Fraud Management Audit Information 

Info Insight consultants evaluate many different aspects of an operator’s fraud management operations. These include defining the Fraud Management Department procedures, analysis of the various systems used to prevent or identify fraud and identifying the responsibilities throughout the telecom operator so that fraud losses are minimised.

The scope for each engagement is determined prior to the audit and is based on the operator’s needs, fraud vulnerabilities and specific goals for reducing fraud losses.

Each recommendation that impacts a process is accompanied by a Return on Investment (ROI) analysis. The ROI shows the financial benefit of implementing the recommended changes.

WHO?

  • Telecom operators with multiple locations can be analysed to determine process gaps, standardise procedures, and improve communications between geographically diverse markets or functions. 

WHAT?

  • The majority of the audit is dedicated to determining what improvements would be needed to the fraud management processes and how to make those changes quickly and efficiently within each location.

DESCRIPTION OF AUDIT FOCUS (BASED ON CLIENT NEED)

Fraud Management Process Evaluation

  • Identify specific fraud vulnerabilities within existing procedures
  • Develop processes for handling fraudulent subscribers and fraudulent usage on subscriber accounts
  • Monitor prepaid subscribers and implementation of processes for prepaid
  • Define reporting requirements for fraud: Management reports, Productivity, and Fraud losses
  • Identify the necessary tools needed by fraud management personnel to perform their jobs most effectively
System and Process Analysis

  • Subscription fraud is the fastest growing type of fraud throughout the world because of the behavioural nature of the crime. All operators are affected by this fraud regardless of the type of network technology (CDMA, GSM, analogue, etc). Because subscription fraud affects all operators, screening potential subscribers for credit-worthiness and verifying subscriber information is essential at least for post-pay. Considerations for pre-pay include validation of information at point of activation and pre-screening before up-selling and cross-selling capabilities.

  • Info Insight consultants review an operator’s existing pre-screening systems and procedures. Integration of systems may be necessary in order to create the strongest defence against subscription fraud. In addition, information identified from the back-end of the process (after detection of fraud) can be integrated into the pre-activation phase, in order to reduce the risk of fraud.

Fraud Management Systems (FMS) : Evaluation and Recommendations

  • Info Insight consultants work with the fraud management group to review the network systems that are used to detect fraud. 

  • Info Insight consultants provide the operator with recommended system changes in order to optimise the system and identify fraudulent usage more quickly. 

  • Prepaid System Vulnerabilities

  • Internal Systems Used within the Fraud Management Processes

Return on Investment Analysis

  • Return on Investment (ROI) analysis based on recommended process and/or system changes

  • Info Insight consultants provide financial analysis to identify the costs and benefits of establishing recommended procedures or making changes to established procedures. The Return on Investment analysis provides management with the financial impact information to make well-informed decisions.

Fraud Management Personnel Assessment (headcount, responsibilities etc).
  • Implementing new systems may reduce the need for staff while new types of fraud emerges, requiring adequate staffing so that fraud losses are minimised. Info Insight consultants work with the operator and their Fraud Management organisations to determine the appropriate headcount and identify the responsibilities for those employees.
Departmental Communications Assessment)
  • Integrating systems between departments
  • Determining training needs for each department
  • Identifying and implementing procedures to minimize fraud risks
  • Auditing other departments’ compliance with fraud procedures
  • Reporting between departments
  • Identifying product testing requirements

Benefits

  • Learn how to decrease fraud before investing in costly Fraud Management Systems
  • Prepare for FMS implementation
  • Ensure the optimisation of fraud investments
  • Ensure a good ROI on FMS