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Fraud Overview - November 2020

Understanding the Threat: Telecom Fraud


Periodically, it is important to revisit the topic of telecom fraud and raise awareness around ways to fight fraudsters.

Many individuals are familiar with cybercrime like ransomware or identityidentify theft; however, a large majority of scams against enterprises are instances of telecom fraud. According to research, telecom fraud cost businesses and carriers approximately $28.3 billion in 2019 alone.

Telecom fraud awareness is especially relevant in 2020 as much of the workforce has been operating in remote or hybrid deployments. With many companies extending the length of time they plan to be remote, they are also revisiting security training for their teams in an increasingly digital landscape. Telecom security should be part of this discussion, so employees have the awareness and tools necessary to protect themselves against cybercriminals.

To help companies avoid falling prey to fraudsters, we’ve outlined a few common telecom fraud types. 

 

Types of Telecom Fraud:

 

Type of preventive measures to consider: 

 

 

An important element when dealing with fraud is having a plan in place for when fraud does occur. Companies must ensure their employees know what to do to report malicious activity or fraudulent bills in a timely manner. Intrado is a leader in fraud detection. Approximately 90 percent of the telco traffic in the world is handled by a small group of carriers – Intrado being one of them. Intrado participates with these other carriers on a regular call to discuss trace-backs, to detect bad actors across the networks. There is also representation from law enforcement on that weekly call. So, if calls are identified that continue to trace back to the same bad actor, law enforcement is given all the information needed to subpoena the bad actor. If there is a violation that is autodetected by our system, an email goes out to customers requesting them to verify whether the traffic is legitimate. The customers then receive a link and are taken to their customer portal where they can easily report whether the activity was legitimate.

 

Further reading: