telecommunications fraud · [email protected] @bicstelecom @bics_sa as a leading...

Telecommunications FraudFinding greener pasture in Cloud Communications

Abhijeet Singh

Product Manager – Anti Fraud Services

WWW.BICS.COM BICS Confidential

70%

Connected to Communication Traffic

fraud types linked to international voice communication traffic

State of Telecom Fraud in Traditional MNO/MVNO space

CFCA Fraud Loss Survey 2017

4out of Top 5

1.3% Revenue

$30Billion

Global Fraud Loss

WWW.BICS.COMWWW.BICS.COM BICS Confidential

State of Telecom Fraud in Cloud Communications space

$300 Billion+ Cloud Telephony

market by 2020*

Unknown

Level of Fraud

Exposure

Very

High Risk

Situation


A world leading provider of

international connectivity and interoperability solutions

1000+ Operators

100+ Full MVNOs

500+ DSPs

& Many Many Others

20+ Years 200+ Countries

WWW.BICS.COMWWW.BICS.COM

At the heart of international communications

30 BillionInternational voice calls

4000 BillionRoaming Signalling (MSUs)

11 BillionInternational SMS

2200+ Partners

1.5 in 10 international voice calls pass through BICS

25% international roaming & IPX traffic passes through BICS

BICS Confidential

| BICS confidential | 16 May 2019

BICS Global Communication Fraud Intelligence Platform

Visited Country

Home Country

BICS Confidential

Roaming

Signaling

Roaming

Relationship

International

Termination

1

24

BICS “Crowdsourcing” based “Real” Fraud Intelligence Collection Points

Roaming

Business

Signaling

Business

Voice Business

Cloud Comm

Business

3

International Communication Originators

SMS Business

5

MNOs, MVNXs, DSPs, Wholesale, Cloud Comm, Others

WWW.BICS.COM

Fraud Attempts

International Fraud Traffic Trend from BICS view

BICS Confidential

Fraud Volumes

+ 1

5 %

+ 1

7 %

2017 2018

But key industry studies show the telecom fraud is reducing ?

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Traditional Categorization

BICS Confidential

The State of International Communications Traffic Profile

F/MNOs85%

MVNOs15%

Also reflected in studies, surveys, polls around fraud

Rise of the Modern Communication Platforms

F/MNOs65%

MVNOs10%

OTTs, CPAAS, UCAAS, Cloud PBX,

Other Cloud Comm Services,

Enterprises etc.

Others25%

Unknown Territory of Fraud !!

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Influence of Modern Communications Platforms on Telecom Fraud

BICS Confidential

60%increase in 1 year!

Clear shift in fraud traffic source to Modern Communications Platforms

WWW.BICS.COMBICS Confidential

Key Reasons for High Fraud Exposure

Multi layered customer hierarchy.

Race for customer acquisition. Heavy competition.

Low barrier at entry.

Lack of awareness on Telecom Fraud.

WWW.BICS.COM


Fraud Types

• Wangiri Campaign & Response

• International revenue share fraud

• Number Range Hijacking

• Premium rate number traffic inflation

• PBX/iPBX hacking

• Arbitrage Exploitation

• DDoS like missed calls attack

against network or business

• Spamming – Voice & SMS

• Phishing – Voice calls & SMS

• Robo Calls

• Bypass

• Partner abuse

Subscribers Subscribers

Sub-Customers

CPAAS Provider

Sample CPAAS Telecom Fraud Risk Placement

BICS Confidential

Fraud Methods

Fraud Methods

• Opening credits abuse

• Payment method fraud

• Account takeovers: Phishing, Social

Engineering etc.

• Hacks: Network (SBCs etc.) & OS

Exploits, Weak Passwords, DDoS

attacks etc.

• Malicious Customer/Accounts: Non

payment intent

• Non competitive behavior

• Subscription fraud



Engineering etc.



attacks etc.

• Malicious Subscriber Accounts: Non

payment intent


• Malware

• Theft

Operators

CarriersCustomers

BICS ConfidentialWWW.BICS.COM


Sample Fraud Flow: Wangiri

BICS Confidential

CPAAS

Provider

Opening

credit: 10

USD

Only

connected

calls countedFraud Numbers

International

Carrier

Missed Calls

Call AttemptsCustomer

Fraud

traffic

injection

+123456 +987654

A Numbers:

+123456

+987654

Fraud

Customer

Fraudster

with Rogue

Account

Fraud traffic

injection

Sub-Customer

Hacker + Fraudster




Sub-Customers

CPAAS Provider


BICS Confidential

Customers

Fraud Methods

Fraud Methods




Engineering etc.



attacks etc.


payment intent





Engineering etc.



attacks etc.


payment intent


• Malware

• Theft

Operators

Carriers

Fraud Types











• Robo Calls

• Bypass

• Partner abuse



Sample Fraud Flow: IRSF and Hijacking

CPAAS

Provider

Fraud Number

International

Carrier

Call AttemptsCustomer

Fraud traffic

injection

+123456

B Numbers:

+123456

+987654

Fraudster

Fraud Carrier

Answers Calls to

+987654

(Hijacking)

Connected Calls

to +123456

(IRSF or AIT)

Subscription Fraud

/ Account Takeover

Compromised

payment method

Non Payment Intent

Money Laundering




Sub-Customers

CPAAS Provider


BICS Confidential

Customers

Fraud Methods

Fraud Methods




Engineering etc.



attacks etc.


payment intent


Fraud Types











• Robo Calls

• Bypass

• Partner abuse




Engineering etc.



attacks etc.


payment intent


• Malware

• Theft

Operators

Carriers



Sample Fraud Flow: Phishing, Spamming, Robo Calls

CPAAS Provider

International

CarrierConnected

Phishing/Spamming/

Robo Calls

Call RequestsCustomer

Traffic

injectionA Numbers:

Spoof Trusted

Numbers

Or

Random

Numbers

Robocalls

Operator


WWW.BICS.COM

Key Reasons for High Fraud Exposure

Reinventing the wheel – Building protection from scratch

Multi layered customer hierarchy

Race for customer acquisition. Heavy competition.

Lack of awareness on Telecom Fraud



How some Cloud Communications Providers fighting fraud ?

Blacklist from fraud incidents faced

Silo/Semi-Silo View

Blacklist from Industry Forums

Low Participation

Databases(Including API Lookups)

Low Field Proof

Key approaches used for proactive blocking fraud communication attempts

Abnormal Usage Reports/Action

High fraud run time

COTS FMS

Detection Based -Mileage differs

Machine Learning

Learning limited to own data

WWW.BICS.COM

Machine Learning & Big Data

BICS “Crowdsourcing” Platform

A1

An

B2

Bn

Source Risk

Evaluation

BICS Confidential

Industry forums

(good for validation)Voice Roaming &

SignallingSMSs

“Crowdsourcing” Platform

Destination

Risk Evaluation

BICS Fraud Intelligence Repository

A2

B1B1

A2

2200+ Partners

CloudComm Core Business: Number

Plans & PricingPeriodic IPRS

Market Analysis


68% attempts to “NON” Premium Numbers

BICS Confidential

95%+ fraud attempts blocked proactively

Crowdsourced Intelligence impact on international frauds

2.1 billion+ euros saved for our customers

Intelligence from 100 new threats per day!

850+ Million

Fraudulent Attempts Identified

Proactively!

BICS Fraud Repository currently holds 55+ million fraud numbers

Intelligence from 450000+ fraud incidents

Customer case study: CPAAS service provider~500 K euros saved in 2 months

73776Fraudulent Call

Attempts Blocked!

70% - 85% traffic cost reduction per month post first 2 months

Case Study

Traffic Barred Ratio:

5.1%Wholesale Exposure

Prevented:

497K Euros

Traffic Cost Reduction:

80%

2 Months

Leading UCAAS Player



Learn more

About BICS initiatives against fraud as part of its secure Cloud Communications & Carrier offerings

International Fraud is a difficult problem to solve...

Last line of defense

Carrier partners like BICS can be very effective last line of defense

Collaborate

“Trust”, “Partnership” and “Collaboration” is the key – Arm twisting hurts everyone


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[email protected]

@BICSTelecom

@BICS_SA

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mobile experiences anytime, anywhere

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telecommunications fraud · [email protected] @bicstelecom @bics_sa as a leading...

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