Fraud continues to be one of the most powerful negative forces operating in telecommunications today. In recent years, it has posed an increasing threat to businesses in the industry. The CFCA reported a 12% rise in fraud between 2021 and 2023, with an estimated $38.95 billion lost due to fraud in 2023, representing 2.5% of all telecommunications revenues that year.

The uptick in the number and volume of fraud attempts shows that fraudsters are successfully devising and executing increasingly creative schemes to target businesses. This is driven in part by leveraging new and emerging tools, such as generative AI, to entrap companies and individuals.

As industry experts already know, the ramifications of fraud attempts can be devastating for telecom operators. Now more than ever, organizations should have robust security measures in place, prioritizing the identification of weaknesses and the prevention of major incidents.

In this whitepaper, we’ll explore emerging trends in telecommunications fraud to paint an accurate picture of today’s landscape. Our aim is to help telecom leaders understand the threats and take action against the rising tide of fraud.

Telecom fraud has been escalating with a notable 12% increase since 2021. Such an alarming increase means telecommunications providers need to take real action to stop fraudsters in their tracks – or face often devastating consequences.

A large part of the issue is that today’s telecommunications ecosystem is highly interconnected and has greatly diversified. In high-speed 4G and 5G networks – soon to be predominant after the 2G/3G sunsetting – the source of fraud can be difficult to pinpoint as dangers can originate from any location and spread quickly. The telecommunications ecosystem has grown and diversified, including now new parties and elements such as brands, OTTs, things, etc

The good news is that there are comprehensive, end-to-end fraud prevention solutions available that operators can easily implement and protect both themselves and their customers.

Knowledge is the foundation of fraud protection. By understanding which types of fraud pose the greatest risk, operators can be better prepared to address the root causes and take proactive measures to safeguard their operations.