Best SMS Fraud Detection Techniques to Prevent SMS Fraud

 What is SMS pumping?

OUTLINE- in this blog, we have thrown light upon one of the most common services industry- telecom. And how the general public nowadays is facing fraud and irrelevant services in this field. 

INTRODUCTION- When scammers use a phone number input field to send a one-time passcode, an app download link, or anything else by SMS, this practice is known as SMS pumping. If this form lacks sufficient controls, attackers may amplify traffic and take advantage of your app. This is a very common cause that is reported in the telecom industry. Proper security and data enclosure are crucial to protect sensitive data from fraudsters. SMS fraud is a serious issue, and many telecom companies are trying to make their telecom channels more secure by introducing various SMS fraud detection measures. 

What is SMS Pumping?

Statistics show that it is quite simple to commit fraud in telecom networks. Most attacks may be carried out remotely and do not require expensive equipment or a high technical competence. Furthermore, telephony fraud is frequently quite straightforward to earn a financial benefit from. 

SMS Traffic Pumping Fraud, also known as Artificially Inflated Traffic, occurs when fraudsters use a phone number entry box to send an OTP, an app download link, or anything else over SMS. If this form lacks proper safeguards, attackers can exaggerate traffic and exploit your app. The scammers send SMS to a set of numbers owned by a specific mobile network operator (MNO) in exchange for a cut of the income produced. 

This occurs in one of two ways:

• The MNO is a co-conspirator in the plan and has a revenue-sharing agreement with the con artists.

• Fraudsters take advantage of the MNO unwittingly.

In the second instance, smaller MNOs are compensated for subscribers and traffic by larger MNOs. In this circumstance, a scammer could set up a bogus company and guarantee massive traffic volumes. The MNO may be unconcerned about the source of the traffic and hence wind up supporting the fraud. In either scenario, smaller MNOs are more likely to commit this fraud.

It is difficult to gain a thorough understanding of telephonic fraud. This necessitates a thorough understanding of the telecommunications ecosystem, including its history, underlying technology, regulations, and international agreements. The telecom sector includes several communities, such as operators, regulators, and users. Every actor in this ecosystem has a unique experience with or approach to fraud. Furthermore, each society has its vocabulary, context, and resources for fraud, which impedes comprehension of fraud. The legacy systems at the heart of the telecommunications network were not built with security in mind. 

When telecom networks were closed and controlled environments where all entities were trusted, this was not a concern (monopolistic operators). However, in today's climate, this can lead to various disadvantages. Unfortunately, replacing these outdated systems on a global scale is not viable due to high costs. Telecommunication networks are composed of various interrelated technologies, services, and products, many cryptic and poorly understood. As a result, telephony networks become a massive attack surface. All ecosystem actors must adapt to new technology while maintaining watchfulness against potential assaults.

Because there are several methods for criminals to exploit SMS, we will focus on situations where SMS is the major route for assisting fraud. Smishing, SMS spoofing, and SIM shifting are examples of these.

Although it has a less immediate impact on mobile subscribers, SMS fraud, if unnoticed, will have a long-term impact on end users through rising service rates and tariffs as mobile operators try to recoup revenue lost through unmonetized grey routes.

Finally, while SMS spam may not have a direct financial impact on recipients, it is an inconvenience that requires valuable time to delete or block, it may result in missed SMS notifications, and spammers frequently gain our phone numbers fraudulently.

How to detect spam text messages?

Spam is unsolicited and undesired electronic messages, the content of which may be malicious. Email spam is typically delivered and received via the Internet, whereas SMS is transmitted via a mobile network. The spam detection problem can be approached in various methods, ranging from simple (such as a bag of words) to extremely complicated. The primary goal of SMS Fraud detection Assessments is to detect and report SMS fraud incidents that aim to circumvent Operator Charging systems. These include all the details and risks mentioned in GSMA IR.70, IR.71, FF.09, and AA.50.

• Bypassing A2P SMS Charging

• SMS Sources That Are Inconsistent

• Spoofing SMS-C via internal or external ranges

• Modifications to SMS Format

• SMS Interception (Incoming/Outgoing)

• Bypassing SMS Routing at Home

• Premium SMS Dos/DDoS fraud

What is telecom fraud detection? 

Telecom fraud or SMS fraud is any activity that seeks to exploit telecommunications goods and services to obtain an edge over telecom firms by deceit (fraudulent activities) or strategic attacks. Landlines, cell phones, cloud systems, and on-premise PBX systems are all examples of telecom fraud. This type of fraud, often known as telco or telecom fraud, can also include hacking or service theft, resulting in unexpected consumer expenditures while operators face revenue losses.

Telecommunications fraud is on the rise. While fraud assaults evolve swiftly, telco fraud is distinct in that it is frequently expected. The losses are absorbed by the operator's income, which does not typically embed elaborate fraud control systems into their architectures. Furthermore, telecom businesses spread their services for resale among local networks and carriers, enhancing fraud mitigation difficulty.

As mobile network technology becomes more generally available, larger telecom providers are becoming targets of second-hand fraud, making it more difficult to detect. We frequently see two sorts of fraud directed at the provider or the customer.

Is Twilio used for scamming?

Twilio is a digital communication platform built after a phishing effort duped its employees into disclosing their login credentials (via TechCrunch). The company announced the data breach in a blog post, claiming that the hack affected just "a small number" of user accounts. Twilio, utilized by firms such as Uber, Twitter, and Airbnb enables web applications to send SMS messages and make voice calls over telephone networks. 

Twilio is a service that connects the Internet and phone networks. It can, for example, assist product purchasers in communicating with customer service via email, text, and phone messages. It is used by many major corporations, making it a perfect target for a supply chain attack by threat actors to get access to its clients' IT systems.

The proof comes from a breakdown of how Okta, an identity and access provider, was caught up in the Twilio phishing scam earlier this month. Some Twilio clients use Okta for multifactor authentication. The analysis demonstrates, among other things, that IT and security leaders must exercise caution before relying on SMS text-based two-factor authentication to secure their systems from hacking. However, the security of any solution depends on the entire process. 

Twilio has admitted that during the August phishing attempt, hackers gained access to the accounts of 93 individual Authy users. Using that access, the hackers registered mobile devices owned by them on the compromised accounts, allowing them to receive all Authy 2FA codes delivered until Twilio disconnected them.

In this exponentially growing technological world, nothing is impossible to develop, and nothing is impossible to destroy. With technological growth, technical crime and fraud have also increased. Secgen- one of the leading companies in the telecom industries, is working to and fro on developing a secure network that will be difficult for fraudsters to hack or steal sensitive information from. SMS fraud detection is one of the important aspects on which many research applications are being made. Most of the general population get into fraud, mainly specific unwanted and insecure links that pop up in the form of text messages on users' phone. People fall prey to these frauds due to a lack of technical exposure. 

Secgen is a global telecom industry that works against fraudsters and other cyber crimes. It is one of the renowned companies that has been long known for their services in providing secure and stable network connection without compromising with the customer needs and requirements. Secgen has a team of experts and experienced members who work towards finding a robust solution that will help them build stronger and more secure connections for their customers and maintain the trust of their customers. 

CONCLUSION- 

Daily fraud is common for every other person in this instantaneously digitalizing technology field. SMS pumping is one such fraud that prevails in the telecom industry. To battle against such SMS fraud, many other technical inventions have been made, and many are underwork to protect devices and users against falling into the trap of such fraud. Many SMS fraud detection methodologies are being infused and considered to protect devices and users from getting into such fraud.

As there are 2 sides to a coin, digitalization has brought many benefits and disadvantages. Telecom fraud has seen a rise in fraud more than ever in the last few decades. So, it is necessary to protect devices with known and reputed telecom services that are provided.