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Fraud cost operators billions of dollars every year – Basset Telecom Report

by david.nunes



Fraud cost operators billions of dollar every year

         3 – 8 % of the revenue is lost due to fraud


All reports and studies on fraud in recent years show that fraud is costing operators billions of dollars yearly on a global basis. Even if the levels of loss due to fraud vary from operator to operator and from market to market, one trend is clear: Fraud and security threats increase with the expansion of the next generation IP-based networks.


The survey, to be launched in the end of this week, has been conducted through market research and deep interviews with leading experts and managers within the telecom industry world-wide. The survey shows that the operators are losing billions of dollars every year on a global basis and the loss will continue to increase with the expansion of the next generation IP-based networks.


In order to be successful in the fight against fraud, operators need to have a strategy in place and a clear focus on winning the trust of their customers. Otherwise, the consequences will not only put operators at a financial risk due to more losses. It will also, if operators fail to guarantee a safe connection and usage of services or applications, endanger the subscriber business model due to growing number of dissatisfied customers, and as a consequence a very possible increase in churn rates. The good old days when churn more or less could be ignored is over.


          To be able to win the battle against fraud in telecom systems it is necessary to define fraud. Our global definition of fraud is:  “Fraud in telecommunications is when someone gains access to services or products that is sold through a telecommunications system and uses this information or service in a damaging or fraudulent way. Fraud also includes internal fraud and exploitation of services/loopholes through errors that have a bearing on billing, payment or provision of telecommunications services or networks”. Total control is key, says Nicolaj Aaroe, Product Manager within FMS at Basset.


About Basset Telecom Report

Basset Telecom report is an annual series of whitepapers covering the challenges operators are facing in the next generation network marketplace, and what operators need to consider in order to be an effective, attractive and profitable player.

Basset has in cooperation with an independent agency conducted a major market research and analysis of the challenges network operators are facing in the next generation networks regarding interconnect- & roaming billing, fraud management and revenue assurance. The research has been conducted through deep interviews with experts within the telecom industry worldwide and the results are now presented as The Basset Telecom Report. Please download the report at: www.bassetglobal.com/getmore/reports  


 For further information, please contact:


Jenny Widing

Marketing Director, Basset AB

Phone: +46 (0)70 420 76 78

Email: jenny.widing@bassetglobal.com


About Basset AB
Basset is a global provider of Business Support Systems for telecom operators within inter-operator billing and revenue assurance. As an advisor Basset are committed to help operators get more out of their business by providing solutions within inter-operator billing and revenue assurance that ensures operators get paid for every transaction in their network.

Basset serves more than 70 customers in 65 countries. Basset helps several operators growing their business and reach operational excellence in more than one domain. Among Basset’s customers are Zain, Telefonica, Millicom, Globe Telecom, Etisalat, Tele2, Cable & Wireless, Vodafone and Orange. Working with so many operators around the world has given Basset the experience that makes them the ideal partner when operators want to grow their businesses.

Basset is a part of the Kinnevik Industrial Group, which was founded in 1936, and is one of the largest listed investment companies in Europe. Please visit: www.bassetglobal.com for more information.




* According to GSMA operators lose 3 – 8 % of their revenue due to fraud.

** According to the information released by HOT TELECOM (www.hottelecom.com) in its latest report “Global Telecom Market Status and Forecast”, the global telecom services revenue reached US$1.9 trillion in 2010



286 million – number of unique variants of malware detected.

1 million – number of zombie computers controlled by Rustock botnet.

260,000 – average number of personal identities exposed in each corporate attack.

6,253 – number of new software vulnerabilities that could be used by criminals.

42% – increase in the number of vulnerabilities on smartphones.

14 – number of never-before-seen ‘zero day’ vulnerabilities that first turn up in malware.

2010 Internet Security Threat Report, Symantec



1. Data leakage resulting from device loss or theft

2. Unintentional disclosure of data

3. Attacks on decommissioned smartphones

4. Phishing attacks

5. Spyware attacks

6. Network Spoofing Attacks

7. Surveillance attacks

8. Dialer ware attacks

9. Financial malware attacks

10. Network congestion






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