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 5th

1. 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. 2
Telecom Today
Evolution of Fraud Management
Crossroad and Opportunity
Shift at Work
Changing Modus Operandi
Agenda

3. From “Walled Garden” to “Dumb Pipe”
Telecom Operators Evolution
Network Content Device CustomerConnectivity

4. 4
Operators’ Main Challenges (2013-2015)
Source: Informa, March 2013

5.  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
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7. 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. 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 ?

9.  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
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10. 10
If you don’t like
what’s BEING
said CHANGE the
conversation

11.  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.
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12. 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
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13. Big Data Analytics
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 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

14.  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
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15.  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

16.  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. 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

18. 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
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19. 19
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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
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