Operators will lose $300 billion to VoIP Fraud

A new report by Jupiter Research has estimated that VoIP operators may lose up to $300 billion to fraud and billing error by 2016. That would account for nearly a quarter of the revenues for VoIP operators today.

The report found that as the level of billable events has increased—operator-billed revenues totaled more than $900 billion last year—networks experienced an upsurge in leakage across the revenue cycle from sales to network configuration, rating, and billing.

While such leakages are often the result of system error, networks are also experiencing a sharp rise in fraudulent activity. According to the report, revenue leakage levels are currently highest in Africa and Middle East, where there are particularly high rates of interconnect bypass fraud (under which fraudsters avoid paying call termination fees) and SIM cloning.

Implementation of fraud management solutions would enable operators to reduce potential global leakage by more than $250 billion by that time.

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