Fraud Methods 2023: A $28.08 Billion Challenge

The top telecom fraud methods of 2023, exposing a staggering $28.08 billion in losses worldwide. This alarming figure underscores the evolving and sophisticated nature of telecom fraud, posing significant challenges for the industry. Here are some of the Top Fraud Methods of 2023:

Subscription (Application) Fraud tops the list, accounting for 14% of the total fraud losses, amounting to $5.46 billion. This form of fraud typically involves the unauthorized use of stolen or fabricated identities to acquire telecom services.

Subscription (Credit Mule) Fraud, closely following, represents 13% of the losses, translating to $5.07 billion. Here, individuals are tricked or willingly participate in acquiring telecom services for fraudsters, often leading to substantial unpaid bills.

PBX Fraud claims 11% of the total losses, totaling $4.29 billion. This method exploits vulnerabilities in private branch exchange (PBX) systems to make unauthorized calls, often at the expense of businesses.

Account Take Over fraud, causing 7% of the losses or $2.73 billion, involves fraudsters gaining control over a customer’s telecom account to incur charges or access sensitive information.

Service/Equipment Abuse follows with 6% of the total fraud-related financial damage, amounting to $2.34 billion. This includes the misuse of telecom services or equipment for illegal activities.

Wangiri Fraud, making up 5% of the losses or $1.95 billion, involves fraudsters making short, unsolicited calls to victims, prompting them to call back premium-rate numbers.

Telecom providers are urged to adopt advanced security measures and educate consumers about the risks and signs of telecom fraud. As fraudsters continually adapt their strategies, staying ahead with innovative technologies and informed vigilance remains key to combating these sophisticated fraud methods.