Telecom Fraud Management & Revenue Assurance Conference 2010As per CFCA Fraud survey 2009 India is emerging as one of the top 5 hot spots (destination countries) for telecom fraud.

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The immediate concern and issues that telecom operators foresee due to fraudulent activity is loss of revenue, estimation of the loss of revenue is in the range of 1-5 % of revenue.

The resources required to fight fraudulent activity can be significant as it requires investment in equipment, high end software, manpower, upgrading of skill sets, training, etc.

Considering the investment cost, companies live with a choice, making an allowance of losses as acceptable risk or have an intense strategic approach to managing frauds – internal as well as external.

So why is it important for telecom companies to have a proactive fraud management strategy?

The effect of fraud can be far reaching. On a macro perspective and on a country specific front, hijacked networks or unauthorized use of telecom infrastructure can be used for subversive, insurgency and terrorist activity. At the customer level fraud can result in services dissatisfaction – for individual as well corporate users along with potential monetary and business loss that they may suffer due to the wide ranging acts and sophistication of the fraudster.

And with the rapid growth and penetration of mobile service in urban and especially in rural areas, new applications being launched such as m-banking, m-health, 3G services, etc. any large scale fraudulent activity will affect the end customer leading to loss of confidence in services model, non-considering the unknown backlash and wave effect of the media.