GRUPPO TELECOM ITALIAHow can operators merge fraudin a full IP environment?London, 20.03.2012Stefano Maria De Rossi   Dani...
Once upon a time:                     COMMUNICATE                     • voice  What individuals   • sms   do on mobile ?
New generation Telecom environment             DO                         COMMUNICATE              • documents            ...
The future of mobile
Pressure is on for service providers to keep pace and meet the tough demand of an        always connected lifestyle
Industry Key points   Voice is still the main share of revenues for operators (ca. 70% ) but trend is falling:    CAGR es...
Industry Key points: Market Trends - WorldwideTotal mobile service revenues are increasing WW, driven by the mobile datare...
Industry Key points: Mobile Internet market TrendsGlobal mobile data traffic will increase 26-fold between 2010 and 2015. ...
Expected market evolution
Riding the data tsunami
Challenge aheadTraffic volumes on mobile networks aregrowing much faster than the revenue theygenerate for mobile operator...
Two vital questions      How can operators manage the huge increase in      data volumes?      And where will the money co...
Two vital questions      How can operators manage the huge increase in      data volumes?
4g on the horizon: LTE overviewIn order to ensure their network capacity, Telco Operators areinvesting in network expansio...
LTE specification  HSDPA                                            LTE14 Mbps DL                                      100...
Voice in LTEVoice in LTE is a disruptive moment for the Industry: not a technology evolutionbut a revolution
Industry evolution: opportunity or threat ?
Industry Hot Topics – Value of Core Services   The shift to an “All IP” network paradigm (LTE) will make voice a    data ...
In search of outcomes: GSMA perspective      RCS                             voLTE    FIRM                              IMS
Two vital questions      How can operators manage the huge increase in      data volumes?      And where will the money co...
Telco battlefield
Mobile business: surfing data opportunities In order to move away from flat rates and offer more advanced data pricing mod...
The apple experienceIf consumers are willing to pay a premium for the Apple experience,why wouldn’t they be willing to pay...
Mobile Technological evolution while protecting profitability
Telco market: new services trendChanges in the telco world are affected by radical evolutions startingfrom new technologie...
The world of fraud at a glance        Traditional               New &          Fraud                  Emerging POINT      ...
Traditional fraud                       International Revenue share Fraud                       Subscription/Identity Th...
New & Emerging Fraud Non Authorised Content Broadcast Distribution of Illegal or Unwanted Content P2P Content Reselling...
2011 CFCA Survey
We have to think differently …
M2M Fraud          M2M Fraud                    Counter-Measures  • Tampering with unattended     • Rule based - HUR, Over...
New challenges …
Fraud Management issue on a NGN• Knowledge on NGN network Fraud  environment• Specifics on potential points of attack• Spe...
Detection issue on a NGN• Correlation of data from multiple sources, e.g.   • Bearer / IMS Session   • PS Core records (ac...
Impact on the Fraud Management System• Map out FMS touch points• Need for complex event correlation• Appropriate systems f...
Key takeawayAs an industry we need to review the structure and design of ourfraud teams in order to ensure maximum effecti...
STEFANOMARIA.DEROSSI@TELECOMITALIA.IT  DANIELE.GULINATTI@TELECOMITALIA.IT
Merging fraud in a full IP environment
Merging fraud in a full IP environment
Merging fraud in a full IP environment
Merging fraud in a full IP environment
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Merging fraud in a full IP environment

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Facing new business opportunity with the development of LTE & NGN on Mobile business and understanding and preventing new generation Telco Fraud

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Merging fraud in a full IP environment

  1. 1. GRUPPO TELECOM ITALIAHow can operators merge fraudin a full IP environment?London, 20.03.2012Stefano Maria De Rossi Daniele Gulinatti
  2. 2. Once upon a time: COMMUNICATE • voice What individuals • sms do on mobile ?
  3. 3. New generation Telecom environment DO COMMUNICATE • documents • voice • Banking • sms • Payment • email What individuals do on mobile ? ENJOY FIND • photos/video • info/answers • music • places • games • products • networking • people
  4. 4. The future of mobile
  5. 5. Pressure is on for service providers to keep pace and meet the tough demand of an always connected lifestyle
  6. 6. Industry Key points 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 8
  7. 7. Industry Key points: Market Trends - WorldwideTotal mobile service revenues are increasing WW, driven by the mobile datarevenue 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, Androidetc.)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
  8. 8. Industry Key points: Mobile Internet market TrendsGlobal mobile data traffic will increase 26-fold between 2010 and 2015. Mobiledata traffic will grow at a compound annual growth rate (CAGR) of 92% from 2010to 2015, reaching 6.3 exabytes per month by 2015Source: Cisco Visual Networking Index: Global Mobile Data Traffic Forecast Update, 2010–2015, February 2011 Cisco, Global
  9. 9. Expected market evolution
  10. 10. Riding the data tsunami
  11. 11. Challenge aheadTraffic volumes on mobile networks aregrowing much faster than the revenue theygenerate for mobile operators –this results inoperational and financial pressure for telcosfor upgrading their networks to highercapacity and coverage.Increasing competition, regulatorypressure, and the proliferation of flat-ratepricing for data services puts enormouspressure on their margins.
  12. 12. 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 ?
  13. 13. Two vital questions How can operators manage the huge increase in data volumes?
  14. 14. 4g on the horizon: LTE overviewIn order to ensure their network capacity, Telco Operators areinvesting in network expansion, or deploying new networktechnologies, 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
  15. 15. LTE specification HSDPA LTE14 Mbps DL 100 Mbps DL5,7 Mbps UL 50 Mbps UL LTE has 10X users per cell than HSDPA
  16. 16. Voice in LTEVoice in LTE is a disruptive moment for the Industry: not a technology evolutionbut a revolution
  17. 17. Industry evolution: opportunity or threat ?
  18. 18. 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.
  19. 19. In search of outcomes: GSMA perspective RCS voLTE FIRM IMS
  20. 20. 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 ?
  21. 21. Telco battlefield
  22. 22. Mobile business: surfing data opportunities In order to move away from flat rates and offer more advanced data pricing models, new monetization models are needed requiring integration between: POLICY CHARGING MANAGEMENT CAPABILITIES
  23. 23. The apple experienceIf consumers are willing to pay a premium for the Apple experience,why wouldn’t they be willing to pay for the higher-quality experiencefrom telecom operators?
  24. 24. Mobile Technological evolution while protecting profitability
  25. 25. Telco market: new services trendChanges in the telco world are affected by radical evolutions startingfrom new technologies up to new services linked to different markets(Internet, media, banking). New types of threats and frauds are on the rise
  26. 26. The world of fraud at a glance Traditional New & Fraud Emerging POINT SUB Fraud Telecom fraud
  27. 27. Traditional fraud  International Revenue share Fraud  Subscription/Identity Theft  Interconnect/By-Pass Fraud/call reselling  Dealer Fraud Traditional  Pbx Hacking Fraud  Incoming call bonus abuse  Commercial offer abuse (equipment) Telecom fraud
  28. 28. New & Emerging 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 New & revenue or ability to bill Emerging Change of billing model making it impossible to bill ID Spoofing (Access and Services Identity) Fraud Telecom fraud
  29. 29. 2011 CFCA Survey
  30. 30. We have to think differently …
  31. 31. M2M Fraud M2M Fraud Counter-Measures • Tampering with unattended • Rule based - HUR, Overlap, devices Velocity, Invalid service usage etc • SIM Swap Cloning • Profiling – monitor deviation • Malware from accepted usage patterns • Denial of Service • Real-Time controls – using in- • Unauthorised access to data line rules, tariff checks and policy controls to bar unauthorised services, or alert device owners 34
  32. 32. New challenges …
  33. 33. 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 36
  34. 34. 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 37
  35. 35. 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 38
  36. 36. Key takeawayAs an industry we need to review the structure and design of ourfraud teams in order to ensure maximum effectiveness and deliveryfor our organisations.In order to target success in our fight against frauds we must ensurewe have: Appropriate Structure  Develop fraud awareness Correct focus & strategy  Exchange intelligence & best Appropriate skill sets practice Appropriate tools  Assess the fraud exposure of new services  Collaborate with other GSMA working groups and projects
  37. 37. STEFANOMARIA.DEROSSI@TELECOMITALIA.IT DANIELE.GULINATTI@TELECOMITALIA.IT
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