OWN CORRESPONDENT, Johannesburg | Thursday
TELKOM has introduced a new fraud management system to clamp down on illegal use of its network which cost the South African telecommunications parastatal more than R300m last year.
“The new system detects fraud as it is happening, which will greatly reduce our risks and losses,” said Ken Raley, managing executive of Telkom’s Network Operations.
The system will monitor customers’ lines, using a combination of rules and artificial intelligence to detect irregular calling behaviour.
Global telecommunications analysts Chorleywood Consulting estimate that telecommunication companies around the world lose between three and five percent of their annual income to fraudsters, which amounts to about $6bn in the US and $3bn in Europe.
Telkom’s Andrew Weldrick said telecommunication companies had to remain vigilant against fraudsters who “steal” lines from them to sell calls at cheaper rates. These activities represent about 60% of network fraud, while the other 40% is committed through various other schemes.
While the company has a programme to secure its street boxes, pillar boxes and other distribution points from fraudsters, the new system will “greatly enhance” Telkom’s ability to catch these criminals, says Weldrick.
He said a number of Telkom customers are familiar with so-called “clip-on” fraud, where fraudsters clip onto a customer’s line and sell calls to overseas destinations for a fraction of the normal rates charged by Telkom.
They pocket the money and move quickly from location to location, leaving Telkom to pick up the tab on huge phone bills of innocent victims.
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