Dealers Fraud | Fraud Management

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Dealer Fraud

Stop deceptive and fraudulent practices in your partner dealer network

Telecom dealers - friends or foes?

Managing the administration of indirect sales channels can be a challenge, given their contribution of up to 80% of overall sales. Nevertheless, unscrupulous dealers can sometimes directly exploit flaws in partner agreements for their own benefit by inflating sales volumes to claim fraudulent commissions.
 
Cases of abuse of commission and incentive schemes may include the creation of false subscriptions; re-activation of old accounts (flipping); exploitation of weak or non-existent clawback controls up to the stock itself, such as stealing and selling of stock, cloning of SIMs, handset unlocking and IMEI identity changing.
Telecom dealers - friends or foes?

RAID, a targeted approach to dealer fraud

The RAID for Dealer Fraud module uses a pre-built adaptive rule-based approach, combined with an AI/ML-based anomaly detection, to uncover advanced dealer fraud threats.
 
RAID adds an extra layer of protection to your incentives compensation strategy to keep your business safe from dealer fraud. Deploy RAID and gain greater control of dealer fraud in order to accomplish goals related to the acquisition, market share, revenues, and operational efficiency.
RAID, a targeted approach to dealer fraud

Trust but Verify. Why incentives performance management isn’t enough

Many CSPs rely on a dealer fraud strategy in addition to incentive compensation management (ICM) systems, as these systems have been designed in a vertically agnostic approach to business. In other words, these ICM systems were not designed to ingest telecom proprietary data across multiple points of the value chain and then combine it all together to see patterns for detecting dealer fraud.
 
Typically, vertically agnostic solutions receive data inputs from a limited source of reference points or directly from the data warehouse and ERP. This may work in a more traditional environment, but in the telecom industry, multiple data sources need to be checked and verified – preferably in real-time – in order to detect dealer fraud.

Dealer Fraud Case Study

Read this case study to understand how the improper use of incentives and some additional fraud scams were surfacing and becoming more and more difficult to police.
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RAID for Fraud Management is Powered by Mobileum's Active Intelligence Big Data Analytics Platform

Case Management
Drill down on data and alerts with ad-hoc analysis to find the root cause of fraud and make better decisions faster.
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Fully configurable
Use easy-to-apply configurations, workflows, and dashboards to enable simple and transparent mirroring of your required business processes. Automations and migrations let you execute this in days instead of months
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Machine Learning
React to and stop known and unknown fraud patterns in a repeatable and auditable way by combining an extensive rules library with machine learning.
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All-In-One Software
Manage the telecom fraud management lifecycle autonomously, from data loading to mitigation actions, with Active Intelligence's complete suite of tools for fraud analysts.
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Link Analysis
Quickly uncover fraudulent activities by highlighting key individuals, connections and patterns in a uniquely visual way. Gain a deeper understanding of data within a different entity and relationship types, as well as attributes that can help uncover hidden fraud patterns.
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Big Data Analytics
Adopt stream data integration as part of your data management strategies for real-time integration and analytics. Address the problem of matching continuously income events to evolving fraud patterns with Active Intelligence's complex event processing (CEP). Accelerate fraud detection and react faster to emerging threats with real-time data stream analysis.
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Fight Dealers Fraud with a Turnkey Approach

RAID is a pre-packaged solution that allows CSPs to evaluate their network traffic and detect fraudulent behaviors and deviations of service usage.

The solution makes use of a complex rule library, combined with machine learning techniques, plus a wide range of integrated data sources, gathered from the telecommunications network in real-time and combines this information with that from external systems and aggregates it. By correlating data from all these sources, RAID can produce comprehensive, real-time analysis, providing valuable insights for telecom fraud management.

RAID risk management software is easy to use and highly configurable

Schedule a meeting with us and see what RAID can do for your business.
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Having omnichannel fraud prevention should be your first line of defense strategy

Both online and offline partner channels rely on the interaction with several participants in the value chain, including retailers, distributors, logistics companies and others. These interactions can contribute to a significant percentage in fraudulent sale transactions initiated by a reseller.
 
As an example of this type of fraudulent scheme: a reseller places a bulk order for smartphones devices that are in great demand and turn around to sell them offline, taking advantage of a specific online promotion as well as the non-availability of such specific models online after the flash sales are over.

How Azerfon is Leveraging RAID For Fraud Management

Azerfon LLC launched its commercial activities on 21 March 2007 under brand name Nar Mobile. Today the network coverage of Azerfon claims to reach 80% of the territory of the Azerbaijan Republic (essentially all given that some 20% of the territory is under occupation).
 
In certain remote areas (e.g. Qarxun and Sohub villages of Quba district) Nar is the only provider offering service. Currently, over 2,100,000 subscribers use the network. In 2009 a non-stock partnership agreement was signed between Azerfon LLC and Vodafone Company.

Machine Learning and Real-Time Blocking

At Mobileum we believe that the best approach against telecom fraud is the hybrid one: combining AI/ML models and rules. Rules can be very effective in mitigating fraud risk, and telecom fraud analysts are comfortable with this approach because they can utilize human intelligence and set common-sense parameters for the telecom business. However, not having the right rule in place can result in false positives, false negatives or even a fraudulent attack getting below the radar. Unlike rules, machine-learning models can account for changing fraudulent behaviors as they evolve over time.  
 
By leveraging our security and fraud management products – plus a good measure of expertise – Mobileum gives customers a way to manage threats in real-time; providing an added layer of protection, even in the most secure environments.
A Hybrid Approach To Telecom Fraud

See how Mobileum can help protect & grow your business

Over 750 Telecom companies, in more than 150 countries, are scaling their business with Mobileum solutions.
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Don’t mistake fake activations as churn

In heavy acquisition environments, it is common practice to see sales and distribution channels illegitimately benefiting from the creation of fake activations of services and pushing SIMs to the market. These illicit practices are done simply for the sake of earning more commissions, take advantage of poorly designed incentive schemes or lack of proper fraud controls. What can initially be perceived as subscriber churn can quickly be uncovered by Mobileum's fraud management system (FMS). These fake activations can quickly be analyzed for what they really are- these clients never really existed and were virtually created by the distribution and sales channels with the clear objective of getting the commissions and channel incentives in a fraudulent scheme.

Future-Proof Your Fraud Management Strategy By Adopting Machine Learning

Rule-Based Approach
An extensive rules library provides immediate fraud awareness and increased accuracy
  • Optimize rules according to your needs
  • Greater accuracy and lower error rate
  • Immediate results
AI/Machine Learning
AI and Machine learning algorithms leverage data analysis processes to detect deviations and unknown fraud patterns
  • Rapid prediction and processing analysis
  • Past customer behaviors evaluation
  • Unlimited traffic analysis
Act
Using RAID's extensive data integration and throught the usage of APIs, the system is able to block dealers acess to services, as soon as fraud scenarios are identified 
  • Real-time blocking
  • Fraud & Security contextual analysis
  • Wide range of fraud type protection

Stop Dealer Misappropriation of Discounts and Offers

Communication service provides tend to present bold promotions and special discounts to attract consumers, especially in mature markets or when device-innovation slows and consumers become less obsessed with having the latest model. These discounts are designed for end-users, many of whom start their online transaction and gradually buy more products. However, when dealer fraud is present, this discount benefit is absorbed by the dealer who subsequently sells devices and products at Market Operating Price (MoP), forms bundle splitting, or in some cases charges premium for making a device available in an ‘out of stock’ period.

Mobileum Risk Management Software Portfolio

Discover why Mobileum is the most trusted software vendor by Telecom companies all over the globe to manage their Revenue Assurance activities.
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End-to-end Platform for Risk Management

Built from the ground up and completely owned by Mobileum, RAID is a robust platform on which all our risk management products are built.
 
With a range of pre-built auditing and monitoring packages, built for Revenue Assurance, Fraud Management, and Business Assurance, RAID delivers a full-service solution from data collection all the way through to risk detection and traceability of case resolution.
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Fraud managers too can aid in the support to sales

Fraud managers are in prime position to help and drive the control of dealer’s sales and support checkout conversion rates. Fraud managers have unique access to a rich array of data information that has been gathered from customer touch-points and service usage across the OSS/BSS, as well as through external sources.
 
Taking into consideration the amount of data that they can leverage, and their understanding of the business, this can be the starting point for fraud managers in the mission to support sales. Fraud analysts can also play a vital part in protecting sales during the release of new products through the proactive preparation of fraud management strategies that cater to planned changes and the monitoring of dealers' performance.

Choose How You Want Your Dealer Fraud App Deployed

Adopt the RAID platform and chose the deployment option that best fits your business needs, budget, and resources. If your company still doesn’t have a full public cloud policy due to security and compliance issues, Mobileum provides an alternative in private and hybrid cloud models to deploy RAID with its pre-built risk management modules or apps.