Professional Documents
Culture Documents
Fraud Domain
Fraud Domain
Fraud Domain
November 2016
Fraud Domain
Objective
• Introduction to Telecommunications Fraud
• Categories of Telecommunications Fraud
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Fraud Domain
Introduction to Telecommunication Fraud – Fraud Definition
• Victims ?
• Consumers
• Businesses
• Communication service providers
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Introduction to Telecommunication Fraud – Fraud Triangle
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Introduction to Telecommunication Fraud - Cost of Fraud to the Industry
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Fraud Domain
Introduction to Telecommunication Fraud
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Fraud Domain
Introduction to Telecommunication Fraud
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Fraud Domain
Introduction to Telecommunication Fraud
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Fraud Domain
Introduction to Telecommunication Fraud
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Fraud Domain
Categories of Telecom Fraud
• Traffic Pumping Schemes – These schemes use “access stimulation”
techniques to boost traffic to a high cost destination, which then shares the
revenue with the fraudster.
• Schemes to Defraud Telecom Service Providers – These schemes are the
most complicated, and exploit telecom service providers using SIP trunking,
regulatory loopholes, and more.
• Schemes Conducted Over the Telephone – Also known as “Phone Fraud,” this
category covers all types of general fraud that are perpetrated over the
telephone
• Schemes to Defraud Subscribers - This is simply any scheme that involves
gaining access to someone else’s account to make free phone calls.
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Fraud Domain
Categories of Telecom Fraud- Traffic Pumping Schemes
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Fraud Domain
Categories of Telecom Fraud- Traffic Pumping Schemes
• One Ring and Cut (Wangiri) Fraud
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Categories of Telecom Fraud- Traffic Pumping Schemes
• SMS Spamming
• Bulk SMS to Subscribers
• unsolicited commercial advertisements
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Categories of Telecom Fraud- Schemes to Defraud Telecom Service
Providers
• IRSF Fraud
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Fraud Domain
Categories of Telecom Fraud- Schemes to Defraud Telecom Service
Providers
• Bypass Fraud
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Fraud Domain
Categories of Telecom Fraud- Schemes to Defraud Telecom Service
Providers
• Bypass Fraud
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Fraud Domain
Categories of Telecom Fraud- Schemes to Defraud Telecom Service
Providers
• False Answer Supervision Telecom Fraud
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Categories of Telecom Fraud- Schemes to Defraud Subscribers
• Subscription Fraud
• Distinction between “Cannot pay” and “No intention to pay”
• Probably the most widespread fraud type globally
• Also extends into the Mobile market place
• Multiple fraudulent applications for service
• Handsets sold - possibly abroad
• if bought in a country where heavily discounted and sold in a country where full price is levied....arbitrage
• SIM cards shipped abroad and heavily used
• maybe part of call selling scam
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Fraud Domain
Categories of Telecom Fraud- Schemes to Defraud Subscribers
• Subscription Fraud
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Fraud Domain
Categories of Telecom Fraud- Schemes to Defraud Subscribers
• SIM Cloning Fraud
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Fraud Domain
Categories of Telecom Fraud- Schemes Conducted Over the Telephone
• Account Takeover
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Categories of Telecom Fraud
• Roaming Fraud
• Types of Roaming:
• Inbound
• Outbound
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Fraud Domain
Categories of Telecom Fraud
• PRS Fraud
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Categories of Telecom Fraud
• Dealer Fraud
• Many operators employ resellers to help extend their reach. Unfortunately, unsavory
resellers can sometimes directly exploit these agreements. For example, some dealers
may simply falsify sales records to claim grossly inflated sales commissions. Other
examples include reporting sold SIMs as lost, reselling expired vouchers, and relaxing
subscription requirements to increase the volume of sales and thereby obtain
fraudulent commissions. These types of fraud can leave a trail of unpaid bills and
unaccounted-for usage
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Fraud Domain
Categories of Telecom Fraud
• Internal Fraud
• Internal fraud represents 8.2% of incidences but generates 40.3% of value lost which is
equal invalue of the following four types of fraud combined: roaming (11.4%), pre-paid
(10.8%),subscription (11.6%) and premium (13.2%)
• unauthorized credits and amendments;
• facilitating external fraud
• misuse of customer accounts
• inflation of commission
• data theft
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Fraud Domain
Categories of Telecom Fraud
• PBX Fraud
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Summary
• Introduced to Telecommunications Fraud
• Covered Categories of Telecom Fraud
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