BPM Analytics

Combating identity theft and other risks in telecom

Rapid advances in telecommunications technology over the last few years and widespread digitisation are revolutionising how we interact, conduct business, and more. While the sophistication of telecom infrastructure comes with a number of benefits, it also provides more opportunities for fraudsters to commit telecommunication fraud by exploiting vulnerabilities in networks and systems. The widespread use of mobile devices and associated digital services offers cybercriminals a large attack surface to target users through ever-evolving scams using the latest technology. This blog will shed light on telecommunication fraud in the digital age and look at the implementation of modern telecom fraud prevention strategies.

The impact of telecommunication fraud

Telecommunication fraud, also known as phone fraud, is not a new issue. With the advent of digitisation, the strategies and technologies used in committing such crimes are constantly evolving. Today, there are a number of ways in which malicious individuals can misuse the global telecom infrastructure for profit while evading detection and causing service providers and consumers to face major financial losses.

Identity theft and telecommunication fraud

Telecommunication fraud refers to any illicit and unauthorised activity aimed at exploiting vulnerabilities in telecom systems and misusing the telecom infrastructure. Scammers often use stolen identities to covertly target various aspects of telecom operations, including communication networks, subscription accounts, and payment channels. The first step in incorporating effective telecom fraud prevention measures and strategies is understanding the various methods employed by scammers to commit telecommunication fraud. Some of the most common telecom scams used today are explained below.

Identity fraud

Identity theft is a starting point for various kinds of telecommunication fraud based on identity verification. Fraudsters use stolen or fabricated identities to register new telephone connections, lease or purchase new devices, and even impersonate legitimate individuals to commit a variety of crimes.

Subscription fraud

Scammers often use fabricated or stolen identity information to obtain and use mobile devices and telecom services without any intention of making payments for it. This kind of subscription fraud results in substantial financial losses for service providers as well as consumers.

SIM swapping

SIM swapping is when scammers trick a telecom service provider into transferring genuine customers’ phone numbers to a SIM card under their control. Once done, the scammers can intercept and access the user’s personal information, complete unauthorised actions on their accounts, and possibly commit more crimes with identity theft.

Deposit and underwriting fraud

This scam involves the purchase of SIM cards, mobile phones, tablets, routers, and a number of other devices and telecom services via the online sales channels of targeted telecommunication service providers, using stolen credit card information. This results in massive financial losses for the operator as it is almost impossible to trace the scammers to recover the product or secure payment.

SMS phishing

Just as with email fraud, SMS phishing involves the use of text messages to deceive users into divulging sensitive information by impersonating trustworthy entities. The messages often contain fake links or prompts, leading recipients to malicious websites or tricking them into providing personal data, passwords, or financial information. Fraudsters can then access and misuse their accounts, which is a serious risk to personal security and privacy.

Telecom fraud prevention measures

The following are some of the strategies that telecom service providers should incorporate to reduce the chances of being victims of telecommunication fraud.

Use secure and up-to-date network infrastructure

Outdated network infrastructure is extremely vulnerable to telecommunication fraud. Telecom service providers must invest in updating their infrastructure to keep their networks secure from fraudsters who are always looking for weaknesses to exploit.

Adopt contemporary telecom fraud prevention measures

Modern fraud prevention and management solutions use cutting-edge technology to monitor telecom networks in real time and identify fraudulent activity before too much damage is done.

Keep consumers informed

Keeping customers updated on the methods used by fraudsters to conduct their scams is an excellent way to keep consumers vigilant so that they don’t fall prey to telecommunication fraud.

Collaborate

Through collaboration, telecommunications providers can exchange information regarding emerging fraud techniques and collaborate to formulate preventive measures to keep their networks secure.

How can Infosys BPM help you prevent telecommunication fraud?

With a comprehensive telecom fraud prevention solution, Infosys BPM can help telecom service providers identify and eliminate fraud and revenue leaks in their networks. The service leverages advanced real-time analytics, assessment and automation services, and digital RA/FM operations to prevent telecom fraud.