Subex Associates With RAG To Counter Telecos Fraud
Subex, a telco analytics provider, has associated with the Risk & Assurance Group (RAG) to present a blockchain-based fraud management solution to consumers. Subex is part of the RAG Wangiri Blockchain Consortium with regards to the collaboration.
It employs blockchain technology to accumulate real-time industry threat intelligence about fraudsters. The consortium comprises some of the world’s leading Communications Service Providers (CSP) from Africa, North America, Europe, and Asia.
Reflecting on the partnership Rohit Maheshwari, Head of Strategy and Products, Subex, said, “The threat of fraud is ever-looming, and telecom operators are consistently challenged to keep up with the increasing sophistication of fraudsters in today’s digital ecosystem.
While data exchange between operators has always been touted as a solution to the problem, past industry efforts have been limited and mostly offline. We, at Subex, are excited about the promise of RAG Wangiri Blockchain as it enables an API based mechanism for telecom operators to exchange data, allowing them to respond to threats faster than ever before.”
He further said,” This will be one of the first large scale blockchain-based efforts in the fraud data exchange space. Blockchain functions well in consortium-type environments that require high levels of trust and auditability in the data that is shared between consortium members.
We believe this is an excellent opportunity for the industry to come together and move collectively against fraud. Moreover, from an organizational standpoint, this is in line with our aspiration to play a role in enabling collaboration and contributing further to the fraud management community.”
The fraud concern for telcos
Fraud is and remains to be a significant problem for telecom operators. The telcos consider it may be costing billions of dollars annually. With technology-enabled fraudsters defeating traditional fraud management controls, solutions that allow data exchange for telcos in real-time are required. The first use case concentrates on Wangiri fraud, which is a global and rising problem for telcos and their customers.
By associating with the RAG Wangiri Blockchain Consortium, Subex endeavors to offer its customers a decentralized and cryptographically reliable blockchain ledger of fraud-related data.
Subex aims to make it simple for users of its ROC Fraud Management solution to modernize (and use) this common repository. Existing consumers using compatible versions of ROC Fraud Management will be capable of taking the benefit of the threat intelligence database.
Fraud Management offers comprehensive fraud coverage for more than 350 types of fraud, including bypass/SIMbox fraud, subscription fraud, toll fraud, international revenue share fund(IRSF), PBX hacking, handset fraud, over-the-top (OTT) bypass, advertisement fraud, and online sales fraud.
By expanding the number and diversity of CSPs that share information about fraud, the improved quality, quantity, and timeliness of fraud-related data will, therefore, benefit Subex’s clients as well as assist the telco industry.
The Risk & Assurance Group
The Risk & Assurance Group (RAG) strives to enhance the practice of risk management, business assurance, fraud management, and security among the providers of electronic communications services. RAG is a not-for-profit organization managed by people with experience in the field of risk and assurance in telcos.
RAG aims to promote the education and networking of professionals to develop standards of performance, reduce waste, and better service to consumers.
Practitioners access RAG’s online services and attend RAG events free of cost. Financial assistance comes from specialist vendors with interest in highlighting the importance of fieldwork.
Eric Priezkalns, Chief Executive of RAG, said, “We are thrilled to be working with Subex on this global initiative,” said Eric Priezkalns, Chief Executive of RAG. “The telecoms industry has repeatedly tried to use standard databases to share information about crime, but the results have usually been disappointing.
Put, old technology meant updating the database was too slow and burdensome. The distributed and secure nature of Blockchain eliminates many obstacles to the exchange of data, which is why a wide range of telcos have already joined our anti-wangiri consortium.
Linking Subex’s market-leading Fraud Management System to our Blockchain ledger will make it even more straightforward for telcos to contribute and receive fraud intelligence from other telcos within their country and overseas.”
Wangiri fraud and beyond
Wangiri fraud began in Japan and relied upon the recipient’s innate curiosity. Moreover, the repetitive nature of the scam supplements to the pressure to call back.
Scam artists trade phone numbers on the dark web to dial phone users in other countries to make the wangiri fraud work. They then disconnect the call. The scam aims to encourage those who see a missed call enabled by smarter phones, especially mobiles, to call the missed number, which begins the fraud.
The call back usually reverts to a costly premium rate number. Then pressure applies to the caller to remain on the line for a long time. The longer on the line, the more money the scammers gain, and the higher the cost to the network subscriber and eventually to telcos as they have to sort out complaints.
Wangiri fraud is deceptive and costly both for consumers and telcos. Anything which reduces the ingenuity of scammers and fraudsters is welcome.