How to Prevent Telecom Fraud in Real-Time
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The document discusses the impact of telecom fraud, highlighting significant financial losses in the industry, estimated at $29.2 billion in 2017. It outlines various fraud methods targeting service providers and customers, and emphasizes the need for real-time fraud protection and comprehensive billing solutions. Jerasoft and Telcobridges provide technology and services aimed at effectively managing billing processes and preventing fraud in telecommunications.
How to Prevent Telecom Fraud in Real-Time
- 1. An Introduction and Closer Look 1 June 2019
- 2. 2 Today’s Presenters: Alan D Percy CMO at TelcoBridges alan.percy@telcobridges.com Mike Stukalin VP of Sales at JeraSoft mike@jerasoft.net
- 3. 3 Agenda • Introductions • Impact of Telecom Fraud • Fraud Methods and Attack Profiles • Real-Time Fraud Protection • How to Implement Fraud Detection and Prevention • Where to Learn More • Your Questions
- 4. Billing Solution for Telecom Industry
- 5. JeraSoft is a passionate team of engineers focused on development and integration of highly productive Billing Solutions for Telecom (Mobile VoIP, Business Telephony, OTT, Wholesale VoIP and SMS) and IoT/M2M Providers around the world. Since 2005 JeraSoft has been putting together key insight and successful billing management practices, combining them with state-of-the-art web and telecom technologies. The result is a powerful platform the Telecom and IoT Providers can use to streamline Billing Processes and add value to their business. About Us
- 6. Solutions IoT / M2M Retail VoIP Wholesale VoIP OTT SMS Wholesale MVNO Business Telephony Mobile VoIP
- 7. Components An extensive software, allowing you to provide services like Enterprise Telephony, OTT, MVNO, End-user retail, etc. Retail Services This module contains Rates Generator and Rates Notifications features, allowing you to compose a rates list and run notifications. Dynamic Routing A feature that allows you to run your business more efficiently by providing automated management of your routes. Rates Management Jurisdictional Billing An extra module that supports domestic long distance calls in the USA— phone calls made outside a certain local call area and LATAs.
- 8. According to the Communications Fraud Control Association (CFCA) in their 2017 survey of telecom fraud loss, organizations and carriers were hit with losses of $29.2 billion in 2017. Cost of Telecom Fraud for the Industry Source: Communications Fraud Control Association (CFCA)
- 9. The Real Cost of Telecommunications Fraud Here’s how the top fraud loss categories reported by operators in 2015 to the CFCA shook out: Source: Communications Fraud Control Association (CFCA)
- 10. Fraudsters’ Targets Fraud against service providers. In this case fraud scenarios are more complicated and can possess SIP trunking, stimulated traffic, regulatory loopholes. Fraud against customers. This scenario assumes any case of gaining access to customer’s account in order to make free calls. Generally there are two categories to distinguish between major telecom fraud scenarios, accordingly to the fraudsters’ target:
- 11. Target: Service Providers Call transfer fraud Wholesale SIP trunking fraud False answer supervision (FAS) Location routing number fraud Multiple transfer fraud Call forwarding fraud Traffic pumping and related services International revenue sharing fraud (IRSF)
- 12. Target: Customers Telecom denial-of-service (TDOS) Vishing (Voice fishing) Account takeover, etc Callback (Wangiri) scam
- 13. Real-time fraud protection Before the call is connected Uses real-time patterns Works on per-call basis Scenario: 1. Alert notification 2. Specific call blocking Real-time VS Non Real-time Fraud Protection Non real-time fraud protection After the call is connected Uses statistics analysis Works on array of calls Scenario: 1. Alert notification 2. Client / Destination blocking
- 14. Double Fraud Protection The right combination of Billing platform and an SBC allows: ● Fraud prevention and protection for service providers. AND ● Fraud prevention and protection for end customers.
- 16. Abnormal expenses pattern scenario Allows to protect from unusual financial spending. Quality statistics control Monitoring and controlling call quality. Abnormal usage behaviour (geo) Enables unusual usage behavior protection connected with call destination. Balance usage and Capacity control The customer may set the limits for account balance, the calls will stop after the amount set will be spent. Allows to limit the number of calls from 1 account. Unusual behavior and patterns are analysed by soft switch. JeraSoft Billing Fraud Protection Scenarios
- 17. • Customers are protected against financial losses. • Service providers improve customer satisfaction and revenue retention while protecting themselves and end- customers from financial damage. • Today’s communications business can’t afford to operate without a comprehensive fraud protection. Benefits of Fraud Protection
- 18. Let us help you make the right choice for your Billing needs and Fraud protection scenarios UK+44 (203) 129-9126 US+1 (415) 520-7883 info@jerasoft.net www.jerasoft.net
- 19. TelcoBridges Inc. 19 Confidential Roll of SBCs in Real-Time Billing
- 20. TelcoBridges Inc. • Manufacturer of VoIP gateways and telecom solution platforms for carriers • Privately held • Founded in 2002 • Employees: ~35 • Headquarters: Montreal, Canada • Hardware & software R&D as well as production of its products in Montreal • Sales/Support offices: Poland, Turkey, Hong Kong • 24/7 technical support 20 TelcoBridges HQ
- 21. 21 IPRN Fraud Infographic International Premium Rate Numbers https://www.europol.europa.eu/activities-services/public-awareness-and-prevention-guides/telecommunications-fraud
- 22. Common Billing Interfaces Call Detail Records (CDR) • Record details of each call • Text file (CSV) • Batch processing • Not Real-time • No Authentication • No Ability to Route Calls RADIUS Confidential 22 • RFC 2865 and RFC 2966 • IP-based • Multiple Transactions per Call • Real-Time processing • Authentication per Call • Supports Forwarding/Routing • Session Duration Timeout
- 23. 23 Service Provider Networks Confidential Billing IPX PSTN IPX PSTN SoftSwitch Trunking Subscribers RADIUS Links Egress SBC or Gateway Ingress SBC or Gateway
- 24. 24 UCaaS Network • SBC Protects Service Provider and provides billing interface • Billing system detects and prevents fraudulent traffic SMB/Enterprise IAD/Router UCaaS Service Provider UCaaS Billing RADIUS Link SBC PSTN Where should we route this? Route to PSTN, no time limit I’d like to make a call…
- 25. 25 UCaaS Network • SBC Protects Service Provider and provides billing interface • Billing system detects and prevents fraudulent traffic SMB/Enterprise IAD/Router UCaaS Service Provider UCaaS Billing RADIUS Link SBC PSTN Where should we route this? Bad number, do not route
- 26. 26 RADIUS Authentication/Routing SBC or Gateway Billing Access Request (Called/Calling #/Session ID) Access-Accept (Route, Duration…) Accounting-Request (Start time, End time, Route…) When a Call Request is Accepted: Accounting-Response . . .
- 27. 27 RADIUS Authentication/Routing SBC or Gateway Billing Access Request (Called/Calling #/Session ID) Access-Reject Accounting-Request (Start time, End time, Duration=0) Accounting-Response When a Call Request is Rejected:
- 28. GEO Redundancy SBC or Gateway SBC or Gateway Billing Billing
- 29. TelcoBridges Portfolio Confidential 29 Signaling and Media Gateways TMG800 Virtualized Session Border Controller Software Support and Professional Services TMG3200 TMG7800
- 30. 30 SBC Product Positioning Tier 1/2/3 Service Providers and Enterprise Access, Peering, SaaS… CDR and RADIUS Support Commercial Applications Encryption & HA Support Live Support w/ 24/7 opt. $1/Session/Year
- 31. 31 Learn More: Download your ProSBC software: www.prosbc.com Frequently Asked Questions at: forums.freesbc.com Other educational webinars at: YouTube.com/telcobridges Q/A
- 33. Why JeraSoft? Providing Stable Billing Solution for 14 Years Serving 250+ Clients in 35 Countries Configured Specially for Your Business 100% Integration with Third Party Systems Industry Leading 24/7 Support Team Customized License Options and Components Full Training and Dedicated Initial Help New Feature-Rich Releases Throughout the Year
- 34. 34 Impact of Fraud • Fraud is costing the industry $17bn in lost revenues every year, with the proceeds being used to finance organized crime and terrorism. - Financial Times • The Department of Social Affairs in Ireland was defrauded to the tune of €300,000. - Ireland Comptroller and Auditor General Source: siliconrepublic.com/comms/telecoms-fraud
- 35. 35 Methods of Telecom Fraud • Billing Fraud • Subscription Fraud • Assaulting security weaknesses • Credit Card Fraud • Network Fraud • Bypass Fraud • Hacking IP Addresses • Call Forwarding and other attacks https://www2.deloitte.com/content/dam/Deloitte/us/Documents/finance/us-advisory-data-synthesis-In-fraud-detection-for-tsp.pdf