1L8ALlCP1

nL1WC8k l8Auu - 8?ASS/8LMluM 8A1L nuM8L8 - l8S

AuLhor: 1om Wllson



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!"#$%#$&
LxecuLlve Summary ..............................................................................................................................................................................
lnLroducLlon ....................................................................................................................................................................................... 2
8ypass ........................................................................................................................................................................................... 2
l8Sl ............................................................................................................................................................................................... 2
Who ls affecLed? ................................................................................................................................................................................ 3
Pow bypass fraud works? .................................................................................................................................................................. 3
Legal Call 1ermlnaLlon ................................................................................................................................................................... 3
lllegal Call 1ermlnaLlon ................................................................................................................................................................. 3
Cn-neL lraud ........................................................................................................................................................................... 6
Cff-neL lraud ........................................................................................................................................................................... 6
l8Sl - remlum number lraud ................................................................................................................................................. 6
lraud revenLlon ............................................................................................................................................................................... 7
8ypass 8ouLe ueLecLlon ................................................................................................................................................................ 7
SlM 8ox ueLecLlon uslng lraud ManagemenL SysLems ................................................................................................................ 7
l8Sl - remlum number lraud revenLlon ................................................................................................................................... 9
Concluslon .......................................................................................................................................................................................... 9


()%*+$, -% .+//012
8ypass fraud along wlLh l8Sl has proven Lhey are hlghly cosLly Lypes of neLwork fraud ln Lhe modern
LelecommunlcaLlons envlronmenL. 1he menace of Lelecom fraud has made Lhe Lelecom operaLors and Lhe regulaLors
face sLaggerlng annual revenues losses numberlng ln Lhe mulLlple bllllons ln uS uollars.
8ypass fraud ls more predomlnanL ln counLrles where Lhe cosL of LermlnaLlng lnLernaLlonal call ls much hlgher Lhan Lhe
cosL of a naLlonal call by a subsLanLlal margln or Lhe counLrles where governmenL carrlers monopollze lnLernaLlonal
gaLeways. 1hese fraud commlLLers (fraudsLers), who can be boLh lndlvlduals and organlzaLlons, Lhrough Lhe use of
varlous bypass conLrlvances, sell capaclLy Lo LermlnaLe calls cheaply ln Lhese counLrles, elLher on Lhe open markeL or vla
dlrecL connecLlons wlLh lnLerconnecL operaLors. CperaLors sendlng ouLbound lnLernaLlonal Lrafflc are Lhen aLLracLed by
Lhese lnLerconnecL operaLors wlLh lower lnLerconnecL raLes, usually wlLh lower quallLy and no dellvery of CLl. 1hls leads
Lo loss of revenue for LermlnaLlng neLwork operaLors as well as causlng poLenLlal soclal harm Lo socleLy.
remlum raLe servlces have been hlL wlLh l8Sl (lnLernaLlonal 8evenue Share lraud) LhaL explolLs Lhe lnLerconnecLlon of
premlum raLe servlces. 1he ma[or way Lo commlL l8Sl ls by slgnlflcanLly lncreaslng Lhe number of calls Lo a premlum
number ln a varleLy of ways Lo lncrease Lhe revenue. 1hese are Lwo Lypes of lnLernaLlonal fraud whlch accounL for a
ma[or porLlon of operaLor's neLwork fraud losses.
1he purpose of Lhls paper ls Lo dlscuss comprehenslve and besL ln class soluLlons Lo combaL bypass fraud and premlum
number hl[acklng.


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3 #$1"4+*$, "#
1hls paper dlscusses Lwo dlsLlncLly dlfferenL Lypes of Lelecom neLwork fraud. Cne ls commonly called
lnLernaLlonal neLwork bypass fraud (bypass) and Lhe oLher ls called lnLernaLlonal revenue sharlng fraud
(l8Sl). 8oLh are consldered Lo be cosLlng operaLors and governmenLs bllllons uSu ln losses.
5260&&
8ypass fraud ls also known as Crey rouLlng", 'SlM 8oxlng' and 'Leaky A8x', ls a wldespread and
problemaLlc Lelecom rlsk.
8ypass lraud ls prevalenL ln counLrles where Lhere ls a blg dlfference beLween Lhe naLlonal reLall calllng
raLes/naLlonal lnLerconnecL raLes and lnLernaLlonal LermlnaLlng raLes. 1hls ls seL elLher by Lhe regulaLor
ln Lhe counLry or by lndlvldual (or group of) operaLors (unregulaLed). lL ls also popular ln counLrles where
governmenL operaLors monopollze lnLernaLlonal gaLeways. 1he dlfference ln raLes ensures Lhere are
enough proflL marglns for bypass servlce provlders Lo consLrucL Lhelr neLworks and even handle cerLaln
amounLs of losses due Lo dlscovery of Lhelr rouLes and buslness pracLlces Lo elude deLecLlon.
CounLrles where Lhe lnLernaLlonal Lo naLlonal LermlnaLlng charge marglns are low, nll or negaLlve, Lhe
8ypass fraud elLher doesn'L exlsL or ls conducLed on a low scale, or ls consldered lnslder bllllng fraud.
Accordlng Lo surveys of ClCA, AClL and L1nC Lhe poLenLlal commerclal loss due Lo fraud ln
LelecommunlcaLlon neLworks equaLes Lo 0.3 Lo 3 of operaLor's revenue.
AddlLlonally, bypass fraud consumes a subsLanLlal amounL of slgnallng and volce bandwldLh as well as
Lhe resources of lndlvldual neLwork elemenLs (l.e. S1s, swlLches, daLabases). ln order Lo properly
ldenLlfy 8y-ass lraud one needs Lo undersLand Lhe lssues around Lhls fraud.
3 7.8
remlum-raLe numbers provlde cerLaln servlces for prlces hlgher Lhan normal calls. unllke a normal call,
a parL of Lhe call charge ls pald Lo Lhe servlce provlder, enabllng buslnesses Lo be funded vla Lhem. Whlle
Lhe bllllng ls dlfferenL, calls are usually rouLed Lhe same way Lhey are for a Loll-free Lelephone number.
1hese Lelephone numbers are usually allocaLed from a naLlonal Lelephone numberlng plan ln a way LhaL
Lhey are dlsLlngulshable from oLher numbers. ln many cases of premlum raLe calls, Lhe Lransmlsslon of
Lhe call goes Lhrough mulLlple operaLor neLworks. MosL lnvolve Lhe use of CSM SlM cards, belng Laken
across lnLernaLlonal borders Lo orlglnaLe calls on effecLed orlglnaLor neLworks, uLlllzlng Lhe roamlng
capablllLy of Lhe SlM cards. l8Sl fraud ls very dlfflculL Lo nall down, glven Lhe mulLlple operaLors
lnvolved, Lhe complexlLy of neLworks and 8SS sysLems lnvolved and Lhe lack of LoLal end-Lo-end
cooperaLlon of all sLakeholders Lo asslsL ln ellmlnaLlon of Lhese Lypes of fraud. CrlglnaLlon operaLor
neLworks are lefL hanglng wlLh Lhe lnvolce for Lhese hlgh cosL calls, elLher on a premlum-raLe number
call or on a call Lo a hlgh cosL per mlnuLe desLlnaLlon counLry.



% # a g e w w w . L e r a l l g h L . c o m - 1 L 1 + 9 7 1 . 3 0 . 4 3 9 . 7 2 1 7

l8Sl has many dlfferenL Lypes of perpeLraLors. normal callers can also become unwlLLlng conLrlbuLors Lo
l8Sl, where Lhey wanL speclflc conLenL LhaL ls derlved from premlum raLe number conLenL provlders.
Powever ln some cases, Lhe conLenL provlder ls Lhe same parLy (lndlvldual or group of lndlvlduals or
company ln some cases) as Lhe fraudsLers forclng hlgh volumes of calls Lo Lhose llllclL conLenL premlum
number servlces.
remlum-raLe numbers have also been used Lo defraud unsuspecLlng users. Cne scheme lnvolves
lnduclng users Lo download a program known as a dlaler. 1hls surrepLlLlously dlals a premlum-raLe
number, accumulaLlng charges on Lhe user's phone blll wlLhouL Lhelr knowledge. AnoLher premlum-raLe
scam lnvolves Lelevlslon programmlng. 1hls lnduces young chlldren Lo dlal Lhe number, banklng on Lhe
noLlon LhaL Lhey wlll be unaware of Lhe lncurred charges. ln oLher cases, newer verslon of smarL phones
have Lhe capaclLy Lo make slx calls Lo each conference call Lhey make and Lhus slx calls aL a Llme
lncreaslng call volumes qulckly. 1hls ls done Lo elude blockage lnduced by some of Lhe Lelecoms
sofLware fraud deLecLlon sysLems, whlch can deLecL hlgh volume susplclous call Lrafflc paLLerns Lo
premlum raLe numbers and or long call duraLlon (usually up Lo 39.9 mlnuLes) Lo Lhe same Lype of
numbers.
8rlefly summarlzlng l8Sl - remlum 8aLe Servlce fraud, Lhls Lype of fraud occurs when a person, group
of persons, or a company or group of companles scheme wlLh elLher Lhe conLenL provlder or Lhe
lnLernaLlonal neLwork provldlng Lhe conLenL Lo flnd dlfferenL measures Lo falsely lncrease Lhe LoLal
number of calls slgnlflcanLly and or enacLlng meLhods Lo lncrease falsely generaLe longer call/bllllng Llme
Lo lncrease Lhe revenue generaLed by Lhe use of Lhe premlum raLe number. 1he varlous parLles Lo Lhe
call share Lhls revenue, lf a parL of l8Sl, some of Lhe parLles are LradlLlonal neLwork operaLors
LransmlLLlng Lhe calls and some parLles who are a parL of Lhe fraud lLself. 1he premlum raLe numbers are
easy Lo obLaln, and very blaLanLly, Lhese companles and Lhe conLenL generaLors adverLlse publlcly for
persons Lo flnd ways Lo earn money by generaLlon of call Lrafflc Lo Lhese premlum raLe numbers. Agaln,
l8Sl can be elLher vla Lhe use of remlum 8aLe numbers or slmply hlgh raLe LermlnaLlon counLry
LermlnaLlon numbers.



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lraLed Moblle CSM SlM chlps ln a 8oamlng Scenarlo generaLlng l8Sl lraud"

1he conLenL provlder or Lhe nal neLwork provldlng Lhe lnLernauonal premlum number servlce may be ln cahooLs wlLh Lhe fraudsLers Lo
generaLe hlgher volumes of calls Lo Lhe premlum number or make auempLs Lo lengLhen calls Lo generaLe hlgher call revenues.

* Lhe call cosLs and raLes are merely examples for purpose of Lhls lllusLrauon
1he remlum number owner passes Lhrough Lhe revenue Lo Lhe lnLernauonal 8evenue Share number provlder whlch ls usually (noL
always) Lhe same enuLy as Lhe conLenL porovlder. 1he revenue of $1.46 belng passed Lhrough Lo Lhe l8Sn
lf Lhe nal neLwork whlch owns or leases Lhe remlum number from an
number range owner, does noL own Lhe conLenL, Lhey wlll keep example of
$1.00 and pay Lo conLenL holder $.46.
1he lnLernauonal 8evenue Share number neLwork wlll LermlnaLe Lhe call Lo
Lhe premlum number called.
CperaLor C LanslLs Lhe call. 8ecelves Lhe call from CperaLor 8
CperaLor C collecLs $1.71 from CperaLor 8 and wlll keep $.23.
CperaLor C sends Lhe call Lo an enuLy "ownlng Lhe remlum number
8ange". CperaLor C pays Lhe n8C pass Lhorugh $1.46.
CperaLor 8 LranslLs Lhe call. 8ecelves Lhe call from CperaLor A
CperaLor 8 collecLs $1.91 from CperaLor A and wlll keep $.20. CperaLor 8 sends Lhe call Lo CperaLor C and pays CperaLor C $1.71.
CperaLor A LranslLs Lhe call. 8ecelves Lhe call from neLwork where call orlglnaLes from.
CperaLor A collecLs from orlglnaung neLwork operaLors $2.16, and wlll keep
$.23.
CperaLor A sends Lhe call Lo CperaLor 8 and pays Lhe recelvlng operaLor
$1.91.
Call ls generaLed ln Lhls vlsued counLry, where Lhe home of Lhe SlM chlp operaLor wll pay $2.30
1he neLwork where Lhe call ls made, geLs Lo reLaln $.34.
1hls operaLor, where Lhe call ls acLually made, pays $2.16 Lo Lhe carrler nexL
ln llne Lo handle Lhe call.
lllegal fraud generaLed usually by generauon of hlgh volume of calls Lo a remlum 8aLe number vls a vls plraLed CSM SlM chlps Laken Lo
anoLher counLry Lo roam call Lramc
Pome markeL for SlM chlp
SlM chlp(s) Laken Lo anoLher counLry Lo roam orlglnauon of call from. 1he
SlM home counLry operaLor ls noL Alu for cosL of remlum 8aLe number
Call. Lxample $2.30.


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9:" , & 0;;%*$%4<

8ypass fraud or grey Lelephony ls a serlous lssue for:
1elecom CperaLors - 1elecom 8egulaLors - Subscrlbers
8ypass fraud can have Lhe followlng adverse effecLs:
* 8evenue loss Lo governmenL Lreasurles. Lspeclally ln emerglng markeLs, where Lhe sLaLe enLlLy
has equlLy ln Lhe operaLors. 8egulaLors, boLh naLlonal and reglonal such as 8erec, 1A, S18A, !18C and
oLhers have Laken a real serlous look aL Lhese Lypes of neLwork fraud.
* 8ypass fraud dlsLurbs planned and predlcLed revenue sLreams of Lelecom operaLors who have
lnvesLed mllllons of dollars. 1he lnvesLmenL may be ln form of llcense fees, deploymenL of lnfrasLrucLure
and oLher governmenL charges.
* lorelgn lnvesLmenL ln Lelecom secLor ls reduced as a resulL of lack of lnvesLor confldence ln Lhe
markeL, especlally ln developlng counLrles where a large porLlon of Lhe naLlonal Cu ls from Lelecoms.
* Soclal anxleLy where people do noL wlsh Lo answer non CLl (generally lndlcaLlve of a grey rouLe
belng used Lo LermlnaLe Lhe call) low quallLy neLwork calls, due Lo passage over very low quallLy, hlghly
compressed and congesLed l rouLes wlLh no neLwork managemenL whaLsoever.
* Soclal safeLy where people may only answer Lhose calls where Lhe called parLy recelves CLl and
ls able Lo ldenLlfy Lhe calllng parLy. lL has happened, where a non CLl call ls lgnored, due Lo general
knowledge of low quallLy calls and Lhe called parLy ls unsuspecLlng of Lhe naLure of Lhe call, where lL
may be a famlly emergency buL Lhey don'L know lL, for Lhe CLl ls noL passed on mosL bypass rouLes.
="> ?260&& ;10+4 >"1@&<
8ypass fraud has dlfferenL forms - lnLernaLlonal vs. naLlonal, lncomlng vs. ouLgolng, border bypass eLc. -
buL Lhe ldea ls slmple: bypasslng lnLerconnecL polnLs vla cheaper rouLes such as Lhe lnLerneL.
A%B0C !0C C D%1/, #0$, "#
Call LermlnaLlon, also known as volce LermlnaLlon, refers Lo Lhe rouLlng of Lelephone calls from one
1elephone Company Lo anoLher. 1he LermlnaLlng polnL ls Lhe called parLy or end polnL. 1he orlglnaLlng
polnL ls Lhe calllng parLy who lnlLlaLes Lhe call.
1hls Lerm ofLen applles Lo calls whlle uslng volce over lnLerneL proLocol (vol): a call lnlLlaLed as a vol
call ls LermlnaLed uslng Lhe publlc swlLched Lelephone neLwork (S1n). ln such cases, LermlnaLlon
servlces may be sold as a separaLe commodlLy. 1he opposlLe of call LermlnaLlon ls call orlglnaLlon, ln
whlch a call lnlLlaLed from Lhe S1n ls LermlnaLed uslng vol. 1hus, ln "orlglnaLlon" a call orlglnaLes from
S1n and goes Lo vol, whlle ln "LermlnaLlon" a call orlglnaLes ln vol and LermlnaLes Lo Lhe S1n.
3 C C %B0C !0C C D%1/, #0$, "#
lllegal call LermlnaLlon uLlllzes leasL cosL call LermlnaLlon Lechnlques such as CSM CaLeway SlM 8oxes Lo
bypass Lhe legal call lnLerconnecLlon. 1hls dlverLs lnLernaLlonal lncomlng calls Lo elLher on-neLwork or
off-neLwork CSM/CuMA/llxed calls Lhrough Lhe use of vol or SaLelllLe gaLeway. uolng Lhls evades
revenue for lnLernaLlonal call LermlnaLlon whlch operaLors and governmenL regulaLors are enLlLled Lo.


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E#FG%$ 810+4
lor an operaLor, lf Lhe person commlLLlng fraud uses Lhelr own neLwork's connecLlons Lo LermlnaLe Lhe
bypassed calls, lL ls ldenLlfled as Cn-neL 8ypass lraud. Cn-neL calls are expecLed Lo provlde Lhe leasL
naLlonal calllng raLes. LoL of modern 8ypass equlpmenL (CSM CaLeway SlM 8oxes, compuLer programs
eLc.) scan Lhe LermlnaLlng parLy numbers and re-orlglnaLe calls only from Lhose connecLlons whlch
belong Lo Lhe same operaLor's neLwork as Lhe LermlnaLlng parLy.
lor Cn-neLwork LermlnaLlng calls (connecLlons used for 8ypass lraud belong Lo Lhe home operaLor), Lhe
revenue loss per call ls dlrecLly relaLed Lo Lhe dlfference beLween Lhe lnLernaLlonal lnLerconnecL
LermlnaLlon prlce and Lhe reLall prlce of on-neLwork call.
E; ; FG%$ 810+4
lf Lhe fraud commlLLer uses compeLlLor's connecLlons or any oLher means for LermlnaLlon, lL ls ldenLlfled
as Cff-neL 8ypass lraud.
ln reglons, where Lhe off-neLwork call raLes are equal Lo Lhe on-neLwork calls, naLlonal calls may be
orlglnaLed from off-neLwork number Lo conducL Lhe 8ypass fraud whlch means LhaL numbers can be
from oLher neLworks as well.
lor Cff-neLwork LermlnaLlng calls (connecLlons used for 8ypass lraud belong Lo compeLlLor), Lhe
revenue loss per call ls dlrecLly relaLed Lo Lhe dlfference beLween Lhe lnLernaLlonal lnLerconnecL
LermlnaLlon prlce and Lhe local lnLerconnecL LermlnaLlon prlce of off-neLwork calls.
3 7.8 F H1%/, +/ G+/?%1 810+4
remlum raLe servlces have aLLracLed mulLlple Lypes of fraud LhaL explolL Lhe lnLerconnecLlon of
premlum raLe servlces. 1he baslc scheme ls LhaL Lhe fraud commlLLer conLracLs wlLh a LermlnaLlng
operaLor Lo provlde a premlum raLe servlce and Lhen separaLely subscrlbes for several llnes wlLh an
orlglnaLlng operaLor, normally noL Lhe same operaLor as Lhe LermlnaLlng operaLor.


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1he fraud commlLLer Lhen runs auLo dlalers on Lhe subscrlber llnes and calls Lhe premlum raLe numbers
conLlnually runnlng up very large lnvolces, where Lhe fraudsLer ls usually able Lo share a parL of Lhls
fraudulenL revenue. 1hls ls [usL one example of how Lhe fraud ls generaLed. 1here are many ways Lo
falsely generaLe hlgh volumes of calls from one counLry Lo anoLher Lo Lhe remlum 8aLe numbers,
whlch are commonly, magneLs for Lhls Lype of fraud. lraudsLers generaLe calls by new Lechnology, by
paylng people Lo make calls upon calls Lo Lhese LermlnaLlon numbers, whlch someLlmes slmply go Lo an
answerlng machlne, or a consLanLly cycled message recorder. 1he fraudsLers aLLempL anyway Lo
generaLe Lhe hlghesL number of calls and longesL calls posslble Lo creaLe as hlgh of a bllllng charge Lo Lhe
orlglnaLlng operaLor neLwork Lhe calls flrsL arrlve on.
AnoLher varlanL uses Lhe compuLers of exlsLlng subscrlbers as Lhe callers. 1he fraud commlLLer conLracLs
for a premlum raLe servlce and Lhen dlsLrlbuLes vlruses or oLher Lypes of programs Lhrough emall or web
slLes LhaL become resldenL ln Lhe compuLers of leglLlmaLe subscrlbers. lf Lhe subscrlbers have a modem
connecLed Lo Lhelr compuLer for lnLerneL access, Lhe programs conLrol Lhe modem Lo dlal Lhe premlum
raLe numbers. Some programs work durlng or lmmedlaLely afLer an lnLerneL dlal-up access sesslon.
810+4 H1%-%#$, "#
5260&& 7"+$% I%$%*$, "#
8ypass rouLe deLecLlon can be performed vla mulLlple meLhods. Cne measure LhaL ls deflnlLlve ln naLure
provldlng real evldence wlLh regard Lo 8ypass lraud ls Lhe use of *+*,-.//012 forced neLwork call
generaLlon. ln Lhls meLhod Lhlrd parLy servlce provlders generaLe Lrafflc Lo operaLor neLworks from
remoLe polnLs and Lhen analyze Lhe Lrafflc acLually recelved (non publlshed non acLlve call Lo numbers,
moblle or flxed) Lo ldenLlfy lnsLances where whaL should be showlng as lnbound lnLernaLlonal Lrafflc as
acLually showlng as on-neL Lrafflc or Lrafflc from anoLher local neLwork.
1hese sysLems can be very dlfferenL vendor by vendor. 1he sofLware developed Lo operaLe Lhese
sysLems needs Lo be flexlble, user deflnable and auLomaLed wlLh regard Lo deLecLlng" where bypass
fraud may be mosL relevanL vla orlglnaLlon markeL. 1hls ln lLself, creaLes Lhe ablllLy Lo self manage call
orlglnaLlon, whlch provldes Lhe qulckesL rouLe Lo bypass number deLecLlon.
ln many cases, operaLors can creaLe an envlronmenL LhaL lnLegraLes such sysLems LogeLher, vla Al
sofLware lnsLrucLlon seLs whlch auLomaLlcally or vla a manual selecLed meLhod, valldaLes Lhe numbers
deLecLed and Lhen shuLs down" or suspends deLecLed numbers.
8eporLlng ls very lmporLanL Lo operaLors, where Lhey are looklng Lo reduce lnLernaLlonal revenue losses
by Lhe mlnuLe wlLh near real Llme noLlflcaLlon sysLems and oLher very progresslve call managemenL and
monlLorlng capablllLles.
.3 J 5") I%$%*$, "# +&, #B 810+4 J0#0B%/%#$ .2&$%/&
AnoLher meLhod Lo deLecL harmful lnbound lnLernaLlonal bypass Lrafflc Lo revenues ls Lhrough passlve
sofLware Lrendlng and analysls sysLems, generally referred Lo as fraud managemenL sysLems (lMS).
1hese sysLems work by collecLlng Lhe LoLal Cu8 acLlvlLy of Lhe operaLor and applylng analyLlcs agalnsL
Lhe Cu8 daLa (generally collecLed vla a mlddle ware sofLware feaLure) LhaL produce unwarranLed call
Lrafflc paLLerns of mulLlple Lypes.


3 # a g e w w w . L e r a l l g h L . c o m - 1 L 1 + 9 7 1 . 3 0 . 4 3 9 . 7 2 1 7


CperaLors make use of Lhelr fraud managemenL sysLems ('lMS') Lo ldenLlfy suspecL devlces on Lhe
neLwork. Lxamples of some of Lhe markers monlLored lnclude:
! unusual Lrafflc flows and volumes
! Moblle CrlglnaLlon Lo Moblle 1ermlnaLlon raLlo
! unusual called number spreads
! A-Lyplcal Lrafflc peaks for on-neL Lrafflc
! Many SlM card ldenLlLles (lMSls) Lo a slngle equlpmenL ldenLlLy (lMLl)
! use of only one cell slLe
! An absence of SMS, daLa or roamlng servlce use
non-passlve sysLems are lnLelllgenL and become more effecLlve over Llme, for Lrends are deLecLed and
all sLakeholders lnvolved ln Lhe deLecLlon process galn beLLer undersLandlng of where call Lrafflc
orlglnaLes and LermlnaLes LhaL has a hlgher probablllLy of bypass rouLes belng used. ln addlLlon, oLher
Lypes of fraud can be deLecLed, such as false answer supervlslon, where bllllng mechanlsms are used Lo
alLer answer supervlslon LralLs of calls, such as Lrue call orlglnaLlon Llmes versus bllllng sLarL Llmes, as
well as Lhe Lrue call LermlnaLlon Llmes versus call cuLoff/LermlnaLlon Llmes. Pybrld analysls ls effecLlve,
where boLh passlve, non-passlve (acLlve) and oLher fraud managemenL sysLems collaboraLe Lo merge
Lhelr alerLs ln order Lo more efflclenLly deLecL lnsLances of bypass fraud.



4 # a g e w w w . L e r a l l g h L . c o m - 1 L 1 + 9 7 1 . 3 0 . 4 3 9 . 7 2 1 7

3 7.8 F H1%/, +/ G+/?%1 810+4 H1%-%#$, "#

1he followlng sLeps can be Laken Lo prevenL premlum number fraud.
MonlLor calls golng Lo susplclous number ranges or premlum numbers preflxes or hlgh
LermlnaLlon cosL desLlnaLlons
LnllsLlng Lhe servlces of black llsLed number daLabases, whlch operaLors can use Lo help monlLor
neLwork LermlnaLlon usage and help block calls Lo susplclous number ranges or premlum
number ranges
Call Lrendlng sofLware managemenL sysLems whlch can Lrack calls and monlLor Lhe Lypes of
numbers Lhey connecL Lo, llmlLlng lengLh of calls and also veloclLy of calls Lo speclflc numbers
deslgnaLed by Lhe user deflned sysLems
LducaLlon supporL Lo cllenLs, cusLomers and operaLors on varlous securlLy procedures relaLed Lo
Lhese Lypes of fraud and collecLlvely worklng LogeLher operaLor Lo operaLor Lo help reduce Lhe
money ln Lhe sysLem. lf Lhe money ls removed, Lhe fraud wlll dlsappear.
8eform ollcy and 8egulaLlon Lo asslsL ln seLLlng progresslve rules helplng Lo creaLe an
envlronmenL ln whlch fosLers more secure neLwork usage.
uevelop sysLems LhaL share bllllng daLa" as close Lo real Llme as posslble ln an lnLer-operaLor
ecosysLem, Lhus helplng reduce rlsk.
MonlLor calls Lo hoL number llsLs llke
o CSMA PoL 8 number llsL
o ClCA PoL 8 number llsL
o Commerclal Suppllers ln Lhls space also have blackllsL daLabases
!"#*C +&, "#

1here are mulLlple dlmenslons and Lypes of Lelecoms fraud. ln Lhls efforL, Lwo of Lhese, belng l8Sl and
8ypass fraud are addressed, due Lo Lhe propenslLy for very hlgh losses Lo revenue of Lhe operaLors. 1he
operaLors are annually lnvesLlng ln lnfrasLrucLure Lechnology, such as L1L, l11x and oLher hlgh speed
broadband enablers and Lhe loss ln above Lhe llne revenues and proflLs effecL lnvesLmenL capablllLy.
8ypass fraud ls an lnLernaLlonal, mulLl-bllllon dollar crlmlnal envlronmenL and a ma[or LhreaL Lo
enLerprlses, as lL can lnfllcL moneLary damages of hundreds of Lhousands of dollars almosL overnlghL.
1hese frauds are among Lhe Lop 3 emerglng LhreaLs Lo CSs worldwlde, and cosL Lhe lndusLry over uSu 3
bllllon per year accordlng Lo Lhe CommunlcaLlons lraud ConLrol AssoclaLlon (ClCA reporL 2011).
Cn-neL, Cff-neL and l8Sl - remlum hl[acklng fraud are causlng severe losses Lo LelecommunlcaLlon
neLwork operaLors worldwlde. Advanced well LhoughL ouL soluLlons need Lo be lmplemenLed dependlng
upon requlremenLs of Lhe neLwork and Lhe Lype of fraud Laklng place. 1hls paper has dlscussed Lhe
repercusslons of Lelecom fraud as well as several poLenLlal measures LhaL can be Laken Lo reduce Lhe
rlsk of revenue losses. MosL undoubLedly, Lhe besL way Lo Lruly aLLack Lhls dlsease of revenue shlfLlng, ls
for Lhe neLwork operaLors Lo flnd Lhe means Lo momenLarlly puL aslde Lhelr klndred compeLlLlve splrlL
and work collecLlvely LogeLher sharlng daLa and lnformaLlon, along wlLh conLrlbuLlng Lo lnLernaLlonal
daLabases (as near real Llme basls as posslble) [olnLly.