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c R E V E N U E A S S U R A N C E / F R A U D M A N A G E M E N T
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Fraud is Fraud
Fraud is Fraud says Jack Wraith who takes a sideways
look at fraud within the telecommunications arena
and in particular within the mobile sector.
Let Me Tell You A Story – The postman is on his morning deliveries and out of his van comes the box
dispatched by a mobile communication supplier containing the latest mobile phone to hit the market. It
is addressed to Mr Smith of 35 Acacia Drive and as the postman approaches number 35, there in the
drive is Mr Smith working on his motor car. “Good morning Postie, something for me this morning?”
whereupon the box is duly delivered, signed for and the postman goes on his way. Not an unusual sight
you may think. However as soon as the postman has gone Mr Smith jumps in the car on which he was
working, drives off and another mobile supplier has just lost a handset to fraud. Not only has the value
of the handset not been recovered but the contract that was signed up for will also not be taken up.
So Where Did It Begin? – Most likely with a compromised credit card used to purchase the
handset via the internet and the rest as they say ‘is history’. One of the major areas impacting
mobile phone suppliers be they networks, retail outlets
or actual manufacturers is the use of false
identities to obtain goods and, in some
cases, service by deception.
In the latest BDO Stoy Hayward
FraudTrack report (June 2008), fraud
reportedly cost UK businesses
over £705 million in the last six
months alone - a 74% per cent
increase on the same period in
2007. The first six months of
2008 saw a 15 fold increase
in the levels of fraud in the
UK. The value of reported
fraud in April 2008 alone was
£317 million. Businesses, not
only telecoms, have been
warned that with the ‘credit
crunch’ the levels of fraud
are likely to continue rising.
Is it Just Fraud? – Unfortunately it is
not just fraud which is causing losses
to the telecom and other industries;
theft of cables used to power and operate
remote mobile sites have also been the
target of thieves, as have retail burglaries and
lorry hijacks which had been reduced to almost
zero. Criminal are getting more violent in some of these
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