell) 0.2% 0.1% 0.0%


logins)0.2% 0.1% 0.0%

Theft / Stolen Goods 1.0% 0.5% 0.2%

Theft of Content 0.2% 0.1% 0.0%

Wholesale Fraud 0.8% 0.4% 0.1%

Fraud Type (Roaming)FMS

Manual

Controls

Other

Systems

Arbitrage 1.5% 0.7% 0.2%

Cable or Satellite 0.2% 0.1% 0.0%

Commissions Fraud 0.0% 0.0% 0.0%



(DDoS)

0.0% 0.0% 0.0%

Domestic Revenue Share (DRSF) 0.5% 0.2% 0.1%

Device / Hardware Reselling 0.8% 0.4% 0.1%

Friendly Fraud 0.5% 0.2% 0.1%

Interconnect Bypass (e.g. SIM box) 2.1% 1.0% 0.3%

International Revenue Share Fraud

(IRSF)3.1% 1.4% 0.5%

Premium Rate Service 1.0% 0.4% 0.2%

Private Use 0.5% 0.2% 0.1%

Service Reselling (e.g: Call Sell) 0.2% 0.1% 0.0%


logins)0.0% 0.0% 0.0%

Theft / Stolen Goods 1.5% 0.7% 0.2%

Theft of Content 0.0% 0.0% 0.0%

Wholesale Fraud 0.3% 0.1% 0.1%

2017 Survey

71

Fraud Method Definitions:Fraud Method Description


Exploitation of a configuration weakness to gain access to a network or device; Includes VoIP equipment such as a modem or router.

Abuse of Service Terms and Conditions Violation of the carrier's service terms and conditions or acceptable use policy.

Account Takeover Manipulation and utilization of existing customer account in order to gain devices or service

Brand Name / Logo Abuse Acquisition and use of a company's logo without permissionClip-on Fraud Stealing service by attaching wires to another customer's phone equipmentDealer Fraud All types of fraud conducted by indirect and 3rd party dealers

IMEI Reprogramming Changing the IMEI of a handset to hide the true origination or identity of a callerInternal Fraud / Employee Theft Theft of service or equipment by employees; Also includes abuse of company's credit and adjustment policyMobile Malware Compromised Mobile Applications

PBX Hacking Compromised PBX systems used to make callsIP PBX Hacking Compromised IP PBX used to make fraudulent callsPhishing / Pharming Theft of personal info or credentials via hacking, phishing, vishing, etc…

Pre-Paid Equipment & Services All types of fraud and abuse involving pre-paid equipment and servicesRobocalling Use of computerized auto-dialers to deliver pre-recorded messages to perpetrate fraud.Signalling Manipulation Manipulation of the SIP or SS7 signaling message to hide the true origination or identity of a caller

SIM Cloning Duplicated SIM card used to charge phone calls back to the original SIM cardSMS Faking or Spoofing Manipulation of the ANI to hide the true origination or identity of SMS or MMSSocial Engineering Manipulation of an employee or customer to unintentionally give out important information

Spoofing (IP or CLI/ANI) Manipulation of the IP address/CLI/ANI to hide someone's true origination or identitySubscription Fraud (Application) Creation of false details to gain access to goods and services with no intention to pay

Subscription Fraud (Credit Muling/Proxy)Utilization of real identity details (with authorisation for payment) to obtain goods and services with no intention to pay

Subscription Fraud (Identify)Utilization of a real identify without the owners knowledge to obtain goods and services with no intention to pay


Compromised voicemail system used to make calls

Wangiri (Call Back Schemes) Call back fraud schemes

Payment Fraud Utilization of stolen credit cards, debit cards or counterfeit checks in order to obtain service

2017 SurveyFraud Type Definitions:

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Fraud Type Description

Arbitrage Exploitation of the differences in rates between different countries

Cable or Satellite Signal theft or retransmission from a cable or satellite provider

Commissions Fraud Schemes used by dealers to collect additional commissions and spiffs

Denial of Service (DoS) and Distributed Denial of Service (DDoS)

An explicit attempt to make a machine or network resource unavailable to the users of a service


Abuse of Carrier Interconnect agreements through such things as Traffic Pumping, Switch Access Stimulation, 8yy Dip Pumping and CNAM Revenue pumping schemes

Device / Hardware Reselling Resold equipment such as handsets, tablets, IPTV devices, routers…

Friendly Fraud Utilization of Charge Backs, Returned Checks, Card Holder Not Present, etc… to perpetuate services


Unauthorized insertion of traffic onto another carrier’s network. This includes Interconnect Fraud and GSM Gateway Fraud or SIM Boxing.


Artificial inflation of traffic terminating to international revenue share providers

Premium Rate Service Artificial inflation of traffic terminating to premium service providers

Private Use Use of a service neither directly nor indirectly paid for without rendering some kind of financial compensation

Service Reselling (e.g: Call Sell) Resale of stolen phone services


Includes such things as the acquisition of personal information or intellectual property

Theft / Stolen Goods Equipment Theft

Theft of Content Stealing content such as ringtones, games, or applications

Wholesale Fraud Exploitation of wholesale interconnect agreements

About Communications Fraud

Communications fraud is the use of telecommunications products or services with no intention of payment. Fraud negatively impacts everyone, including residential and commercial customers. The losses increase the communications carriers’ operating costs. Although communications operators have increased measures to minimize fraud and reduce their losses, criminals continue to abuse communications networks and services. Therefore, communications operators tend to keep their actual loss figures and their plans for corrective measures confidential. Due to the sensitive nature of this topic, CFCA used a confidential opinion survey of global communications operators to support the global fraud loss study.

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About CFCA

CFCA is a not-for-profit global educational association that is working to combat communications fraud. The mission of the CFCA is to be the premier international association for revenue assurance, loss prevention and fraud control through education and information. By promoting a close association among telecommunications fraud security personnel, CFCA serves as a forum and clearinghouse of information pertaining to the fraudulent use of communications services. For more information, visit CFCA at www.CFCA.org.

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http://www.cfca.org/

Communications Fraud Control Association

4 Becker Farm Road 4th Floor

PO BOX 954

Roseland, NJ 07068

+1 973 871 4032 Phone

+1 973 871 4075 Fax

[email protected] email

www.cfca.org website

Roberta Aronoff – Executive Director

Jacob Howell – Board of Directors, Survey Chairman

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mailto:[email protected]

http://www.cfca.org/

2017 global fraud loss survey - itweb...2017 survey on average, fraud departments reported 10% fewer...

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