Mitigating VoIP Fraud Using Real-Time Data Analytics

Once the thresholds are set, the analytics engine monitors usage in near real time, usually over a 24-hour or 48-hour window, to identify patterns that may fall out of acceptable ranges. The software then can send alerts to various internal staff, including customer service, operations and legal departments. Once the alerts have been received, the provider can initiate its own investigation into the potential misuse of service.

Once fraudulent activity is identified, the next step for the operator is to resolve the situation in the best manner possible for the provider. That does not necessarily mean terminating the customer.

Some operators have developed a tiered approach based on specific business parameters to deal with customers who they suspect of fraud. For example, a high-value customer may receive a gentle reminder about the terms and conditions of VoIP service if it is determined that the infraction was minor and non-repetitive. On the other hand, operators may choose to terminate a repeat offender or low-value customer. Many analytics tools can link potential fraudulent activity to customer valuation matrices and deliver this information instantly to a contact center agent or other personnel, making it easy for providers to determine how to best deal with specific customers who may use services inappropriately.

So while VoIP is considered an unregulated service, providers still must adhere to multiple financial, security and operational regulations within the United States and other jurisdictions. The very nature of VoIP, particularly its portability and masking of origination numbers, makes it highly susceptible to fraud and other reporting irregularities.

The integration of data analytics solutions into the CRM infrastructure gives VoIP providers a robust, cost-effective means to help identify fraudulent activity, improve operational efficiency, and help comply with various financial and legal mandates, both domestically and abroad.