Irrespective of a communication providers’ size, a CFO or Finance Director’s nightmare is to have to explain to his executive team, to his shareholders, to his/her own customers, even the general public in some instances, why they didn’t detect an ongoing financial loss or couldn’t prevent a sudden fraud hit.
The increase in scale and complexity of fraud types around the world creates situations of genuine uncertainty for operators and in turn, their financial controllers. No operator wants to constantly face the threat of being attacked by fraudsters and of having hundreds of thousands or even millions of dollars wiped off their bottom line in a single incident.Yet we see this happening, a lot.
But what price is worth paying to stay protected from financial losses?
Losses directly attributable to fraud and revenue leakage can range from 0.5% of gross revenues all the way up to 15% in certain cases, according to a Gartner report. International Revenue Share Fraud, the deadliest of all fraud types, costs the industry in the region of $6.1bn a year, roughly 20% of all estimated communication fraud.
Although the types of financial risk to which operators are exposed are essentially the same, owing to the global nature of telecommunications, the smaller operators are at a clear disadvantage when it comes to managing risk and preventing major losses. They simply don’t have the experience, the maturity, or the resources to get losses fully under control.
Whether traditional MNO, VoIP, fixed-line carrier or MVNE/MVNO, the price point at which they should seek to acquire loss prevention technology or related services is a critical deciding factor. So, the case for simple and cost-effective tools to de-risk their business becomes a compelling one. There has never been a better time to promote a low-cost technology proposition to the global telecommunications market, even for incumbent operators seeking to drive down supplier costs.
At XINTEC we can help de-risk a business in a very simple and cost-efficient way with a suite of products that are flexible, adaptable, quick to install, and able to deliver measurable results fast.
If you want to learn more and minimize your fraud risk, reach out to XINTEC today.