Telecommunications fraud continues to plaque the industry with ever increasingly sophisticated methods and tools. From simple theft of services to international premium toll rate calling scams, stories of service providers and enterprises being stuck with thousands of dollars of fraudulent calls is a common occurrence that can be financially devastating.

1. An Introduction
and Closer Look
1
June 2019

2. 2
Today’s Presenters:
Alan D Percy
CMO at TelcoBridges
alan.percy@telcobridges.com
Mike Stukalin
VP of Sales at JeraSoft
mike@jerasoft.net

3. 3
Agenda
• Introductions
• Impact of Telecom Fraud
• Fraud Methods and Attack Profiles
• Real-Time Fraud Protection
• How to Implement Fraud Detection and Prevention
• Where to Learn More
• Your Questions

4. Billing Solution for Telecom Industry

5. JeraSoft is a passionate team of engineers focused on
development and integration of highly productive Billing
Solutions for Telecom (Mobile VoIP, Business Telephony,
OTT, Wholesale VoIP and SMS) and IoT/M2M Providers
around the world.
Since 2005 JeraSoft has been putting together key insight
and successful billing management practices, combining
them with state-of-the-art web and telecom technologies.
The result is a powerful platform the Telecom and IoT
Providers can use to streamline Billing Processes and add
value to their business.
About Us

6. Solutions
IoT / M2M Retail VoIP Wholesale VoIP
OTT
SMS Wholesale MVNO
Business
Telephony
Mobile VoIP

7. Components
An extensive software, allowing you
to provide services like Enterprise
Telephony, OTT, MVNO, End-user
retail, etc.
Retail
Services
This module contains Rates
Generator and Rates Notifications
features, allowing you to compose a
rates list and run notifications.
Dynamic
Routing
A feature that allows you to run
your business more efficiently by
providing automated management
of your routes.
Rates Management Jurisdictional Billing
An extra module that supports
domestic long distance calls in the
USA— phone calls made outside
a certain local call area and
LATAs.

8. According to the Communications Fraud Control Association
(CFCA) in their 2017 survey of telecom fraud loss, organizations
and carriers were hit with losses of $29.2 billion in 2017.
Cost of Telecom Fraud for the Industry
Source: Communications Fraud Control Association (CFCA)

9. The Real Cost of Telecommunications Fraud
Here’s how the top fraud loss categories reported by operators in 2015 to the CFCA
shook out:
Source: Communications Fraud Control Association (CFCA)

10. Fraudsters’ Targets
Fraud against service providers. In this case fraud scenarios are more
complicated and can possess SIP trunking, stimulated traffic, regulatory loopholes.
Fraud against customers. This scenario assumes any case of gaining access to
customer’s account in order to make free calls.
Generally there are two categories to distinguish between major telecom fraud scenarios,
accordingly to the fraudsters’ target:

11. Target: Service Providers
Call transfer fraud
Wholesale SIP trunking fraud
False answer supervision (FAS)
Location routing number fraud
Multiple transfer fraud
Call forwarding fraud
Traffic pumping and related
services
International revenue sharing
fraud (IRSF)

12. Target: Customers
Telecom denial-of-service (TDOS)
Vishing (Voice fishing)
Account takeover, etc
Callback (Wangiri) scam

13. Real-time fraud protection
Before the call is connected
Uses real-time patterns
Works on per-call basis
Scenario:
1. Alert notification
2. Specific call blocking
Real-time VS Non Real-time Fraud
Protection
Non real-time fraud protection
After the call is connected
Uses statistics analysis
Works on array of calls
Scenario:
1. Alert notification
2. Client / Destination blocking

14. Double Fraud Protection
The right combination of Billing platform and an SBC allows:
● Fraud prevention and protection for service providers.
AND
● Fraud prevention and protection for end customers.

15. Double Fraud Protection

16. Abnormal expenses pattern scenario
Allows to protect from unusual financial spending.
Quality statistics control
Monitoring and controlling call quality.
Abnormal usage behaviour (geo)
Enables unusual usage behavior protection connected with call destination.
Balance usage and Capacity control
The customer may set the limits for account balance, the calls will stop after the
amount set will be spent.
Allows to limit the number of calls from 1 account. Unusual behavior and patterns
are analysed by soft switch.
JeraSoft Billing Fraud Protection Scenarios

17. • Customers are protected against financial losses.
• Service providers improve customer satisfaction and
revenue retention while protecting themselves and end-
customers from financial damage.
• Today’s communications business can’t afford to
operate without a comprehensive fraud protection.
Benefits of Fraud Protection

18. Let us help you make the right choice for your Billing needs and
Fraud protection scenarios
UK+44 (203) 129-9126
US+1 (415) 520-7883
info@jerasoft.net
www.jerasoft.net

19. TelcoBridges Inc.
19
Confidential
Roll of SBCs in Real-Time Billing

20. TelcoBridges Inc.
• Manufacturer of VoIP gateways and
telecom solution platforms for carriers
• Privately held
• Founded in 2002
• Employees: ~35
• Headquarters: Montreal, Canada
• Hardware & software R&D as well as
production of its products in Montreal
• Sales/Support offices:
Poland, Turkey, Hong Kong
• 24/7 technical support
20
TelcoBridges HQ

21. 21
IPRN Fraud Infographic
International Premium Rate Numbers
https://www.europol.europa.eu/activities-services/public-awareness-and-prevention-guides/telecommunications-fraud

22. Common Billing Interfaces
Call Detail Records (CDR)
• Record details of each call
• Text file (CSV)
• Batch processing
• Not Real-time
• No Authentication
• No Ability to Route Calls
RADIUS
Confidential 22
• RFC 2865 and RFC 2966
• IP-based
• Multiple Transactions per Call
• Real-Time processing
• Authentication per Call
• Supports Forwarding/Routing
• Session Duration Timeout

23. 23
Service Provider Networks
Confidential
Billing
IPX
PSTN
IPX
PSTN
SoftSwitch
Trunking
Subscribers
RADIUS
Links
Egress
SBC or
Gateway
Ingress
SBC or
Gateway

24. 24
UCaaS Network
• SBC Protects Service Provider
and provides billing interface
• Billing system detects and
prevents fraudulent traffic
SMB/Enterprise
IAD/Router
UCaaS
Service Provider
UCaaS
Billing
RADIUS
Link
SBC
PSTN
Where
should we
route this?
Route to
PSTN, no
time limit
I’d like to
make a
call…

25. 25
UCaaS Network
• SBC Protects Service Provider
and provides billing interface
• Billing system detects and
prevents fraudulent traffic
SMB/Enterprise
IAD/Router
UCaaS
Service Provider
UCaaS
Billing
RADIUS
Link
SBC
PSTN
Where
should we
route this?
Bad number,
do not route

26. 26
RADIUS Authentication/Routing
SBC or
Gateway
Billing
Access Request
(Called/Calling #/Session ID)
Access-Accept
(Route, Duration…)
Accounting-Request
(Start time, End time, Route…)
When a Call Request is Accepted:
Accounting-Response
.
.
.

27. 27
RADIUS Authentication/Routing
SBC or
Gateway
Billing
Access Request
(Called/Calling #/Session ID)
Access-Reject
Accounting-Request
(Start time, End time, Duration=0)
Accounting-Response
When a Call Request is Rejected:

28. GEO Redundancy
SBC or
Gateway
SBC or
Gateway
Billing Billing

29. TelcoBridges Portfolio
Confidential 29
Signaling and
Media Gateways
TMG800
Virtualized
Session Border Controller
Software
Support and
Professional
Services
TMG3200
TMG7800

30. 30
SBC Product Positioning
 Tier 1/2/3 Service Providers and Enterprise
 Access, Peering, SaaS…
 CDR and RADIUS Support
 Commercial Applications
 Encryption & HA Support
 Live Support w/ 24/7 opt.
 $1/Session/Year

31. 31
Learn More:
Download your ProSBC software:
www.prosbc.com
Frequently Asked Questions at:
forums.freesbc.com
Other educational webinars at:
YouTube.com/telcobridges
Q/A

32. BONUS CONTENT
32
Confidential

33. Why JeraSoft?
Providing Stable Billing
Solution for 14 Years
Serving 250+ Clients in
35 Countries
Configured Specially
for Your Business
100% Integration
with
Third Party Systems
Industry Leading
24/7 Support Team
Customized License
Options and Components
Full Training and
Dedicated Initial Help
New Feature-Rich Releases
Throughout the Year

34. 34
Impact of Fraud
• Fraud is costing the industry
$17bn in lost revenues every
year, with the proceeds being
used to finance organized crime
and terrorism.
- Financial Times
• The Department of Social Affairs
in Ireland was defrauded to the
tune of €300,000.
- Ireland Comptroller and Auditor General
Source: siliconrepublic.com/comms/telecoms-fraud

35. 35
Methods of Telecom Fraud
• Billing Fraud
• Subscription Fraud
• Assaulting security weaknesses
• Credit Card Fraud
• Network Fraud
• Bypass Fraud
• Hacking IP Addresses
• Call Forwarding and other attacks
https://www2.deloitte.com/content/dam/Deloitte/us/Documents/finance/us-advisory-data-synthesis-In-fraud-detection-for-tsp.pdf