Fraud is estimated to cost the telecom industry over USD $38 billion annually by Deloitte’s estimates, or €40 billion according to Neural Technologies.
The financial losses stemming from just one subset of fraud, subscription identity fraud, can represent up to 10% of a Mobile Network Operator’s (MNO) bottom line, which is no small loss. Not only does fraud threaten the financial growth of the telecom industry, it also inherently undermines the integrity of all stakeholders and the value of the product.
The Telecom industry is facing a host of challenges in the context of our digital identities and their safekeeping. The depth and reach of fraud today can be divided into three categories:
In the future, this challenge has the potential to expand and become more nuanced as the industry looks towards emerging technologies such as 5G and IoS connectivity.