Combating Complex Telco Fraud in North Africa
In an era where telecom fraud constantly evolves, Mobile Network Operators (MNOs) face immense pressure to protect their networks and revenue. This case study highlights how a leading North African MNO, a long-standing LATRO partner, successfully leveraged LATRO’s advanced Bypass Shield solution to detect and prevent sophisticated fraud, demonstrating a significant leap in network security and financial integrity.
International Revenue Sharing Fraud (IRSF) is a major telecommunications scam where fraudsters exploit international revenue-sharing agreements by artificially generating high volumes of calls or messages to premium-rate numbers they control. Fraudsters typically gain unauthorized access to telecom systems (such as PBX, VoIP, or SIM cards), use automated dialers or bots, and rapidly inflate traffic to these premium numbers. This results in substantial financial losses for telecom operators, who are forced to absorb the cost of unpaid or fraudulent call charges. According to the Communications Fraud Control Association (CFCA), annual global losses from IRSF are estimated between $6 billion and $27 billion in 2021, and with a 12% increase in fraud loss reported in 2023 as compared to 2021, equating to an estimated $38.95 billion lost.
The challenge
Despite existing fraud detection tools, a prominent North African MNO with over 12.5 million subscribers struggled against increasingly sophisticated telco fraud. They faced persistent challenges from SIM Box bypass fraud, targeted scam operations, and insidious International Revenue Share Fraud (IRSF). These covert activities led to substantial revenue leakage, degraded network quality, and eroded customer trust, as their current rule-based systems couldn’t keep pace with new fraud tactics. Recognizing the limitations, the MNO sought LATRO’s expertise for a proactive, adaptive solution.
The solution
LATRO deployed its innovative Bypass Shield solution, designed with an AI/ML-driven approach, alongside the MNO’s existing fraud detection infrastructure for comprehensive benchmarking.
This modular system introduced game-changing capabilities:
Smart Data Processing
Utilizing low-code technologies for flexible rule engines, Bypass Shield enables rapid adaptation to new fraud metrics and detection requirements without complex backend coding.
360-Degree Profiling
By enriching analysis with data from CRM systems, activation logs, recharge history, and dealer logs, the solution creates a complete behavioral view, significantly enhancing anomaly detection across all dimensions. This led to a 78% increase in fraud detection coverage in just one month.
Advanced AI/ML Capabilities
At its core, an intelligent AI/ML engine automates detection with high precision and minimal false positives. Continuously retrained on verified fraud data, it identifies suspicious behaviors traditional methods miss, including new fraud scenarios beyond defined categories. This uncovered previously undetected on-net fraud, leading to a 30% increase in detections and the elimination of a massive 70,000 MOU per day fraud operation. Over 3,000 scam-related fraud cases were detected by AI/ML within three months.
Results
Conclusion
LATRO’s Bypass Shield empowered the North African MNO to build a truly resilient defense against the full spectrum of telecom fraud. By integrating innovative data processing, 360-degree profiling, and cutting-edge AI/ML, Bypass Shield not only delivers actionable insights but also streamlines the production of new detection models. This success story underscores the power of a modular, data-driven approach in mitigating risks, safeguarding network security, and protecting revenue streams.
Download the Full Case Study to explore the detailed strategies and comprehensive results that empowered the North African MNO to achieve a new level of fraud resilience.
