A recent study, conducted by Neural Technologies, has determined that subscription/identity fraud is still the leading method for users attempting to fraudulently gain access to services. Additionally, these reports are corroborated by last year's CFCA 2013 Global Fraud Loss Survey, which also showed that telecom companies are battling this type of fraud more than any other. Neural Technologies is a key provider of risk management solutions, so they conducted this survey in order to optimize revenue in the face of fraudulent attacks for all of its customers.
Neural Technologies collected this data during their 2014 User Forum, where mobile network operators from all over the planet met to share their experiences and ideas for fraud trends in both the present and the future. During this forum, which featured both case studies from customers and the latest product information from Neural Technologies, the company's different customers noted the increasing frequency of subscription and identity fraud.
One member of the forum, a representative from Vivacom, stated that “In addition to the flexible and wide range of the Neural products portfolio, the user forum has achieved the objectives set for the exchange of information, knowledge and experience, in terms of fraud prevention, between users from all over the world, which was very useful and beneficial.”
Though this style of fraud has been popular for years, the malicious groups that undertake the task are becoming increasingly creative. Fraud attempts are not just more powerful and able to exploit account takeovers and weaknesses in online Web portals, but the ways in which these identity frauds are undertaken have also increased in variety. Hackers are targeting private branch exchanges (PBX (News - Alert)) to gain access to services in a high-tech approach, yet even lower-tech methods like stolen phones, sleeper accounts and simple social engineering are also incredibly effective.