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Telecom fraud is an increasingly concerning issue that affects telecom companies and their customers worldwide. It is a complex problem that can result in revenue loss, service disruption, and reputational damage. Understanding the trends and tactics used by fraudsters is crucial for businesses to protect themselves and their customers.

Telecom fraud refers to the unauthorized use of telecommunications services or equipment for personal gain. Cybercriminals employ various techniques such as identity theft, social engineering, and phishing scams to carry out their illicit activities. Over time, telecom fraud has evolved with advancements in technology. In the past, individuals would use payphones or sell stolen phone numbers. However, today’s fraudsters use sophisticated tactics like hacking into phone systems or using fake caller IDs.

The rise of mobile technology has also given rise to new types of fraud, including SIM swapping, SMS phishing attacks, and SMS Toll Fraud or International Revenue Share Fraud. Telecom companies and their security teams continuously adapt their security measures to stay ahead of these evolving fraud trends.

Bots and botnets play a major role in enabling fraudulent activities. Cybercriminals use bots for SIM card registration, call and message routing, phishing, and other nefarious purposes. Bots can mimic human behavior, making it challenging to detect suspicious activity.

Common tactics used by cybercriminals include SIM swapping, Wangiri fraud, PBX hacking, and robocalls. SIM swapping involves gaining access to a victim’s mobile number to intercept calls and messages. Wangiri fraud tricks people into calling back and incurring charges. PBX hacking involves unauthorized access to a company’s phone system to make expensive international calls. Robocalls deceive people into revealing sensitive information or making payments via scam calls.

Emerging trends in telecom fraud include AI-based fraud, VoIP fraud, and SMS Toll Fraud or International Revenue Share Fraud. AI-based fraud utilizes machine learning and other AI technologies to bypass traditional fraud detection systems. VoIP fraud involves stealing services or money through internet-based phone systems. SMS Toll Fraud targets telecom operators’ networks or uses rogue carriers to redirect calls and texts to premium rate numbers.

To combat telecom fraud, businesses can utilize machine learning algorithms to analyze call data records in real time. Multi-factor authentication and regular monitoring of call data records can help identify unusual activity and take immediate action. Employee training on fraud prevention and best practices is also crucial.

Arkose Labs offers advanced security solutions that detect fraudulent activities like bogus account sign-ups and malicious logins. Their solutions protect businesses from fraud, reduce costs associated with manual reviews, and provide a secure user experience.

It is essential for businesses to stay informed about telecom fraud trends and take proactive steps to mitigate the risks.

The post Telecom Fraud Trends: Understanding the Growing Threat appeared first on ISP Today.