cVidya's Senior Director of Product Strategy, Tal Eisner's in-depth presentation on the historical and current state of the telecom industry from a Revenue Intelligence aspect given at Revenue Management & Fraud Prevention Latin America in October 2011

1. Where do we go from here ?
October 24 & 25, 2011
Windsor Barra Hotel, Rio de Janeiro - Brazil
Tal Eisner – Senior Director Product Strategy

2. TODAY
How did we get
here and what
happened on the
way?
Current
Landscape Where
should we
What’s go from
Interesting here ?
Today?

3. Telecom Evolution
3

4. Current
Landscape
IRSF Cloud & SaaS Controls & Alerts Behavior analysis
Roaming fraud Data Fraud Content Fraud
Subscription fraud PrePaid Fraud
Risks in Convergence
PBX Hacking Reporting Back Office Fraud
Handset Fraud Managed Services
PRS
Mobile Money Risk Assessment
Wangiri Fraud WIFI Roaming
ByPass Fraud SMS Fraud Interconnect

5. 1 9 7 0
payphone ‘tapping’ 1 9 9 0
3rd party billing, calling card,
1 0
tumbling ESN, cloning,
9 8 ghosting and PBX DISA
GET HERE
meter tampering,
black box, red box
2 0 0 0
Subscription, IMEI cloning,
2 0 1 5 free phone, call forward,
pre-paid, PRS, CDR
suppression, magic
2 0 2 0 phones, social engineering,
voice mail hacking, IRSF,
Roaming Fraud

6. Trends in Telecoms
Enterprise & Privacy Issues Mobile Telecoms Risk
Corporate get Focus Money is expand to methodologies
as a target getting its Utilities and become
momentum other essential
sectors financial
(M2M) tools,
not just
Security-Fraud
oriented
6

7. Trends in FM&RA
FM entered RA only Fraud FMS’s need Scenarios
mature gained management to “digest” based
mainstream prominence and revenue tremendous on data
many years as a separate assurance are volume of “beyond
ago discipline in merging data usage”
the
mid-2000s
7

8. Today’s Focus
PBX
Hacking
Back
Office Fraud
Mobile
Money

9. PBX Fraud

10. PBX Hacking
PBX stays a headline topic along
the years
Financial damages are increasing
Reputation issues re-occur
Corporate customers suffer and
complain
Detection is in place but is that
enough ?
10

11. TURNING
a lemon to
Limoncello MEANS
Alerting options Increasing
Via SMS/Emails internal
positioning for
Fraud
Departments
Detection
mechanism to Protection
monitor outgoing offering for Behavior
and incoming traffic corporate analysis
to PBX / PRI’s customers capabilities
FMAAS (Fraud
Management As
A Service)

12. FRAUD
12

14. Trademark as Asset
"It takes 20 years to build a
reputation and five minutes
to ruin it. If you think about
that, you'll do things
differently"
Warren Buffet
14

15. Sales at Telecom
Sales forces are divided to
several groups:
− Telemarketing (over the phone)
− D2D (divided to geographical areas)
− Stores and sales channels
− Distributers
Telecom carriers strive their
sales representatives towards
highly aggressive targets
Often, the sales personal does
E-V-E-R-Y T-H-I-N-G
15
to meet these targets!

16. How strictly are you
monitoring their actions ?
The What is the level of freedom
permanent you provide in order to
dilemma pursue “the desired signature
on contracts “ ?
What will be the price of
constant critique ?
Sales organizations often
avoid asking too many
questions when the contracts
keep coming…
16

17. Insiders Fraud – A growing concern
£1.3 billion internal fraud in the UK 2009 - highest in 22 years
“Fraud in the workplace is likely to accelerate during
downturn“
UK Fraud Trends
in the 2000s
Fraud Value (£m)
Source: KPMG UK January 2010
17

18. Risks & Threats
Inflation of bills on
innocent customers
Debit – Credit Method
− In order to cover tracks and
go unnoticed new accounts
will be created and activated
in relevant systems (CRM)
but on the same time 100%
credit will be given
systematically
Unauthorized perks
18

19. Company policies
Corporate awareness
Look for linkage between employees
and known fraudsters
Log aggregation
Reactive investigations
But is this
Enough?

21. Lessons learned from reactive investigations
showed each actions leaves “a footprint in the IT
surrounding sand” – monitoring reactively will
reveal fraud
− A shift to a proactive approach
Awareness ,education and policies are important
BUT > > Prevention is better than an endless
search for cure
No privileged /”invisible” employees
Security oriented offenses are often related to
fraud
21

22. Unique Approach to Combat
Back office & Insider Fraud
New approach of “sniffing” the activities in IT
− Recording of Business processes within sensitive applications
− Less susceptible to ‘privileged users’ covering their tracks
A single integrated solution
Unique capability to make sure your employees are
accountable for sensitive business processes
Manages all fraud threats and risks
− All are displayed, analyzed and managed in a single case
management screen
Integrated link analysis visualization
Rapid deployment
23

24. Teaming of Mobile Operators (MO)
with Financial Institutions (FI),
offering “money transfer” capabilities
by using the mobile handset as an
identifier & enabler.
Offerings:
• Mobile wallet
• Money transfer (remittance)
• Payments (utility companies, other
agencies)
• Salaries
• Corporate usage (e.g. money for traveling
employees)
• NFC-Near Field Communication

25. Revenue Assurance
• Detect leakages (lost
transactions/records)
• Detect deviations (trends)
• Margin Analysis
• Tools: KPIs Alerts,
comparisons, trends Fraud
• Theft (e.g. impersonation,
hacking, etc.)
• Subscription fraud
• Internal fraud
• Tools: rules, time-space
engine, data mining, behavior
analysis, link analysis
26
26

26. Regulatory
• “Money Laundering” patterns
• Verify reports to regulators & governing agencies
• Provide required transparencies (e.g. SOX like)
27

27. US say all That

28. About cVidya
Mission
– Leading the Revenue Intelligence and
protection category
– Providing profit maximization
product-based solutions
– Impact of 2-7% of operator’s revenues
– Targeting Telecom, Media &
Entertainment service providers
– #1 Provider by Gartner
– > 150 customers – “10 Companies to Watch” by
– > 1 billion subscribers
Frost and Sullivan
– “Fast 50” by Deloitte
– > 15 billion CDRs per day
– TMF Ambassador and RA
– Global presence in 18 leadership
locations Market Presence
Recognition
29

29. Razorsight 2011
cVidya Overview
Worldwide Leading Customers Prestigious Awards
World Class Partners Driving Industry Standards

30. Customer Base
31

31. New technologies propose new turns at the
Revenue Intelligence stream
FM&RA units need to keep track and be
ahead of challenges
Keep a head of products Launch to asses
Risks
Increase your department’s position in the
company by offering prevention services to
your customers
Awareness to sales channels
becomes essential
Telecom = Bank , How will you
prepare ?
32

32. Thank You for Listening
Come speak to us at the Booth #3
Tal.Eisner@cVidya.com
www.cVidya.com | www.cVidyaCloud.com