Fraud Management Group Activities                                                   Management World 2012                 ...
Agenda                                            Fraud Management Group Activities                   1. Fraud Survey High...
Fraud Survey Highlights                                                                      Objectives and Structure     ...
Fraud Survey Highlights                                                                                                   ...
Fraud Survey Highlights                                                                                                 Fr...
Fraud Survey Highlights                                                                       General Fraud Classification...
Fraud Survey Highlights                                                                                   General Fraud Cl...
Fraud Survey Highlights                                                           Specific Fraud Classification           ...
Fraud Survey Highlights                                                              Specific Fraud Classification        ...
Agenda                                             Fraud Management Group Activities                   1. Fraud Survey Hig...
Fraud Classification Model                        Why do we need an effective FM Classification Model?                    ...
Fraud Classification Model                        Why do we need an effective FM Classification Model?          An example...
Fraud Classification Model                                                                                            Chal...
Fraud Classification Model                                                                           Fraud Classification ...
Fraud Management Business Metrics                                                                             Why a FM Bus...
Fraud Management Business Metrics                                  FM Classification Model, Metrics and Performance Indica...
Fraud Management Business Metrics                                                                               Executive ...
Fraud Management Business Metrics                                                                                         ...
Fraud Management Business Metrics                                                                                       St...
Fraud Management Business Metrics                                                                      Stage A: Fraud Clas...
Fraud Management Business Metrics                                                                               Stage A: F...
Fraud Management Business Metrics                                                                              Stage A: Fr...
Agenda                                             Fraud Management Group Activities                   1. Fraud Survey Hig...
FM Implementation Guidebook                                                                                               ...
FM Implementation Guidebook                                                                                               ...
FM Implementation Guidebook                                                                           Apr-Sep 2012 Project...
FM Implementation Guidebook                                                                                               ...
Fraud Classification & Implementation Guide Projects                                                                      ...
Agenda                                                    Fraud Management Sessions                                       ...
Upcoming SlideShare
Loading in …5
×

TM Forum Fraud Management Group Activities - Presented at TM Forum's Management World 2012 in Dublin

2,600 views
2,412 views

Published on

Tal Eisner, Senior Director Product Strategy at cVidya and Deputy Chair of the TM Forum Fraud Management Group, presented at TM Forum's Management World 2012 in Dublin on the Fraud Management Group Activities

Published in: Health & Medicine, Business
0 Comments
5 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
2,600
On SlideShare
0
From Embeds
0
Number of Embeds
7
Actions
Shares
0
Downloads
0
Comments
0
Likes
5
Embeds 0
No embeds

No notes for slide

TM Forum Fraud Management Group Activities - Presented at TM Forum's Management World 2012 in Dublin

  1. 1. Fraud Management Group Activities Management World 2012 José Sobreira Raul Azevedo Tal Eisner May 2012 © 2012 TeleManagement Forum | 1 www.tmforum.orgv2011.1
  2. 2. Agenda Fraud Management Group Activities 1. Fraud Survey Highlights 2. The Road to an Effective Fraud Classification Model 3. Defining a Practical FM Implementation Guidebook © 2012 TeleManagement Forum | 2 www.tmforum.orgv2011.1
  3. 3. Fraud Survey Highlights Objectives and Structure Objectives • Get a global picture regarding Fraud Classification practices • Understand how different operators in different regions classify, track, and report fraud • Gather input for the Fraud Classification Guidebook roadmap Structure • Survey participants • Fraud Management Organization • General Fraud Classification Practices • Specific Fraud Classification Practices © 2012 TeleManagement Forum | 3 www.tmforum.orgv2011.1
  4. 4. Fraud Survey Highlights Survey Participants Operator type Please indicate the industry Fraud Forums (36 Respondents) that you follow or are a member (check all that apply): (21 Respondents) 3% 5% Broadband 71% 3% Cable 62% 3% 5% 14% Carrier 43% Fixed 33% 3% 17% Fixed & Mobile 14% Fixed, Mobile & Broadband 5% Mobile 42% 5% Mobile & Broadband FIINA CFCA TMForum GSMA TUFF Other Fraud MVNO Forum Quad Play © 2012 TeleManagement Forum | 4 www.tmforum.orgv2011.1
  5. 5. Fraud Survey Highlights Fraud Management Organization Do you track any of the following metrics and What is the size of your current Fraud key performance indicators (KPIs) today Management team (directly involved in (check all that apply): fraud management)? (23 Respondents) (23 Respondents) 78% 78% 65% 65% <5 52% 9% 48% 5-10 22% 39% 10-25 25-100 30% >100 Fraud losses vs Revenuesdetection Fraud time Fraud losses byFraud savings of alarms by day case Number False positive rate Are you also responsible for other processes in the business (check all that apply): (19 Respondents) 68% 68% 42% 37% 32% Revenue Assurance debt analysis Management (risk) Bad Product Legal and Regulatory issues Other (please specify): © 2012 TeleManagement Forum | 5 www.tmforum.orgv2011.1
  6. 6. Fraud Survey Highlights General Fraud Classification What are your Top 3 fraud types found (by quantity of frauds discovered)? (23 Respondents) Wangiri 100% 2% Topups 6% 90% Subscription Roaming 22% 80% Payments 70% 8% Internal 60% 5% IRSF 6% Hacking (PABX) 50% 6% Equipment (subvention) 8% 40% Dealer 6% 30% Credit card 9% 20% 5% Collection 5% Cloning 10% 8% Clip-on 3% 0% Bypass 1st 2nd 3rd TOTAL Account takeover © 2012 TeleManagement Forum | 6 www.tmforum.orgv2011.1
  7. 7. Fraud Survey Highlights General Fraud Classification What are your Top 3 fraud types found (by estimated costs suffered by your business)? (20 Respondents) 100% 2% Topups 90% Subscription 27% 80% Roaming Payments 70% 5% NGN Network Intrusion 4% 60% IRSF 5% Internal 50% 11% Hacking (PABX) 40% 11% Equipment (subvention) 30% 7% Dealer 7% Credit card 20% 5% Cloning 10% 5% Clip-on 4% 0% 4% Bypass 1st 2nd 3rd TOTAL Account takeover © 2012 TeleManagement Forum | 7 www.tmforum.orgv2011.1
  8. 8. Fraud Survey Highlights Specific Fraud Classification Respondents were asked to classify a set of presented scenarios with the type of fraud that was being committed • 70% to 80% of similar answers in minor part of the presented scenarios, • No common language of classifying a fraud scenario. In several scenarios, more than 50% of given answers didn’t match • The dispersion of answers clearly correlates with service type (Mobile, Fixed, Cable, MVNO or Carrier). • There are different names commonly accepted for the same Fraud Type, leading to some respondents using one or even both. © 2012 TeleManagement Forum | 8 www.tmforum.orgv2011.1
  9. 9. Fraud Survey Highlights Specific Fraud Classification • Difficulty in classifying scenarios where multiple crimes were perpetrated, namely getting access to the service and committing the fraud. • Some respondents are already tackling these classification challenges by opting to give multiple answers to distinguish, for example, the method used for the fraud type and driver. © 2012 TeleManagement Forum | 9 www.tmforum.orgv2011.1
  10. 10. Agenda Fraud Management Group Activities 1. Fraud Survey Highlights 2. The Road to an Effective Fraud Classification Model 3. Defining a Practical FM Implementation Guidebook © 2012 TeleManagement Forum | 10 www.tmforum.orgv2011.1
  11. 11. Fraud Classification Model Why do we need an effective FM Classification Model? Internally Effective monitoring, analysis & reporting • Focus on critical dimensions • Top down approach • Trend analysis and forecasting Externally Benchmarking and industry/regulatory reports • Industry benchmarking and statistics • Market research • Fraud/Risk Bureaus Copyright © 2012 TeleManagement 11 © 2012 TeleManagement Forum | Forum, All Rights Reserved. | 11 www.tmforum.orgv2011.1
  12. 12. Fraud Classification Model Why do we need an effective FM Classification Model? An example from the Fraud Survey Fraud Scenario Referred Fraud Types Statistics “Fraudster generates a high volume of • PRS Unique: 39% calls to a PRS number range that he • IRSF Multiple: 44% owns in another country with no intention • PRS/IRSF Structured: 17% to pay.” • Bypass/SIMBOX • PABX Hacking • Clip-on • Stolen Line • Subscription • Dealer • Payment • PBX / Voicemail • Roaming out Copyright © 2012 TeleManagement 12 © 2012 TeleManagement Forum | Forum, All Rights Reserved. | 12 www.tmforum.orgv2011.1
  13. 13. Fraud Classification Model Challenges • Distinct names for the same Fraud Type • Distinct interpretation depending on the core service (Mobile, Fixed, Cable, etc.) • Multiple Frauds perpetrated in the same Fraud Case • Fast changing nature of Fraud • Need for a multi-dimensional analysis • Need for different levels of abstraction • Existence of several similar Ad hoc “Fraud Type” lists Copyright © 2012 TeleManagement 13 © 2012 TeleManagement Forum | Forum, All Rights Reserved. | 13 www.tmforum.orgv2011.1
  14. 14. Fraud Classification Model Fraud Classification Dimensions Dimensions are the key axes of Fraud Case analysis Method or Technique • Method or Technique • Context Context • Driver or Motivation • … Driver or Motivation … The development of a Fraud Classification Model is essential for a Fraud Management Business Metrics project! Copyright © 2012 TeleManagement 14 © 2012 TeleManagement Forum | Forum, All Rights Reserved. | 14 www.tmforum.orgv2011.1
  15. 15. Fraud Management Business Metrics Why a FM Business Metrics Strategy?  The Fraud Management efficiency as a discipline, depends on the type of Fraud Business Metrics or Indicators created.  Once developed and implemented the “Fraud Management Business Metrics” are used by Fraud Teams to: o Understand the fraud environment o Measure and evaluate fraud cases o Develop mitigation strategies o Share and create internal visibility o Take investment decisions on technical, human, operational and financial resources  An efficient “Fraud Management Business Metrics” Strategy should consider three sequential stages: o Stage A: define a standard Fraud Classification Model o Stage B: define and analyse metrics for Fraud Detected, Prevented and BA* Synergies o Stage C: select strategic Fraud Key Performance Indicators for C – Level visibility (*) BA Business Assurance Copyright © 2012 TeleManagement 15 © 2012 TeleManagement Forum | Forum, All Rights Reserved. | 15 www.tmforum.orgv2011.1
  16. 16. Fraud Management Business Metrics FM Classification Model, Metrics and Performance Indicators Executive Board Stage C FM Key Performance Indicators Members • Selected Performance Metrics FM Business Metrics Stage B • Detection • Prevention • Operational Business Assurance Synergies Level Stage A Fraud Classification Model • Based on standard classification model Copyright © 2012 TeleManagement 16 © 2012 TeleManagement Forum | Forum, All Rights Reserved. | 16 www.tmforum.orgv2011.1
  17. 17. Fraud Management Business Metrics Executive Board Stage C Members FM Key Performance Indicators • Performance Metrics Stage B FM Business Metrics • • Detection Prevention Stage A: Fraud Classification Model Operational • BA Synergies Level Stage A Fraud Classification Model • Classification model Model Categories Operator Benefits  Operator Profile Fraud  Fraud Cases Classification  Fraud Management Actions Classification Model (FCM)  Fraud Mitigation  Per Operator  Per Industry  The efficiency of the FCM depends on the methodology used for the Classification of Fraud Cases, that should be: o Clear (promotes understanding of fraud) o Simple (facilitates the featuring of each fraud case) o Easy to Use (allow information sharing and mitigation) Copyright © 2012 TeleManagement 17 © 2012 TeleManagement Forum | Forum, All Rights Reserved. | 17 www.tmforum.orgv2011.1
  18. 18. Fraud Management Business Metrics Stage A: Fraud Classification Model Handset Subsidy Loss Subscription Fraud Today the Telecommunications Credit Card Fraud Industry is presented with many Payment Fraud different and not synchronized ways Roaming Fraud of Fraud Classification Dealer Fraud Mobile Malware Internal Fraud SIM Cloning Executive Board Stage C Members FM Key Performance Indicators • Performance Metrics Prepaid Fraud FM Business Metrics Stage B • Detection • Prevention Hacking Operational • BA Synergies Level Stage A Fraud Classification Model • Classification model Wangiri SS7 Tampering Copyright © 2012 TeleManagement 18 © 2012 TeleManagement Forum | Forum, All Rights Reserved. | 18 www.tmforum.orgv2011.1
  19. 19. Fraud Management Business Metrics Stage A: Fraud Classification Model ENABLER TECHNIQUE FRAUD TYPE (fraudulent way to obtain/access (fraudulent scheme) service) Reselling Subscription Fraud TELECOMS SERVICE FRAUD International Revenue Hacking Share Fraud  There is a clear need to differentiate between the: Non Authorised Access Private Use o ENABLER TECHNIQUE versus National Premium Cloning Rate Service o FRAUD TYPE  By doing so network operators will be Mobile Malware Interconnect Bypass able to effectively understand fraud and mitigate it at two level: Signalling Manipulation Overbilling o Review of Procedures, Processes, Service Platforms and Network Bribery Phishing o Enhancement and reconfiguration of Fraud Management Systems Social Engineering Others (FMS) Enhancement and Review of Procedures; reconfiguration of Processes; Service Fraud Management Platforms and Network Systems Copyright © 2012 TeleManagement 19 © 2012 TeleManagement Forum | Forum, All Rights Reserved. | 19 www.tmforum.orgv2011.1
  20. 20. Fraud Management Business Metrics Stage A: Fraud Classification Model FRAUDSTER OBJECTIVE ENVIRONMENT ATTACK CUSTOMER TECHNOLOGY SERVICE PAYMENT IMPACTS PS HTTP/HTTPS TT /H TP HTTP/HTTPS HT IMT CORBA OSS-RC MN-OSS CS-DS CS-WS EFWS Portal FOCA LDAP DIAMETER FTP DIAMETER PPS CS-MS CS-CS CS-AS EMA SRD MM ISC LDAP DIAMETER DNS DIAMETER ENUM/ HSS S-CSCF RS DNS SIP Rx+ ISUP Gm P-CSCF I-CSCF S-CSCF MGCF/SG Gx+ PCRF (SIP) SIP H.248 PSTN SIP PLMN TDM ViG GGSN PDG MG A-SBG N-SBG RT P/ RT SI P/ P/ RTP SIP H32 /H 3 32 SIP RTP 3 AAA SIP H.323 IP SGSN WAG Backbone BRI BRI PRI POTS Other VoIP Networks UTRAN WLAN Network Fraud Classification Attributes ENABLER FRAUD TECHNIQUE TYPE FRAUD CASES CLASSIFICATION © 2012 TeleManagement Forum | 20 www.tmforum.orgv2011.1 20
  21. 21. Fraud Management Business Metrics Stage A: Fraud Classification Model EXAMPLE 1 FRAUDSTER OBJECTIVE ENVIRONMENT ATTACK CUSTOMER TECHNOLOGY SERVICE PAYMENT IMPACTS  Hacker  Divert  At  External  Postpaid  IP Centrex  Voice  Invoice  Financial money to National Payment  Business (Due date)  Churn finance Territory Customer terrorist group Fraud Classification Attributes ENABLER TECHNIQUE FRAUD TYPE  Hacking into IP  International PBX Phone Revenue Share System Fraud (IRSF) FRAUD CASES CLASSIFICATION © 2012 TeleManagement Forum | 21 www.tmforum.orgv2011.1 21
  22. 22. Fraud Management Business Metrics Stage A: Fraud Classification Model EXAMPLE 2 FRAUDSTER OBJECTIVE ENVIRONMENT ATTACK CUSTOMER TECHNOLOGY SERVICE PAYMENT IMPACTS  User/Cust  Make  At  External  Postpaid  3G  Voice  Invoice  Financial Payment omer Money/ Roaming over  Mass (Due date) Profit LTE Market  Interconnect Settlements Fraud Classification Attributes ENABLER TECHNIQUE FRAUD TYPE  Subscription  Reselling of Fraud Service FRAUD CASES CLASSIFICATION © 2012 TeleManagement Forum | 22 www.tmforum.orgv2011.1 22
  23. 23. Agenda Fraud Management Group Activities 1. Fraud Survey Highlights 2. The Road to an Effective Fraud Classification Model 3. Defining a Practical FM Implementation Guidebook © 2012 TeleManagement Forum | 23 www.tmforum.orgv2011.1
  24. 24. FM Implementation Guidebook Vision and Scope FM Implementation Guidebook will be a practical step-by- step guide to be used by CSPs as a reference for implementing best practices identified and defined by the TMF Fraud Team  The scope of the “FM Implementation Guidebook” is to provide CSPs with a practical vision concerning the implementation of a strategic “Fraud Management Process”.  The “FM Implementation Guidebook” will cover the essential aspects of Fraud Management and will offer practical advise to CSPs on the organisation of daily fraud activities: o Fraud Management Tactical; Operational and Strategic actions Copyright © 2012 TeleManagement 24 © 2012 TeleManagement Forum | Forum, All Rights Reserved. | 24 www.tmforum.orgv2011.1
  25. 25. FM Implementation Guidebook Vision and Scope Intelligence Gathering Management Culture Influences Fraud Risk Exposure TACTICAL OPERATIONAL STRATEGIC PREVENTION (P) DETECTION (D) INVESTIGATION (I) MEASUREMENT (M) FMS Business Assurance Synergies Security Revenue Assurance Internal Audit Risk Management Copyright © 2012 TeleManagement 25 © 2012 TeleManagement Forum | Forum, All Rights Reserved. | 25 www.tmforum.orgv2011.1
  26. 26. FM Implementation Guidebook Apr-Sep 2012 Project Scope Identification of Telecom FM Roles & Responsibilities FM Implementation Guidebook Fraud Operations Management Guide (GB954) Copyright © 2012 TeleManagement 26 © 2012 TeleManagement Forum | Forum, All Rights Reserved. | 26 www.tmforum.orgv2011.1
  27. 27. FM Implementation Guidebook Apr-Sep 2012 Project Scope Identification of Telecom FM Metrics and Performance Indicators FM Implementation Guidebook FM Key Performance FM Business Indicators Metrics Fraud Classification Model Executive Board Stage C Members FM Key Performance Indicators • Performance Metrics FM Business Metrics Stage B • Detection • Prevention Operational • BA Synergies Level Stage A Fraud Classification Model • Classification model Copyright © 2012 TeleManagement 27 © 2012 TeleManagement Forum | Forum, All Rights Reserved. | 27 www.tmforum.orgv2011.1
  28. 28. Fraud Classification & Implementation Guide Projects Project Plan Jan 12 May 12 Jun 12 Sep 12 TAW Charter TAW Charter Madrid Kick Off Baltimore conclusion follow up follow up meetings meetings Draft Scope Final version Definition version discussion Project deliverables Fraud Classification Model Implementation Guidebook Classification Guidebook (new version) • Classification Model Proposal New Guidebook • New attributes • Roles & Responsibilities identification • Revised list of Telecom Fraud definitions • FM Metrics & KPIs identification Copyright © 2012 TeleManagement 28 © 2012 TeleManagement Forum | Forum, All Rights Reserved. | 28 www.tmforum.orgv2011.1
  29. 29. Agenda Fraud Management Sessions Thank you! © 2012 TeleManagement Forum | 29 www.tmforum.orgv2011.1

×