Download - Merging fraud in a full IP environment
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How can operators merge fraud
in a full IP environment?
London, 20.03.2012
Stefano Maria De' Rossi
GRUPPO TELECOM ITALIA
Daniele Gulinatti
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What individuals
do on mobile ?
COMMUNICATE
• voice
• sms
Once upon a time:
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New generation Telecom environment
What
individuals do
on mobile ?
COMMUNICATE
• voice • sms • email
FIND • info/answers • places • products • people
ENJOY • photos/video • music • games • networking
DO • documents • Banking • Payment
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The future of mobile
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Pressure is on for service providers to keep pace and meet the tough demand of an
always connected lifestyle
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Industry Key points
8
Voice is still the main share of revenues for operators (ca. 70% ) but trend is falling:
CAGR estimated between – 0,2% and – 1,2% with geographical exceptions (eg.
emerging markets)
Voice (fixed and mobile) is declining in favor of IP based communications models:
VoIP and social communicationn (OTTs)
Source: Gartner (Aug 2011): WW Telecom Services Revenue Comparison
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Industry Key points: Market Trends - Worldwide
Total mobile service revenues are increasing WW, driven by the mobile data
revenue growth - that is due to the spread of new data hungry devices,
smartphones and tablets and to the spread of apps platforms (Apps for iOS, Android
etc.)
Sources: elaboration of Ovum “Mobile Voice and Data Forecast: 2010–15”, February 2011 (based on GSMA data) elaboration of Gartner “Forecast: Mobile Services, Worldwide, 2007-2015, 1Q11 Update”, March 2011
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Industry Key points: Mobile Internet market Trends
Source: Cisco Visual Networking Index: Global Mobile Data Traffic Forecast Update, 2010–2015, February 2011 Cisco, Global
Global mobile data traffic will increase 26-fold between 2010 and 2015. Mobile
data traffic will grow at a compound annual growth rate (CAGR) of 92% from 2010
to 2015, reaching 6.3 exabytes per month by 2015
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Expected market evolution
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Riding the data tsunami
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Challenge ahead
Traffic volumes on mobile networks are
growing much faster than the revenue they
generate for mobile operators –this results in
operational and financial pressure for telcos
for upgrading their networks to higher
capacity and coverage.
Increasing competition, regulatory
pressure, and the proliferation of flat-rate
pricing for data services puts enormous
pressure on their margins.
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Two vital questions
How can operators manage the huge increase in
data volumes?
And where will the money come from to build the
networks needed to handle the coming data tsunami?
Or in other words…how to monetize the service level
on the networks ?
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Two vital questions
How can operators manage the huge increase in
data volumes?
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4g on the horizon: LTE overview
In order to ensure their network capacity, Telco Operators are investing in network expansion, or deploying new network technologies, such as Long Term Evolution (LTE).
• LTE is the next step in the evolution of the Third Generation
Partenership Project (3GPP).
• Designed to meet the high speed data and multimedia transport
needs of Operators.
• Benefit for users are:
•Higher data Rates
•New service
•Truly Mobile Broadband
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LTE specification
LTE has 10X users per cell than
HSDPA
HSDPA LTE
14 Mbps DL
5,7 Mbps UL
100 Mbps DL
50 Mbps UL
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Voice in LTE
Voice in LTE is a disruptive moment for the Industry: not a technology evolution
but a revolution
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Industry evolution: opportunity or threat ?
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Industry Hot Topics – Value of Core Services
The shift to an “All IP” network paradigm (LTE) will make voice a data application (VoIP) which may impact on present termination, interconnection and roaming business models.
OTTs players are offering on the global marketplace voice and messaging services through apps (Viber, Skype, Whatsup) based on free business models.
Defend Voice Business from OTTs providing voice as a “one more app” concept is key to protect margins and sustain investment capacity.
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In search of outcomes: GSMA perspective
IMS
voLTE
FIRM
RCS
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Two vital questions
How can operators manage the huge increase in
data volumes?
And where will the money come from to build the
networks needed to handle the coming data tsunami?
Or in other words…how to monetize the service level
on the networks ?
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Telco battlefield
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In order to move away from flat rates and offer more advanced data pricing models, new monetization models are needed requiring integration between:
POLICY
MANAGEMENT
CHARGING
CAPABILITIES
Mobile business: surfing data opportunities
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The apple experience
If consumers are willing to pay a premium for the Apple experience,
why wouldn’t they be willing to pay for the higher-quality experience
from telecom operators?
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Mobile Technological evolution while protecting profitability
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New types of threats and frauds are on the rise
Telco market: new services trend
Changes in the telco world are affected by radical evolutions starting
from new technologies up to new services linked to different markets
(Internet, media, banking).
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The world of fraud at a glance
SUB POINT
New &
Emerging
Fraud
Telecom fraud
Traditional
Fraud
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Telecom fraud
Traditional
Fraud
International Revenue share Fraud
Subscription/Identity Theft
Interconnect/By-Pass Fraud/call reselling
Dealer Fraud
Pbx Hacking
Incoming call bonus abuse
Commercial offer abuse (equipment)
Traditional fraud
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New &
Emerging
Fraud
Telecom fraud
Non Authorised Content Broadcast
Distribution of Illegal or Unwanted Content
P2P Content Reselling
Video Share
Mobile/ Smartphone Malware
Consumption of Network Resources with no revenue or ability to bill
Change of billing model making it impossible to bill
ID Spoofing (Access and Services Identity)
New & Emerging Fraud
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2011 CFCA Survey
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We have to think differently …
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M2M Fraud
• Tampering with unattended devices
• SIM Swap Cloning
• Malware
• Denial of Service
• Unauthorised access to data
• Rule based - HUR, Overlap, Velocity, Invalid service usage etc
• Profiling – monitor deviation from accepted usage patterns
• Real-Time controls – using in-line rules, tariff checks and policy controls to bar unauthorised services, or alert device owners
M2M Fraud Counter-Measures
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New challenges …
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Fraud Management issue on a NGN
• Knowledge on NGN network Fraud
environment
• Specifics on potential points of attack
• Specifics on what information is available
from key points
• Information correlation necessary
• New detection techniques
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Detection issue on a NGN
• Correlation of data from multiple sources, e.g.
• Bearer / IMS Session
• PS Core records (actual data usage)
• Content data / merchant information
• Payment processes – separate records to the
transaction records
• Much larger volumes of data
• Variety of identifiers
• Subscribers may be victims rather than
perpetrators
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Impact on the Fraud Management System
• Map out FMS touch points
• Need for complex event correlation
• Appropriate systems for „Big Data‟ analysis
• More effective rules management
• Invest in the right tools
• Context based usage checks and profiling
• FMS system flexibility
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Key takeaway
As an industry we need to review the structure and design of our
fraud teams in order to ensure maximum effectiveness and delivery
for our organisations.
In order to target success in our fight against frauds we must ensure
we have:
Appropriate Structure
Correct focus & strategy
Appropriate skill sets
Appropriate tools
Develop fraud awareness
Exchange intelligence & best
practice
Assess the fraud exposure of
new services
Collaborate with other GSMA
working groups and projects
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