Telecom fraud refers to the illegal manipulation of telecommunications services or systems for financial gain.
This type of fraud can involve various schemes such as unauthorized access to networks, SIM card cloning, and subscription fraud. Cybercriminals exploit vulnerabilities in telecom infrastructure, leading to significant financial losses for both telecom companies and their customers.
Forensic accounting in the telecom industry is a specialized field that involves investigating and analyzing financial data to detect, prevent, and combat fraudulent activities. It plays a crucial role in identifying the sources and methods of telecom fraud by tracking suspicious transactions, auditing accounts, and examining irregularities in billing systems.
Forensic accountants use advanced tools and techniques to trace fraudulent activities, making them an essential part of fraud prevention and resolution efforts.
There are several types of telecom fraud such as SIM card cloning and international revenue sharing fraud (IRSF).
In SIM card cloning, fraudsters duplicate a subscriber’s SIM card, allowing them to make calls and access data on the victim’s account.
In IRSF, fraudsters route calls through expensive international routes to generate high charges for the victim.
Another type of telecom fraud, subscription fraud, occurs when criminals use fake or stolen identities to open new telecom accounts, racking up charges without paying.
One of the best protections against telecom fraud is to implement strong authentication measures. Two-factor authentication (2FA) and biometric verification, for example, can help secure customer accounts.
Also be sure to monitor network traffic. Use advanced analytics to detect unusual patterns in call or data usage.
Want to learn more? Tonex offers Telecom Fraud and Forensic Accounting, a 2-day course where participants learn the fundamentals of telecom fraud and its impact on the industry as well as develop expertise in forensic accounting methodologies tailored to telecom fraud investigations.
Attendees also identify key indicators and patterns associated with telecom fraud schemes and acquire practical skills for conducting effective telecom fraud risk assessments.
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