Interconnect bypass fraud detection: a case study
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Interconnect bypass fraud detection: a case study Bruno Veloso1
˜ Gama1 · Shazia Tabassum1 · Carlos Martins2 · Raphael Espanha2 · Raul Azevedo2 · Joao
Received: 17 November 2019 / Accepted: 21 August 2020 © Institut Mines-T´el´ecom and Springer Nature Switzerland AG 2020
Abstract The high asymmetry of international termination rates is fertile ground for the appearance of fraud in telecom companies. International calls have higher values when compared with national ones, which raises the attention of fraudsters. In this paper, we present a solution for a real problem called interconnect bypass fraud, more specifically, a newly identified distributed pattern that crosses different countries and keeps fraudsters from being tracked by almost all fraud detection techniques. This problem is one of the most expressive in the telecommunication domain, and it has some abnormal behaviours like the occurrence of a burst of calls from specific numbers. Based on this assumption, we propose the adoption of a new fast forgetting technique that works together with the Lossy Counting algorithm. We apply frequent set mining to capture distributed patterns from different countries. Our goal is to detect as soon as possible items with abnormal behaviours, e.g., bursts of calls, repetitions, mirrors, distributed behaviours and a small number of calls spread by a vast set of destination numbers. The results show that the application of different techniques improves the detection ratio and not only complements the techniques used by the telecom company but also improves the performance of the Lossy Counting algorithm in terms of run-time, memory used and sensibility to detect the abnormal behaviours. Additionally, the application of frequent set mining allows us to capture distributed fraud patterns. Keywords Fraud · Telecommunications · Lossy Counting · Forgetting
1 Introduction Telecom fraud continues to expand with more fraud company complaints. New technology and the increase of artificial intelligence and machine learning has led to an onslaught of new telecommunication fraud tactics. According to the Communications Fraud Control Association’s (CFCA) 2017 Global Fraud Loss Survey [5], around 29 billion USD is lost annually in the Telecom sector as a result of telecom fraud. These losses cause a direct impact on revenues and provoke reputation costs at telecom companies. Nonetheless, this survey shows a significant reduction of 23.2 % in terms of losses when compared with 2015, despite a significant increase in fraud attempts.
Bruno Veloso
[email protected] 1
INESCTEC, Porto, Portugal
2
Mobileum, Braga, Portugal
In terms of fraud types, international revenue share fraud continues to be the primary revenue source for fraudsters, closely followed by interconnect bypass fraud and arbitrage. Regarding interconnect bypass fraud, which is responsible for 4.27 billion USD per year, recent changes in roaming regulation, namely in the European Union space, are creating a fertile ground for this type of fraud to grow in m
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