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Call State API for fraud prevention

Call State API for fraud prevention

Bank fraud prevention use case

Service providers have new business opportunities to expose information in their network to prevent crime and help both their subscribers as well as financial institutions to prevent fraud and becoming victims of crime.

Overview

Different kinds of fraud, including Telecom Fraud is a growing problem all over the world. In 2023 Telecom Fraud increased 12 % to 38.95 billion USD according to Communications Fraud Control Association (CFCA). Telecom Fraud is expected to continue to grow the coming years as society becomes more and more digital including different kinds of payments. Service providers not acting against fraud will decrease their brand value and will risk increased churn.

Challenge

In many cases people are encouraged to transfer money from their banking accounts by callers pretending to be someone else. Banks have difficulties to detect the fraud transactions. Additionally, in certain markets the legal systems hold the bank accountable, and banks may need to compensate any losses.

Solution

Service providers can expose the information about the connections, the connection start and stop time, the connection duration and the connection origin. This information can be correlated with other information to prohibit for example fraudulent transaction in the banking sector.

How it works

  1. A bank's IT system identifies a suspected fraudulent transaction.
  2. Transaction data, including the time, monetary sum and destination, are highlighted.
  3. The bank's IT system activates Ericsson's API with the victim's phone number given as a code.
  4. The telecom network responds with the data the API provides, determining that the victim is active on an incoming call.
  5. The bank can now block the transaction, informing the customer to contact the bank if the transaction was legitimate.
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Business applications

The main target segment for this use case are the banks and financial companies. However, this could be applicable to other fraud use cases and segments.

Business models

Service providers can monetize based on three different models:

  1. Wholesale (towards the aggregator)
  2. Subscription (towards the subscriber)
  3. Pay-per-use (towards the enterprise)

APIs in use

  • Call state API

 

 

 

Related read
How to monetize the IMS as a watchdog for bank fraud prevention?
Sep 10, 2024 | Blog post
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