Security | Globe Teleservice

Security Scares – 5 Stories in the News About Fraud and Risks in the Telecom World

The telecom industry is growing rapidly and becoming a pivotal enabler of the world’s progress. Various factors, like the advent of 5G, remote and hybrid work, rising demand for high-speed data services, etc., are now seen as integral to this growth. Of course, the use of IoT, AI, and edge computing has also catapulted the telecom industry to the forefront in the business innovation stakes.

According to Statista’s research, $1.5 trillion will be spent worldwide on telecom this year alone. While this shows the size and scale of the industry, some concerns remain persistent. Key among those are concerns about rising fraud in the telecom industry worldwide. In 2021, the telecom industry worldwide lost about $40 billion due to fraud.

Let’s find out how fraud in telecom industry has shocked companies, customers, and lawmakers and why a robust fraud management system in telecomis necessary to curb them.

Five Stories of Fraud in Telecom World

To better elucidate the impact of telecom fraud, here’s a rundown of the five security scares that plagued the telecom industry:

1. Why Vodafone Is Issuing Warning About Wangari Fraud

Wangari is a Japanese term that means one and cut. In this scam, the scammers call a targeted list of subscribers and hang up the phone before they answer. They usually call at a time when the subscriber is less likely active. When the subscriber calls back on that number, the call is re-routed to an international premium number, and they are charged for the call.

Owing to the growing number of Wangiri frauds, Vodafone recently released an official security memo, warning users to exercise caution and avoid returning calls to unknown numbers. They added that users who are not careful about such fraud in telecom would be left with a hefty bill without realizing it.

2. How SIM Box Fraud Cost Telecom Companies $3 Billion

A SIM box is a hardware device. It allows operators to manage SIM cards from different service providers and access GSM gateways located in different places. Operators usually use it to route Voice over Internet Protocol (VoIP) calls through local GSM networks. This is done to avoid paying international calling tariffs.

Recently, telecom providers have witnessed an increase in SIM Box fraud. In this fraud, international numbers pretend to be local numbers and cost telecom companies the international call fees. According to the Communications Fraud Control Association (CFCA), SIM Box fraud cost the telecom industry $3.11 billion in 2021.

SIM Box fraud has emerged as the topmost telecom fraud in recent years. Besides losing revenue, telecom companies also lose their reputation as end users suffer from poor service quality. As such, they need to improve telecom security to reduce such fraud.

3. Scammers Steal Bank Information in the Name of 5G SIM Upgrade

As customers mull over upgrading to 5G, telecom companies and state police departments in India are issuing warnings about 5G fraud. In this fraud, customers receive text messages with a link to upgrade their SIM card from 4G to 5G. When the customer clicks on the link, there is a risk of hackers hacking the phone and stealing personal and bank information.

According to police departments, there have been instances of accounts getting emptied due to the 5G SIM upgrade scam. Telecom companies and police departments have clarified that upgrading SIM cards to 5G is not necessary. The 5G connection will work on compatible smartphones with the old 4G SIM.

4. How Mobile Users Lost $58 Billion in 2023 Due to Robocalls

Popularized during COVID-19, robocalls are automated calls where a recorded voice speaks instead of a live person. Robocalls are typically used for selling products, sending reminders, or providing information. However, scammers are also using them to steal money or personal information from customers.

According to Juniper’s research, mobile users lose $58 billion worldwide due to scam calls like robocalls. The report predicts that by 2027, the losses will reach $70 billion globally. North America continues to be one of the most affected regions.

5. IRSF Losses Have Increased Six-Fold Over the Past Decade

International Revenue Share Fraud (IRSF) is a type of fraud where scammers use illegal ways to access an operator’s network. This allows them to perform illicit activities, such as:

Increasing the volume of international traffic to high-cost destinations with revenue-sharing agreements
Generating revenue by using complex pricing structures for international calls and SMS traffic

Recent studies show that IRSF losses have increased more than six-fold over the past decade. Such fraud can also lead to revenue leakage for telecom companies and leave customers unhappy due to unnecessary financial loss.

It’s critical that companies use telecom security solutions powered by Artificial Intelligence (AI) and Machine Learning (ML). They can help detect IRSF patterns early and curb them on time. Otherwise, companies will likely lose more revenue and customer trust in the future.

How Can Telecom Companies Combat These Frauds?

Fraud in telecom industry is not new. However, it has become more sophisticated and widespread in recent times, wiping out unsuspecting customers’ entire savings.

These frauds are not only impacting the revenue of telecom companies, but they are also at risk of losing customers. Trust between customers and telecom companies is eroding due to issues like:

Poor call quality
Identity theft
Overcharging
Charging for unused services

The only way to prevent such fraud is by using an anti-fraud solution. A traditional fraud detection system for telecom may no longer be able to detect and solve such sophisticated fraud. These systems are more reactive than proactive.

What companies need is a modern solution that:

Uses AI and ML to detect fraud and anomalies in real-time
Makes proactive decisions to curb the identified anomalies

At Globe Teleservices, we have built a robust fraud detection solution called Armour Firewall Solution to safeguard customers from fraud like:

Wangari attacks
SIM farming
Robocalling
IRSF
International outbound call fraud

The solution uses AI/ML algorithms to detect such emerging threats and empower telecom companies to stop them before they escalate further. To know more about Armour Firewall Solution and other fraud detection systems in the telecom industry, contact us. We will help you prevent fraud, save your reputation, and improve the trust between you and your customers.

The Data Domain – Why Modern Telecom Companies Need Data Products

With advancements in 5G technology and the increasing use of smartphones, telecom companies are looking to the future with renewed hope. The global shift to remote working has further contributed to the growth of the industry, with reports suggesting the global telecom market to reach $3.4 trillion by 2025. While this growth is encouraging – and seems sustainable – it also brings about its own challenges, like causing a massive amount of data to flow through telecom networks.

The Data Imperative in the Telecom Industry

Like businesses across other sectors, telecom companies are also increasingly relying on data to run their business and enhance profitability. They need to harness the power hidden in their data to provide elevated customer experiences, an emerging and ever-present challenge for telecom companies. Telecom companies are also waking up to the need to expand their service offerings beyond merely providing communication services. They recognize that they must make the most of the customer data at their disposal to enable a new generation of revenue opportunities by becoming digital service providers.

So, why do telcos need to capitalize on growing volumes of data?

Let’s look at all the things data helps telecom companies achieve:

Optimize networks: Live data analysis can enable telecom companies to get insight into performance issues and take steps to proactively resolve them. Active network data monitoring helps optimize network potential, reduce congestion, and achieve strategic goals amid increasing scale and complexity.
Enhance customer experience: Active data monitoring enables telecom companies to identify when and where to expand capacity for enhanced customer experience.
Improve security: Constant data analysis enables telecom companies to identify security gaps and loopholes, enabling prompt action to prevent fraud and theft.
Enable and ensure compliance: With the telecom sector exposed to regular scrutiny, the right approach to data can also aid companies in highlighting compliance gaps and bottlenecks. This can help them make the right decisions and adhere to growing regulations in a rapidly-changing environment.

But if companies want to act on this data, they need to find a way to rapidly store, process, and extract useful insights from the available data and use them to make critical business decisions like how to personalize offerings to drive customer engagement, retention, and loyalty. And the best way to do this is by investing in the right data products.

What This Means for Telecom Companies

Leveraging data to make intelligent business decisions and driving the business to the pinnacle of success is on every telco’s mind. But wanting to make the most of data is not just about adopting generic big data analytics solutions. Telecom companies have to relook at their existing tech stack and invest in data products that have been curated keeping the precise nuances of the sector in mind.

Designing and implementing forward-thinking telecommunication solutions can enable companies to exploit data-driven technology products that keep business needs at the centre of development. By uncovering detailed insights into every aspect of the business, telcos can deliver with speed, respond with agility, and drive competitive advantage. For instance, the right data products can enable telecom companies to gain insights into network capacity, effectively planning for trunk and route management.

They can also identify fraudulent activities in the network like revenue share fraud, roaming fraud, robocalling, VoIP & SIP fraud, and more.

Telecom-specific data products ensure seamless integration with the existing business ecosystem helping companies achieve the best results.

How To Build the Right Data Products

Despite various market tools, standard solutions can’t address the telecom industry’s unique challenges effectively due to its specific requirements.

To overcome issues around cybersecurity, network congestion, and complex operational processes, companies need highly tailored data products that can cater to telecom-specific needs. These solutions leverage human intelligence with Artificial Intelligence (AI) to enable enterprises to streamline tasks across fraud detection, network congestion, and revenue assurance.

If you want to build such products, you need to:

Make the most of AI-based analytical frameworks to boost confidence in the application of data-driven actions and avoid human errors.
Invest in the right skillsets across different profiles to develop and deploy robust data analytics programs using a low-code AI orchestration workbench.
Look at ways to complement existing technology systems and implement scalable solutions to optimize ROI.
Utilize human intelligence in tandem with AI to improve real-time monitoring, making it adaptable to future changes in business variables.

The experts at our group company GTS Tech Labs have been curating highly-tailored data products for the telecom industry. An example is the advanced product – Grentor, enabling network providers to access real-time data and gain insights on revenue reconciliation, fraud, telecom traffic, and more. It delivers interactive dashboards allowing companies to identify frauds in the network. It can also be used to track and analyze consumers, monitor network usage, and uncover ways to drive better customer experiences.

Final Thoughts

As telecommunication companies experience unprecedented growth, there is a lot they can achieve by building the right data products. By combining AI with human intelligence and low-code technologies, telcos can get all the insights they need to make the right business decisions.

It’s time to invest in the right data products today to predict your peak network usage periods, uncover ways to reduce congestion, improve demand forecasting, plan for extra capacity, and constantly act on live data to drive profitability and prevent customer churn.

Talk to us to understand the next steps in how to go about doing so.

The Modern Technologies Coming Together to Elevate Customer Experience in The Telecom Sector

Delivering products and services to the customers of today in a way that best suits them has become a top priority of today’s telecom C-suite. But as customer journeys become increasingly complex and expectations surge, enhancing customer experiences is no longer straightforward.

Read on to know why customer experience has become so crucial and the role technologies play in driving better engagement.

Customer experience has become a competitive differentiator for the telecom sector

In this customer-centric era, enterprises are increasingly recognizing that their businesses must prioritize customer needs.

Customer loyalty is no longer dependent on brand value, product capabilities, or low prices as much as it is on quality of service. As the telecom industry evolves with new trends, norms, and standards, customer experience has become a crucial factor for telecom success.

With users increasingly working from home, they demand high uptime, reliability, and availability of networks. They are quick to change operators if they are not satisfied with the quality or level of service offered. Catering to customer needs offers telecom providers opportunities to meet expectations, deliver services promptly, and preempt challenges affecting customer satisfaction.

Building cutting-edge telecom products, optimizing services, and providing positive customer experiences enable telcos to enhance customer loyalty. A good customer experience also ensures significant economic and strategic advantages for telecom providers. They open doors to better cross-sell and upsell opportunities while introducing new streams of revenue for the business. In the long run, a good customer experience translates into happier customers, better margins, and a stronger market position.

But there are many challenges telecom providers encounter along the way

A high-quality customer experience guarantees better customer loyalty and retention. But for telecom providers, continuously acclimatizing to new and higher expectations from users streaming their favorite TV series on online streaming platforms isn’t easy. With any time, anywhere access and connectivity becoming a requisite, there are many challenges telecom providers encounter along the way:

Addressing security challenges: With telecom customers extremely susceptible to modern-day frauds and attacks, the many shortcomings in enterprise data security initiatives put customer experience at risk. As social engineering threats become increasingly prevalent, the absence of robust fraud detection solutions makes addressing security concerns a huge challenge.
Driving omnichannel consistency: Another challenge telecom providers face in enhancing customer experience is enabling and sustaining omnichannel consistency. With telecom customers using an array of channels for collaboration, work, and entertainment purposes, it becomes difficult to achieve faster, safer, and smarter communication.
Meeting regulatory requirements: The inability of telecom providers to meet evolving regulatory and compliance requirements also impacts the customer experience in the long run. Lack of authentication or tracking makes it difficult to prevent regulatory oversights during communications. At the same time, telcos face a tough time identifying unethical practices by telemarketers and/or recording their activities.

How modern technologies come together to make the customer experience better

New technologies facilitate seamless and consistent telecom customer journeys, allowing for personalized experiences and interactions across multiple channels.

Let’s look at 5 such technologies that can enable telcos to increase agility and provide the intuitive experiences that their customers have become accustomed to:

Automation: Automation offers several ways to boost omnichannel engagement and customer experience. Automating error-prone, mundane, and repetitive tasks can enable telecom providers to focus on strategic initiatives that improve customer acquisition and loyalty rates. From streamlining and tracking conversions to automating customer responses – technology works wonders to remove friction points and nurture relationships. In a February 2022 survey of global marketers, 43% cited improved customer experience as the top advantage of marketing automation.
Data analytics: Data analytics can play a huge role in personalizing customer experiences. According to a report, 90% of executives worldwide leverage data analytics to enhance their customer experience. In-depth customer analytics across social media interactions, past behavior, and current sentiments can enable telecom providers to identify the latest trends and expectations. By knowing what customers love, analytics can empower telcos to build the right products, offer the right services, and craft the right experiences. In the long run, this can help enhance customer lifecycle journeys for the best upselling and cross-selling experiences.
Digital document processing: The use of digital technologies for document processing can streamline the customer onboarding process. Instead of manually entering customer details into digital systems, telecom providers can make use of processing systems to feed and process customer information. This can enable quicker and more accurate information retrieval from customer forms. Intelligent character and pattern recognition using machine learning can further make the customer onboarding process smart, effective, and error-free.
Security: Embracing security solutions that are powerful without being intrusive will also go a long way in enhancing customer satisfaction. With the right security controls in place, providers can address evolving security challenges while keeping their voice channel and messaging environments secure. For instance, state-of-the-art fraud detection and analytics systems allow telecom providers to validate numbers, route calls, and prevent unauthorized access to sensitive data. This can also help them protect their network subscribers, proactively track frauds, and eliminate threats in time.
Blockchain: Blockchain technology is a great way for telcos to authenticate and track events to prevent regulatory oversights during communications. The technology can be used to identify telemarketers and record their activity across channels. Blockchain can also make audits simple and allow for real-time consent management – thus scrubbing unsolicited commercial communications (UCC) across messaging networks.

For telecom providers, engaging and seamless customer experiences provide the greatest potential to increase profits. If you want to shape the modern telecom landscape, you must integrate technology into your business operations and build the right foundation of quality, efficiency, and security.

A New Innovation for Improving Security

The mobile phone or smartphone is at the heart of the digital economy, and understandably so. In the age of digital transformation, mobile devices are elevating the convenience associated with real-time communication, online shopping, and digital banking.

As mobile-based services continue to rise, so does the need for identity-based security. According to a Javelin Strategy report, identity-related frauds cost companies $52 billion and impacted over 42 million citizens in 2022 in the US alone. Experian’s Global Identity & Fraud Report shows how the APAC markets are also troubled with identity fraud, with one in four consumers falling prey to the same.

Telecom operators do not simply approach mobile identity as the means to sign in and perform authentic transactions. Mobile identity is also the key to preventing identity fraud and validating user actions. Hence, in recent years, mobile identity solutions have been gaining more adoption in the telecom sector.

Overall, the global market for digital identity solutions is projected to grow to $70.8 billion by the year 2030. According to >Juniper Research, mobile identity solutions will be the source of identification for over 3 billion mobile users by 2024.

But what are mobile identity solutions, and how can they improve security? Let’s discuss.

What are Mobile Identity Solutions?

Mobile identity solutions are online verification tools that enable real-time user identification and verification. With their secure authentication layer, these solutions can secure all types of digital transactions happening on user-owned mobile phones. Additionally, mobile identity solutions can easily integrate with other mobile apps through APIs.

How do mobile identity solutions work? Through access to user data collected by the telecom operators.

This includes customer data such as:

Mobile number
First and last name
Registered address
Device location and type

Depending on the provider, mobile identity solutions provide a host of features, including:

Federated identity or a single sign-on service that uses the same digital identity across multiple systems and devices.
Multi-factor authentication or additional security layers for users’ access to confidential data and services on mobile phones.
Digital signatures for using the same identity across a range of services.
Service portals through which brands can send SMS to mobile users highlighting their products or service.

Next, let’s discuss the benefits of mobile identity solutions.

Benefits of Mobile Identity Solutions

With the increase in online fraud, telecom companies realise the importance of mobile identity solutions in user authentication. Here are some of the security-related benefits of using a mobile identity solution:

1. Authentic Transactions

In today’s digital economy, the mobile phone is driving both economic and social transformation. As more consumers switch to online transactions, companies need to provide them with a safe and authentic way to perform these transactions. Mobile identity solutions provide this level of security – along with the convenience of easy user validation and authentication.

2. Prevention of Digital Fraud

As more mobile data gets transmitted on the web, there are higher chances of data leakage or “bad” actors intercepting the data. In most online frauds, hackers are interested in stealing users’ information, like their credit card numbers, social security numbers, or even their medical information. Identity solutions provide users with guidelines on digital privacy.

3. Improves Brand Trust

With in-built call portals, mobile identity solutions enable companies to build brand trust among customers. Every call is now identifiable with the brand name, social media handle, and company logo. Besides improving brand recall, mobile identity helps customers identify unknown numbers or those without any digital identity.

4. Data Protection with Digital Identity Wallets

Digital identity wallets provide a safe and convenient tool for mobile users. They can use wallets to verify their identity, perform authorised transactions, and electronically sign documents. Mobile identity wallets also protect confidential information using secure protocols like two-factor authentication and one-time passwords.

5. Instant User Validation

Mobile identity solutions can quickly validate users on their registered mobile phones. They can streamline sign-up processes and user logins without any interruption. By authenticating online transactions, they can shorten the purchase cycle, thus improving brand trust and loyalty. Additionally, they can reduce customer churn by seamlessly integrating with third-party customer solutions.

Summing Up

In summary, mobile identity solutions provide a safe and convenient solution to authenticate and validate mobile phone users. In the telecom sector, mobile-based identity is quickly replacing traditional forms of paper-based identification methods. Identity solutions can counter the challenges of online fraud, identity theft, and data breaches.

With its innovative solutions and technology expertise, Globe Teleservices has served as a reliable partner for global telecom companies. Our tech-driven business solutions can meet their current and future business requirements. We offer a host of technology-related services in mobility solutions, cloud computing, international messaging, and managed services.

Looking for a reliable technology partner for your telecom solutions? Get in touch with us today.

The Must-Have Features of a Modern SMS Firewall

Across industries, SMS marketing is eventually outpacing several other mediums to become the most trusted customer communication channel worldwide. That’s why enterprises are increasingly relying on SMS firewall solutions to bolster their marketing abilities allowing them to bring in leads through messaging.

However, the dilemma for leaders lies in selecting the right SMS firewall system. Most leaders are unaware of the features they must evaluate before investing in an SMS firewall system.

To make it easier, this article looks at the top 5 features that a modern SMS firewall must guarantee to help enterprises succeed in their SMS-driven customer approaches.

Proactive Security

The number one feature that an SMS firewall must have today is proactive security analysis and threat mitigation in the SMS traffic an organization handles daily. From common spam texts to intelligent text phishing or fraudulent routing, the landscape of threats that today’s businesses face with their SMS ecosystem is enormous. For an SMS firewall system, they must ensure a safe and spam-free environment for both end-users as well as mobile operators.

In the past, the security of SMS firewall systems had to be managed manually, which necessitated the hiring of dedicated security engineers to cater to SMS traffic alone. Today, however, there are AI and ML-powered SMS firewall solutions, like the Armour SMS Firewall, that offer 360-degree network protection for SMS traffic to and from an organization. This helps prevent fraud and stop revenue leakage, ultimately contributing to rising profitability.

Global Connectivity

Modern SMS firewalls must not be restricted in usage support for local markets. Businesses with ambitious expansion plans internationally will find globally supported SMS firewall solutions to be a core asset in their market penetration efforts. SMS is a trusted communication medium for most consumers, offering brands an opportunity to expand into new markets through seamless SMS marketing campaigns.

An SMS firewall provides a critical digital environment and assets to ensure that the end-user gets the right message at the right time — thus, leading to better conversions.

Better A2P Monetization

It is estimated that the global market for A2P messaging will exceed USD 72.8 billion by 2025. Several new internet-driven businesses are increasingly leveraging A2P as an additional or even their primary revenue channel.

An SMS firewall must be able to offer uninterrupted support and adaptability to new business models that leverage the underlying A2P messaging service. From seamless integration with multiple systems involved in completing the revenue cycle to enabling efficient reporting, the areas of interest are immense.

Flexible Rules Engine

Consumers flock to new devices running different operating systems every now and then. It is impossible for businesses to smoothly manage their SMS marketing initiatives that are heavily dependent on end-user device characteristics.

An SMS firewall should work independently and offer flexibility in rule customization, new policy implementation, and device-agnostic SMS traffic management. Avoid delays in software or hardware updates on end-user devices to stay ahead of the competition. Moreover, the SMS firewall must support all standard rules and best practices that have been proven to be effective in SMS-driven marketing worldwide.

Ease of Use

Features offered by a modern SMS firewall become irrelevant if the user isn’t able to leverage it easily to drive campaigns. The usability of the SMS firewall system is a huge factor that should be evaluated before investing.

Since an SMS firewall forms a critical part of marketing, businesses should integrate the SMS firewall system into their strategies. Once done, they can deploy new configurations on the go from easy-to-use dashboards rather than manual and obsolete interfaces.

The Bottom Line

Protecting subscribers and telecom operators from fraud while enabling better revenue potential in existing channels are perhaps the two most important features from the list we have discussed today. Nevertheless, enterprises must strive towards investing in solutions that offer as many of these top five features as possible.

Alternatively, you can check out our Armour SMS Firewall, designed and developed for future-ready SMS-driven customer outreach experiences for businesses in any sector. Talk to us to learn more.

Blockchain – A Solution to Prevent Telecom Fraud

Revenue sharing fraud, PBX hacking, account takeover, bypass fraud, traffic pumping, subscription fraud – the types of fraud affecting the telecom sector are growing in number. In 2021 alone, telcos lost 2.22% or $39.89 billion of their revenue due to fraud.

Imagine having to deal with all of these frauds in addition to installing new equipment, expanding networks, and ensuring consistent service. Truly, running and managing a telecom business is not a walk in the park. But the right technologies in place can surely turn the tables on the fraudsters.

Fraud in Telecom – A Growing Deterrent

Fraud in telecom is probably as old as the industry itself. For many years, operators and providers just accepted the reality, either absorbing the losses caused by fraud or simply passing them on downstream. However, the occurrence and complexity of fraud are escalating day by day.

More than ever, unauthorized people are taking advantage of telecommunications companies using a variety of fraudulent practices conducted via:

Interconnect bypass that takes advantage of termination rate complexity to make cheaper phone calls
Revenue sharing by misleading users to make calls and pay for premium phone rates
Arbitrage by incorrectly routing international long-distance calls through a third country where call costs are cheaper
PBX hacking – Allowing impostors to exploit unsecured phone networks and take control of phone lines
Subscriptions and online store hacking using stolen IDs or credit card numbers
Traffic pumping, where deceitful local exchanges falsely state the number of calls to their networks to benefit from compensation fees
Account takeover, where online hackers steal user login credentials to create new accounts
SMS phishing to obtain personal information and use it to fake identity or steal money

The Role Blockchain Can Play

As one of the most transformative and widely-discussed technology trends of all time, blockchain carries the potential to completely disrupt the telecom sector. By encrypting data, increasing transparency, and establishing accurate identities, blockchain can boost IoT connectivity, streamline 5G services, and prevent telecom fraud.

As the impact of fraud begins to get out of hand, telecom operators are inclined to face unique fraud challenges – head-on.

Let’s look at the many opportunities blockchain offers for telecom operators looking to combat growing instances of fraud:

Ensure Subscriber Authentication and Tracking

In the telecom industry, there are many ways in which a subscriber’s identity can be compromised. Blockchain technology allows operators to link devices to a subscriber’s identity, carry out regular authentication via public keys, and encrypt digital wallets for safe payments. Such secure authentication helps build a clear picture of stakeholders, ensuring smooth and secure experiences for users.

Thwart Roaming Fraud

Detecting and responding to roaming fraud hasn’t been easy for telecom operators until now. Blockchain technology allows operators to implement a smart roaming agreement with designated nodes to constantly verify transactions broadcasted on the network. Every time an event is triggered, it verifies the information and accordingly executes the terms of the agreement.

Enable Real-Time Consent Management

Blockchain-enabled RegTech platforms that use DLT technology can enable real-time consent management. It thwarts Unsolicited Commercial Communication (UCC) across messaging networks, defends unsuspecting, and enables operators to efficiently deal with fraudulent calls on the rise.

Establish Accountability with Regulators

Telecom operators can use blockchain technology to establish much-needed accountability with regulators. Using a unified platform, telecom clients and telemarketers can register all stakeholders and connect with regulators to streamline communication and responsibilities.

Identify Telemarketers

With users inundated with numerous spam calls and messages each day, blockchain can help in the identification of telemarketing calls and get rid of them altogether. It allows telecom operators to verify and shortlist subscribers who have opted for such calls while preventing unauthorized calls.

Efficiently Deal with Stolen Devices

Telecom operators can store unique device or SIM data along with the customer profile in secure ledgers and instantly block stolen devices in the event of a theft. Since a single blockchain network will contain immutable information about all stolen devices, telecom operators around the world will more easily be able to find them.

Summing Up

As the telecom industry grapples with mounting incidents of fraud, blockchain offers the potential to nip fraud in the bud. It provides numerous telecom fraud solutions, including subscriber authentication, roaming fraud prevention, real-time consent management, regulatory accountability, telemarketer identification, and stolen device management.

With fraudsters becoming more and more adept at evading identification, blockchain technology reduces the likelihood and scale of attacks. It helps businesses vet and filter out stolen credentials, secure transactions, and protect business revenue.

At Globe Teleservices and our group company, GTS Tech Labs, we help telecom companies build the blockchain solution they need to keep the business running and the revenue flowing. As an innovative, forward-thinking organization that makes cutting-edge telecommunication products and solutions, we are committed to helping you deal with telecom fraud – without disrupting the customer experience.

The Security Imperative for Telcos Providing Enterprise Solutions

In the pursuit of digital transformation, there is a growing industry demand for enterprise solutions and services from the telecom sector. In the “new” post-COVID economy, existing enterprise solutions do not meet the changing market demands. And mobile apps like Facetime enable innovative communication capabilities, thus impacting the “traditional” telecom industry.

Hence, we are seeing more telecom companies offering enterprise solutions in the form of managed services, storage solutions, and small business services. The latest reports estimate that the telecom enterprise services market is expected to reach $237 billion by 2025.

With the continuous growth of 5G services and IoT connectivity, the telecom infrastructure and services could be targeted by hackers. A successful breach can seriously impact internet connectivity and compromise sensitive information.

In the face of cybersecurity challenges, communication service providers (CSPs) are looking at security-related services as an opportunity for revenue growth. In fact, for CSPs, the revenue for security services grew by a healthy 20% in 2020.

That being so, what are the major security challenges that telecom companies must address, and how? Let’s discuss.

Security Challenges in the Telecom Sector

For major economies, the telecom sector is often the “gateway” for cyberattacks. The growing use of telecom networks and sensitive information is highly attractive to cybercriminals. As online threats grow more complex, the telecom industry must develop higher resiliency against external and internal threats.

Here are some of the leading security challenges in the telecom industry:

1. IoT Security Threats

With over 16 billion connected devices, Internet-of-Things (IoT) networks create more entry points for smart hackers. According to recent reports, security cameras in home networks are the most vulnerable IoT devices, followed by smart hubs like Amazon Alexa.

2. Insider Threats

In the post-pandemic environment, a good portion of the organizational workforce is operating from remote locations. This has increased the number of unsecured networks. The challenge is that most employees are unable to detect insider threats.

Additionally, most user applications do not implement security measures like data encryption. Cloud-powered authentication (including biometric security) can protect user data from insider threats.

3. External Cyberattacks

Cyberattacks like DDoS and DNS attacks continue to grow each year. In 2018, telecom companies were the target of nearly 65% of DDoS attacks. Going by global estimates, DNS attacks exposed 79% of business enterprises in 2020. Additionally, reports state that the telecommunication sector was the most targeted industry for DDoS attacks in the first half of 2021. Recent ransomware incidents have been large and wide ranging in scope.

Telecom companies continue to use dated network protocols like SS7 (Signalling system 7), which make their networks vulnerable to external cyberattacks. The good part is that the majority of telecom companies have implemented security measures for SS7 attacks.

Besides these security challenges, telecom companies must address third-party risks arising from external parties like vendors, partners, hosting companies, and contractors. Attackers can access telecom infrastructures using third-party tools as the “backdoor.”

How can Telecom companies meet these security expectations? Let’s discuss it next.

How Telecom Companies Can Meet Security-Related Expectations

With millions of global customers, the telecom industry is probably the largest collector of customer data, including financial and personal information. Additionally, telecom companies are required to protect sensitive data under various regulations like GDPR (in the EU) and APPI (in Japan). Any compliance failure can result in heavy penalties and loss of business trust.

To fulfil their increasing security-related expectations, telecom companies can consider the following actions:

Protecting Sensitive Data

As discussed previously, the human factor is responsible for most of the insider threats. Using data loss prevention (DLP) solutions, telecom companies can limit human involvement and damage. Effectively, DLP solutions directly protect sensitive data. These solutions can monitor files with sensitive information and limit any data transfer.

Cross-Platform Security

Security solutions mostly focus on a particular operating system or platform. However, the reality is that any IT infrastructure in any telecom company comprises a mix of operating systems and platforms.

Cross-platform security solutions provide all-around protection across multiple operating systems and platforms. With cross-platform security, telecom companies can protect sensitive data stored in all IT environments.

Additionally, telecom service providers can implement a holistic approach to security across the following four key areas:

Telecom standardization process consists of secure protocols, storage, and algorithms.
Product development process includes securing the hardware & software components, development process, software updates, and version control.
Deployment process includes a secure network design, security parameter configuration, and hardening measures.
Operations process consists of securing operational procedures and monitoring the security performance, vulnerabilities, and external attacks.

Conclusion

As more telecom companies provide enterprise solutions, they must integrate the security aspect. However, there is no quick fix to safeguard applications and sensitive data from external threats. Telecom companies must go beyond basic measures like firewalls and anti-malware tools to address their security needs.

At Globe Teleservices, we are partnering with a host of telecom companies and empowering them to meet their security requirements.

We can help you achieve optimum efficiency. Reach out to us with your business needs.

The various aspects a call anti-fraud solution must cover

Security breaches and fraud are not new in the telecom industry. As technology gets sophisticated, hackers and fraudsters too get smarter. They are on the constant lookout for vulnerabilities and are relentless in testing firewalls for cracks and weaknesses. Scammers and fraudsters attack, take their profits, and leave before they can be stopped.

In 2021, total global telecom revenues stood at approximately USD 1.8 Trillion. But the amount of telecom revenue loss due to fraud stood at $39.89 Billion. Fraud losses increased by 28% or approximately USD 11.6 Billion between 2019 and 2021.

Voice fraud is one of the top inter-carrier fraud cases. Voice fraud burdens subscribers with huge bills and affects MNOs and their residential and commercial subscribers. Some of the common types of voice fraud are IRSF (International Revenue Share Fraud), False Answer Supervision (FAS), Number Hijacking, Interconnect bypass, and Roaming Fraud. Call Forwarding Fraud, Wangiri fraud (a Japanese term for one (ring) and cut), SIM Box fraud, and PBX hacking are some of the other kinds of voice fraud that are making the chamber of horrors for telecom operators.

IRSF (International Revenue Share Fraud)

IRSF fraud assumes a backdoor revenue-sharing agreement between an IPRS or a communications provider. The fraudster manipulates the telephone service and receives compensation for the traffic. IRSF fraud generates anything between $4 and $6.1 billion in damages.

Standard monitoring solutions fail to identify this kind of fraud easily as it is very hard to sift through large volumes of daily traffic to identify anomalies.

False Answer Supervision (FAS)

False Answer Supervision (FAS) can be of two types. The first kind is the Early Answer fraud where a call connection takes place before the subscriber answers the phone. The second kind is the Late Disconnect fraud where the call remains active and the billing clocks even after the subscriber hangs up.

Number hijacking is also another kind of FAS fraud. Here the fraudulent operator keeps the customer waiting for the connections for as long as possible or until the maximum call timer runs out.

Interconnect bypass or SIM Boxing

Interconnect bypass fraud allows fraudulent operators to profit from the spread between low retail prices for on-net and off-net calls and higher international interconnect rates. This fraud enables the unauthorized insertion of traffic onto another carrier’s network. It is also called SIM Boxing.

The fraudulent party replaces the expensive international interconnect with a cheaper, practically free, routing channel and pinches the difference.

Wangari Fraud

Wangari fraud is a call-back scam. Wangari is a Japanese term that means one ring and cut. The fraudsters give a missed call to unsuspecting subscribers to call back to fraudulent premium numbers. CSPs incur direct and indirect losses because of Wangari fraud.

However, the lack of timely threat intelligence and the lack of a platform to exchange data in real-time impede operator capabilities to identify Wangari Fraud proactively.

PBX hacking

PBX and VoIP hacking is when fraudsters hack into telecom networks and pump up significant traffic levels for an IPRS. PBX hacking is a common and well-known form of telecom fraud and can lead to enormous revenue losses. According to the Communications Fraud Control Association (CFCA), in 2019 PBX hacking was the number 1 telecom fraud method, causing a global fraud loss of $3.64 billion.

CDR-based anti-fraud systems cannot break active calls and hence are not well-suited to prevent PBX hacking. They also perform poorly with traffic disguised with statistical patterns. PBX attacks can last for hours and go undetected in the absence of the right anti-fraud systems.

Grey Calls

Grey routes have been giving telecom operators sleepless nights for decades. Grey calling routes bypass licensed carriers by terminating international calls onto domestic telecom networks using unlicensed and illegal telecom setups.

The illegal operators host their equipment at places where their calls can reach multiple cell sites for the calls to get widely dispersed. They also employ multiple SIM boxes, rotate SIM cards, manipulate calling patterns, etc. to outfox traditional fraud detection systems.

SIM Box fraud is illegal since the operators running these setups do not have the required government licenses. These networks not only lead to huge revenue losses but can also impact national security because these routes can be easily exploited by terrorists and anti-national elements.

The solution

Traditional fraud detection systems often do not provide the depth of scanning needed to combat the growing sophistication of telecom hackers and fraudulent agents. Telcos now need to be able to proactively prevent potential fraud by developing their capability to identify suspicious inbound and outbound traffic streams based on behavioural patterns and anomalous traffic.

Fraud detection systems that use technologies such as AI and ML make the telecom security perimeter more airtight. AI-ML-powered detection systems help detect fraud calls in real-time based on various parameters.

Parameters such as behavioural analysis (from a single Calling Line Identification), call volume, the time gap between two calls, number length, adjacent number checking, call distribution working and after working hours, and the number of unique destination numbers in a given period and consecutive attempt gap of a failed call attempt are some such areas to configure.

The right anti-fraud solution leverages machine learning algorithms for faster and proactive anomaly detection and navigating challenges like Interconnect bypass or SIM Boxing.

These solutions protect the subscribers from fraud, quality fluctuation, and surprise bills and can be fully configurable to meet specific business needs. AI and Machine Learning algorithms make proactive and continuous scanning of traffic routes possible and easily point to anomalous traffic.

In Conclusion

Voice fraud has been and shall continue to remain a lucrative criminal activity. As technologies advance, so does hacker and fraudster sophistication. A comprehensive anti-fraud detection system thus emerges as a critical investment to secure networks and revenue. By strengthening the security perimeter and establishing powerful firewalls driven by AI and ML, telecom providers can minimize fraud risks and prevent revenue and reputation leaks. Talk to us to see how to win against the fraudsters.

Why it’s Time for Telecom Companies to Modernize their Tech Strategy

Telecom companies have come a long way from the days when they provided basic telephony services. This sector is now a ~$1.5 trillion market that makes all communication possible. This sector is now providing internet services, mobile enablement, and network services and fulfilling the soaring demand for digital services. As customer demands evolve, this sector has to evolve and embrace new technologies too. It must modernize its tech strategy to leverage the multiple opportunities in the market and improve profitability while innovating to deliver greater value to consumers and businesses.

Telecom companies have identified the need for digital transformation to drive competitiveness in today’s complex business environment. However, legacy technology is severely impeding their capacity to pursue a digital-centric future with 70% of telcos struggling to integrate digital channels while others express concern over data security, short-term profit loss, and poor customer experience.

Updating legacy technology makes sense because telcos now must:

Leverage new, cutting-edge technologies to drive competitive differentiation

Giving legacy technology an overhaul is essential to drive competitive differentiation in a cut-throat business environment. Technologies such as AI, M2M, and big data have the potential to disrupt the telecom landscape and enable those operating in this space to improve their business opportunities, increase their customer base, and improve brand recognition opportunities in the face of rising competition from OTT platforms.

While a complete overhaul of the legacy systems might seem improbable at first, building a strategy that enables the gradual adoption of these technologies through applications and processes is a good starting point.

Identify new revenue streams

Increasing competitiveness demands telecom providers proactively identify and capitalize on new revenue streams. At the same time, it is equally important to identify and plug revenue leaks. Legacy technologies and systems are usually siloed and fail to provide a comprehensive 365-degree view of all revenue interactions.

Modern-day technology applications come to the rescue here and provide comprehensive, data-backed insights into performance, areas of improvement, and new revenue streams. This becomes essential since MVNOs are facing stiff competition not only amongst themselves but also from the rising proliferation of OTT providers.

Elevate customer experience

Driving elevated customer experience is another frontier to conquer for telecom operators be it by improving service and driving personalization or making the right product or service offerings.

Modern-day technologies, for example, can help telecom operators upsurge their revenues on SMPP Bulk Messaging, reduce operational costs, and enhance the customer experience. Using the right technology infrastructure, telcos can also elevate enterprise customer experiences by ensuring that the business connects with the customer more seamlessly.

Offering capabilities such as 5G, robust A2P messaging, or enabling RICH messaging also needs a technology upgrade as legacy technologies are not capable of handling the demands of these services.

Drive security and compliance

Given the increasingly complex regulatory and compliance landscape, telecom providers need to drive greater data security. That apart, telecom companies must also work towards improving their security posture to address grey routes and making the network safe as enterprises move towards hybrid work and mobile payments adoption accelerates.

Legacy networks and tech stacks are now unsuited to meet the needs of an expanding threat landscape. Network security attacks, for example, have been a point of concern and remain so in the face of rising cybersecurity threats. Network virtualization is in fact, imperative to thrive in today’s threat landscape to allow operators network slicing to separate network resources and guarantee greater security.

Proactive route testing, home routing, and re-routing capabilities are also essential to improve the security posture. It helps operators analyze the information exchange between two parties and identify discrepancies that reveal suspect routes and direct proactive attention to the same.

Address enterprise needs proactively

Enterprise needs are changing as the world of work continues to experience constant disruption. Digital transformation for telecom operators thus becomes non-negotiable if they want to improve their topline and fulfil the demands of the new normal.

Telecom companies now need to address enterprise unified communication needs along with the usual suspects of connectivity and messaging and develop their capabilities to provide greater customization across services.

Whether it is enabling e-KYC, improving security, providing customized billing, etc.- they need new technologies such as AI and ensure that their IT systems can adapt to the changing needs. Legacy technologies and systems, given their monolithic nature, make it harder to drive agility in today’s fast-paced business environment.

Telecom companies need to identify how they will integrate with legacy technologies to leverage the advantages that new technologies and digital transformation offer. Telecom companies have experienced the greatest challenge in a generation where they have to keep businesses and individuals connected while meeting unprecedented demand for connectivity. Moving along the path of digital transformation and updating the legacy stack is the only way forward.

Is It Time For The Next-Gen Option To OTP?

Two-factor authentication is now a staple in the business world when it comes to validating customer communications. Allowing businesses to verify user identity through two or more authentication mechanisms, the method has been helping in adding an extra layer of protection to any sign-in process and protecting the business against breaches due to lost or stolen credentials.

While receiving a code or OTP on a registered mobile device for one login or transaction has been one of the most popular authentication mechanisms, it is now time for the next-gen option to OTP: Flash Call!

What are the challenges associated with OTP?

When users try to log into an app or try to make a banking transaction, OTP has been the go-to choice for secure authentication. According to reports, SMS-based authentication revenue will reach$39 billion globally in 2022, representing 5% of total operator-billed revenue.

Although OTPs help adds an additional layer of security, they bring with them their own set of challenges. For instance,

OTPs are known to be inconvenient and not very user-friendly. Users who aren’t very tech-savvy often find the OTP process confusing, unnecessary, or even cumbersome.
OTPs demand a reliable cell phone signal as well as sufficient battery life, which when not guaranteed, can result in delivery failures.
Many times, due to poor network, users fail to receive the OTP or receive it very late, requiring them to reinitiate the authentication process all over again – causing a high level of frustration, especially with banking transactions.
Some OTPs that are sent to the mailbox also tend to be delayed or land in the spam folder, which again leads to lost access.
For apps or transactions that make use of 3rd party messaging providers, users are also likely to incur a per-text charge to access their OTP and go ahead with the authentication process.
When using a mobile application that initiates an OTP process, toggling between the app window and the SMS window isn’t always everyone’s cup of tea; there is also the possibility of the wrong code being entered by the user, which requires users to start over again.
Users who need to authenticate a login while travelling abroad often do not receive an OTP because they do not have the international roaming facility enabled on their device.
For users whose OTP device is lost or stolen, multiple login attempts by bad actors can permanently lock them out of their accounts.

That apart, SMS is also the target of fraud and prone to security issues created by routing through questionable providers and grey routes.

What is Flash Call?

As the latest method for two-factor authentication, Flash Call reduces the widespread dependency on OTP, while helping overcome issues about inconvenience, data security, and lack of user-friendliness. It uses voice – instead of messaging – for authentication and is a far more customer-centric and cost-efficient solution to authenticate users, helping verify a user’s identity – without involving an SMS code. Since it involves no user interaction, Flash Call has the potential to disrupt the highly established A2P SMS market.

For instance, the global messaging app WhatsApp is reportedly working on integrating Flash Call as an alternative to OTP. Instead of making users enter a one-time, 6-digit code that they receive by SMS, the new Flash Call feature will allow WhatsApp to directly make a call to their device and verify the phone number – without users having to take any action. Such authentication will not overcome all the drawbacks of OTP; it will also pave the way for quicker verification and improved customer satisfaction.

How does it help businesses?

Flash Calling authentication is expected to near 128 billion calls globally by 2026; here’s how the new mechanism can aid businesses:

Accelerate the authentication process: Unlike the time-consuming OTP process where users have to open their SMS application to check for the OTP and enter it to authenticate themselves, Flash Call automates this verification process – without users having to do anything. As an automatic call is made – and then rejected – and the last four digits are automatically inserted, the device is instantly verified – thus accelerating the authentication process.
Offer a richer user experience: Flash Call allows businesses to have a greater ability to customize the user interface, the overall user experience is richer and more engaging. Since users no longer have to go back and forth between apps, there is a considerable increase in user satisfaction, which, in the long run, can also lead to better loyalty and retention.
Improve conversion rates: Flash Call is also a great way to improve conversion rates. Since users are no longer distracted by receiving and entering one-time passwords, businesses can pave the way for automatic verification and ensure quicker user signup – which can result in improved conversion rates in the long run.
Enable better security: Flash Calls are also known to more secure and amenable to privacy. Since the mechanism cannot be intercepted or terminated by fraudsters, it results in a higher level of security. At the same time, for apps or transactions that are used across multiple devices, Flash Call will make it easier and safer for users to log in to each device separately.
Reduce operational costs: Businesses today end up spending way too much money running their business for activities that span marketing, online advertising, analytics, and more. Common 2-factor authentication mechanisms like OTP only add to these costs, especially in countries where operators charge high rates for SMS and phone calls. Flash Call is a great alternative to the expensive OTP, allowing businesses to save a considerable sum on the authentication process.

As a new technology that can be used to authenticate users, Flash Call is a great alternative to the traditional, costly, and ineffective OTP authentication method. Not only does it enable quicker and more efficient authentication; it also aids in improving the end-user experience through automated verification. Given the numerous benefits it offers over OTP, Flash Call might just become a hot favourite for commerce, payments, and telecom companies. When that happens, let us show you how a powerful new alternative to OTP could work!