Enterprise Fraud Management - Challenges Brings New Opportunities


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Tal Eisner presents the new challenges and opportunities of enterprise fraud management for telecom providers.

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Enterprise Fraud Management - Challenges Brings New Opportunities

  1. 1. Enterprise FraudManagement - OPERATIONAL RISK MANAGEMENTChallenges Brings New & COMPLIANCEOpportunitiesRio De Janeiro – Brazil – 13 & 14 August 2012Tal Eisner – Senior Director Product Strategy© 2012 – PROPRIETARY AND CONFIDENTIAL INFORMATION OF CVIDYA
  2. 2. About cVidyaA global leader and innovative provider of Revenue Intelligencesolutions for Telecom, Media and Entertainment service providers  150 customers  #1 Revenue Management Global Market – 20 out of the 30 largest operators Provider by Gartner (April 2011)  300 employees  TM Forum Leadership  Global presence in 20 locations  Partnership with the world leading vendors2
  3. 3. West Europe East & Central EuropeCustomer Base UK – BT, O2, Orange, T-Mobile, Colt, Russia – Vimpelcom, RosTelecom, Three, Sky, VirginMedia Uralsvyazinform Germany – DT, Vodafone, E-Plus, 1und1 Ukraine – Kyivstar France – FT, Orange Hungary – HTC (Magyar) North America Spain – Telefonica, Telefonica Moviles Czech Republic – O2 USA Italy - Telecom Italia , TeleTu Georgia – Magticom AT&T, Sprint, Alaska Telecom, Switzerland – Swisscom Kazakhstan – Kazakhstan Telecom Sovernet, ATN, Comment, Alltel, Austria – A1 (Telecom Austria) Turkey - Vodafone Islandcom, CellularOne, Choice Norway - Telenor Greece – Cosmote, HOL (Hellas Canada Sweden – Tele2, Telia Online) Bell Canada Denmark- Telia, TDC Albania – AMC (Cosmote) Netherlands – KPN, Telfort, Orange, Romania – Cosmote Vodafone Serbia – Telekom Serbia Ireland – O2 Slovakia – Orange Slovakia CALA Lithuania – TEO, Omnitel Bosnia Herzegovina – Telecom Finland – DNA Srpske Brazil – Vivo, TeleSP, TIM, Embratel, CTBC, GVT Portugal – PT, ZON, JazzTel Croatia - Croatian Telecom Mexico– Movistar/Telefonica, Iusacell Bulgaria - Moblitel Argentina - Movistar/Telefonica, Telecom Argentina Peru - Movistar/Telefonica APAC Chile - Movistar/Telefonica Ecuador – Movistar/Telefonica, CNT India – Vodafone, Airtel Colombia - Movistar/Telefonica China – China Telecom Africa Vietnam – MobiFone Venezuela - CANTV, Digitel, Movistar/Telefonica Guatemala - Movistar/Telefonica, Telgua Philippines – Bayan, Globe South Africa – MTN, Vodacom El Salvador - Movistar/Telefonica, Claro Australia – Three (H3G), Optus Uganda – Uganda Telecom Panama- Movistar/Telefonica, Cable & Wireless Thailand – CAT Zimbabwe – TelOne Nicaragua - Movistar/Telefonica, Claro Singapore – MobileOne Ivory Cost – MTN Costa Rica – ICE Israel – Bezeq, Cellcom, Partner (Orange), Namibia – MTC, Telecom Namibia Caribbean’s – Cable & Wireless, Digicel Pelephone, YES, HOT Angola – Angola Telecom Puerto Rico – PRTC Palestine – PalTel Cuba – ETECSA Guyana - GT&T Uruguay – Antel
  4. 4. World Leading Associations & Partners Partners Associations and committees4
  5. 5. Today The enterprise opportunity New landscape How to A need for a change become a revenue in scope of work generating unit for Fraud Management5
  6. 6. CHANGE of  Telco’s are going through a gradual change  Revenues are down due to change inClimate products & plans – A shift towards bundles – New flat tariff plans – All included plans – Unlimited Voice/SMS/Data
  7. 7. Change in Fraud Management  If traffic is unlimited … – No more “high usage” ? – No more “abnormal” traffic behavior ?  Change of fraud incentives ? – Why bother for fraud if it’s all so cheap and unlimited ?  Change of Fraud Management strategy ? – Who are we after ?7
  8. 8. ? WHAT Will the Change of CLIMATE Bring?8
  9. 9. Fraud Manager’s Dilemmas Today ? ? ? How can I generate new How do I develop proactive revenue streams from approach to protect the the same tools I use to organization from future prevent losses? fraud threats and challenges? How do I protect my organization from current fraud threats to minimize revenue losses?9
  10. 10. A Shift in Approach Fraud departments are Effective: obliged to be more:  Achieve more with fewer resources  Support large volumes and multiple types of transactions  Align activities with corporate business goals  Demonstrate their activities and effectiveness within the organization Proactive:  Assess risks of services & products pre-launch  Top down analysis & prioritization Innovative:  Stay ahead of threats and challenges  Produce revenues as well as prevent losses  Be prepared for upcoming technologies and products10
  11. 11. The Traditional Fraud Department Traditional Operator Fraud Teams  Operation & investigation teams  Seen as a necessity – no benefit recognition  Operations – measurement focus, high volumes of incidents and high number of personnel  Investigations – small case loads, long timespans, legal actions, minimal recovery  Simplistic process, lack of technical understanding  No commercial skill sets, or process expertise11
  12. 12. Fraud Management in Main Stream  From a defensive, reactive and detective unit to a proactive, revenue generating and innovative unit  Goals and targets shift from simply: ”Detecting more fraud” to “Achieving higher customer Satisfaction” and “Creating new revenue streams”12
  13. 13. The Enterprise Opportunity  Provision of a Fraud Management service to customers as a differentiator including capabilities such as: – PBX protection as a service to corporate customers (PBX detection as revenue generator)  PBX profiling  Back-office investigation tools – New dedicated fraud detection schemes  Management per customer  Allowable activity programming – Corporate customer portals  Notifications directly to customers (SMS, Email)  Dashboards, Tuning of fraud controls – Smartphone malware protection  App based analysis, with system integration13
  14. 14. TURNING a Lemon to Lemonade Sales and partner Increasing internal risk management positioning for Protection Fraud offering for corporate Departments customers FMAAS - Fraud Management As A Service for Partners Service abuse management Behavior analysis capabilities for marketing1414
  15. 15. Fraud Management –A Revenue Generating Unit?15
  16. 16. Areas to Consider  Partner FMAAS  Service Abuse Management – Provision of FMS for partners (such – Product protection as VNO’s & Wholesale) – Margin, T&C’s & FUP’s – Spam, SMS, Bypass, etc.  Enterprise Fraud Protection Services – Enterprise PABX Fraud Management  Behavioral Analysis for internal – Enterprise Risk Management departments – Customer profiling  Sales Channel Risk Management – Anomalous groupings – Commissions & payments – Segment behavior – Internal & external sales teams – Location profiles16
  17. 17. FMAAS and Enterprise Fraud & Risks Management1717
  18. 18. FMAAS  More Telcos have relationships and arrangements with other operators via MVNO or VNO relationships, reselling agreements or wholesale relationships  Effective fraud management is often difficult in these situations as the third party partner owns all the customer data and the third party often has a delay in receiving data or the data is limited  Therefore there is an opportunity for operators to offer fraud services to these partners to allow them to achieve effective real time management18
  19. 19. FMAAS cont’d  Services offered to these third parties could include: – Dedicated fraud detection schemes – Fraud Management per 3rd party » Specific rules and analysis » Specific profiling – Partner FM portals – Rule and threshold configuration & tuning of fraud controls – Notifications (SMS, Email) – Management and operational dashboards, – Crowdsourcing & sharing of information – Hot B number lists – Fraudster profiles & fingerprints19
  20. 20. Enterprise Fraud  Movement (or regrowth) of fraud to enterprise/corporate level, including: – Subscription & ATO fraud at the corporate/SME level – Regrowth of PABX fraud – IP service growth – IP PaBX software – Bypass/Gateway as a source – Customer manipulation – Traffic pattern hiding – Internal Fraud in the enterprise  Often the operators are blamed by the customer for not protecting them from these type of fraud20
  21. 21.  FM & RA units need to keep track and be ahead of challenges  Understand your internal strengths and its potential commercial value to the organizations  Increase your department’s position in the company by offering prevention services to your customers and partners  Increasing the capability range and coverage of the fraud and RA teams is essential  A truly intelligent, flexible system or tool set can support the process of transforming the fraud area into a profit center21
  22. 22. THANK YOU!www.cvidya.com