Nuno Pestana, WeDo Technologies

Transcription

1 Nuno Pestana, WeDo Technologies

2 SUBSCRIPTION FRAUD SUBSCRIPTION FRAUD In Raid FMS REAL-TIME Subscription Fraud

3 SUBSCRIPTION FRAUD SUBSCRIPTION FRAUD In Raid FMS REAL-TIME Subscription Fraud

4 FRAUD THE IMPACT OF FRAUD Fraud amounts to $38.1 billion annually representing 1.69% of all Telecom revenues Subscription Fraud PBX hacking IP PBX Hacking Dealer Fraud Internal fraud / Employee Theft 1.8 Wangiri Payment Fraud Smart Networks and a wider business scope is considerably enlarging the attack surface for Fraudsters Black-box systems do not adapt well to this new reality CFCA 2015 Survey - Fraud Losses by Method in $ USD Billions Voic Hacking (Not associated with PBX Hacking) Mobile Malware Signalling Manipulation SIM Cloning

5 STOP THE ENABLERS The Enabler Allows the fraudster to commit fraud The Threat The fraud itself, with impact on your business International Revenue Share Fraud One example: Subscription Fraud Premium Rate Service Fraud Service Reselling Commissions Fraud Others

6 Subscription fraud is defined as gaining access to products or services without having the intention of paying for them. This can be done by Making a dishonest application using false information Using genuine information together with forged/stolen documentation Fraudsters commit fraud to obtain free personal calls/services. Alternatively, an organized fraudster may use the subscription to generate income ex., via selling or premium rate service fraud

7 Fraudsters give false information concerning Addresses Telephone Numbers Professional Occupation Personal Information Etc. Alternatively, fraudsters use false documents as identification proof Passports Driver s Licenses Bank Details VAT Identification Etc.

8 SUBSCRIPTION FRAUD SUBSCRIPTION FRAUD In Raid FMS REAL-TIME Subscription Fraud

9 5 STEPS USED BY RAID FMS TO FIGHT FRAUD PREVENT Stop the enablers before the fraud happens DETECT Use rules and identify patterns ANALYZE Manage your cases and investigate at multiple levels of data RESOLVE Collaborate and minimize time-to-resolution LEARN Use your historical data to find new rules and patterns

10 FRAUD THREATS EVEN BEFORE THEY OCCUR Fraudster tries to do a dishonest application using false information or genuine but stolen information RAID FMS checks for fraudulent applications... identifying multiple activations from the same subscriber by similarity analysis or integrating internal or 3rd party hotlists of potential users that are referenced as fraudsters or other attributes Fraudster is stopped before being able to commit fraud IRSF Interconnect Bypass Fraud Commissions Fraud Premium Rate Service Fraud Service Reselling Theft of Equipment (...)

11 MAIN Intuitive Graphical Interface to facilitate the configuration, analysis process and decision processes Calculates similarity probability between new subscription and blacklisted subscribers to allow prioritization and risk segmentation Multi-subscription velocity to anticipate identity theft behavior, i.e., validate if the same person is performing several subscription activations in a defined period of time (Multiple Activations)

12 ADDITIONAL RULES CAN BE CONFIGURED TO: Compare addition information from activation (dealers, postal codes, etc.) with specific risky/ suspect Hotlists Validate VAT identification number (companies only) using external data bases. Besides the VAT validation, the registered name and address is also returned and can be compared with activation info Validate IDs consistence (valid check digit, etc.) Validate changes in the subscription information, e.g., addition of roaming or other High Value services RAID can also connect to external credit risk/scoring to retrieve information that can also be used on rules

13 HIGH-LEVEL Subscription Fraud Model FMS Standard Process Flow Subscriber data Name: Andreas Norton Address: 444 fifth Avenue City: New York Zip Code: NY ID #: Telephone: Clean and Normalize (Applied to subscription and black list) Transform and Filter (Cultural, Language, Business Rules) Match (Similarity X weights in model) Rules Alerts Alarms Cases Similarity > 85 And Address in Risky Addresses Or Contact Phone blacklisted Subscriber data Name: Andreas Norton Address: 444 5th Av City: New York Zip Code: NY ID #: Telephone: Subscriber data Name: Andreas Norton Address: 444 5th Av City: New York Zip Code: NY ID #: Telephone: ~ Blacklisted data Name: Andrew Norton Address: 443 5th Av 20% x 86 30% x 90 = City: New York 10% x 100 ~~ Zip Code: NY % x 89 ID #: % x 89 Final match = 89.8

14 ACT AND COLLABORATE Taking action right from the tool Collaborate to effectively resolve Access to Subscription Fraud Alerts Information CFO Network Security Team Cancel/Suspend Subscription Bar Outgoing Calls FRAUD TEAM Other Revenue Assurance Team Credit Control Team Add to Hot List

15 HARVESTS THE INTERNET FOR PUBLIC INFORMATION Natural Language Processing Unstructured Big Data Context Analysis Machine Learning Evaluate Profile Discover Insights Crawler Evaluate Findings Provides a subjective understanding of an entity represented by indicators related to personality, activities, subscriptions and related content

16 Digital Risk Profile collects valuable data for Subscription Fraud Detection Additional information for Subscription Fraud Models and Rules based on Social Attributes Other s Other names (from different social networks) Fraudster profile similarity score Antiquity in social networks Information can be used also as advanced profile information

17 WEDO LABS AND ROADMAP Biometrical identity validation and speech recognition mechanisms, integrated with RAID FMS subscription fraud module to detect ID fraud earlier and more accurately Validate identity through voice or photo comparison Fight identity theft by allowing identity check in Call Centers interactions An extended ID verification capability, leveraged by Human Recognition algorithms, that links the physical person with different online sources of ID verification

18 SUBSCRIPTION FRAUD SUBSCRIPTION FRAUD In Raid FMS REAL-TIME Subscription Fraud

19 INTEGRATION WITH RAID FMS can be integrated with Operator system to perform subscription fraud validation in real time Integration can be done with Point of Sales gateway, middleware or any other systems Communication performed using web services Faster, sharper and smarter fraud prevention capabilities

20 SUBSCRIBER ACTIVATES NEW OFFER INTEGRATION WITH APPROVES ACTIVATION RAID APPLIES RULES TO THE SUBSCRIBER DATA REJECTS ACTIVATION STORE PoS SENDS ACTIVATION TO OPERATOR MARKS ACTIVATION AS SUSPECT CALL CENTER SELF-REGISTER MIDDLEWARE RAID RETURNS DECISION AND ACTIVATION IS ACCEPTED OR REJECTED

21 REAL-TIME ADVANTAGES Quicker fraud detection Immediate action: Sale negation Sale approval = Reduced fraud window Reduced loss Improved reaction time to new threats

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