Businesses with high-volume inbound/outbound traffic that are not actively managing their telecom expenses may be paying thousands of dollars in fraudulent calls every month without even realizing it. And they can’t expect telecom carriers to tell them about it.
Telecom industry experts estimate that U.S enterprises lose around $4B annually to telecom fraud. It’s a big business with monetary damages more than double that of credit card fraud. While many enterprises have been victims of telecom fraud, few businesses are willing to discuss their losses in public.
In 2015, the FBI captured one of the biggest telecom fraudsters in the world. The related international telecommunications scheme defrauded victims of more than $50M. Before that, authorities in the Philippines arrested a group of 16 individuals for hacking AT&T and causing a $24M loss for the carrier and its clients over the past few years.
Toll-free traffic pumping is currently affecting the entire telecommunication industry and is under investigation by law enforcement. This method is used to artificially generate calls to toll-free telephone numbers. By using toll-free traffic pumping along with Caller ID Spoofing, fraudsters take advantage of the telecommunication industry and expose them to large financial losses.
Besides the financial risk, telecom fraud presents a security risk for companies as fraudsters can gain access to phone systems, voice mails, and even eavesdrop on phone calls to obtain sensitive information.
Telecom fraud charges can pile up quickly, easily reaching tens of thousands of dollars, and businesses are liable for the cost of the fraudulent calls unless these calls are identified and disputed by the business and/or TEM provider.
At Tangoe we have the resources and tools to analyze call detail records, identify any fraudulent traffic embedded within normal traffic, and dispute the fraudulent calls charges with telecom carriers.
Just this past month I was able to identify and dispute tens of thousands of dollars in fraudulent calls; the fraudulent calls charges were acknowledged and credited by the telecom carrier in a timely manner.
By identifying fraudulent calls, we give our clients a heads-up to secure their telecom assets, and we help them through the process. Securing telecom assets definitely helps to prevent future revenue losses associated with telecom fraud.
For more information on TEM and how it can protect your business, access The Ultimate Guide to Telecom Expense Management.