Types of Telecom fraud

Telecommunication frauds involves the exploitation and misuse of airtime by fraudsters who have wrong intention of not paying any bills. Different types of
telecommunication frauds includes the following

Types of telecom Frauds
How it works
Services Rendered by Purgefraud
Billing Bypass Internal fraud in which the system is not properly configured for the charging of events. Involves the indirect manipulation of records and the reporting of less than actual data. PF works to develop a list of events and specific data IDs for clients to locate and eliminate insider billing fraud. PF can provide near real time reporting for this type of fraud when identified.
Boomeranging Hijacking and unauthorized use of IP-PBX bandwidth to rebroadcast data. PF provides clients the ability to ID and eliminate, in near real time, the practice of boomeranging traffic through an IP-PBX or other switching means into the network.
Bypass Fraud/GSM Gateway Fraud/SIM Boxing Illegal termination of calls to international destinations through the utilization of grey telephony. PF has many years of experience detecting, monitoring, and managing bypass network fraud (international) and best results are near real time with the utilization of both CDR Analysis as well as the TCG elements of the PF service.
Over-the-top (OTT) Bypass Fraud Termination of international traffic via mobile handset installed applications such as Google Messenger, Skype, Viber or WhatsApp. PF's wide-ranging services can detect bottlenecks in a service via its end-to-end active testing operations to help identify, and eliminate interconnect bypass or OTT fraud losses proficiently.
Call Forwarding/Diversion Fraud Fraudster can login to a PBX and configure call forwarding to an expensive long distance destination in order to profit from IRSF. PF's passive CDR Analysis Analytics services can identify and manage the elimination, blocking and monitoring for this type of telecom network fraud, which is prevalent in Enterprise networks. The system finds the use of premium number prefixes as well as specific type of dialing patterns for the identification of this dangerous and expensive type of IRSF fraud.
Call Transfer Fraud/Multiple Call Transfer Fraud Fraudster hacks into a PBX and utilizes the opportunity to make free long distance calls. PF utilizes its passive CDR Analysis capabilities to specifically look for calling patterns and methodologies, which identify this type of fairly common fraud. PF also can support clients with providing info based policy solutions that could help reduce this type of fraud.
CDR Manipulation Forging of CDRs from MSC, internal fraud. PF views this type of fraud from a standard bypass rerouting fraud basis, where SIM box operators manipulate the CLI to alter the appearance of the A number at the B number instrument in attempt to avoid detection. Additionally, PF is able to detect and manage fraud where insiders in a company attempt to "hide" specific CLIs, not only to hide bypass but to also hide nefarious events, including national defense needs.
CLI Pass Through Testing A common practice by fraudsters to delete or manipulate CLI data for calls in which the fraudsters do not wish for the CLI to pass through to the other end. PF can provide clients the ability to know if CLI is being passed through to the end user all the way through a call into the network. This service will be bi-directional on a country by country basis in the near term.
CLI Spoofing Fraud A common technique used by fraudsters is to “spoof” the calling number so that the caller-ID field can be customized as needed by the fraudster. PF relates this service to the CLI Pass Through activities, where SIM Box operators commonly spoof CLI data to make the appearance to the B Number end of the call, that the call has originated from a specific location or to potentially cause the inability for identification.
Dealer Fraud The violation of pre/post validation checks and the abuse of commission/incentive schemes. PF provides validation data to support the use of SIM registration and aspects of the use of SIMs that have not been registered properly. This included verification of the actual use of a SIM and amount of use versus what has been manually or automatically reported to the operator owning the brand being distributed via a different system.
E-Commerce/M-Commerce Fraud Fraud involving credit cards and mobile payment channels Purgefraud provides comprehensive analytics services to monitor and locate fraudulent billing.
False Answer Supervision (FAS) Fraud FAS fraud encompasses:
(1) The billing of unsuccessful or uncompleted calls (no answer signal sent)
(2) The billing of post-dial delay time (premature answer signal sent)
(3) The diversion (rerouting) of calls to an automated messaging platform to create and allow for the billing of completed calls.
PF is taking a serious effort against active fraudsters and network operators who pass FAS as billable calls. PF provides clients the distinct ability to track network providers who falsely bill for FAS. Some FAS is caused by configuration problems and can be managed if data is monitored and managed on both ends of the test calls.
Financial Fraud Internal under charging or over charging of events PF provides clients the ability to reconcile CDR data against billing system reports, with regard to internal billing fraud. If the CDR stacks have been manipulated, active test call generation (TCG) can be a proponent of identification of this type of fraud.
Interconnect Fraud Passing of traffic through low cost and illegitimate routes PF has years of experience in providing this type of service to its clientele, where both active and passive systems are able to assist in detecting Interconnect Agreement Trunking compliance violations. This service provides wholesale operations the ability to detect operators abusing or violating specific network agreements.
Inter-/Intra-state Toll Bypass Fraud Fraudulent service provider changed intra state call by changing the calling number so that it seems to be less expensive interstate call. PF, through its passive CDR Analysis, is able to identify specific types of call activity, which violate the particular type of service. In the US, there are distinct differences in types of calls that cross LATA or state lines, and this type of policy and pricing bypass fraud can be detected via near real time with CDR Analysis given that policy rules have been established and relevant data for that policy provided to PF.
Internal Fraud Damage from fraud caused by internal fraudsters and subcontractors. Internal or insider fraud is a common element in various types of telecom network fraud. Insider support can cause large financial and structural damage to operators. PF has identified specific services, which are consistent and relevant to this type of theft, which is more common than most wish to think.
International NANPA Fraud Switches do not consider numbers listed in NANPA as international, even though they are off-shore. This leaves them vulnerable to International Revenue Share Fraud (IRSF) because they cannot block calls. PF's services using CDR Analysis is able to identify, in near real time, the use of certain types of numbers, including those in NANPA which are misused by intentionally miss classifying specific number data. Certain switches, if left vulnerable, can accrue considerable financial loss.
International Revenue Share Fraud Case in which a fraudster partners with a local carrier charging high rates for call termination and establishes an agreement to share this revenue for any traffic generated by the fraudster. This is a standard classification for premium number use that is falsely increased on the use of high value billable numbers under side agreements to "pump" the volume of calls, thus creating very large invoices to both operators and enterprises.
Location Routing Number (LRN) Fraud The insertion of fake location routing numbers (LRNs) into SIP messages to lower the billed cost of a destination while charging for the original, higher-cost destination. PF is able to use both its active TCG and its passive CDR Analysis prevail service capabilities to identify the use of falsely manipulated LRN data within the SIP message (routing) and is able to generate reports for clients in the detection of such activity.
Payment Fraud Encompasses fraud on bill payment counters, SIM card sale counters, and reward point payments. PF, as in the case of dealer fraud, is able to utilize its CDR analysis services, to help validate data with respect to payment fraud on the part of POS locations, and other types of activation locations and events.
PBX/IP-PBX Fraud The hacking of a PBX to initiate long distance and high case destination calling by fraudsters. PF provides networks protection through the detection of this type of network fraud, which is very much like call forwarding and diversion IP/PBX UC fraud.
SMS/MMS Fraud The sending of SMS to a numbering list in order to obtain personal information and balance transfers using fraudulent statements and pictures. PF, through the use of aggressive call trending with its CDR Analysis services can detect and monitor for SMS fraud activities.
Subscription Fraud Involves the fake registration of SIMs in order to obtain subscriptions, often using false or stolen identification data. PF possesses services, which through its passive CDR Analysis, can validate the misuse of SIMs which are not sold properly through dealer networks or miss billed, as well as those that are not properly registered in applicable country markets.
Tariff Manipulation Manipulating the charging tariff fraudulently in the system with unauthorized access PF has the ability to assist in this area, where its CDR Analysis capabilities, MSC, and billing systems can be collaborated.
Technical Fraud Any fraudulent activity committed within technical operations with respect to the charging or misconfigurations of systems PF has listed many types of specific types of telecom network fraud that are created or supported by technical fraud and this can be detected on the part of both the CDR Analysis and the active TCG capabilities of the Purgefraud suite of services.
Theft of SIMs/Handsets/Cards/Packs Through the access of a subscriber’s lost or stolen phone or SIM, a fraudster will be able to gain unauthorized access to the subscriber’s network. PF, through the active collaboration of clients, can catalog or interrelate specific data and cross check it via the CDR Analysis activities it offers. IMSI, IMEI and MSISDN data can be used or collected (MSISDN specifically through the A number or B number, given which is applicable in each user case). PF has the ability to build user defined use cases with regard to its analytics services, given clients provide the needed CDR data, BTS base maps, and other important data.
Toll Free Fraud A Fraudster will typically make a profit sharing agreement with a local exchange carrier and use VoIP technology to make multiple calls to a toll free number. PF can locate this type of fraud via its CDR Analysis. This is a very common type of activity in the US, where local exchange intra LATA operators, who have very high access rates and bill accordingly to others that terminate to their exchanges and in this case, use toll free numbers. Specific algorithms are used to build cases to identify, detect and monitor such fraudulent activities.
Traffic Pumping/Access Stimulation Fraud Rural carriers charge substantially higher access fees than urban carriers. In order to increase their incoming call volume and revenue, some rural carriers partner with telephone service providers to route their calls through the rural carrier As in the case of Toll Free Fraud, this type of fraud can also be done through the use of assumed legitimate conference calling companies or other means to generate higher levels of usage that can be billed to other operators through the use of 800 toll free numbers, which terminate to high cost local access (FGD) services.
Value-added Services (VAS) Fraud Services or packs have been activated without the customers consent PF can create specific capabilities on a per client basis, which help identify VAS misuse of billing. This would be based on the access to billing CDRs rather than MSC CDRs and would be cross checked versus customer activation records for these services. If clients did not order such services, CDR data analysis can detect the use of VAS services when not properly activated or paid for.
Wangiri (One Ring and Cut) Fraud The practice of making random (often auto-dialed) calls from premium-rate numbers, letting the calls ring once and then hanging up, hoping recipients believe they are legitimate calls and call back, thereby generating premium rate service revenue for the fraudsters PF can assist in the detection but also assist in the prevention of these types of fraud, with proactive management of premium number dialing activities. If PF clients are able to collaborate actively with the PF team, the ability to prevent this type of IRSF (international premium number fraud) is relatively simple and effective.
Wholesale SIP Trunking Fraud Fraudsters may route or manipulate the MSISDNs while sending the traffic to operators. They can also manipulate the trunk IDs to use low rate trunks PF is able to detect this type of fraud, which has common attributes to its character as bypass fraud. Manipulation of MSISDN data is common with the practice of VoIP or TDM bypass where CLI data is manipulated. MSISDN data can commonly be the same as the CLI data, which is manipulated commonly by SIP session border controllers as in many SIM Box gateways.