How Fraudulent Calls Are Costing Telecom Providers Millions—and What You Can Do About It

 

The telecom industry is facing an uphill battle against fraudulent calls, a problem that is costing providers millions annually. From revenue leakage to regulatory penalties, fraudulent activity such as call spoofing, toll fraud, and robocalls is not only damaging bottom lines but also eroding trust in the telecom ecosystem. Addressing this issue requires proactive solutions and robust tools that not only detect fraud but also prevent it in real-time. This is where platforms like DenovoLab’s Class 4 softswitch come into play, offering telecom providers advanced features to combat this growing threat.

The Financial Impact of Telecom Fraud

Telecom fraud has evolved from being an occasional annoyance to a pervasive, high-stakes problem. According to industry reports, global telecom fraud costs providers billions annually. This includes losses from:

• Toll Fraud: Exploiting vulnerabilities to generate unauthorized call traffic.

• Call Spoofing: Manipulating caller IDs to deceive end users or systems.

• International Revenue Sharing Fraud (IRSF): Redirecting calls to premium-rate numbers for profit.

Beyond direct financial losses, telecom providers also incur hidden costs, such as damage to their reputation and regulatory fines for failing to address compliance requirements.

Why Traditional Fraud Detection Falls Short

Many operators rely on outdated fraud detection systems that often flag suspicious activity only after it occurs. These systems are reactive, offering limited protection against sophisticated and evolving fraud tactics. This reactive approach often leads to:

1. Delayed Response Times: Fraudulent activity can go undetected for hours, causing significant losses.

2. False Positives: Legitimate traffic is sometimes misclassified, leading to unnecessary disruptions.

3. Lack of Scalability: As traffic grows, traditional systems struggle to keep up with real-time analysis.

DenovoLab’s Approach to Fraud Prevention

DenovoLab’s Class 4 softswitch integrates advanced fraud detection and prevention tools designed to safeguard telecom providers from losses. Here’s how it works:

1. Real-Time Monitoring and Alerts: The platform provides continuous traffic monitoring, identifying anomalies and suspicious patterns in real-time. This proactive approach ensures swift action against threats.

2. Built-In Compliance Tools: DenovoLab seamlessly integrates with FTC guidelines, STIR/SHAKEN protocols, and DNC/DNO lists, ensuring compliance with industry regulations while filtering out fraudulent calls.

3. AI-Powered Fraud Analytics: The softswitch uses machine learning to detect unusual traffic patterns, helping operators stay ahead of evolving fraud tactics.

4. Automated Blocking Mechanisms: Once a fraudulent pattern is detected, the system automatically blocks it, minimizing potential losses and protecting the network.

Case Study: How DenovoLab Saved Millions for a Telecom Provider

One of DenovoLab’s clients, a mid-sized telecom operator, faced consistent revenue losses from IRSF attacks. After implementing DenovoLab’s Class 4 softswitch, they saw:

• A 95% reduction in fraudulent traffic within three months.

• Improved traffic management, allowing legitimate calls to flow seamlessly.

• Full compliance with international telecom regulations, avoiding penalties.

This real-world example highlights the transformative impact of using proactive fraud prevention tools.

The Bigger Picture: Building Trust in Telecom

Fraudulent activity doesn’t just hurt providers—it impacts the entire telecom ecosystem, including end users. By addressing this challenge head-on, providers can:

• Rebuild trust with customers by ensuring a safe and reliable communication experience.

• Enhance operational efficiency by reducing fraud-related overheads.

• Stay competitive by offering secure, high-quality services.

Take Action Today

Fraudulent calls are a growing threat, but they don’t have to cost you millions. With DenovoLab’s advanced Class 4 softswitch, you can safeguard your network, optimize operations, and enhance compliance effortlessly.

Secure your network and stay ahead of fraud with DenovoLab. Visit www.denovolab.com to learn more about our cutting-edge telecom solutions.