The telecommunications industry is increasingly concerned about VOIP Wholesale fraud. With over $50 billion in losses reported annually, understanding and detecting these fraud types is crucial to prevent financial damage.
1. PBX Hacking
Private Branch Exchange (PBX) is vulnerable to hacking. Hackers often gain control through password breaches, using IP-based sources to avoid detection. They employ call forwarding and dial-thru tactics to expensive destinations, often connecting this to call reselling fraud.
2. Call Reselling
Wholesalers are often lured into call reselling. They add destinations to price lists at lower costs. Hacked PBXs are used as switches to evade termination costs, with the hacked PBX owner being billed for the traffic.
3. IRSF (International Revenue Share Fraud)
IRSF focuses on high-revenue international destinations. It involves Premium Rate Services and revenue-sharing. Fraud mechanisms include service not provided as promised, call duration extension, and artificially inflated traffic. Massive traffic generation within a short time is common.
|Service Misrepresentation||Not delivering promised services|
|Call Duration Extension||Charging for longer call durations|
|Traffic Inflation||Artificially increasing traffic for higher revenue|
Wangiri is a “missed call” campaign. CLI spoofing and spamming are common tactics. The fraud scenario involves mass calls to mobile subscribers with an immediate hang-up. The target subscriber unknowingly calls back an expensive number.
5. Call Hijacking
Call hijacking involves rerouting calls intentionally. Network A’s calls are routed through transit operator B to an announcement server. The transit operator enjoys high margins as charged calls don’t reach legitimate destinations. This often results in increased traffic due to customers calling again after reaching a recorded message.
|Increased Traffic||Customers call again after reaching a recorded message|
|Higher Charges||Calls are billed without reaching their intended destinations|
6. FAS (False Answer Supervision)
FAS is a fraudulent signal for call establishment. Calls are charged for longer durations than actual. Scenarios include calls not connected, call setup time charges, etc. It’s often combined with call hijacking.
7. Domestic Fraud
Domestic fraud is similar to IRSF. It involves artificially generated traffic towards premium rate number services. This is often connected to agreements with PRN (premium rate number) providers, leading to increased carrier revenue due to traffic stimulation.
8. Non-payment of invoices
Some companies use the service and do not pay, leading to financial losses for providers.
9. Billing increments
Companies use fraudulent billing software, showing more traffic on the generated invoices, which in turn causes disputes.
Progressive Telecom LLC is an expert in VoIP services and telecommunications. With vast experience in the field, they offer insights and solutions to tackle VOIP wholesale fraud effectively.
Linking to Previous Blogs:
For more insights into the world of VoIP, check out our other articles:
- Benefits of Wholesale VoIP Termination: Powering Efficient Communication
- Wholesale VoIP: A Journey with Progressive Telecom LLC
- What is VOIP (Voice) Wholesale?
- How to Start a Wholesale VoIP Business – Guide for Newcomer
- VoIP Routes and Their Impact on Call Quality
- How to Choose the Right VoIP Wholesale Provider
- How to Avoid Mistakes When Choosing a VoIP Wholesale Provider