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Matching Increased Fraud – through NRTRDE deployment
Publication: 03.04.2007 by Anette Svendsen
Whilst such large scale assaults are rare, operators often suffer small scale continuous attacks from fraudsters over a sustained period of time. Over the last couple of years, GSM operators have experienced a significant increase in roaming fraud. Most operators are aware that the professional fraudsters behind this increase also have the capability to breach the defences against roaming fraud.
These lines of defence are currently under review and new GSM Association guidelines will be introduced in 2008 to help operators can defend themselves against fraud attacks.
Fraud is getting complex
Mobile roaming fraud is no longer an extension of traditional subscription fraud, when a single subscriber travelled abroad and deliberately overspent by making long distance calls to friends and family. The purpose now is usually simple call selling.
Professional fraudsters have turned their attention to mobile roaming because it is so easy to set up premium rate services with an operator. Fraudsters increasingly have the resources to set up a network of different accounts and services with the aim of using it non-stop until the service is blocked. Alternatively, they can establish and operate a network of telecom services with the sole purpose of utilising the entire telecom billing infrastructure to drain mobile operators of their profits.
Mobile operators are especially vulnerable to roaming fraud because the subscriber is mobile and the payment infrastructure is global. Another concern for the operator is that the existing systems that they have in place to protect them from roaming fraud are not being fully optimised, and there is a possibility that they could be breached.
Fraud impacts bottom line
The cost of roaming fraud is an increasing challenge for the GSM community and the existing protection methods are insufficient to address this ongoing revenue leakage. Many GSM operators have a strong focus on revenue assurance activities in place, but the focus often excludes roaming fraud. Until recently operators have had limited means to combat this type of fraud.
The importance of minimizing roaming fraud is underlined by the fact that approximately 80% of losses on roaming fraud are an external cost, due to the liability to the visited network operator.
Optimising transparency
Currently, call record data is exchanged between operators and roaming partners in the form of HURs (High Usage Reports). However, these report formats will be phased out and replaced with NRTRDE reports in order to comply with new GSMA recommendations that will be introduced in 2008.
For the home operator, the transition to NRTRDE means that every subscriber event will be reported back from the visited operator, resulting in high volumes of roaming data. These new data streams will have more information than HUR reports which were fairly limited in the range and type of data extracted and recorded.
When NRTRDE is implemented, the fraudster’s activities will be reported in Near Real Time – this enables round-the-clock surveillance to react in Near Real Time to stop the fraud. Previously this was not possible with the traditional 24-48 hour delay in TAP files and HUR report delivery.
The Near Real Time roaming data approach in the future will be a catalyst for operators to initiate flexible surveillance for rapid response to suspected fraud, as Near Real Time data streams will be reported every 4 hours, as a minimum. Operators without round-the-clock surveillance will be more vulnerable to roaming fraud attacks.
Support and guidance from MACH
To help operators optimise the new roaming fraud protection systems of the future, MACH has just launched MACH Data Express and also plans to launch MACH Fraud Protection later this year.
MACH discussed the issues relating to fraud prevention, "The Deployment of NRTRDE" with operators and clients at a workshop during MACH’s recent GCM in Istanbul, Turkey (16th-18th April 2007).
MACH has the expertise to combat roaming fraud and help operators find the best solutions to protect themselves from fraudsters. By carefully evaluating the current processes in place and the potential fraud threat, MACH is able to design a robust and cost effective solution to fight roaming fraud – in the short and the long-term.
If you are a GSM operator and would like to find out more about fighting the increasing threat from fraudsters, please contact us at info@mach.com
www.mach.com
