Why Telco Fraud Teams Should Care About IP Addresses

To Summarise

• IP addresses are vital for detecting telecom fraud by revealing patterns and origins of fraudulent activities.
• Monitoring IPs helps identify scams like IRSF, SIM swaps, and device exploitation by linking to known fraud patterns.
• Sharing IP data through platforms like the Fraud Intelligence Blockchain enables real-time, global fraud detection and response.

In today’s digitally connected world, telecom fraud is no longer confined to traditional boundaries. Whether it’s subscription fraud, account takeovers, or network exploitation, almost all modern fraud schemes leverage IP addresses as a core component.

The Expanding Role of IP Addresses in Telecom Fraud

Traditionally, IP addresses were considered a concern for cybersecurity teams, but the reality is that they are now at the heart of numerous fraud scenarios. From fake subscriptions and SIM swap fraud to sophisticated bypass operations, IP addresses are used as digital fingerprints, revealing the origins and patterns of fraudulent activities. Here’s why telco fraud teams need to integrate IP intelligence into their strategies:

Subscription and Identity Fraud

Fraudsters often use IP addresses to mask their real location when signing up for new services with stolen or synthetic identities. By monitoring IP addresses associated with multiple failed attempts or registrations from high-risk regions, fraud teams can flag suspicious activity early and prevent fraudulent accounts from being created.

Account Takeover (ATO) and SIM Swap Fraud

In account takeover fraud, perpetrators use compromised credentials, often coupled with IP addresses from VPNs or proxies, to gain unauthorized access to user accounts. Similarly, SIM swap fraud involves changing the SIM card linked to a user’s account. By correlating login attempts or SIM change requests with known fraudulent IP addresses, fraud teams can stop these attacks in their tracks.

International Revenue Share Fraud (IRSF)

IRSF remains one of the most lucrative forms of telecom fraud. Fraudsters use IP addresses from specific regions to route traffic to premium-rate numbers, generating artificial traffic and revenue. Monitoring IP addresses linked to IRSF activity helps identify fraudulent traffic patterns and block them before significant financial damage occurs.

Wangiri and Robocalling

These scams involve fraudsters making brief calls to prompt callbacks to premium-rate numbers. While the voice aspect is well-known, the initial calls and call routing are often managed through IP-based systems. Tracking IP addresses linked to these activities allows fraud teams to disrupt the operation at its source.

Device and Network Exploitation

Fraudsters often exploit vulnerable devices like routers or IoT devices to launch attacks or hide their activities. Monitoring the IP addresses of these devices and comparing them with known fraudulent IP databases can help prevent large-scale attacks or network exploitation.

IP Address as a Preventative Data Set

Fraud teams can use IP addresses to build a comprehensive database of suspicious or blacklisted IPs, similar to cybersecurity threat intelligence feeds. By integrating these databases with existing fraud detection systems, telcos can proactively flag and block high-risk IP addresses. For example, automated alerts can trigger immediate blocking actions if a known fraudulent IP address attempts to log into multiple accounts or access sensitive services.

Collaborative Defense with the Fraud Intelligence Blockchain

The Fraud Intelligence Blockchain enables telcos to share and access real-time data on fraudulent IP addresses. This shared ledger allows for rapid identification and response to emerging threats:

• Real-Time Updates: Participating telcos can upload and access data on fraudulent IP addresses instantly, allowing for immediate action.
• Global Protection: Fraud is not confined to one region. With our blockchain, telcos can see fraud trends worldwide and protect their networks accordingly.
• Enhanced Accuracy: Sharing data reduces false positives and ensures that only verified fraudulent IPs are acted upon.

To Conclude

IP addresses are no longer just a cybersecurity concern—they are a crucial data set for fraud teams globally. By integrating IP intelligence into their fraud detection frameworks and leveraging the collective power of the Fraud Intelligence sharing, telcos can effectively combat a wide range of fraud scenarios, from subscription abuse to network exploitation.