Unveiling Telecom Fraud: Safeguarding Your Communication with SecGen - SecurityGen/secgen GitHub Wiki

Telecom fraud, a widespread problem in the telecommunications business, includes various fraudulent behaviors to manipulate the system for financial advantage. One example is bypass fraud, which includes the unauthorized routing of calls to avoid authorized operators, resulting in revenue losses.

Telecom firms use revenue assurance and fraud management tactics to identify and reduce risks to combat these threats. Furthermore, countries like China have enacted anti-telecom and online fraud legislation to combat such illegal activity. Safeguarding against telecom fraud remains a critical priority for the industry.

Table of Content:

What is bypass fraud in telecom? What are revenue assurance and fraud management in telecom?
Revenue Assurance Fraud management What is China's anti-telecom and online fraud law? SecGen - A Partner for Secure and Efficient Mobile Network Growth

What is bypass fraud in telecom?

Bypass fraud is committed in the telecommunications industry in which traffic is illegally redirected. Call rerouting or bypassing the legitimate carrier network is a common tactic for this scam. Bypass fraud is a scheme in which valid termination charges are not paid, costing telecom companies a lot of money.

There are many types of bypass fraud, including International Bypass Fraud (IBF) and SIMbox fraud. Calls made outside the country bypass the proper international gateways and are instead terminated with local providers in an act known as international bypass fraud. This allows criminals to profit from the gap between local and international call prices.

In contrast, SIMbox fraud involves several SIM cards and GSM gateways to disguise international calls as domestic ones. Fraudsters can avoid the higher international termination fees by making international calls appear from a local number.

The telecom business faces serious problems due to bypass fraud. It results in significant revenue losses, in addition to causing network congestion, a drop in service quality, and harm to an operator's brand.

In addition, illegal competition may be harmed by bypass fraud since fraudsters may use lower call rates to lure customers away from legitimate service providers.

Telecom carriers use sophisticated monitoring and detection technologies to combat bypass fraud. To detect suspicious activity indicative of bypass fraud, these systems examine call patterns, traffic volumes, and other factors.

Sharing information and coordinating efforts to identify and prosecute fraudsters requires close cooperation between telecom providers, regulatory authorities, and law enforcement.

Strict security measures, like encryption protocols and authentication systems, can be put in place as preventative steps to protect the privacy and security of phone calls. Network bypass fraud can be prevented through regular audits and vulnerability assessments, which can reveal potential access points and allow for the installation of required countermeasures.

What are revenue assurance and fraud management in telecom?

Revenue assurance and fraud management are critical aspects of the telecom industry that focus on safeguarding revenue streams, identifying potential risks, and mitigating fraudulent activities.

Maintaining trustworthy income streams is becoming increasingly important as the telecommunications industry grows and adapts. This all-encompassing method incorporates many tactics into its fight against telecom fraud and revenue loss.

Revenue assurance: Revenue assurance involves implementing practices and controls to ensure accurate billing, minimize revenue losses, and optimize revenue streams.

It entails looking for errors or abnormalities that could lead to revenue loss, as well as keeping an eye on and reconciling billing systems. Telecom companies can improve their financial results and efficiency by proactively seeking out and fixing revenue leakage sources.

Fraud management: Fraud management, on the other hand, is concerned with detecting, preventing, and reducing telecom fraud. "Telecom fraud" describes any illegal activity that takes advantage of the telecom industry, whether it is the infrastructure, services, or customers.

Subscription fraud, id theft, SIM card cloning, and international revenue share fraud are common types of telecom fraud. These fraudulent operations have a negative effect on telecom carriers' service quality, customer satisfaction, and reputation in general, all of which lead to significant financial losses.

A multi-pronged strategy is used to combat fraud in the telecom sector. This strategy aims to identify fraudulent activity by spotting abnormalities and patterns using cutting-edge monitoring systems, data analytics, and AI technology.

These algorithms sift through mountains of information in real-time, looking for suspicious trends like call logs, app activity, and other behavioral markers.

In addition, telecom providers, trade groups, and regulators can all benefit from working together and exchanging data to combat fraud. This facilitates the sharing of lessons learned, the dissemination of fraud intelligence, and the coordination of efforts to detect and prevent fraud on a larger scale.

What is China's anti-telecom and online fraud law?

The Anti-Telecom and Online Fraud Law was enacted in China in September 2022. The law is intended to combat telecom and online fraud, a significant issue in China.

The law defines telecom and online fraud as using telecommunications or the internet to defraud others of their property. Several specific forms of telecom and online fraud, such as phishing, vishing, and smishing, are also defined by the law.

The law imposes various punishments for telecom and online fraud, including fines, imprisonment, and property forfeiture. The law also mandates that telecom operators, financial institutions, and internet service providers take preventative measures against telecom and online fraud.

These measures include establishing internal fraud risk management systems, cooperating with law enforcement, and educating consumers about telecom and online fraud.

The Anti-Telecom and Online Fraud Law is important in China's fight against telecom and online fraud. The law is anticipated to reduce the number of telecoms and online fraud cases in China and safeguard Chinese citizens' property.

Here are some of the most important provisions of the law:

Telecom and online fraud are defined by law as using telecommunications or the internet to defraud others of their property.

The law imposes various punishments for telecom and online fraud, including fines, imprisonment, and property forfeiture.

Telecom operators, financial institutions, and internet service providers are required by law to take precautions against telecom and online fraud.

The law establishes a national coordination mechanism for anti-scam initiatives.

The Anti-Telecom and Online Fraud Law is an all-encompassing law that addresses every aspect of telecom and online fraud. The law is anticipated to be an effective weapon in China's fight against telecom and online fraud.

SecGen - A Partner for Secure and Efficient Mobile Network Growth

SecGen, with a thorough understanding of telecom cybersecurity, provides a diverse range of solutions and unique consulting capabilities to assist organizations in extending their operations. They offer customized services that address each company's specific security needs, allowing them to expand without jeopardizing their safety.

SecGen's priority is to give businesses the protection they need to grow in the ever-changing telecoms industry. They believe that by collaborating with network operators, they can create a more secure and efficient environment in which businesses may prosper.

SecGen's dedication to its client's success is seen in its creative solutions and personalized approach, which ensures that each organization meets its goals securely and efficiently.