How big of a problem is VoIP fraud
VoIP fraud is a significant and growing problem in the telecommunications industry. Because fraudsters often attack during weekends, fraud events often go undetected for many hours.
A single fraud event can easily cost a company between three and fifty thousand dollars. In many cases, this number can be even larger.
- A 2009 attack on an Australian company’s VoIP PBX resulted in 11,000 international calls in just 46 hours, leaving the SIP provider with a bill in excess of $120,000.
- A 2011 weekend episode in South Africa resulted in a bill of over $12,000 and another in the US cost victims more than $1.4 million.
Experts have trouble estimating an aggregated global yearly loss, because calculations are often based on subjective and individual standards. However, most experts agree that total loss is somewhere between 3 and 10 percent of income. This translates to a total global losses of somewhere between 30 and 50 billion dollars per year.The CFCA’s 2011 report put the number at $40.1 billion dollars lost.
This is a problem that is only increasing. Some say that phone fraud is growing at a rate of 29% per year. As the popularity of VoIP continues to grow, the problem of VoIP fraud will become an increasing threat to the industry.