What is
Bypass Fraud?
Bypass Fraud is one of the latest and most severe threats to a
telecom operator's revenue. It is an unauthorized manipulation or exploitation
of an operator's network. This problem has been evidenced in two areas: the
first is the more commonly known Interconnect Fraud and the second is the newer,
and less familiar, GSM Gateway Fraud.
Interconnect
Fraud
What is it?
- Interconnect is quite a big issue in today's telecom industry and relates to
revenue loss occurring when interconnect between the different carriers occurs
and the interconnect agreement is not honored.
- Interconnect fraud is prevalent in the international arena. This is
happening due to the reason that there are hundreds of carriers exchanging
traffic under varieties of taxation and rating combinations. The fraud is easy
to commit since each carrier has contracts with hundreds of other carriers,
making it difficult to track who's honoring whose contract.
- Interconnect requires a legal entity to have interconnect agreements, plus a
high investment in equipment. But the return is high too. Your company can lose
millions of Euros through one fraudulent partner.
GSM Gateway
Fraud
What is it?
- GSM Gateway Fraud occurs when call resellers use GSM Gateway devices to
transform "fixed to mobile" calls to "mobile-to-mobile" calls. The effect of
this activity is that traffic delivered to GSM operators by unlicensed carriers
is billed as internal rather than interconnect traffic. GSM operators only
receive the value of on-network calls and do not receive the interconnect fee
for call termination, which results in revenue loss.
- Gateway bypass has different forms - international vs. national, incoming
vs. outgoing, border bypass, etc. - but the idea is simple: bypassing
interconnect points via cheaper routes such as the Internet.
- A usual mistake is to underestimate the impact of Gateway Fraud on your
revenue. The loss on one call is minimal but the number of gateways is rapidly
increasing all over the world.
- In contrast to Interconnect Fraud, GSM Gateway Fraud requires a very small
investment. Any of your private or corporate subscribers can do it with
inexpensive and easy-to-use devices. The very low level of set-up cost permits
it to be deployed almost anywhere from small village communities to large
corporate accounts.
1 A
GSM Gateway is a device containing SIM cards. By interfacing with landline
telephone equipment such as PBX or the Internet it provides instant access to a
GSM network.
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Magyarul