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

1. Enterprise Fraud
Management - OPERATIONAL
RISK MANAGEMENT
Challenges Brings New & COMPLIANCE
Opportunities
Rio De Janeiro – Brazil – 13 & 14 August 2012
Tal Eisner – Senior Director Product Strategy
© 2012 – PROPRIETARY AND CONFIDENTIAL INFORMATION OF CVIDYA

2. About cVidya
A global leader and innovative provider of Revenue Intelligence
solutions 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 vendors
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3. West Europe East & Central Europe
Customer 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. World Leading Associations & Partners
Partners
Associations and
committees
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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 Management
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6. CHANGE of  Telco’s are going through a gradual change
 Revenues are down due to change in
Climate products & plans
– A shift towards bundles
– New flat tariff plans
– All included plans
– Unlimited Voice/SMS/Data

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 ?
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8. ? WHAT
Will the
Change of
CLIMATE
Bring?
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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?
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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 products
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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 expertise
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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”
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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 integration
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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
marketing
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15. Fraud Management –
A Revenue Generating Unit?
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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 profiles
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17. FMAAS and Enterprise Fraud &
Risks Management
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18. FMAAS
 More Telco's 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 management
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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 & fingerprints
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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 fraud
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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 center
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22. THANK YOU!
www.cvidya.com