2015 Global Fraud Loss Survey

2015 Survey
Respondents

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2015 Survey
In which region are you located?
30.0% 29.8%

25.0%

20.0% 19.3%

15.0% 14.0%

10.0% 8.8% 8.8%

7.0% 7.0%
5.3%
5.0%

0.0%
Asia South Central and North Western Eastern Africa Middle East
Pacific South America Europe Europe &
America Russia

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2015 Survey
Which services does your company provide?
Retail Wholesale

10.3% 14.3%
25.1% 26.7%
18.2% 13.5%

46.4% 45.5%

Retail Fixed Wireline Wholesale Fixed Wireline

Retail Wireless & MVNO Wholesale Wireless & MVNO
Retail Converged (IP) Wholesale Converged (IP)
Retail All Others (Cable & Satellite) Wholesale All Others (Cable & Satellite)

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2015 Survey
How many subscribers does your company have?
25,000,001 to Wholesale Only
50,000,000 (no end user
8.7% 50,000,001 + subscribers)
15.2% 2.2%
<10,000
8.7%

10,000,001 to
25,000,000
10,001 to 1,000,000
19.6%
17.4%

1,000,001 to
10,000,000
28.3%

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2015 Survey
General Fraud Trends

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 2015 Survey
6.00%

5.00%
17.8%
4.00%

3.00%

2015 % Var
2.00%
Estimated Global 2.25 Trillion
+2.5%
Revenues (USD)
1.00%

Estimated Global $38.1 Billion

-17.8%
Fraud Loss (USD)
0.00%
2005 2008 2011 2013 2015
% Loss* 1.69% -0.4%

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2015 Survey
Top Fraud Methods: Fraud Method is
how they access the
$3.93 B PBX Hacking network or service
$3.53 B IP PBX Hacking
$3.53 B Subscription Fraud (Application) to enable revenue
$3.14 B Dealer Fraud gain from the attack
$2.55 B Subscription Fraud (Identity)
$2.16 B Service Abuse
$2.16 B Account Takeover
$1.96 B Subscription Fraud (Proxy/Mule)

Top Fraud Types:

$10.76 B International Revenue Share Fraud (IRSF)
Fraud Type is $ 5.97 B Interconnect Bypass (e.g. SIM Box)
$ 3.77 B Premium Rate Service
how they use the $ 2.94 B Arbitrage
service or network $ 2.84 B Theft / Stolen Goods
to generate revenue $ 2.35 B Device / Hardware Resale
from the attack $ 2.09 B Domestic Revenue Share (DRSF)
$ 2.01 B Wholesale Fraud

For more information please visit: www.cfca.org/fraudlosssurvey/

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 2015 Survey
What do you view as the top fraud methods
GLOBALLY?
0% 2% 4% 6% 8% 10% 12% 14%

PBX Hacking

IP PBX Hacking

Subscription Fraud (Application)

Internal Fraud / Employee Theft

Subscription Fraud (Identify)

Dealer Fraud

Wangiri (Call Back Schemes)

Account Takeover

Subscription Fraud (Credit Muling/Proxy)

Abuse of network, device or configuration weakness

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 2015 Survey
What do you view as the top fraud methods
at YOUR COMPANY?
0% 2% 4% 6% 8% 10% 12%

PBX Hacking

IP PBX Hacking

Subscription Fraud (Application)

Dealer Fraud

Subscription Fraud (Identify)

Abuse of network, device or configuration weakness

Account Takeover

Subscription Fraud (Credit Muling/Proxy)

Abuse of Service Terms and Conditions

Internal Fraud / Employee Theft

Wangiri (Call Back Schemes)

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 2015 Survey
2015 Estimated Fraud Losses by Method
(in $ USD Billions)
Abuse of network, device
Subscription Fraud
or configuration
(Identify); $2.6
weakness; $2.2
Subscription Fraud
Dealer Fraud;
(Application); $3.5 Account Takeover; $2.2
$3.1
Subscription Fraud
(Credit Muling/
Proxy); $2.0
IP PBX Hacking; $3.5 Abuse of Service
Terms and
Conditions; $1.8

PBX Hacking; $3.9

Internal Fraud /
Employee Theft; $1.8

SIM Cloning; $0.4

Wangiri (Call Back
Schemes); $1.8
Signalling Manipulation;
$0.4 Phishing / Pharming; $1.6
Brand
Name / Payment Fraud; $1.6
IMEI Reprogramming; $0.6
Logo Pre-Paid Voicemail Hacking Social Engineering;
Abuse; SMS Faking or Equipment & Mobile (Not associated with $1.0
$0.4 Spoofing; $0.8 Services; $0.8 Malware; $0.8 PBX Hacking); $1.0

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 2015 Survey
What do you view as the top 5 fraud types at
YOUR COMPANY?

(In-Network) (Roaming)
0% 5% 10% 15% 20% 25% 0% 5% 10% 15% 20% 25%

International Revenue International Revenue

Share Fraud (IRSF) Share Fraud (IRSF)

Interconnect Bypass
Premium Rate Service
(e.g. SIM box)

Interconnect Bypass (e.g.

Arbitrage
SIM box)

Theft / Stolen Goods Premium Rate Service

Device / Hardware
Commissions Fraud
Reselling

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2015 Survey
2015 Estimated Fraud Losses by Type
(in $ USD Billions)
Device / Hardware Domestic Revenue Share
Theft / Stolen Goods; $2.8 Reselling; $2.3 (DRSF); $2.1 Wholesale Fraud; $2.0

Commissions Fraud; $1.5

Friendly Fraud; $0.9

Arbitrage; $2.9
Service Reselling (e.g:
Call Sell); $0.9
Cable or Satellite; $0.8
Premium Rate Service; $3.8
Private Use; $0.8
Theft /
Compromise of
data (e.g. logins);
Interconnect Bypass (e.g. $0.5
SIM box); $6.0
International Revenue Share
Fraud (IRSF); $10.8

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2015 Survey
Fraud Locations

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 2015 Survey
Top 10 Countries That ORIGINATE Fraudulent Calls:
(Consolidated View)
5%
5%
4%
4%
3%
3%
2%
2%
1%
1%
0%

In 2013, the top 3 countries were United States, India and United Kingdom.

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 2015 Survey
Top 10 Countries That ORIGINATE Fraudulent Calls:
(North American View)

In 2013, the top 3 countries were United States, India and United Kingdom.

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 2015 Survey
Top 10 Countries That ORIGINATE Fraudulent Calls:
(European Union View)

In 2013, the top 3 countries were United States, India and United Kingdom.

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 2015 Survey
Top 10 Countries That ORIGINATE Fraudulent Calls:
(Rest of the World View)

United Cuba Somalia Italy Lithuania Pakistan Latvia Spain Tunisia Germany
States

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2015 Survey
Top 10 Countries Where Fraud TERMINATES:
(Consolidated View)
8%

7%

6%

5%

4%

3%

2%

1%

0%

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2015 Survey
Top 10 Countries Where Fraud TERMINATES:
(North American View)

Cuba Somalia St. Lucia Bosnia Sierra Jamaica Kiribati Tunisia Grenada United
Leone States

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2015 Survey
Top 10 Countries Where Fraud TERMINATES:
(European Union View)

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2015 Survey
Top 10 Countries Where Fraud TERMINATES:
(Rest of the World View)

Latvia Cuba Lithuania Somalia Bosnia Estonia Guinea Serbia Senegal Sierra Leone

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2015 Survey
Company Losses

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 2015 Survey
What percentage of the total GLOBAL telecom
revenue base do you think is fraud?
25.0%
21.6%

20.0% 18.9%

16.2% 16.2%
% Total Responses

15.0% 13.5%

10.8%
10.0%

5.0%
2.7%

0.0%
< 1% 1-2% 2-3% 3-4% 4-5% 5-10% > 10%

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 2015 Survey
What percentage of YOUR COMPANYS
revenue base do you think is fraud?
50.0% 48.6%

45.0%
40.0%
% Total Responses

35.0%
30.0% 27.0%
25.0%
20.0%
15.0% 10.8%
8.1%
10.0%
5.0% 2.7% 2.7%
0.0%
0.0%
< 1% 1-2% 2-3% 3-4% 4-5% 5-10% > 10%

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Communications Fraud Control Association
4 Becker Farm Road 4th Floor
PO BOX 954
Roseland, NJ 07068

+1 973 871 4032 Phone

+1 973 871 4075 Fax

fraud@cfca.org email
www.cfca.org website

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