Telecommunications Fraud Across The Globe
Telecommunications play a crucial role in our daily lives, serving as the cornerstone of our ability to stay connected and informed. However, amidst the convenience and utility it provides, there exist concealed threats that often go unnoticed. Telecommunications fraud, a shadowy presence, looms closer to us than we might realize.
In a world where connectivity is advanced, telecommunications fraud is a pervasive issue that transcends geographical boundaries, presenting a challenge that knows no borders. The global nature of telecommunications networks, which effortlessly link individuals and businesses across the planet, inadvertently provides fertile ground for fraudsters to exploit.
What is International Revenue Share Fraud (IRSF) and How It Works?
International Revenue Share Fraud, commonly referred to as IRSF, is a specific type of telecommunications fraud that primarily involves the abuse of international premium-rate numbers.
At the core of this telecommunications fraud lies the intricate international pricing structures established by telecommunications operators. In certain countries, these pricing structures can become exorbitantly high due to a variety of factors, including infrastructural deficiencies or political instability.
Exploiting these circumstances, fraudsters strategically focus on these specific countries and strike deals with local operators to distribute the earnings generated from calls with elevated tariffs.
In this process, scammers generate call traffic, often through the manipulation or imitation of phone lines, and subsequently initiate numerous calls to premium-rate numbers under their control. Through this process, they artificially inflate the telephone bills of the unsuspecting telecom operator or individuals whose phone lines they’ve compromised.
As a result, the telecom operator is left with the responsibility of settling the charges for these deceitful calls in accordance with international telecommunications regulations. The profits from these calls are then divided between the fraudsters and the local operators who are involved in the scheme. Unfortunately, the unsuspecting telecom operator, completely unaware of this arrangement, ends up suffering substantial financial losses.
IRSF: A Global Telecommunication Concern
IRSF has garnered increasing attention and concern within the telecommunications industry for several reasons. The monetary losses associated with IRSF are staggering, as fraudsters can accumulate vast sums of money in a relatively short time.
The complexity of IRSF schemes and the use of various techniques to obfuscate their activities make it challenging for providers to detect and combat this type of fraud effectively. Moreover, the global nature of the telecom industry means that IRSF can occur anywhere, making it a truly international issue.
There are various attack methods of IRSF, which including:
SIM Boxing
SIM boxing is a common IRSF attack where fraudsters use equipment to route international calls through local SIM cards, bypassing international rates and generating revenue.
Call Pumping
In this method, fraudsters manipulate call volume by generating thousands of short-duration calls, often to premium rate numbers, maximizing fraudulent earnings.
False Answer Supervision
Fraudsters manipulate the call setup process to falsely indicate that a call has been answered, allowing them to charge fees even when the call was unsuccessful.
Wangiri Fraud
Wangiri fraud, or “one-ring” fraud, involves calling a number and disconnecting after one ring to entice call-backs, often to premium rate numbers, resulting in charges.
PBX Hacking
Attackers gain unauthorized access to private branch exchange (PBX) systems, making international calls at the victim’s expense, sometimes using compromised passwords.
Combat Telecommunications Fraud with Neural Technologies’s Advanced Fraud Management Solution
To combat IRSF effectively, telecommunications providers must employ advanced tools and techniques. One crucial aspect of this battle is the implementation of anomaly detection and data analytics.
By closely monitoring network traffic and identifying irregular patterns and suspicious activities, providers can swiftly detect and respond to potential IRSF attacks. Additionally, educating employees and customers about IRSF and best practices for protecting against it can be invaluable in the fight against fraud.
Neural Technologies’ advanced Fraud Management solution utilizes advanced data analytics, AI and machine learning technologies, and real-time monitoring to detect and prevent fraud in real-time.
By analyzing vast amounts of data, Neural Technologies’ solution can identify anomalies and potential fraud patterns, allowing telecommunications providers to take immediate action and mitigate losses.
The rise of IRSF represents a significant challenge for telecommunications providers worldwide. To combat this type of fraud effectively, providers must embrace advanced fraud management solutions, employ data analytics, and prioritize education and awareness.
With the right tools and strategies in place, the telecommunications industry can work together to mitigate the impact of IRSF and protect their networks, customers, and revenue streams from the ever-present threat of telecommunications fraud.
Ready to safeguard your business against telecom fraud and protect your revenue? Speak to us today.
