shift at work of fraud management
DESCRIPTION
How Fraud Management is shifting towards new domains and why the only way fraud units can stay relevant is by doing other things rather than Fraud Management. Read cVidya's Tal Eisner's presentation titled "Changing Modus Operandi" as presented in latest CFCA Educational Event held in Toronto June 5thTRANSCRIPT
CFCA Annual Meeting & Summer Educational Event Royal York Hotel , Toronto, Canada
Shift at Work: Changing Modus Operandi
Your Success is Our Business
Tal Eisner – Senior Director Product Strategy
2
Telecom Today
Evolution of Fraud Management
Crossroad and Opportunity
Shift at Work
Changing Modus Operandi
Agenda
From “Walled Garden” to “Dumb Pipe” Telecom Operators Evolution
Network Content Device Customer Connectivity
4
Operators’ Main Challenges (2013-2015)
Source: Informa, March 2013
Almost secretive units within the operator
Low visibility within the organization Low to non-existent involvement in
internal, non-fraud procedures Need to justify buying an FMS Need to justify the existence of the unit Lack of internal procedures and work
methodology Highly reactive modus operandi
5
Exist in most telcos Most of the units have a vendor-based FMS
or an internal-built one Methodology has evolved and is now
established Unit is well recognized as an operative,
“main stream” unit Integral part of the internal workflow in
product launches, sales operations, etc. Focus is on saving as much money and
preventing as much damage as possible
6 6
7
Telcos are going through a gradual change
Revenues changed due to changes in products & plans
A shift towards bundles
New flat tariff plans
All included plans Unlimited
Voice/SMS/Data
8
Change in Fraud Management
If traffic is unlimited …
– No more “high usage” ?
– No more “abnormal” traffic behavior ?
Change of fraud incentives ?
– Why bother with fraud if it’s all so cheap and unlimited anyway?
Change of Fraud Management strategy ?
– Who are we after ?
In order to stay relevant – Fraud units must re-assess their strategy and their work focus
Detecting more % of fraud – will not cut it any longer . . .
So does detecting fraud on new technologies – All this is “more of the same” – which is not enough any more
A real need for change has surfaced in order to stay relevant
9
10
If you don’t like what’s BEING said CHANGE the conversation
Expanding traditional work “borders” and responsibilities
Leveraging available databases for uses outside the fraud realm
Effective quick and prompt reactions to different needs of the organization
Strong analytical abilities
Shortening internal process to get quicker, better insights for the org.
11
12
Fraud units “sit” on an essential, insightful mountain of straw – that with the right approach can turn to valuable gold
Utilizing existing databases can generate strong positioning within the organization since no CAPEX needed
Increasing cross-department cooperation
Big Data Analytics
Turning a challenging time into an opportunity for growth
12
Big Data Analytics
13
The need for immediate retrieval of info from a massive, cross-channel database
Significantly helps in areas such as:
─ LTE – where volumes of data are enormous
─ Security matters – Info needed “here and now”
─ Info sharing and intelligence gathering
─ Cyber security matters
Exploring new grounds
Fraud units monitor routes of calls, destination countries; statistics are available to them
The percentage of fraud calls to a specific country means GOLD
This info is available SOLELY to the fraud management department
This should bring recommendations (close the route/change billing/rates etc.) and further cooperation with the relevant department
14
Detection of abusers/unfair users in unlimited/bundle plans
Presenting statistics and trends of unlimited plans with focus on abuse
Providing network recommendations as a result (e.g., automatic actions)
Establishing policy enforcement procedures
15
Provide high level statistics on risks, threats and fraud findings per LOB
M2M / Mobile Money/ LTE
Drill down capabilities
Present % of fraud per LOB to define actions accordingly
Assess future risks and threats and present them in figures according to current findings
Alert on high risk services on regular basis
16
17
Provide actionable insights into the business performance
Utilizing data from different sources (Risk, Fraud & RA)
Support specific LOB and needs (e.g., LTE, Mobile Money, M2M, Video)
Shift towards monetary terms and statistics rather than specific incidents and specific subscribers
A shift towards trends analysis Expend cross company/department cooperation Infuse risk factors to marketing strategy
Changing Modus Operandi
Bottom Line
Creating more value from Revenue
Management operations
Find new growth engines outside
traditional space
Reducing revenue related risks
Improving margins
Greater visibility of risks and
mitigation
Enable advanced analytics for other
uses than fraud
INCREASING BOTTOM LINE
18
19
A leading supplier of Revenue Analytics solutions to communications and digital service providers
Founded: 2001
300 employees in 15 locations worldwide
Deployed at 7 out of the 10 largest operators in the world
150 customers in 64 countries
Globally processing 150 Billion xDRs per day, 55 Trillion xDRs per year
Contributing over $12 Billion to providers annual revenue
Partnering with world leading vendors
What You Should Know ABOUT US
Website RA Blog www.ra-blog.org
www.cvidya.com
Your Success is Our Business
Interact with Us
Products Overview
Customers Testimonials
Solutions Demonstration
21