cVidya presented on the changing telecom climate bringing new growth opportunities for CSPs at the FIINA and 6th SATA FMRANS Workshop in November 2012.

1. Telco’s change in Climate
OPERATIONAL
Brings new opportunities for RISK MANAGEMENT
& COMPLIANCE
growth
Gabi Starobinski – EMEA Presale Manager
Dudi Moshe - AVP Sales, Africa
Joint FIINA 2012 and 6th SATA FMRANS Workshop
Mauritius, November 5-9, 2012
© 2012 – PROPRIETARY AND CONFIDENTIAL INFORMATION OF CVIDYA

2. ABOUT CVIDYA
 100% focused on the Telco Industry  “#1 Revenue Management Global Market
 150 customers Provider” (April 2011)
20 out of the 30 largest operators  “Leader in the Financial Assurance sector,
based on the company focused strategy”
 300 employees (Oct. 2012)
 Global presence in 20 locations  Leadership in associations & committees
 Partnership with top vendors and
integrators
 Financially stable and growing
25% revenues growth in 2011
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3. ANNUAL USER FORUMS
 Learn
– Market Trends
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3

4. CVIDYA OVER-THE-WEB EDUCATION CENTER
Advanced Revenue Assurance & Fraud Management eLearning
“I found the course very
Platform  Top industry experts instructors useful. The speakers are
 Practical knowledge and exercises knowledgeable and
enthusiastic, explaining the
 Learn at your own time content in detail. I loved
 Web-based, no installation needed the fact that I could
complete the course
 The instructor is videotaped and whenever I had time and it
accompanied with explanatory slides didn’t run with somebody
 Advanced, fully interactive and easy to else’s schedule. Applying
use eLearning system the new knowledge was
easy, and I now
 Course materials are always available understand the more
 You never miss a class complex concepts. “
 Quizzes and exams to ensure progress Dorette Meyer, MTN
 An option to contact the instructor South Africa
 In English or Spanish
 Official Certification
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5. Today
The enterprise opportunity
New landscape
How to
A need for a change become a revenue
in scope of work generating unit
for Fraud Management
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6. CHANGE of  Telco’s are going through a gradual change
 Revenues are down due to change in
Climate products & plans
– A shift towards bundles
– New flat tariff plans
– All included plans
– Unlimited Voice/SMS/Data

7. Change in Fraud Management
 If traffic is unlimited …
– No more “high usage” ?
– No more “abnormal” traffic behavior ?
 Change of fraud incentives ?
– Why bother for fraud if it’s all so cheap
and unlimited ?
 Change of Fraud Management strategy ?
– Who are we after ?
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8. ? WHAT
Will the
Change of
CLIMATE
Bring?
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9. Fraud Manager’s Dilemmas Today
? ?
?
How can I generate new
How do I develop proactive revenue streams from
approach to protect the the same tools I use to
organization from future prevent losses?
fraud threats and challenges?
How do I protect my
organization from current
fraud threats to minimize
revenue losses?
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10. A Shift in Approach
Fraud departments are Effective:
obliged to be more:  Achieve more with fewer resources
 Support large volumes and multiple types of transactions
 Align activities with corporate business goals
 Demonstrate their activities and effectiveness within the organization
Proactive:
 Assess risks of services & products pre-launch
 Top down analysis & prioritization
Innovative:
 Stay ahead of threats and challenges
 Produce revenues as well as prevent losses
 Be prepared for upcoming technologies and products
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11. The Traditional Fraud Department
Traditional Operator Fraud Teams
 Operation & investigation teams
 Seen as a necessity – no benefit recognition
 Operations – measurement focus, high volumes of incidents
and high number of personnel
 Investigations – small case loads,
long timespans, legal actions,
minimal recovery
 Simplistic process, lack of
technical understanding
 No commercial skill sets,
or process expertise
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12. Fraud Management in Main Stream
 From a defensive, reactive and detective
unit to a proactive, revenue generating
and innovative unit
 Goals and targets
shift from simply:
”Detecting more
fraud” to “Achieving
higher customer
Satisfaction” and
“Creating new
revenue streams”
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13. The Enterprise Opportunity
 Provision of a Fraud Management service to customers as a
differentiator including capabilities such as:
– PBX protection as a service to corporate customers (PBX detection as revenue
generator)
 PBX profiling
 Back-office investigation tools
– New dedicated fraud detection schemes
 Management per customer
 Allowable activity programming
– Corporate customer portals
 Notifications directly to customers (SMS, Email)
 Dashboards, Tuning of fraud controls
– Smartphone malware protection
 App based analysis, with system integration
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14. TURNING a Lemon to Lemonade
Sales and partner
Increasing internal risk management
positioning for Protection
Fraud offering for corporate
Departments customers
FMAAS - Fraud
Management As A
Service for Partners
Service abuse
management
Behavior analysis
capabilities for
marketing
14
14

15. Fraud Management –
A Revenue Generating Unit?
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16. Areas to Consider
 Partner FMAAS  Service Abuse Management
– Provision of FMS for partners (such – Product protection
as VNO’s & Wholesale) – Margin, T&C’s & FUP’s
– Spam, SMS, Bypass, etc.
 Enterprise Fraud Protection Services
– Enterprise PABX Fraud Management  Behavioral Analysis for internal
– Enterprise Risk Management departments
– Customer profiling
 Sales Channel Risk Management – Anomalous groupings
– Commissions & payments – Segment behavior
– Internal & external sales teams – Location profiles
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17. FMAAS and Enterprise Fraud &
Risks Management
17
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18. FMAAS
 More Telco's have relationships and arrangements with other
operators via MVNO or VNO relationships, reselling
agreements or wholesale relationships
 Effective fraud management is often difficult in these
situations as the third party partner owns all the customer
data and the third party often has a delay in receiving data or
the data is limited
 Therefore there is an opportunity for operators to offer fraud
services to these partners to allow them to achieve effective
real time management
18

19. FMAAS cont’d
 Services offered to these third parties could include:
– Dedicated fraud detection schemes
– Fraud Management per 3rd party
» Specific rules and analysis
» Specific profiling
– Partner FM portals
– Rule and threshold configuration & tuning of fraud controls
– Notifications (SMS, Email)
– Management and operational dashboards,
– Crowdsourcing & sharing of information
– Hot B number lists
– Fraudster profiles & fingerprints
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20. Enterprise Fraud
 Movement (or regrowth) of fraud to enterprise/corporate level, including:
– Subscription & ATO fraud at the corporate/SME level
– Regrowth of PABX fraud
– IP service growth
– IP PaBX software
– Bypass/Gateway as a source
– Customer manipulation
– Traffic pattern hiding
– Internal Fraud in the enterprise
 Often the operators are blamed by the customer for not protecting them from these type
of fraud
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21. PBX Fraud Protection Package – Example
 A dedicated dashboard portal to corporate customer users as well as the
operator’s account managers including the following:
– Status report and traffic trends on all PBX’s
– Drill down to specific PBX’s to view alerts & trend
graphs with daily/weekly/monthly profiles of calls
– Standard case management & investigation
capabilities to investigate PBX hacking alerts.
– ‘Gatekeeping’ activities, such as: Setting corporate
whitelists & blacklists
– A set of configurable permissions defining what
data each user may view or update
– Analysts can get notification by mail/SMS on alerts
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22.  FM & RA units need to keep track and be ahead
of challenges
 Understand your internal strengths and its
potential commercial value to the organizations
 Increase your department’s position in the
company by offering prevention services to your
customers and partners
 Increasing the capability range and coverage of
the fraud and RA teams is essential
 A truly intelligent, flexible system or tool set can
support the process of transforming the fraud
area into a profit center
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23. THANK YOU!
www.cvidya.com