How to choose the right fraud management system for your telecom business?
Telecom fraud is increasing at an alarming rate globally and is one of the most significant sources of revenue erosion for every telecom operator. With bottom lines under tremendous pressure, it is now time for CSPs to invest in advanced technologies to strengthen their fraud management systems. This would enable them to stay ahead of fraudsters and prevent frauds before they occur, and reduce the impact on revenues.
Before you start looking for products available on the market, you should first take note of such features and characteristics when selecting a fraud management solution for your business. Here are a few points to be mindful of when choosing the right management system for your business
Transparent view of the expected results
Having a clear understanding of the expected outcome of your management program will help better set up systems accordingly. Employing a new fraud detection system could significantly differ from the current controls that CSP might be currently using. Once it is up, you will need to drive it towards carrying out exact functions as per your business’s needs. Hence, it would be good conduct to assess the planned strategies and the intended outcomes to check for complete compatibility with the intended fraud management system.
Latency and scalability
Considering the large amount of data CSPs have access to, it is recommended to have low latency and highly scalable models incorporated in the fraud management systems to deal with the large datasets much faster without consuming ever-growing amounts of resources like memory. Also, it is essential to be mindful that the impact of latency on the business scenario can be different for different use cases.
It is critical to plan your fraud management strategy, whether to completely rely on a fraud management solution or to have a team of fraud analysts that will use system software to optimize their work.
The most basic configuration is to decide on the level of automation a company wants to employ in their fraud management system.
Comprehensiveness and self-learning capability
You never know what technique stealing fraudsters may use in a particular case. That’s why a fraud management system should also incorporate AI/ML techniques that will adapt to the changing business scenarios and quickly detect patterns and suspicious activity and prevent such cases instantaneously. An anti-fraud team system should be comprehensive to protect the services of telcos without any exception, should be protean to be able to handle all types of data, and highly-performing to process massive data streams. The management system should be able to self-learn from data to detect not only predefined but also new types of fraud and cyber threats.
Compliance with security standards
Another forecheck would be to see if the solutions comply with your organization’s requirements for data security. Keeping a list of your organization’s compliance requirements handy when vetting web fraud detection systems and asking each vendor on the shortlist to provide documentation that indicates the product’s compliance support is key to fulfilling precise requirement metrics.
Make sure you’ll be able to effortlessly reach the solution provider if you run into difficulties in managing the product or have any queries.
Discussing the onboarding process and service level agreement with the vendor would help understand what kind of technical support a customer should expect from a provider: when customer care professionals are available, how to reach them and report concerns, what the usual response time is, under what circumstances the services might not be lent, and other conditions.
Research and keeping updated with the latest industry trends may also help customers use the solution to its full potential and make the right choice in choosing a fraud management vendor.
Through the use of current technologies like machine learning, you can reduce risk by quickly identifying patterns in data with minimal human input needed, all in real-time. Although manual reviews will remain necessary in some cases, automated fraud management software can drastically shorten the time spent and allow for better efficiency of your team. Furthermore, it gives you a transparent solution for your team to analyze transactions.
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