Telecom fraud losses to experience a 9% decrease by 2028, as predicted by Kaleido Research.
Hear Ye, Hear Ye! New Findings Unveiled by Kaleido Intelligence
Get ready to swap your erstwhile traditions for the tech-savvy, be it fraud or 5G! New research by Kaleido Intelligence reveals some electrifying insights on voice and operator messaging channels, skyrocketing our interest in the telecoms world.
Embrace the evolution of fraud with a forecasted plunge of annual losses in these channels to $17 billion in 2028, according to Kaleido’s stunning new report, Mobile Network Fraud & Security: 2024 Outlook. A potent mix of declining channel usage and coasting circuit-switched networks seems to be persuading felons to explore nefarious alternatives, like AI-powered attacks and tampering with APIs to manipulate the telecoms network itself. Expect subscriber fraud to remain the tyrant of telecoms fraud, wrestling a whopping $11 billion from operators in 2028.
The Past Refuses to Let Go
While voice and SMS fraud may become less materially impactful over time, maintaining backward compatibility in the networks ensures that the ghosts of the past shall forever haunt us. Old vulnerabilities from the SS7 and Diameter protocols will linger even in the 5G era, and as a consequence, fraud from these channels will plateau instead of vanishing entirely. We forecast SMS fraud to dwindle due to the escalating adoption of RCS following Apple's stamp of approval, but with variable implementation, RCS remains a tantalizing target for unscrupulous minds, yielding fraud over $6 million in 2028.
Report author, James Moar, shared his insights, "The security woes with RCS implementations are a microcosm of the many security issues within the telecoms arena; flexibility in standards implementation, despite its benefits, has left high security an afterthought, rather than a top priority."
Telco APIs: A Trojan Horse
Standardized telco APIs will undoubtedly streamline service delivery, offering new anti-fraud tools, but they are not without their perils. They expand the attack surface, tempting fraudsters with more potential points to infiltrate the telecoms network. With some APIs potentially being enlisted for IoT use cases, telcos must tread with caution as they brace for a surge in DDoS and other automated attacks on their networks.
Telcos' inexperience in API security is a recipe for disaster, escalating the likelihood of more sophisticated forms of attack, which will swell to nearly $8 billion by 2028.
So there you have it, folks! The world of telecoms fraud is a wild ride, brimming with lights, challenges, and obstacles at every corner. Here's hoping the brave warriors at Kaleido Intelligence and others like them will continue to navigate through the storm and find the light at the end of the tunnel.
@IoTNow_, what are your thoughts? And don't forget to drop by our homepage, IoT Now!
Snapshot of the Future:
- AI Driven Fraud Detection: AI and machine learning revolutionize the way fraud is detected and prevented. Look forward to advanced systems detecting anomalies indicative of fraudulent activities by analyzing vast amounts of customer data.
- Advanced Analytics and Signaling Security: AI-driven fraud management systems fuse advanced analytics and signaling security to safeguard networks proactively. This fortress of real-time monitoring guards against anomalies in network traffic and customer behavior.
- API Integration for Fraud Detection: Fraud detection systems evolve as APIs get incorporated to expand their capabilities. Solutions like Truth Scan embody the potential for deepfake detection within telecom fraud detection applications.
Yet, challenges persist:
- Sophisticated Attack Vectors: Telecom fraud manifests in increasingly intricate forms, such as virtual SIM cards (eSIMs), requiring robust detection techniques to expose the villains.
- Security of APIs: As APIs become indispensable for fraud detection, securing them against misuse becomes pivotal.
- AI-Generated Threats: The AI-driven arms race spawns new threats, including deepfakes, necessitating innovative solutions to neutralize these ever-evolving foes.
In light of Kaleido Intelligence's recent research, we may witness a significant decrease in financial losses associated with fraudulent activities in voice and operator messaging channels, with annual losses projected to reach $17 billion in 2028. However, reliance on outdated technology, such as the SS7 and Diameter protocols, could potentially hinder this progress, as these old vulnerabilities may continue to haunt the 5G era, contributing to the sustained presence of fraud.
In an era where standardized telco APIs facilitate service delivery and introduce new anti-fraud tools, it is essential for telcos to be vigilant against expanding attack surfaces and potential points of network infiltration, particularly as APIs are increasingly leveraged for IoT use cases. The swift rise of such automated attacks could see nearly $8 billion stolen by 2028 if precautions are not taken.
