Prevent and detect Fraud with Vanrise Fraud Management Solution

In a rapidly expanding fraudulent practice, telecom fraud is costing the sector up to $32 billion annually. Fraudsters continue to develop new schemes and prey on consumers and the communication networks they rely on because they see it as a low-risk alternative to more conventional forms of financial fraud. Our revolutionary fraud management solution at Vanrise assists telecom operators in thwarting fraudsters by quickly identifying and stopping network fraud in real time.

Below are the types of fraud that sectors are facing:

  • Fraudulent Balance Transfers: Misuse of functionality and processes that allow the transfer of balance/credit between accounts.
  • Subscription Fraud: This is probably the most common type of fraud using false or stolen credentials to obtain a telecom/ICT service subscription and avoid paying various bills.
  • PRS Fraud: Artificial inflation of traffic towards premium rate service numbers to attract higher settlement payments from a network operator.
  • Mobile Malware: malicious software like viruses, worms, and trojan horses designed to execute on any GSM/GPRS/UMTS device to access data or use services in an unauthorized manner to create a nuisance, causing network/device malfunction and for financial gain.
  • International Revenue Share Fraud: IRSF Fraud is the artificial increase of traffic to a revenue-sharing operator charging high rates and with whom the fraudster has entered into an agreement to share this revenue for any traffic generated by the fraudster. The fraudster’s goal is to amplify the traffic to its services/revenue sharing numbers at little or no cost to the fraudster.
  • Dealer Fraud: when dealers exploit flaws in partner agreements for their benefit by inflating sales volumes to claim fraudulent commissions.
  • Spamming: Sending large volumes of unsolicited messages via electronic media. The news may be promoting a product or service or propagating fraud, e.g., requesting that the recipient of the message to call a PRS number to claim a prize.
  • SIM cloning: This fraud involves cloning unsuspecting subscribers’ SIM cards to gain free access to all services.
  • Bypass fraud: SIM BOX fraud occurs when terminating an incoming international call on a telecommunication network as a national call without using the conventional routes dedicated to international traffic.
  • Roaming fraud: Using a GSM operator’s products or services on any GSM network outside a user’s home country without the intention to pay.
  • Inbound call bonus fraud: The abuse of offers that give prepaid customers credit bonuses due to incoming traffic or for recharging their phones.
  • Manipulation of Migration Processes: Fraudulent manipulation of processes used to migrate customer accounts from prepaid to postpaid and from postpaid to prepaid, primarily to avoid charging and bypass authentication processes.
  • IMEI reprogramming: International Mobile Equipment Identity belonging to a mobile phone handset is electronically reprogrammed / physically replaced with another IMEI to circumvent denying the listing of terminal equipment or to disrupt fraud or another intelligence gathering.
  • Call Forwarding: Avoid payment for services by manipulating and using features of a GSM network to make and receive calls billed to an account provisioned with call forwarding and diversion services.
  • Call conferencing: Use call conference services to facilitate fraudulent activity most commonly by running simultaneous calls to high-cost destinations, e.g., PRS & IRSF.
  • GPRS over billing: An opposing party randomly selects customers and sends unsolicited data to them. As GPRS is frequently characterized by a billing model based on the volume of data transmitted or received by GPRS subscribers, this unsolicited data could potentially increase the bill of those customers.
  • Hyper-Short Call Fraud: Exploiting weaknesses in an operator’s signaling capabilities, whereby the signal of a call that has been answered is not received by the originating carrier but is registered by the destination customer (a PRS Service Provider) who sends a signal back to claim a share of the revenue raised by the call. As the originating carrier will not have introduced a bill for the calls, they are exposed to all the payments to the PRS provider.
  • Wangiri Fraud: This practice involves getting the recipient to call back a surcharged number (Premium service) by hanging up after ringing once.
  • HLR tampering: Unauthorized access to an operator’s network Home Location Register/network switches, from internal or external sources, to compromise the operation of the equipment, launch denial of service attacks against the network, retrieve a subscriber’s authentication keys to make fraudulent calls, or to execute other fraudulent activity such as adding services, changing subscriber profiles, disabling services, etc., all of which circumvents billing and results in revenue losses to the operator.
  • Wi-Fi resale: A single consumer user, ordinarily paying a flat monthly fee, sets up a wireless access point and resells the service to persons living in their local area.
  • False answer: Normally used within a PRS fraud or IRSF, ‘False Answer’ is the use of a recorded message which gives the caller the impression that the call has not yet been answered, i.e., by immediately answering the call and playing a recorded message of a ring tone.
  • Proxy fraud: Persons are paid or coerced into taking out subscriptions under their name, using legitimate documentation. Proxy fraud usually occurs amongst transitory immigrant and itinerant populations. In many cases, the subscription is given to the fraudster in exchange for a fee or other commodities, such as drugs.
  • Refiling Fraud: Refiling is a type of Bypass Fraud that terminates international calls through a local interconnection (or dedicated trunk) of the destination Operator.
  • OTT bypass: routing international voice calls through VoIP using OTT service providers to terminate calls.

Fraudsters are skilled at hiding their identities. To conceal their true identities and goals, they will utilize card numbers and IDs that have been stolen along with every other trick in the book. Whether your telecoms company works with a local provider or an internet shop customer, this holds true. With Vanrise, you can communicate with your counterparts with the least amount of friction while learning as much as possible about them.

To collect information without interfering with your telco business clients’ customer experience, frictionless, invisible, and practical solutions must be used to prevent telecom fraud.

As a result, smoother business operations and lower rates of ID fraud, transaction fraud, and account takeover are all made possible by a robust machine-learning engine and complete risk management control.