Telecom

Clear and Present Danger of Account Takeover Fraud

Published

6 years ago

August 20, 2018

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Roberto Valerio, founder of RISK IDENT, Europe’s leading provider of new intelligent anti-fraud software has alerted telecom firms to the nature of fraud in telecommunications industry.

Valerio, touted as one of the foremost experts on the rise of AI in combating fraud, said that the telecommunications sector is one of the hardest hit industries by the account takeover fraud sweeping the globe.

In account takeover fraud, criminals harvest credentials from data breaches and then test them on every website and mobile app imaginable.

A small subset of those credentials unlocks accounts because most consumers reuse passwords across multiple sites.

Criminals then tap those for different types of fraud from unauthorized bank transfers to illicit purchases.

Valerio, said that fraudsters are leaning heavily on telcoms for illegal gains, and both the companies and their customers are feeling the shock.

He said “but why is this industry such an attractive target, and what can telcoms bosses do to lessen the damage? Identity theft has reached what experts call “epidemic levels,” largely in part to the sharp increase of data breaches happening around the globe.

The U.S. credit bureau Equifax suffered a breach of its network security system last September, which compromised the personal info of 143 million consumers around the world.

And this came hot on the heels of 1,800 other security breaches that exposed 1.4 billion data records in just 2016 alone . That same year, the UK telecommunications company TalkTalk was fined £400,000 for a cyber attack that allowed for the personal details of 150,000 customers to be stolen by hackers.

While data breaches are scary in their own right, the real nightmare is what criminals do with customer information once they’ve stolen it.

“Fraudsters use this illegally obtained info to create new accounts online and, even more damaging, use it to hijack existing accounts. The latter allows for criminals to hide behind the names and account history of good customers to somewhat easily make fraudulent purchases.

Why mobile telecoms are so vulnerable to ATO

Cifas reports that the identity fraud rate in the mobile telecoms sphere rose 60% in 2017 . And the reason the mobile telecoms industry has taken such a beating is based on the industry’s standard business model.

Fraudsters are particularly attracted to the phone contract model used in Europe, where customers immediately receive a high-value device that they eventually pay off monthly.

This system has lured in fraudsters, who’ve found that it’s relatively easy to use a victim’s stolen account details to access his or her account, collect the expensive phone, immediately sell off the device, and leave the victim with the bill and whatever other fallout that occurs.

Contract extensions are another door that fraudsters have weaseled through as they continue to target the telecommunications industry. As a way to reduce customer friction, many mobile service providers have eliminated complex re-sign processes. Though this presents convenience and ease to legitimate customers, it also presents a lucrative opportunity for hungry criminals.

Fraudsters have realized that they can use stolen data to hijack existing accounts and change a victim’s account details to ensure that the brand new device that comes along with an automatic extension is delivered to an address that they can access. This type of fraud is popular, so much so that there’s even a pricing scale for mobile contract account details on the Dark Web; the closer an account is to a renewal date, the more sellers can demand for the account information, as a big payoff is right around the corner.

Unfortunately, telecom firms don’t just experience outside threats. RISK IDENT’s fraud experts have found that it’s becoming more and more common for account takeover fraud to actually happen from within, carried out by telecommunications employees. In such cases, firms’ employees use their administrative access to take over customer accounts, create a bogus contract renewal and collect the phone for themselves. In some cases, resellers and company partners also have the ability to create fake renewals in customer accounts, which is helping drive the high ATO rates in the telecom industry.

What telecoms firms can do to lessen identity theft threats

The only surefire way to stop the flood of fraudsters who’ve targeted the telecommunications industry is to close the gaps presented by the mobile phone contract model. This entails predicting where customers may be most vulnerable to fraud and keeping that in mind when constructing a telecom firm’s fraud prevention strategy.

Over the past five years, RISK IDENT has identified several account and transaction characteristics that can assist telecoms firms in detecting account takeover fraud. These include:

Recent account changes: Nearly all confirmed cases of ATO fraud came with a password, address or e-mail address change within 10 days prior to the transaction.

Expensive purchases: The average order value in account takeover cases is four times higher than other orders. For example, fraudulent orders often include a request for a much more expensive device than the victim’s previous phone.

Customer age: Due to having significantly less technical expertise, older customers are much more likely to be victims of identity theft and account takeovers.

Paying attention to warning signs like these and incorporating systems that further predict account takeover vulnerability have the power to significantly reduce ATO fraud in the telecommunications industry. After all, the harder a companymakes it for criminals to commit fraud, the less likely it will be targeted.

To find out more about how RISK IDENT’s fraud prevention solutions reduce identity theft and ATO in the telecommunications industry, visit: https://riskident.com/en/.

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Telecom

TECNO and Tiwa Savage Unveil ‘Water and Garri’ in Style

Published

7 hours ago

May 17, 2024

Ugo Onwuaso

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The recent premiere of the highly anticipated film Water and Garri was nothing short of a star-studded affair. Its compelling storyline and stellar performances captured audiences. Held at the Livesport Event Center, the event drew A-list celebrities, industry insiders, and eager fans, all eager to witness the cinematic spectacle unfold.

One of the most memorable aspects of the evening was the irresistible allure of the TECNO booth, where celebrities couldn’t get enough of the state-of-the-art devices on display. From snapping selfies with the latest TECNO smartphones to exploring the myriad features and functionalities, it was clear that TECNO had struck a chord with its audience.

But it wasn’t just the TECNO booth that had everyone buzzing – the movie itself was the talk of the town. ‘Water and Garri,’ inspired by the real-life journey of singer/actress Tiwa Savage, resonated deeply with audiences, offering a poignant portrayal of love, loss, and redemption. As the lights dimmed and the opening credits rolled, guests were not just spectators but participants in Tiwa’s world, swept away by the raw emotion and heartfelt storytelling.

Celebrities couldn’t get enough of the film throughout the evening, lauding its authenticity and powerful performances. From the lead actors to the supporting cast, each portrayal was met with applause and admiration, underscoring the talent and dedication of all involved. As the credits rolled and the cheering subsided, guests lingered, eager to share their thoughts and reflections on the film’s profound impact.

As the night ended, it was clear that “Water and Garri” had left an indelible mark on all who attended. From its captivating storyline to its unforgettable performances, the movie has captivated hearts and minds, earning its rightful place among the year’s most anticipated releases. With the support of innovative partners like TECNO, the film’s reach and impact are sure to extend far beyond the premiere, inspiring audiences for years to come.

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Telecom

Nigeria DigitalSENSE forum @15, gets June date

Published

7 hours ago

May 17, 2024

Ugo Onwuaso

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The date for the 2024 Nigeria DigitalSENSE Forum on Internet Governance for Development (IG4D) has been unwrapped for Thursday, June 27, by organisers, ITREALMS Media group.

Disclosing this, the Lead Consulting Strategist, DigitalSENSE Africa and Group Executive Editor, ITREALMS Media, Mr. Remmy Nweke, said that this year’s edition marks the 15th edition of Nigeria DigitalSENSE Forum on IG4D series and comes with the theme “IG4D: Innovative Digital Economy & Safer Civic Space in Nigeria” at the prestigious Welcome Center Hotels, International Airport Road, Lagos.

Nweke recalled that in 2009, the Nigeria DigitalSENSE Forum (NDSF) series on Internet Governance for Development made a debut and ever since has been steadfast in rallying stakeholders to take discourse on Internet access, openness, affordability, connectivity and ICT infrastructure among others.

This year, he also said, as NDSF marks 15th years of impacting various Nigeria’s economic sector with yet another series on the theme: IG4D: Innovative Digital Economy and Safer Civic Space in Nigeria.

“It will also be a time for recognition of corporates and individuals for their contributions in deepening Internet penetration, improving access and affordability as well as technological adaptation that begets digital sense in our society,” Nweke said.

NDSF series on IG4D, powered by ITREALMS Media group is hosted by DigitalSENSE Africa, an At-Large Structure (ALS) certified by the Internet Corporation for Assigned Names and Numbers (ICANN), in collaboration with relevant stakeholders including Internet Society (ISOC), Nigeria chapter, Nigerian Communications Commission (NCC), Internet Exchange Point of Nigeria (IXPN) among others.

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Telecom

Exposing the Malicious Sabotage of MoMo PSB Project in Enugu Ezike

Published

7 hours ago

May 17, 2024

Ugo Onwuaso

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By Cyprian Nwodo

The recent activities of some individuals with one Davids Iyida attempting to sabotage the MoMo Payment Service Bank project intended to benefit, especially Enugu Ezike people, have raised significant concern and outrage within the community.

Market Vendor accessing the MTN MoMo Loans and Savings on her phone — Enugu Ezike traders deserve the same

Such actions aimed at undermining a project with immense potential to uplift and empower the people of Enugu Ezike can only be described as malicious.

The MoMo PSB project is designed to bring financial services closer to the people of Enugu Ezike, facilitating easier access to banking and financial transactions.

This project is expected to create jobs, stimulate local businesses, and provide a much-needed boost to the local economy. In a region where such opportunities are rare, the MoMo PSB project represents a beacon of hope for many residents.

It is particularly baffling and disheartening to witness a member of the community collaborate with outsiders to hinder the progress of their own people.

The reasons behind such alliances remain unclear, but the impact of these actions is evident and deeply troubling. Working to obstruct the project is not only delaying progress but also actively working against the welfare and advancement of Enugu Ezike.

The efforts to destroy Kingsley Ifeanyi Adonu’s good intention, despite all the positive contributions he has made, are nothing short of wickedness.

Adonu, a visionary entrepreneur and the leading MTN Partner in the South East, has dedicated significant resources and efforts to bring the MoMo Payment Service Bank project to fruition.

His vision for the community includes economic growth, financial inclusion, and overall development. Attacking his vision is an attack on the progress and future of Enugu Ezike.

The question that lingers in the minds of many is: Why sabotaging our own benefits? In a time when unity and collective effort are paramount for the community’s advancement, such actions of sabotage are counterproductive and harmful. The community needs all hands on deck to drive development and improve the quality of life for its residents. Internal conflicts and malicious actions only serve to set back these efforts.

Davids Iyida

Despite the challenges and the malicious attempts to derail the project, it is important to reaffirm that S Mobile Group vision for establishing a MoMo Payment Service Bank in Enugu Ezike will prevail.

The community stands behind this vision, recognizing the immense benefits it promises to bring. Efforts to hinder progress will ultimately fail in the face of collective determination and support.

The actions of these ungrateful individuals, aimed at sabotaging the MoMo PSB project, are grave disservice to the community of Enugu Ezike.

In a time when progress and development are desperately needed, such malicious activities are deeply regrettable.

However, the vision and determination of Kingsley Ifeanyi Adonu and the community’s support ensure that the project will succeed, bringing much-needed growth and prosperity to Enugu Ezike.

Let it be known that no amount of sabotage can dim the light of progress and unity.

_Nwodo, a public commentator writes from Enugu State

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