Telecom Fraud | Globe Teleservice

How Can Telecom Companies Explore New Frontiers With Blockchain

The telecom industry is widely regarded as one of the key enablers of today’s digital economy. From connecting people to empowering consumer applications through a host of services, the industry plays a vital role in streamlining digital experiences. In fact, several businesses actively consider the health of telecom networks in different regions before prioritizing their digital service spending for that region.

However, the sector is not immune to challenges. Today more businesses and consumers are relying on the telecom sector to build the foundations of new digital experiences. Hence, it is imperative for industry leaders to find innovative and quick solutions for pressing concerns. The pain areas that need attention are fraud, network availability and performance, service experience, and cost efficiency.

As with any other sector, the telecom industry has increased its bets on emerging technology solutions like blockchain to eliminate these challenges and spearhead innovation. The ability of blockchain to hold data without being tampered provides immense opportunities for the telecom sector. From automation of billing to traceability of transactions, the potential outcomes are too good for major telecom players to ignore.

The emergence of blockchain

One of the most promising trends in this regard is the rising popularity of blockchain and its uses in telecom. Studies estimate that the market for blockchain in the telecom sector will surpass USD 14.8 billion by 2030.

Let us explore the top areas where blockchain technology promises to become a huge asset for telecom companies:

Data Security

It is estimated that nearly 9.7 million petabytes of data will be consumed over telecom networks globally by 2027. With so much traffic flowing through their infrastructure, telecom players need more strategic and fault-proof security measures to prevent risks from manifesting in the operations.

Blockchain can be a major influence in this area. Using blockchain’s inherent strengths in encryption and decentralized data management, telecom networks can build autonomous data-sharing funnels to enable secure data transmission. Our very own TxtChain platform utilizes the immutability and decentralization capabilities of blockchain to secure data. Data from users, MNOs, and other entities cannot be tampered in any way without leaving a trace.

Prevent Identity Fraud

Studies have found that in 2021, the telecom sector lost USD 6.69 billion due to fraud. Fraud hurts the revenues of telecom companies by opening up unauthorized routes and parallel networks that “steal” traffic. These fraudulent practices and hackers operating in the telecom space also often trick innocent victims and gain access to their secure credentials like a business phone number. In other cases, subscription services to apps linked to their phone numbers may also be hacked.

The underlying root cause here is the ability of hackers to manipulate identities illegally. With blockchain, telecom companies can arrest the use of synthetic identities that were created with falsified credentials. Ownership of mobile numbers can be easily established when telecom providers leverage a tamper-proof decentralized ledger for storing user details corresponding to each number allotted in their spectrum. This is exactly what our TxtChain platform does by ensuring that mission-critical data is stored in immutable distributed blockchain ledgers.

By using a decentralized verification process, it becomes easier for consumers to protect their credentials. It can further streamline user authentication across a range of services that are dependent on a customer’s identity linked to their mobile number. This also enhances the onboarding and user authentication process by providing a more modern and seamless experience.

Device Identity Verification

We have seen how the identities of customers linked to their mobile numbers can be a source of vulnerability for hackers to exploit. Today, even devices used by customers are potential targets. And we are not just talking about mobile phones. From televisions to refrigerators and even curtain blinds, the number of devices connecting to the internet via telecom networks is exponentially higher than used to be the case.

Blockchain is a tool that telecom operators can use to bring an additional layer of security and transparency to device management. By storing authentication insights and credentials on the blockchain, it is easier to prevent forced attacks on the network without proper authentication by the actual device user. Also, usage patterns can be autonomously analyzed to see if credentials have been tampered with as all authentication happens via blockchain. As we move into the realms of 5G connectivity, such device management capabilities will help telecom players fuel the growth of IoT-enabled devices.

Stakeholder Registration and Consent Management

One of the most painstaking tasks telecom players must face is maintaining transparency in committed plans for customers. Depending on usage patterns, different customers may subscribe to various data or call plans and packages. However, complaints about plan misfits or erroneous billing are common from customers. Additionally, there are avenues where customers are often bombarded with commercial messages. These could be from services that they have not given their consent to contact. This is a serious issue as it impacts the trust and credibility of the provider.

With blockchain, it is easy to set up smart contracts that capture the right set of user preferences. Be it data privileges, call benefits, consent to promotional or commercial messages, usage terms, or roaming charges, every aspect of a user plan can be captured and recorded in a smart contract. It can be used for autonomously executing the billing and invoicing workflow of a customer. Unwanted commercial messages can be filtered out easily. Solution like our TxtChain collects consent info from customers and stores it on the blockchain. In the event of a commercial message being readied to be broadcasted, the system checks for each users consent preferences before shooting it out. It minimizes disputes and prevents tampering with plans and terms agreed upon with customers initially.

Summing It Up

Our CMD Ashutosh believes that if there are ways to minimize fraud and revenue leakages in the telecom sector with blockchain, then there is nothing stopping its adoption in the industry.

It will help telecom companies secure their networks, curtail malicious actions, and prevent leakages onto unauthorized networks. That could be a boon for fraud detection and prevention as well.

Combining this with the other benefits we have mentioned above shows blockchain’s position as a technology with immense potential in the telecom sector. Telecom companies need to have the right strategic approach in implementing blockchain solutions to maximize the impact. That includes planning for a resilient and reliable roadmap and execution strategy along with the right choice of skilled professionals, tools, and platforms like TxtChain. This is where a partner like GTS can make a huge impact. Get in touch with us to explore more.

Top Trends, Influences, and Technologies Driving Telecom Product Development

Today, almost every business can find at least one telecom product within their digital ecosystem. From voice call-enabled services to SMS authentication, they help companies elevate their digital experience significantly.

But, it’s noteworthy that the need for a communications solution has transformed over the years. To understand the trends driving telecom product development, it’s essential to granularly understand this evolved need.

Why Are the Demands From a Telecom Product Different Today from the Past?

Earlier, telecom companies were only seen from the perspective of a network provider building and maintaining the communication hardware. But fast forward to today, telecom companies are strategic partners. They enable businesses of all sizes to scale and succeed with their digital aspirations. In essence, they create the connectivity infrastructure needed to effectively exchange data and information in a digital environment.

Consumers today expect digital-first experiences for almost all their needs, from shopping to healthcare. As businesses expand, telecom products are at the forefront of driving meaningful connections between businesses and consumers.

Areas like customer onboarding, customer experience enhancement, security and authentication, etc. have been transformed significantly courtesy of modern telecom product development initiatives.

It is certain that at least one of the apps you use daily on your smartphone leverages an OTP mechanism via an SMS or a missed call. A telecom product realizes either of these authentication mechanisms. Similarly, there are several capabilities that a telecom product offers to businesses for managing their digital channels.

So, What Drives Telecom Product Development Today?

As we have seen, a telecom product serves as a fundamental building block of modern digital experiences for several businesses. Therefore, development initiatives should ideally incorporate the key traits that define digital experiences.

Let us explore the top four trends that telecom product development initiatives must make special note of:

Seamless Customer Experience

Studies show that 32% of customers would leave a brand after just one poor experience. While building a telecom product, the core ideology that powers every workflow should be to provide a great customer experience. This can be achieved by using customer centricity as a core element of every development initiative.

Speed of Services

Speed is a critical element of customer experience, but it deserves a special mention from a telecom perspective. Today, customers value time more than anything else. Studies show that customer loyalty will improve by over 2.4 times if their problems are solved quickly.

In that light, processes like user onboarding should not take too much time. They often rely on telecom solutions for KYC authentication and user validation. When such products are built, speed should be a major development criterion.

By using solutions that provide easy authentication and faster enablement of Digital KYC processes, businesses can accelerate their customer journey rapidly.

Secure Experiences

We have seen how seamless and fast customer experiences make for great traits in a product development initiative. Alongside them, security is another characteristic that can’t be ignored. As more digital services become enabled and managed through telecom services, it is critical to eliminate any vulnerabilities.

However, preventing fraud will be a major challenge for businesses as they seek to plug leaking revenue and protect customer interests. Therefore, products with anti-fraud intelligence and fraud prevention workflows will be key.

Continuous Innovation

Consumers love innovation in technology that serves them great experiences. This is probably why AI and machine learning have become so mainstream today. For telecom product development, the situation is no different.

Businesses would leverage telecom solutions that can accommodate innovative capabilities in the future. For this, they need to be built with inherent support for AI, ML, IoT, big data analytics, etc. This would allow businesses to build newer customer service innovations by leveraging the underlying telecom framework.

AI-powered customer interactions in the form of chatbots, fraud detection with AI, etc., are just some of the possibilities they can explore.

Wrapping Up

Telecom product development initiatives cannot be judged as a simple endeavor anymore. They hold strategic importance in pushing businesses to achieve better ROI from their digital investments. As such, selecting a solution would require end-to-end analysis of possibilities and potential it can unlock for a business.

Implementing a trusted communication solution for your business is vital, given that critical customer aspects like fraud prevention are on the line. This is where Globe Teleservices can make a huge difference. Our range of trusted solutions has been built to incorporate the latest market trends and innovations. They can undoubtedly propel your digital channels to new heights. Get in touch with us to know more.

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.

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 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.

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!

5 “New-Age” Digital Solutions that Could Occupy the Thoughts of Telecom Leaders

The digital revolution, driven by high-speed internet connectivity and a plethora of software products and services has become the backbone of social, economic, and technological prosperity today. Communication systems are evolving. As the technology landscape matures and provides more robust solutions to help enterprises and businesses navigate a complex, dynamic, and competitive business world, new and creative business models, products, and services are emerging to fulfil consumer demands.

The telecom sector has a pivotal role to play in this dynamic new age.
Here is a look at five new-age digital solutions that telecom leaders should care about

CPaaS and telecom

The CPaaS market has been on an incremental and steady rise. The demand for cloud communications expanded use cases and prompted new suppliers to enter the market. CPaaS, or Communications Platform as a Service (CPaaS), allows organizations to cherry-pick real-time communications features, such as voice, video, and messaging, and embed them into business apps and services. This delivery model allows organizations to customize their communication stack and allows employees to communicate with each other and with customers on a platform and device they want.

CPaaS is cloud-based and software-driven and allows application developers and product owners to tap into and leverage digital and mobile features without having to build or locate any of the expensive physical network infrastructures.

While API providers and network owners are riding the CPaaS wave, it is time for telecom providers to identify how to cash in as well. Telecom providers often do not partner with CPaaS developers since they offer few APIs. The process infrastructure also tends to increase the time-to-market.

However, telecom leaders have the opportunity to get a share of the CPaaS pie since they have access to mass telephony. The cost and routing control, the database of phone numbers, and SIP or traditional switch infrastructure can be put to use to deliver a value proposition for CPaaS.

That apart, telecom companies can extend their services to a wider range of sectors such as entertainment, gaming, fintech, social media, etc. to advance their projects that blend video, voice, text, data analysis, and interactive communications and help deliver better feature-rich services.

IoT

Forecasts estimate that there will be more than 50 billion connected IoT devices in use across the globe by 2030. The greatest advantage that the telecom companies have is that of the infrastructure that exists with mobile phone towers and internet cables infrastructure serving the groundwork for creating new solutions and services based on 5G and IoT.

The IoT market is also expected to reach $381.16 billion in 2025 at a CAGR of 24% as IoT use cases and industry adoption continues to increase rapidly. Apart from the use of IoT in home automation where the role of the telecom providers becomes that of providing exceptional mobile and network connectivity, there are significant opportunities for telecom companies to leverage in industries such as manufacturing, security, agriculture, logistics, smart cities, etc. that run on IoT.

Especially as 5G arrives, there will be a need for IoT specialists to help telecom companies implement the technology into existing infrastructure and business processes. Some telecom companies might need to build their own IoT platforms that aid the development of custom products and services to meet customer needs.

Telecom can not only help organizations adopt IoT to drive better outcomes but can develop IoT-linked products and services. IoT connectivity services and data storage and management are the usual suspects of where telecom providers come into the picture. Telcos can also provide better data and analytics from IoT-generated data and help businesses extract valuable insights from raw metrics.

Telecom leaders can drive real-time asset monitoring by employing extended communications networks in conjunction with cloud computing to collect signals from embedded devices and deliver them to the industry-tailored applications.

By adding IoT to their offering mix, telecom leaders can increase revenues by offering IoT services and solutions, retaining clients, and attracting new ones.

Edge Computing

Edge computing is gradually becoming a mainstay in the digital solutions toolbox especially as 5G explodes onto the scene. Analysts reveal that almost 75% of enterprise-generated data is expected to be created and processed outside the cloud or the traditional data centre by 2025. Most cloud computing giants such as AWS and Google are not ready for operating in massively distributed and remote edge environments.

The need to run edge computing at a massively distributed scale and the increasing reliance on the cloud to enable remote/hybrid work has accelerated the race to 5G adoption. With edge computing coming into the picture, telecom leaders have a greater chance for market dominance. This is because the hyperscale data centre advantage demonstrated by public cloud providers becomes irrelevant at the edge even though the uniform software stack advantage persists.

With 5G, organizations can distribute workloads to run at the Edge and reshape cloud computing and user experiences. 5G offers increased distribution, greater network speed and reliability, and the capability to provide new experiences because of reduced latency. These experiences will be powered by applications running on the network edge in contrast to running in the cloud.

For telcos, this means accelerating their move from a hardware-driven appliance model into a software-defined architecture and developing the capabilities and taking advantage of open-source technologies like Kubernetes as a potential foundation for 5G deployment. Delivering higher performance, lower latency, distributed scale, and stringent SLAs will become essential for telecoms as 5G and Edge become the next cloud disrupters.

Rich Communication Service (RCS)

RCS or Rich Communication Service is now emerging as the successor of SMS services. RCS is a feature-rich messaging service that allows organizations to create richer conversations with their customers. RCS delivers the eye-catching function of OOT applications and also leverages the unbeatable reach of SMS.

WhileRCS is not going to replace OTT applications, native messaging based on RCS is the next evolution of operator-led SMS and will play a big role in the new messaging environment. Customers are also ready to embrace RCS with some major brands already leveraging RCS heavily.

Telecom leaders have to work towards providing fully interoperable, RCS-based cross-operator advanced messaging platforms and develop the right partnerships with aggregators, and connectivity service providers to ride the RCS boom.

AR and VR

AR and VR are attracting a lot of attention today as these technologies are in the next stage of delivering new value propositions. They are now moving out of the realm of gaming and finding real-world applications across industries such as manufacturing, healthcare, worker safety, and compliance, aviation, oil, and gas, etc.

Telecom providers can dip their toes in the AR and VR pool since they are an essential part of the ecosystem. They help with the discovery and delivery segment and help subscribers find differentiated AR experiences.

While telecom companies do not stand great monetization opportunities directly from AR presently, they can leverage AR to drive better operational excellence with improved network inspection/maintenance, repairs, inventory management, workforce training, customer service, etc. using AR-based remote assistance.

Interestingly, the rise of digital solutions and the pursuant push towards digital transformation also demands a convergence between IT and telecom. Whether it is IoT, CPaaS, Edge computing, RCS, or the use of immersive technologies such as AR and VR, the telecom sector has a role to play as the enabler of everything.

How can Africa’s telecom players become mobile money winners?

Research shows that much of the population in Africa has limited access to financial services. As incomes in the continent rise, that has meant that it’s become one of the most attractive places for banking opportunities.

Mobile money has been on the increase in this continent with deployments increasing 39% annually in the past decade. Both transaction volume and the value of mobile money have also witnessed double-digit growth. Some of the reasons for the growth of mobile money can be attributed to a lack of formal savings or credit, something that is prevalent in emerging markets as well as the rise of the telecom sector.

That apart, non-participation in the formal economy owing to social and economic reasons also pushes the population towards digital finance. The pandemic further accelerated the pace of digital/ mobile money adoption especially as African governments made it easier to leverage mobile money by reducing the barriers to sign up. In Rwanda, for example, mobile money transactions increased fivefold during a lockdown as governments eased regulations and reduced/waived transaction fees. In Malawi, 2019 IMF statistics reveal that fewer than 170 of every 1,000 adults have deposits in a bank account, whereas nearly 600 have a mobile money account.

The mobile money boom presents tremendous opportunities to telecom players to leverage the burgeoning market. Research also shows banks looking to partner with telcos to add value to their portfolio of services and grab a share of the mobile money boom. Mobile money is making financial services more accessible without the dependencies on traditional infrastructure.

As Africa becomes the world’s hottest place for mobile money, here are a few things for telecom operators to consider:

Keeping security top of the mind

Telcos have to keep security top of their mind to drive mobile money acceptance and adoption. Ensuring secure transactions by enabling next-gen impenetrable, robust, and resilient SMS firewalls will play a crucial role to ensure secure transactions since authentication messages and OTP’s are sent through these messages.

That apart, they need to ensure that no revenue leaks and illegal traffic flow through their routes. Identifying and blocking grey route traffic will assume paramount importance to prevent fraud, block illegal traffic and increase customer reliance on their services. Technologies such as Real-time monitoring, System-level filtering, and Intelligent SMS Firewall Rules will be of immense help to overcome the grey route and security challenge for telecom operators.

Friction-less customer experiences

To emerge as mobile money winners, telecom operators have to ensure that they deliver a frictionless payments experience to their customers. Whether it is the security of transactions or the ease of setting up digital identities, telecom operators have to look at ways to improve customer experience by identifying customer pain points and challenges.

Enabling facilities such as eKYC to simplify the verification process, make it more accurate and seamless not only enhances the authentication process but also makes the process more secure. Technologies such as AI and Machine Learning can further help in optimizing the KYC process and simplify identity and document verification.

Elevating network security

Network security is essential for telecom operators to win the mobile money wars in the African continent. With the promise of 5G on the horizon and technologies such as AI and IoT becoming commonplace, telecom operators have to make sure that the network connection and endpoints are secured appropriately.

While legacy networks will struggle to meet the modern-day network security requirements, looking at network virtualization and other strategies such as network slicing, more detailed and individual authentication processes, and technologies that identify changes and anomalies in traffic or behaviour patterns become important areas to consider.

Update the technology stack

One of the challenges that telcos need to navigate in Africa is that of the unavailability of skills in modern technology and a heavy reliance on ageing technology. Inadequate IT infrastructure and insufficient skills and experience with modern-day telecom tech can impact the pace of growth when telcos want to increase their portfolio and cash in on the mobile money trend.

Updating the technology stack to drive better security, ensuring end-point security, developing applications that are robust, fast, thoroughly tested, and optimized for speed and security, network infrastructure security and zero-trust application security architectures can help telcos expand their capabilities to increase their service portfolio.

These considerations apart, telecom players will also have to navigate the challenge of SIM jacking, SMS phishing, and SMA Spoofing to prevent information manipulation. Enabling proactive route testing, home routing and rerouting capabilities come in handy here.

Analysing the information exchanged between two parties to identify discrepancies proactively also becomes important for ensuring secure transactions. AI-ML-based voice firewalls, features such as global tile blocking, legal interception, blocking messages based on system-level filtering, intelligent SMS firewall rules, map operation codes, Live GUI, and CDR for analysis, etc are other ways to ensure greater security to prevent fraud and unhappy customers.

Currently, there are about 100 million active mobile financial services customers across Africa. The total MFS opportunity in this market is close to $2.1 billion or approximately two per cent of total African banking revenue pools. While banks identify ways to increase their footprint and get a share of this pie, telcos already have a large number of unbanked people on their networks. The ones to win the mobile money game will be those who can roll out the right products according to customer needs more securely. Telcos have already got one piece of the puzzle sorted. They can win the latter with advanced and cutting-edge telecom solutions with ease.

Focusing on operator readiness for next-gen messaging

The world of business messaging has evolved greatly. A2P messaging is seeing steady growth and enterprises are recognizing immense value from strategically adding SMS to their omnichannel strategies. This growth in A2P messaging has also offered MNO’s compelling growth opportunities as volumes and applications grow. OTT messaging apps have also gained traction, especially in the enterprise communication market. While OTT messaging platforms are steadily integrating into enterprise omnichannel strategies, challenges associated with rolling them out on a global scale, limited reliability and privacy concerns have discouraged enterprises from leveraging this medium to exchange critical and sensitive information.

Given the universal applicability, A2P messaging will continue to be a part of the enterprise messaging strategy. MNO’s however have to now gear up to enable next-gen messaging services such as RCS or Rich Communication Services, M2M communication etc. to meet with the enterprise needs to enable next-gen messaging.

The growth of next-gen messaging

By enabling RCS messaging, MNOs will be able to deploy an enhanced native messaging experience for their enterprise customers (and their end customers!). RSC messaging promises to deliver an elevated and seamless experience using personal and interactive messaging and rich media to drive customer engagement. While OTT platforms offer elevated messaging experiences, mobile operators provide ubiquity, reliability, and trust thereby making them more suitable to the enterprise narrative.

That apart, there is also an incremental incline in the usage of M2M (Machine to Machine), communication. Technologies such as Big Data and AI are working in M2M to improve customer experiences by ensuring maximum speed and deliverability. M2M messaging also makes it easier to schedule bulk message delivery and helps businesses stay top of the mind of their customers. Applications are also growing in the context of enterprise automation and autonomous actions driven by M2M capabilities.

5G is also poised to become a mainstay in the mobile mix sooner rather than later. While 5G promises to enable the interconnected world and make business messaging even more personalized and effective, it also opens up the surface area of cyber-attacks demanding greater and more airtight cybersecurity standards.

Given the forces of change and evolving market dynamics at work, focusing on operator readiness will assume paramount importance to enable next-gen messaging. A few of the things MNOs have to evaluate are:

Capacity to address the grey route challenge

Revenue leakage due to grey routes will lead to a cumulative loss of $37.1 billion, or an annual average leakage of $7.69 billion between 2020- 2024. Next-gen messaging is attractive to MNOs because it comes with the promise of greater profits thereby placing paramount importance on addressing the grey route challenge.

While mobile operators are proactively trying to address this issue and thereby securing messaging revenues, fraudsters and non-compliant SMS aggregators are working hard to identify loopholes and other methods to deliver SMS’. Advanced firewall solutions and integrating traditional firewalls with big data and advanced analytics can assuage this problem by identifying fraudulent patterns faster and hence become imperative capabilities to develop to enable next-gen messaging.

Building zero trust networks

With M2M communication coming into the messaging mix coupled with the rise of 5G, operator readiness also involves establishing zero trust networks to keep the network safe from malicious intent and activity.

Aligning 5G specifications with zero-trust tenets helps in establishing a zero-trust architecture. A zero-trust architecture ensures secure network access to resources (data, devices, and services) and provides access to only the authorized and approved subjects ((users, devices, and services).

Securing digital identities, and the communication transport and of user and signalling data across 3GPP interfaces, along with designing the right security posture of network assets contribute towards creating a zero-trust architecture.

Plug leaks and increase monetization opportunities

The mobile playing field is only set to become more competitive with next-gen messaging entering the channel and services mix. Mobile operators have to develop their capabilities to deliver differentiated and more personalized experiences while identifying monetizing opportunities. While doing so, they also need to ensure that there is no revenue slipping through the cracks.

Operators thus have to employ the right anti-fraud solutions to actively monitor and block fraud and SPAM. Intelligent AI and ML-based firewall solutions become critical enablers of 360-degree network protection of messaging traffic. Such intelligent solutions protect subscribers against fraud by proactively monitoring security breaches with contextual analysis to block fraudulent messages.

The added advantage of using intelligent solutions is the access to advanced analytics that provide insights into usage and consumption patterns and help MNO’s identify revenue-generating opportunities and gaps.

In Conclusion

As next-gen messaging evolves, the focus has to be on improving the security posture. Concerns on network security, grey routes, SIM jacking, and SIM phishing have to be addressed and there has to be an increased focus on data security. Mobile operators will have to develop their capabilities to proactively deal with security threats that are increasing in scope and complexity. Partnering with experienced telecom solutions providers to access robust solutions that improve monetization and performance will become inevitable to enable next-gen messaging services. Let us help you get ready for the next-gen of messaging solutions.

Is Pricing The Achilles Heel Of SMS?

Any marketing leader for a consumer brand would agree that today one of their most successful customer approach channels for conversion is SMS. With an open rate of 98%, SMSs, are still among the most trusted sources of information that sparks customer interest worldwide.

The worldwide trend in digital adoption has seen traditional incumbents being massively disrupted or even displaced from their very existence by new-age startups that have sought to leverage technology to beat customer expectations. Another scenario we have seen is the poor fate of protectionist policies against digital alternatives in industries like music and software. For years, brands tried to chase down online portals and channels with labels of piracy, but for every website or illegal channel they tried to curb, thousands more sprang up in a matter of days. Ultimately, the leaders in these segments realized that rather than try to fix the rest of the world, their pricing and business models were the inspiration of such a huge illegal market booming.

The solution to the problem arrived when the music and software industry took to the cloud and came out with their streaming avatars. Today the SaaS, music streaming, and OTT industry are worth trillions of dollars worldwide. This business model innovation has enabled billions of consumers to access services that they would have never been able to afford earlier owing to large upfront license or ownership costs.

Businesses moved into a consumption-based subscription model of pricing that spreads their revenue generation cycle over a period of time rather than tied to an upfront fee. This allowed them to book recurring revenue and eventually profit from economies of scale with more users. As often happens, this also reduced piracy because the risk-reward ratio was no longer in favour of trying to circumvent the legal channels when the cost was so minimal.

Now, coming to the SMS industry, one of the biggest pain points that brands face today when leveraging SMS as a key marketing tool is the high pricing bands that they have to deal with from providers. In an age where a variety of options exist to bypass the telecom providers and adopt admittedly grey routes, the temptation of cost savings may prove too great.

Let us examine 3 ways in which pricing can hurt the industry critically and set the grounds for the untimely demise of SMS as a whole:

Unaffordable Mass Communication

As businesses today transition into a volume-based economies-of-scale model for deriving revenue, their messaging services need to cater to hundreds of thousands or even millions of customers daily. Traditional SMS price points would result in brands incurring massive operational costs that will easily overwhelm the savings they achieve through lower customer acquisition or retention costs with SMS.

Rise of Illegal Services

If providers aren’t willing to consider a restructuring of their SMS pricing strategies, there will be a rising number of illegal and incompetent players in the market that will partner with businesses offering lower costs. The problem here is that these services will ultimately put customer information and credentials at risk as they will have first-hand access to important A2P messaging services between brands and their customers.

Spamming and Fraud

Another big challenge that illegal SMS service provider partnerships will result in is that they will also open a whole new dimension of cyber fraud which will cost the industry dearly. To offer lower costs to businesses for SMS services, they will leverage the SMS message and append ads or promotional links for added revenue. Criminals and fraudsters can intercept these communication lines and compromise the appended links and message information. They can then use it to plug malware and other high-risk threats into end-user devices of unsuspecting consumers.

What these 3 major drawbacks of higher pricing do for the SMS industry is that it makes SMS a less trusted entity from a consumer perspective. More spam, fraudulent activities, and threats will result in customers eventually deciding not to avail SMS-based alerts and notifications from businesses. This has the potential to lead to the demise of the industry’s revenue prospects soon.

With so much potential for customer engagement and opportunities to diversify usage scenarios with each guaranteeing higher conversion, it will be a huge blow for the industry to let SMS die a slow death solely because of traditional and hidebound pricing problems.

SMS providers and businesses can collaborate on ideas to restructure pricing options that are meaningful for both stakeholders. One of the key factors that providers and businesses cite for costly SMS services is the need for enabling secure communications and fortifying their infrastructure to prevent spam and fraud. Rather than leveraging costly manual efforts to solve this problem, providers and businesses can leverage modern technology solutions to enable a more secure and integrated SMS communication channel. Over time, these solutions will reduce the manual effort, deliver scale, and create more secure channels. This will also lead to better cost control and management that could translate to better pricing options.

Using technology, businesses can also enable borderless communication strategies through SMS services. What they need is the right guidance and the aptest digital tools to enable this experience. This is where our expertise can help make a difference. Get in touch with us to explore more about building an amazing customer experience through SMS engagement without compromising on security or worrying about scale or geographic expansion capabilities.