The ITW Global Leaders Forum (GLF) and the i3Forum have issued an update to their industry-led Code of Conduct to further combat fraud in the international voice market. The update introduces a new principle aimed at reducing incentives for International Revenue Share Fraud (IRSF) by directly tackling the use of premium rate numbers.
IRSF is a prevalent type of fraud, driven by the motivation to generate traffic to high-rate destinations or premium rate end numbers. This can result in significant financial impacts on both the carrier and the end customer, with IRSF remaining the most substantial challenge in terms of volume, as identified in the 2023 GLF Fraud report.
The Code of Conduct, launched in early 2018, has attracted over 40 signatories and was strengthened in 2021 with the introduction of a formal attestation process. This process requires signatories to demonstrate that their compliance capabilities and anti-fraud systems align with the Code's tenets. The recent update underlines the industry's dedication to combating fraud, an issue estimated to cost telecommunications providers a whopping USD $38.95 billion globally in revenue losses.
Eloy Rodriguez, Chair of the GLF's Fighting Fraud Working Group, expressed the importance of this update: "Fraud has consistently remained a top priority for the GLF Board, representing a key area of collaborative effort within our industry. Establishing a common industry framework regarding the use of premium rate numbers underscores the GLF's dedication to combatting fraud."
The Code of Conduct outlines principles to which carriers commit adherence, including monitoring and reporting fraudulent activity, assisting in fraud investigations, and taking swift steps to stop payments to those involved. The latest principle sets out specific rules about the use of premium rate numbers. By working collaboratively, carriers aim to remove additional financial incentives from fraudsters exploiting the international voice market.
Carriers who sign up to the updated Code of Conduct commit to providing clients with a minimum option to opt out of specific number ranges. This ensures consumers have greater control and transparency over premium rate numbers and helps to combat IRSF further.
Katia Gonzalez, Head of Transactional Security at BICS, echoed the importance of this initiative: "The Telecom industry is being swarmed with more fraudulent activity than ever. The volume of the attacks, sophistication, and impact on both the Voice and SMS services can cause significant financial and reputational loss. It's paramount to set actionable and ambitious engagements as well as best practices for carriers worldwide to protect their networks."
Companies reasserting their commitment by signing the updated Code of Conduct include prominent names such as Airtel Business, BICS, BT, Deutsche Telekom Global Carrier, Orange International Carrier, Telefonica Global Solutions, and Vodafone, among others.
This update to the industry-led Code of Conduct by the ITW Global Leaders Forum (GLF) and the i3Forum is a significant step forward in combatting fraud in the international voice market. With a focus on reducing incentives for International Revenue Share Fraud (IRSF) by addressing the use of premium rate numbers, the updated Code demonstrates the telecom industry's united commitment to safeguarding against fraudulent activities.
