Fraud cost operators billions of dollars every year

IP-based, Basset Telecom, Fraud, cost, operators, billions, africa·3 – 8 per cent of the revenue is lost due to fraud

 3 – 8 per cent of the revenue is lost due to fraud All reports and studies on fraud in recent years show that fraud is costing operators billions of dollars yearly on a global basis. Even if the levels of loss due to fraud vary from operator to operator and from market to market, one trend is clear: Fraud and security threats increase with the expansion of the next generation IP-based networks

The survey, to be launched in the end of this week, has been conducted through market research and deep interviews with leading experts and managers within the telecom industry world-wide. The survey shows that the operators are losing billions of dollars every year on a global basis and the loss will continue to increase with the expansion of the next generation IP-based networks.

Churn rates

In order to be successful in the fight against fraud, operators need to have a strategy in place and a clear focus on winning the trust of their customers. Otherwise, the consequences will not only put operators at a financial risk due to more losses. It will also, if operators fail to guarantee a safe connection and usage of services or applications, endanger the subscriber business model due to growing number of dissatisfied customers, and as a consequence a very possible increase in churn rates. The good old days when churn more or less could be ignored is over.

  • To be able to win the battle against fraud in telecom systems it is necessary to define fraud. Our global definition of fraud is: “Fraud in telecommunications is when someone gains access to services or products that is sold through a telecommunications system and uses this information or service in a damaging or fraudulent way. Fraud also includes internal fraud and exploitation of services/loopholes through errors that have a bearing on billing, payment or provision of telecommunications services or networks”. Total control is key, says Nicolaj Aaroe, Product Manager within FMS at Basset.

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