Category: Telecom Fraud

Customer Communication Trends in the Evolving Telecom Industry

The telecom industry is undergoing a significant transformation, driven by the need to place customers at the center of its strategies. With advancements in digital innovation, telecom companies are focusing on offering experiences with human-centric interactions. This evolution is reshaping the customer experience, providing new opportunities for businesses to enhance their services and grow.

The Importance of Customer Experience in Telecom

Customer experience is critical for all, be it enterprises or operators in the telecom industry, which faces high competition and customer volatility. Technological evolution means services quickly become obsolete, leading customers to switch brands frequently. Ensuring a superior customer experience is essential to retain customers and stay competitive.

Here are the latest customer communication trends and what they mean for your future communication strategies.

  1. Digital Channels: The Backbone of B2B Communication

Customers increasingly prefer digital channels for communication, seeking quick and accurate responses without waiting on hold. Businesses using digital channels, such as voice, SMS, and chat apps, are ahead in providing efficient customer service. Rich Communications Services (RCS) is enhancing business-to-consumer (B2C) communication strategies, leading to more engaging and conversational experiences. As per Juniper’s findings, the active RCS user base is anticipated to hit 1.1 billion by 2024.

  1. Personalization: The Key to Customer Loyalty

Personalizing customer experiences is a powerful strategy for building loyalty. Telecom companies are developing customized service offerings, utilizing customer data analytics for targeted communication and mapping customer journeys to identify personalization opportunities. Tailored offers, relevant updates, and personalized marketing messages demonstrate an understanding of unique customer needs, fostering loyalty.

  1. Next-Gen Technology: Enhancing Interactions

Incorporating advanced technologies can significantly improve customer interactions and satisfaction:

  • Advanced CRM Systems:

Manage customer data and interactions effectively.

Ensure a seamless experience across various digital channels, including websites, mobile apps, and social media.

  • Data Analytics:

Understand customer behaviors and preferences to tailor communications.

  1. A2P SMS: A Pillar for Effective Communication

Despite the rise of rich media channels, SMS remains crucial in communication strategies. The worldwide A2P SMS market is expected to grow at a CAGR of 3.9%, reaching USD 96.9 billion by 2032. Rich media messaging (MMS and RCS) allows businesses to send more engaging messages, while omnichannel messaging strategies and AI enhance the effectiveness of A2P messaging campaigns by personalizing messages, segmenting audiences, and anticipating customer behavior.

  1. Conversational Channels – The Key to Engaging Interactions

Adding the right digital channels to your communication mix is essential for delivering conversational customer experiences. Voice, SMS, and chat apps are top channels for B2C communication. RCS is paving the way for future strategies, meeting the rising demand for conversational experiences. This has become crucial for enterprises planning to develop their omnichannel strategies, creating hybrid digital-physical experiences.

Conclusion

To perfect your communication strategy, assess current strategies to identify gaps and fill them effectively. Automating AI chatbots and adding flexible channels, like WhatsApp, can improve customer engagement. A cloud contact center can manage conversations across various channels, ensuring access to conversation history and efficient responses.

Customer communication in the telecom industry is evolving rapidly, driven by digital innovation and the need for human-centric interactions. By focusing on digital channels, personalization, next-gen technology, A2P SMS, and conversational channels, telecom companies can enhance customer engagement and stay competitive.

Enable innovations with Globe Teleservices to ensure your customer engagement goes from good to great. Perfect your omnichannel communication strategy today with our next-gen telecom solutions.

The Growing Necessity of SMS Firewall Solutions in Business Communication

In today’s digital landscape, A2P SMS is a rapidly expanding sector, with countless companies leveraging it to enhance customer communication, marketing and authentication process. Amidst this growth, SMS firewall solutions have become essential components of business strategies, driven by the increasing number of market players, subscriber complaints and regulatory pressures. A managed SMS firewall offers a comprehensive approach to control SMS traffic cost-effectively, through fraud prevention to protect subscribers from threats.

The Critical Role of SMS Firewalls

The global SMS firewall market is projected to reach USD 3.0 billion by 2025, spurred by security concerns and the significant revenue share of international SMS traffic. With growing enterprise demand for fraud detection, the necessity of SMS firewalls has never been more apparent.

Enterprises aim to expand and retain their customer base, build trust, and foster loyalty. However, threats like SMS spoofing, spam, and smishing undermine trust, potentially causing brands to lose customers permanently.

According to Statista, approximately 36% of global users have experienced SMS scams. The importance of an SMS firewall solution is underscored by the proliferation of grey routes and the escalating threat of fraudsters exploiting SMS networks. Grey routes, which lack commercial agreements between senders and mobile operators, lead to revenue leakage and damage brand reputation.

Combating Security Challenges with SMS Firewalls

Managed SMS firewalls employ high-performance scanning techniques to combat threats, scrutinizing every message, originator, source, and route. Through rule-based filtering and clear traffic segregation, SMS firewalls help with fraud prevention, enabling long-term capital gains.

Some of the frauds faced by Mobile Network Operators (MNOs) and enterprises include:

  • Artificially Inflated Traffic: Bots generate one-time PIN requests to create undue costs and benefit fraudsters.
  • Flubot: Similar to a flu outbreak, Flubot spreads through fraudulent links leading users to malicious sites, infecting phones with malware.
  • Smishing: SMS phishing deceives consumers into revealing sensitive data.
  • Grey Routes: These routes bypass MNOs’ charging systems, resulting in revenue loss and leaving users vulnerable to privacy risks.
  • SMS Trashing: Unlike the other frauds, this type targets businesses and organizations, charging them for undelivered messages.
  • SIM Farms & SIM Boxes: This type of fraud utilizes a large number of SIM cards to send illegal messages.
Securing the Future of Enterprise Messaging

In the highly regulated A2P SMS sector, security has become a crucial differentiator for carriers aiming to protect their business communication, safeguard subscribers, and boost A2P revenues. Implementing a robust SMS firewall solution provides bulletproof defense against a wide range of attacks. Proactive measures, including machine learning, cloud-based deployment, fraud response frameworks, and comprehensive reporting mechanisms, are vital to combating fraud. This helps prevent revenue leakages, ultimately securing trust and enhancing experiences.

To safeguard your network and ensure innovative, secure customer communications, get in touch with us to deploy our next-gen AI-capable SMS firewall, Armour. Enable innovation #ei and keep your customers safe with our robust network security solutions.

For more information on our A2P firewall solution, read to know how we have helped Tigo Tanzania, part of the AXIAN telecom group, to tackle frauds in their network, leading to revenue losses.

 

The Future of Business Communication Why CPaaS is a Game Changer

As customer expectations continue to rise amidst increasing business costs, the quest for efficiency, and privacy challenges, companies face a crucial question: what do customers want right now? How can brands personalize, reach, and deliver communication that is interactive and engaging? Customers today demand fast, consistent, and personalized interactions every time they engage with a company. They seek exceptional products and services and show loyalty to brands that deliver. This makes it pivotal for enterprises to use Communication Platform-as-a-Service (CPaaS) to ensure seamless experiences.

What is CPaaS?

CPaaS, or Communications Platform as a Service, refers to cloud-based platforms that allow businesses to easily integrate real-time communication capabilities into their existing applications. This means you can add voice, A2P SMS, video, chatbots, email, and other functionalities into your business’s communication stack.

These platforms typically offer communication APIs, including:
Messaging APIs: For transactional and marketing messages, reminders, alerts, and two-way conversations.

  • Voice APIs: For seamless global voice calls.
  • Email APIs: To effortlessly send, receive, and track sent emails.
  • Verification APIs: For a more secure customer journey.
  • Video APIs: For top-notch in-app video experiences.

Additionally, CPaaS offers advanced features such as bots, live agent interactions, campaign management, and analytics.

The Digital Transformation with CPaaS

The future of customer engagement is digital. For many, this means turning to CPaaS to improve operational efficiencies and customer support. From conversational AI to various messaging platforms and social applications, CPaaS helps brands reach their customers through their preferred channels. This is crucial as contemporary consumers prefer real-time interactions tailored to their preferences and accessible through their chosen communication channels.

As per experts the CPaaS industry will surpass $34 billion in sales by 2026.Gartner also predicts that by 2025, 95% of global enterprises will use API-enabled CPaaS solutions to boost customer engagement.

How CPaaS is Transforming Businesses
  • Real-time Engagement: Engage with customers at the moment they need you, transforming interactions into opportunities.
  • Customized Communication: Leverage customer data to create relevant and personalized communications.
  • Efficiency and Precision: Conserve time and resources with streamlined processes.
  • Informed Decisions: Use collected customer data to make informed decisions.
Impact of CPaaS on Modern Business Communication

CPaaS is a versatile solution that embeds real-time communication channels directly into business applications using APIs, SDKs, and documentation. These capabilities include:

  • Messaging: SMS/MMS, toll-free, OTT channels (like WhatsApp and Messenger), and multi-party, multichannel conversations.
  • Voice Calling: VoIP, PSTN, and SIP trunking.
  • Video Calling: P2P, group rooms, and interactive livestreaming.
  • Email: Transactional and marketing emails.
  • Verification/Identity: One-time passcodes, strong customer authentication, and line-type lookup.

CPaaS bridges the gap between businesses and customers, facilitating interactions where and when they bring the most value to the customer experience. This omnichannel automation is beneficial serving industries such as healthcare, nonprofits, retail, real estate, travel and hospitality, education, insurance, and banking.

Agile, Meaningful Customer Communications

CPaaS has revolutionized the communications landscape, enabling brands to provide flawless, always-on customer interactions on their favorite channels. With best-of-breed solutions for messaging, voice, email, video, verification, and more, Globe Teleservices is poised to help businesses create a robust, scalable ecosystem for meaningful conversations.

Ready to learn more about how we enable innovation #ei through our CPaaS+ solution? Discover why Financial Times and Statista recognized us among the High-Growth Companies Asia-Pacific 2024. Dive into our platform and see how we can help manage and improve your customer engagement.

(link to the press release: https://globeteleservices.com/globe-teleservices-recognized-among-the-high-growth-companies.php)

 

The Rising African Digital Economy And The Role Of Telecom Players

For long, the African continent has not been included in the so-called growth engines that have been credited with driving progress. However, the tide has turned. Over the last few years, the region has finally found a true enabler of growth – digitalization. Africa is witnessing a rapid adoption of digital services in all areas. From banking to education, eCommerce, and entertainment, the number of digital-savvy users is growing.

Help, guidance, and resources have poured into African nations courtesy of several global organizations as well as developed economies in the slipstream of this digital awakening. The investments have gone mostly into enabling resources such as high-speed internet. Today nearly 36% of the African population has access to broadband internet. A decade ago, this was in single digits.

Let’s look at this movement more closely.

From laggards to leaders

While Africa was significantly late in appearing on the digital economy radar, that did not stop it from beating all odds to emerge as a leader today. This is especially true in some areas. Take, for example, digital payments. McKinsey estimates that the African e-payment market will grow by 150% between 2020 and 2025.

Countries like Nigeria, Kenya, and others are witnessing their digital transaction volumes doubling almost every year. Citizens are becoming more aware of the benefits of using digital payment mechanisms. A vast population that was outside the traditional banking systems is coming aboard now to enjoy extraordinary benefits.

This is an inspiring journey and can set precedents for other regions to follow. Most African nations are now focused on creating a welcoming environment for fintech innovations in their markets. These innovations are those that can break barriers to the adoption of new-age financial instruments by the masses.

The journey is not without challenges

While sectors like banking are showing promise, the African continent does have some very basic challenges. It is estimated that nearly 900 million people in Africa are still not connected to the internet. For those who have managed to hop onto the internet bandwagon, businesses are facing challenges in improving service experiences. From physical limitations created by irregular power supply to security threats in cyberspace, there’s quite a journey to endure before success.

The role of telecom in Africa’s digital maturity

We have already seen the number one problem that stands in the way of making Africa a competent force in the digital space is poor connectivity. More Africans need to become connected to the internet at affordable rates. Moreover, it is equally important for newer digital business services to penetrate deep into such untapped markets seamlessly and securely. In this context, telecom players can play a central role in bridging the gaps on the road to digital maturity in the African market.

They can bring the much-needed connectivity that will boost the online population figures. Additionally, telecom companies can transition into trusted enablers of digital services by providing a foundation for other businesses to build on top of. In other words, telecom operators have the opportunity of a lifetime to radically transform a region that is poised to be the next big international growth market.

How can telecom companies be the flag bearer of digital innovation in Africa?

Let us explore the top 3 ways in which telecom businesses can empower major changes and be a part of Africa’s most anticipated growth journey:

Create a new internet population faster

Telecom companies play a key role in helping more people get online on the continent. While faster internet services and phone networks are important areas, telecom operators must build a seamless customer acquisition strategy as well. A major hurdle in this strategy is getting people on board faster without complications. This is where telecom companies can leverage solutions like eKYC to minimize friction and get things done within the quickest timeframe possible.

Eliminate fraud

Telecom companies can ensure that they prevent fraudulent engagements in their networks. It can use platforms such as Armour to ensure that spam, fraudulent SMS created with SIM farming, IP-BX frauds, etc. are prevented from making any presence in the business.

Support digital business growth

Businesses must offer seamless digital services at scale to impress users and attract new customers. However, with the rise in digital consumption, there will be a major uptick in the number of cyber threats as well. We have seen rising instances of fraud and identity theft resulting in people losing money considerably. Telecom companies can truly help create a difference in this scenario.

By deploying tools like Authentrica, enterprises can use telecom networks as a major source of verifying the authenticity of users. From multi-channel authentication to Flash Calls, it becomes easier to identify and remove threats before they unleash damage. 2 major benefits could accrue here. They help in avoiding transactional vulnerabilities in the network. At the same time, they allow businesses to quickly on-board new customers with genuine credentials through real-time authentication.

The bottom line

Africa will be a land of opportunities for the digital community and a growth engine of the world in the coming years. Telecom players can be key catalysts of that revolution. They can help businesses of all kinds tap into this emerging market. In this journey, telecom players, need access to the right tech that can help in building an enabling ecosystem that can also be monetized. This is where our suite of offerings can help. Get in touch with us to know more about our Africa story.

Voice Managed Services – The Next Big Opportunity For MNOs?

Gone are the days when Mobile Network Operators (MNOs) relied on voice calls and SMS to generate revenue. The telecom industry has witnessed a dip in revenues from voice calls and SMS in the last few years.

Voice traffic decreased consistently after peaking in 2014. According to Tejas Sawant, the VP of Strategic Partnerships at Globe Teleservices, increased smartphone adoption is responsible for this plunge.

Besides the slowdown in voice traffic, MNOs are also facing other issues, such as:

  • Telecom fraud

The MNOs lose over $32 billion annually due to increasing telecom fraud, which has decreased customer trust.

  • Revenue leakage

International Revenue Sharing Fraud (IRSF) is another fraud leading to revenue leakage. In IRSF, the fraudster routes calls and messages to premium services or destinations with high termination charges. By exploiting the revenue-sharing agreement, the fraudsters receive a high revenue share causing telecom operators to lose money.

  • Cash flow management

Sometimes, MNOs face challenges in monitoring the credit limits or sending invoices and receiving payments on time. These problems impact the cash flow and pose difficulties in generating revenue.

  • Interconnect billing problems

Sometimes, MNOs face interconnect billing issues, such as inaccuracy in the settlement process, overcharged invoices, and operational inefficiencies. Since MNOs generate over 50% of revenue through interconnect agreements, these complexities often lead to cash flow problems.

There is also the fear of an increasing commoditization of basic services like voice, causing a lack of differentiation, customer loyalty, and poor profit margins. Problems like these lead to revenue loss, poor call quality, and disgruntled customers.

One way to solve these challenges is with Voice Managed Services.

What Is Voice Managed Services?

Managed services is a practice of outsourcing the responsibility of managing processes and functions of the MNOs. It helps them streamline operations, improve service quality, and reduce revenue loss.

A managed services provider oversees everything, from stopping revenue losses to preventing fraud and managing daily complexities like renewing roaming agreements. They do the day-to-day heavy lifting to free up the internal teams to focus on core business.

How Can MNOs Benefit from Voice Managed Services?

Here are a few benefits of collaborating with managed service providers:

1. Improve revenue assurance

Managed service providers streamline the billing cycle, invoicing, and payment processing. They monitor the existing credit limits and revenue streams to improve the revenue assurance processes. This helps MNOs establish and manage a steady cash flow.

2. Manage frauds

Managed service providers possess the tools and capabilities necessary to detect and prevent fraud. Here’s a sneak peek of what they can do:

  • They provide Artificial Intelligence (AI) and Machine Learning (ML) solutions to help MNOs detect fraud and spam efficiently.
  • They examine Call Detail Records (CDRs) to identify common patterns and anomalies, indicating potential fraud.
  • They monitor the network traffic using AI, help MNOs identify fraudulent activities and unauthorized traffic to protect the network.
  • They develop comprehensive fraud detection strategies that allow MNOs to take proactive measures and minimize their financial losses.

3. Increased focus on strategies

MNOs are often caught up in adhering to regulations, preventing fraud, and managing day-to-day operational complexities. It leaves them with little time to focus on growing their business. Managed service providers can address these concerns with their expertise and advanced technologies like AI-based fraud detection solutions. This allows the MNOs to focus on their core competencies, enable innovation, and find new revenue streams.

Challenges In Using Voice Managed Services And How To Overcome Them?

Although the MNOs benefit from managed services, there are a few hurdles to overcome.

For example, MNOs must sensitively tackle concerns like human resource displacement.

They must ensure the existing employees are looked after even as they collaborate with managed service providers for value-added services.

Additionally, managed service providers cannot follow a one-size-fits-all approach to building strategies. Every region follows its voice service regulations. For example, voice call services are highly regulated in Europe, while bypass activities are common in Africa.

Thus, they must consider these unique regulatory challenges while developing strategies.

To overcome such hurdles, managed service providers can consider developing modular service models for MNOs. These models are tailored to meet the specific needs and priorities of MNOs. For example, the MNOs can decide what part of business they want to prioritize while engaging with the service provider. This approach helps them better understand their partner and build trust over time.

Conclusion

Undoubtedly, managed service providers are a boon for MNOs looking for strategic partnerships with experts who manage operations.

They enable MNOs to focus on innovation by handling regulations and complex tasks and freeing up their time and resources. They streamline operations, enhance customer experience, and prevent revenue leakage.

It can help MNOs overcome troubles like decreasing demand for voice calls, increasing telecom fraud, and focusing on growing business.

There are challenges like region-specific regulatory issues and human resource displacement.

However, a modular approach and reskilling can help overcome these challenges and build sustainable relationships with providers.

At Globe Teleservices, we work with MNOs worldwide to improve their voice communications.

We leverage AI/ML-based technologies, direct interconnects, and high-quality international routes to manage client’s risks, enhance business, and prevent fraud.

Contact us to learn more about how you can grow your business in this hyper-competitive environment without worrying about complexities.

Anti-fraud Solutions in A2P SMS – Latest Trends, Threats, and Solutions

At the recent MWC Barcelona 2024, SMS fraud was a popular topic of discussion. In several panel discussions and other engaging sessions, expert speakers and industry pioneers delved into the security challenges of mobile communications. One enduring concern was the need for recalibration to end vulnerabilities in messaging systems.

So, what factors are behind this rise in sensitivity to SMS fraud?

In today’s business world, A2P SMS is an ever-growing trend. A2P SMS is leveraged by brands for sending marketing content, product notifications, alerts, reminders, and more. While this type of messaging is known to be far more reliable and effective than traditional emails, they are also becoming highly susceptible to fraud. From malware to phishing and spam, these threats have far-reaching impacts on mobile operators, including poor customer experience, plummeting revenue, and diminished brand value.

Read on as we delve into the common risks in A2P SMS and the various anti-fraud solutions you should adopt to steer clear of threats and attacks.

The Evolving A2P SMS Threat Landscape

Protecting business and customer data is a top priority for most modern companies. Yet, in a bid to drive better engagement and accelerate transactions, many organizations use A2P SMS to share important information. With benefits such as instant delivery, wide reach, and cost-effectiveness, A2P SMS acts as an extremely reliable and scalable communication channel. Analysts expect the global A2P SMS market to be worth $89.3 billion, driven by the rising proliferation of mobile phone users, mobile marketing, and e-commerce.

But as A2P SMS grows, messaging fraud is also on the rise. This communication channel is being seen as something of a soft target for attackers to launch several types of phishing and spoofing attacks.

  • Scammers use A2P SMS to lure victims to fake websites and reveal personal information such as passwords, PIN codes, bank account numbers, and more.
  • Via SS7 attacks, fraudsters can take advantage of vulnerabilities to perform malicious activities such as data theft, text interception, or location tracking.
  • They can manipulate sender information to make them look legitimate and deliver links to malicious websites.
  • Bad actors can infect A2P SMS’ with malware or viruses that can compromise the security of mobile devices and result in unauthorized access to sensitive information.
  • Fraudsters can also use A2P SMS to send unsolicited messages offering subscription services, tricking recipients into unknowingly subscribing to costly services.
Evaluating Popular Anti-fraud A2P SMS Solutions

As a business that relies heavily on A2P SMS, protecting yourself against threats requires you to implement certain security measures. Here are some anti-fraud solutions you can invest in to thwart A2P SMS attacks:

  •  Blockchain-based Data Encryption

In the realm of A2P SMS, Unsolicited Commercial Communication (UCC) is a major headache for most telecom operators. In addition to causing unnecessary frustration for users, it also increases the risk of malware, phishing attempts, and scams. Telecom operators can use blockchain-based regulatory technology platforms to register enterprise clients and telemarketers on a unified platform.

By offering access to the regulator, they can establish accountability for each event of A2P communication while blocking UCC across messaging networks. Via real-time consent management and scrubbing, these platforms can help in securely storing user, entities, and MNO data using DLT properties like immutability and encryption. Acting as a true ‘zero trust’ platform, blockchain technology can restrict stakeholders from changing any past data in any block and safeguard the business and its users against attacks.

  •  Analytics-driven Fraud Detection

As operators struggle to combat the risks of A2P messaging, analytics-driven fraud detection platforms can help identify and prevent fraud. By monitoring SMS data in real-time, these platforms can detect fraudulent activities and pave the way for effective threat detection and remediation.

Telecom regulators can view quality and fraud data over a single dashboard. They can collect raw telecom traffic data from telecom network operator systems and use proprietary AI/ML algorithms to spot patterns and network vulnerabilities.

  •  SMS Firewalls

SMS firewalls are a popular mechanism to protect mobile networks against SMS-based attacks. These firewalls help block fraudulent activities across all points of traffic origination. Employing AI/ML models, they can monitor real-time networks using signaling rules, detect anomalies in traffic patterns, and generate new rules for unidentified frauds.

Via real-time reporting, they can present a statistical view of all SMS transactions including incidents of fraud, and enable operators to allow/block/ignore traffic. Such real-time updates on global traffic patterns also enable the platform to generate its blacklisted content and sender types for an improved and safe user experience.

Enable Seamless and Secure Global Messaging with Globe Teleservices

The digital communication landscape is undergoing a significant transformation, with A2P SMS poised for unprecedented growth. As businesses look to exploit this mode of communication for customer engagement, they must also be aware of the many risks and invest in solutions to mitigate these risks.

Looking to securely employ A2P SMS to deliver instant messages to customers, widen reach, and boost engagement? Learn how Globe Teleservices can secure this communication channel, grow subscribers, and build brand loyalty. Explore our anti-fraud A2P SMS products and solutions for seamless and secure global messaging.

The Unseen Dynamics: Fintech and Telecom’s Subtle Integration

Technological advancements are accelerating innovation across the fintech industry. A collaboration between both the sectors is driving economic transformation by bridging the gap between digital connectivity and financial inclusion.

Collaboration between telcos and FinTechs in Africa is an inspiring example. Telcos not only provide calling services and mobile reception, but they are also revolutionizing the way this economy accesses and uses financial services. FinTechs, simultaneously,  are targeting the telco’s large customer base for greater synergy. The Digital payments market in the MENA region is estimated at USD 226.53 billion in 2024 and is expected to reach USD 380.86 billion by 2029.

The evolving role of telcos in bridging the digital divide

Telcos are becoming fintech providers. They are making finance accessible to the underserved by turning mobile phones into virtual wallets. Many telcos in the African region are now offering their own digital currencies and add-on services. Offerings like MTN Mobile Money, Vodacom M-Pesa, and EcoCash, offered by Econet are transforming how people manage their finances. These currencies are now being accepted by retailers, supermarkets, and even utility companies. Users can now conveniently send and receive money, access loans and savings, pay bills, etc. right from their mobile phones.

Millions of people who previously had limited options to access banking services are now gaining access to the same through the operators.

The rise of new business models

Telcos and FinTechs are re-visiting their business models to expand service offerings, diversify revenue streams, increase competitiveness, and influence competitiveness in this dynamic industry.

This positively impacted customer experience by allowing customers to make transactions, transfer funds, and manage financial services easily from their mobile phones. Apart from this, mobile banking allows customers to manage their bank accounts through calling, text messaging or WhatsApp for quick on-the-go status updates.

Lending and insurance services are other areas where both the industries have come together to provide easy access to traditional banking services for all. These leverage the robust data sets available with telcos and tap their access to real-time messaging channels to create intelligent and scalable ecosystems. This drives actions like credit rating and real-time analysis, through powerful monitoring and reporting.

Fintech providers who specialize in cross-border payments and telcos are also collaborating to facilitate international and domestic remittances through digital channels. In all of this, telcos are playing a prominent role in developing digital identity verification and Know Your Customer (KYC) processes.

Driving the future of FinTech

We have witnessed the rise of internet banking, mobile banking, and mobile payments and have seen them become an integral part of our lives. Mobile Network Operators (MNOs) are playing a pivotal role in securely facilitating payments from anywhere in the world.

This telecom infrastructure also plays a key role in enabling the security of banking data. Secure networks, reliable connectivity, and speed of telecom networks are crucial to expedite the future of the fintech revolution.

Telecoms are now making investments in network infrastructure, including 5G networks and edge computing, etc. to enhance data transmission speed, and enable fast deployment of fintech solutions.

Such partnerships are aiding the fintech sector in expanding the reach and capabilities of their solutions. Integration of technologies such as AI, cloud, and advanced analytics has further enhanced convenience for this tech-savvy generation. This collaboration is driven by the increasing demand for quick and seamless experiences, which are the determining factors for today’s young customers.

Telcos are powering fintech innovation by providing access to cloud services, resulting in sandbox environments for startups to test and refine their solutions. This enables them to provide secure and verified customer data to enterprises, facilitating credit scoring and KYC processes.

The vast pool of data has led to greater personalization of financial products, allowing rapid development, flexibility, and powerful access to endless possibilities. This is redefining digital finance and payment solutions.

Enabling regulatory compliance

Digital transactions have now got the endorsements of governments across the world as a secure means to conduct financial activities. These digital channels have helped both the sectors to make these transactions more secure, traceable and detect fraudulent transactions more easily.

However, as the landscape continues to evolve, telcos have become more agile in adapting to regulatory frameworks, causing new financial models to come into being.

Telecom and fintech companies are share a common objective – to enhance customer experience and broaden access to financial services. To achieve this, collaboration is key to tackling challenges including networking, regulatory hurdles, and mitigating fraud risks.

In Conclusion

Digital payments and transactions are now a part of our new normal.
Telcos are emerging as prominent enablers in the fintech realm, elevating customer relationships and financial products to new heights. Governments across GCC countries like Saudi Arabia, Kuwait, Qatar, and UAE  are offering strong regulatory support for fintech innovation-driven to build a globally integrated environment. The role of telecom in this cannot be ignored.

The telecom and FinTech sector creates a transformative impact on the economy by driving financial inclusion. The need for more secure, fast, and accessible payment systems keeps increasing as the world becomes increasingly interconnected and digitized. The convergence of these two sectors helps in driving innovation and growth in a digital economy.

Mobile Ecosystem Security – Threats, Trends, And Predictions

The telecom industry is no stranger to security threats.

From phishing to SMS scams, the industry has seen it all.

However, the industry is still seeing a spike in these threats. For example, in 2022, consumers in the US lost $330 million to SMS scams.

What’s more? Telecom operators have also witnessed new telecom frauds in recent years.

According to Nokia’s report, there has been a five-fold increase in malicious botnet Distributed Denial of Service (DDoS) traffic emerging from vulnerable IoT devices. Another report stated that nearly three-quarters of 5G operators experienced up to six security breaches. These resulted in network downtime, regulatory issues, and unauthorized access to customer data.

While technologies like IoT and 5G promise a future of connectivity and innovation, mobile operators worry about new threats.

They must consider new mitigation strategies to improve mobile network security and adapt to the ever-changing landscape.

Let’s look at various threats to discover how operators overcome them with the latest security technology.

Five Trends And Predictions To Secure The Mobile Ecosystem
  • AI 

Attackers have found a new way to hack the network. It’s Artificial Intelligence (AI) and Machine Learning (ML). They have been using AI/ML to impersonate humans to enter the network, build sneakier malware, and create deep fake data.

The good news is operators can use the same technology to solve the problem. They can use AI to analyze baseline behavioral patterns and highlight anomalies. For example, AI/ML can analyze previous breaches, such as malware, phishing, and DDoS, and suggest mitigation steps to operators.

This helps them take pre-emptive measures on time and safeguard the network. It will also allow them to improve network reliability and protect customer data in real time.

  • 5G security 

Several telecom operators have started providing 5G network connectivity to customers in different countries. 5G promises to connect billions of devices and people by transporting data 1000 times faster than 4G. In fact, 5G is more secure and addresses the vulnerabilities of the 4G network. For example, it offers more robust encryption, data protection, and end-to-end security protection for source and destination network traffic. It provides a unique feature called network slicing that segments the network and offers custom security controls. So, operators can block or quarantine the traffic on that network slice whenever there is an incident. This helps in reducing the attack surface, enhancing security.

However, there are still a few privacy concerns. One being that 5G connects more devices than 4G, exposing the network to more vulnerabilities. Operators could face challenges in real-time while monitoring threats, compromising the connected devices.

These issues have brought several telecom operators together for the 3rd Generation Partnership Project (3GPP) collaborative project. it aims to set and update security standards based on the changing landscape.

  • Threat intelligence sharing 

Despite collecting large amounts of information on cyber threats, operators do not share it with other operators.

In an interconnected world, operators can no longer withhold threat intelligence information or function in silos. They must share this information in order to improve security posture and safeguard customers from threats. This could include sharing the latest on emerging threats, best practices, and standardized protocols. The aim is to help operators put a united front to stay ahead of the attackers.

GSMA’s T-ISAC and FASG have already started sharing knowledge and best practices to make networks more secure. They host webinars and share industry experts’ opinions on building a safe environment for operators to exchange intelligence safely.

Such initiatives motivate operators to become more proactive in sharing intelligence with others.

  • SMS Firewalls

Due to the staggering number of application-to-person (A2P) messages from enterprises worldwide, SMS fraud remains a concern. According to Elon Musk, X lost over $60 million yearly due to A2P fraud. Mobile operators are concerned about this loss and have taken precautions to alleviate these issues. One of the solutions used is SMS firewalls.

An SMS firewall acts as a barrier for mobile networks. It screens the incoming and outgoing messages based on algorithms to detect and block malicious messages. This prevents spam and fraud messages from reaching the recipients, saving them from data theft.

  • IoT security 

Every industry – from healthcare to manufacturing- is adopting IoT to connect devices and accelerate innovation. However, the connected devices are susceptible to cyberattacks like malware despite their benefits. A single attack is all it takes for a bad actor to steal sensitive data from the device and halt all business operations.

Mobile operators can address these issues by implementing a device authentication mechanism, zero-trust policy, and end-to-end data encryption. They can also isolate the IoT network from the main infrastructure to prevent attackers from entering the network and impacting critical systems.

As the IoT ecosystem expands, operators must take additional precautions to nip the attacks in the bud. Vodafone, for example, uses traffic management tools to set thresholds and alert customers when they identify a suspicious pattern. This allows operators to provide innovative connectivity solutions without compromising on security.

Conclusion

Mobile operators must constantly balance enhancing security and introducing innovative products. This helps them to meet customer demands, of securing the network from threats.

Combining new mitigation strategies and advanced technologies with AI/ML capabilities can help operators achieve the required balance. It also helps them improve compliance and save cost.

We recommend working with a trustworthy technology partner who can provide the right technology to identify and block threats.

Globe Teleservices, for instance, has been building solutions like Armour and Grentor to protect networks from frauds. Armour uses AI/ML and analytics to prevent voice and SMS fraud. Grentor tracks network user activities to detect and analyze fraud, helping operators protect country networks from bad actors.

Solutions like these help operators take pre-emptive measures and build innovative solutions without compromising security.

If you’ve been looking for solutions to safeguard your network, voice, and SMS from threats, contact us. We’ll be happy to help.

Shining A Spotlight On International Revenue Sharing Fraud

As the world becomes a global village, people rely on international calls and SMS to connect across borders. In fact, it has become one of the most reliable revenue sources for telecom operators.

According to a Global Market Insights report, the International Voice Carrier market will grow to $120 billion by 2032. To offset carrier costs and maximize revenue, telecom operators worldwide enter an agreement to share revenue from calls, premium numbers, and content services.

While this arrangement ensures transparency, rising incidents of International Revenue Sharing Fraud (IRSF) plague the industry. According to the Communications Fraud Control Association (CFCA), IRSF has led telecom companies to lose nearly $27 billion.

But what is IRSF, and how does it impact the telecom industry? Let’s find out.

What Is International Revenue Sharing Fraud And How Does It Affect The Telecom Industry?

To understand how IRSF works, we must know how it began.

As mentioned, telecom operators have secured arrangements with each other to share the revenue from international calls.

Revenue share varies by location and carrier due to differences in local costs and revenue goals.

Some destinations, for instance, have high call termination rates.

In IRSF, the fraudster routes the calls/messages, often automated and/or fake, to premium services or destinations with high termination rates. The fraudsters receive a higher revenue share by exploiting the revenue-sharing agreement, and telecom operators lose money in the process.

Types Of International Revenue Sharing Fraud

IRSF attacks could happen through compromised devices, bots, stolen SIM cards, etc. Here are some of the common types of IRSF attacks that occur.

1. SIM Box fraud

Fraudsters use a device called a SIM Box that contains multiple SIM cards. They use it to bypass the international call charges and make international calls using the local rates. They also direct the call or SMS to specific destinations or premium rate numbers.

2. Malware

Telecom companies are struggling to protect customer data from rising malware attacks. By some estimates, over 5.5 billion malware attacks occurred in 2022. Typically, malware enters a network and exposes customer data to various cyberthreats.

Telecom operators have always been conscious that they could face financial losses and lose customers due to security breaches, network disruptions, and service outages. To add to that, recently, the computer emergency response team (CERT) of Orange, Poland’s leading mobile operator, discovered that malware can make IRSF calls.

They explained in a communication that the malware would sneak into a mobile phone with an old Android version. It would wait till the phone is inactive for a long time to make paid calls to expensive destinations outside Europe. The “hack” often goes unnoticed until the customer receives a bill for calls they never made.

3. IP-based

IRSF is not restricted to calls or SMS anymore. Fraudsters are now targeting digital-native companies, too. They have started creating synthetic identities (a combination of fake and real customer information) and generating revenue using fake numbers. This impacts the reputation of the digital-native companies and ruins the customer experience.

How To Tackle International Revenue Sharing Fraud?

Despite being prevalent for so many years, detecting IRSF is very complex. That’s because multiple jurisdictions are involved in the process of collecting, routing, terminating, and tracking this traffic. These frauds are so complex that even law enforcement agencies struggle to identify their origin. Sometimes, the scam comes to light only when the customers complain about the exorbitant bill and at others, not at all!

According to the Communications Fraud Control Association (CFCA), telecom companies lost $38.95 billion to frauds like IRSF.

However, the good news is these frauds can be prevented with the help of regulations and technology.

1. Regulations

Given the complexities of detecting such frauds, telecom companies, regulators, and companies must work together to tackle them.

Take New Zealand Telecommunications, for instance. The leading telecom player in New Zealand had established IRSF prevention guidelines to protect customers. The guidelines provided steps to help network operators, service providers, and carriers to combat IRSF. These included guidelines like educating customers about changing PINs, turning off PBX ports, not answering calls from unknown international numbers, etc.

Similarly, Europol established a Cyber Telecom Fraud Working Group in 2017. The group comprised law enforcement officers from 18 countries and more than 35 global telecom companies to combat IRSF. In 2018, the group reported over 250,000 fraudulent transactions, 100 were reported to law enforcement agencies, and 25 new investigations were initiated. The group managed to block payments worth EUR 13.13 million.

2. Technology

Telecom companies and regulators should invest in AI/ML-powered technologies due to the multi-jurisdiction nature of crimes. This will help them detect IRSF more proactively and prevent them. These technologies can detect fraud patterns or suspicious behaviour of a user on any network and take proactive steps to suspend them. They can also use historical data to analyse and predict abnormal patterns and take pre-emptive measures to secure networks.

As IRSF becomes more sophisticated, companies cannot use traditional fraud detection systems. They must use an advanced anti-fraud solution to identify IRSF and other fraud across local and international markets.

Conclusion

The telecom industry plays a pivotal role in economic progress. Telecom bridges the global connectivity gap and uplifts the economy. Voice calls and SMS are the ever-present fabric connecting the different facets of our world today. People and businesses in remote areas can also grow by relying on this essential connectivity.

Thus, it is crucial for telecom companies to keep adopting innovative technologies to prevent telecom fraud and keep the growth engine running.

At Globe Teleservices, we believe in enabling innovation across the telecom spectrum.

Hence, we build innovative technologies, methods, tools, and approaches to help the telecom industry meet challenges and customer demands.

We have developed technologies like Armour X to identify IRSF and other fraud across local and international markets. This helps telecom companies reduce revenue leakage, improve customer experience, and secure their network better than competitors.

To know more about how technology can help you prevent telecom fraud like IRSF, contact us.

 

Top Five Frauds The Telecom Industry Has To Deal With – 2023 Edition

The telecom industry is innovating rapidly.

PWC reports that over 200 telecom companies had already launched 5G networks by the beginning of 2023. It further predicted that 50% of global telecom connections would be 5G by 2025. It is further expected to increase to 75% by 2027.

This year, the telecom industry has also ramped up the focus on AI and IoT and increased attention paid to cybersecurity.

While the constant focus is on improving connectivity and security, the telecom industry is also witnessing an increase in telecom fraud.

Telecoms are losing billions to frauds like Robocalls and SIM Box, impacting profits and customer trust.

Let’s look at these frauds that have kept the industry on edge and find out how they can tackle them.

Top Five Frauds That Telecom Industry Is Dealing With In 2023
  • Vishing scams

Vishing scams rose by 550% in 2022.

In vishing attacks, scammers use AI to clone voices to sound trustworthy. They use call ID spoofing to make the call look reliable. They call and impersonate a government agency representative or a relative and deceive the users into sharing personal details like credit cards and social security numbers. The scammers specifically target the elderly population as they are the most vulnerable group. According to the Cybercrime Support Network, 38% of the reports submitted to the FTC were by users aged 80+.

While users are expected to exercise while receiving voice calls, telecom companies must invest in technologies to prevent it. Technologies like Artificial Intelligence and Machine Learning (AI/ML) can help companies detect and prevent fraudulent activities in voice calls.

  • Impersonating SMS Frauds

Like impersonating calls, people are also falling prey to SMS impersonation. This is especially a concerning scam in the banking industry. According to a 2019 report, there has been a twentyfold increase in text fraud in the coming years, and the trends seem to bear that out. Here’s how it typically works. A user receives a text with a link from a fake bank number. When they click on the link, they receive a call from the alleged bank.

The caller asks for sensitive information. The user eventually loses money if they share sensitive information with the caller. SMS fraud through impersonation has led to a median loss of $3,000 last year.

The Federal Communications Commission (FCC) has directed mobile operators to block robotexts and prevent scams. Mobile operators can use AI/ML or blockchain solutions to reduce fraud and safeguard customers from losing money.

  • SIM Box Frauds

In SIM Box Fraud, a SIM Box device routes international calls as local calls. This helps the fraudsters avoid paying the higher international call rates and earn profits. Since the calls get routed, telecom companies lose revenue from the international calls. Additionally, the routing leads to unprecedented traffic on mobile networks and poor customer service quality.

Telecom companies can solve this problem by monitoring network traffic for unusual activities and blocking or filtering calls that display patterns that are different from the usual. Companies must also develop new solutions that can help them detect and prevent fraud. They must also cooperate with law enforcement agencies and share regular information to thwart all routing fraud attempts.

  • International Revenue Share Fraud (IRSF)

IRSF fraud has been a threat for many years. However, reports suggest that it has significantly increased in the past decade. These scams involve scammers pumping traffic to premium-rate international numbers. It affects the revenue-sharing agreements and the bottom line of telecom operators globally.

Telecoms can use firewall solutions to identify and prevent fraud from local and international markets.

  • SMS Grey Routes

Like artificially inflated calls, scammers are also using grey or unauthorized routes to bypass internationally approved routes and deliver SMS to users. They avoid paying the termination fees to mobile network operators (MNOs), resulting in unnecessary losses.

Operators can combat this issue by implementing solutions like:
  • Monitoring traffic to identify and prevent grey route activities
  • Implementing SMS firewalls to block messages originating from grey routes
  • Collaborating with other MNOs to blacklist potential grey routes and take action against malicious actors

These combined efforts can help operators reduce losses and safeguard their integrity.

How Can the Telecom Industry Combat Frauds?

As frauds increase, 92% of carriers have started prioritizing them to protect customers and safeguard their reputations.

Some telecom companies have started using blockchain for subscriber authentication, detecting roaming fraud, and blocking stolen devices. A few others are using flash calls as a part of two-factor authentication to reduce dependency on One-time Passwords (OTP).

Technologies like AI/ML are helping telecom companies detect and prevent fraud in real-time.

As frauds become more sophisticated, telecom companies must replace reactive and traditional fraud detection systems with proactive ones.

They must invest in anti-fraud solutions that cover various aspects of telecom fraud.

At Globe Teleservices, we have built solutions that help enterprises and telecom operators prevent voice, SMS, and network traffic frauds, allowing them to preserve revenues and maintain customer experience.

To know more about these solutions that can help telecom companies prevent fraud, contact us.

 

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