Losses from global roaming fraud are expected to surpass $8 billion by 2028, driven by the increase in bilateral roaming agreements for data-intensive use cases over 5G networks, according to a recent report by Juniper Research.
The report highlights the growing trend of fraudulent data traffic, which is predicted to account for 80% of global operator roaming-based losses by 2024. As 2G and 3G networks are phased out, operators are ramping up their transition to 5G and VoLTE roaming services in order to take advantage of the high levels of virtualization and lower operational costs. However, the highly virtualized nature of 5G networks presents new opportunities for fraudsters to launch their attacks, leaving operator networks vulnerable to emerging fraud tactics.
With the proliferation of bilateral 5G roaming agreements, the research predicts that operators will deploy more advanced fraud mitigation tools. The massive amount of data generated by 5G roaming connections will require the development of solutions that can detect and identify fraudulent users and traffic as the networks evolve.
One example of fraud that has gained traction in the 5G era is subscription fraud. Fraudsters create new subscriptions with false information, accruing roaming charges without any intention of paying. These fraudulent subscriptions continue to be used anonymously until they are canceled, causing operators to lose potential roaming revenue.
To combat this type of fraud, operators need to implement 5G-specific signaling detection and firewalls that offer real-time monitoring and ID-registry analysis. Only then can operators efficiently identify subscription fraud across the projected 100 million 5G roaming connections worldwide in 2024, according to Rosie O’Connor, the research author.
In order to minimize fraudulent activity and reduce its impact on roaming revenue, operators can rely on fraud mitigation services that will alert them of any potentially fraudulent activity across 5G networks in real-time. These services enable operators to identify and block suspicious roaming subscribers promptly.
The report emphasizes the urgency for operators to adopt these fraud mitigation measures as the transition to 5G continues. As 5G networks become more prevalent, the frequency and sophistication of fraudulent attacks are expected to increase. By implementing advanced fraud detection and prevention solutions, operators can safeguard their networks and protect their revenues from roaming fraud.
The Juniper Research report serves as a wake-up call to operators worldwide, urging them to prioritize the development and implementation of robust fraud mitigation strategies. Failure to do so could result in substantial financial losses and reputational damage for operators in the coming years.
As the telecommunications industry progresses towards a fully connected 5G future, the battle against roaming fraud will be an ongoing challenge. However, with the right tools, operators can stay one step ahead of fraudsters and ensure the security and profitability of their networks.