The first phase of any fraud investigation is a fraud audit. There are several reasons why this is important:
- Fraud against telecommunications companies can come in many forms as can be seen in this article. Identifying the kinds of fraud that are prevalent on a network is the first step to fixing this
- Fraud evolves over time. We have seen examples of networks that have resolved one issue only to experience a new fraud that is not detectable through the original solution. A holistic approach to auditing the network is critical to positive outcomes
- There have been examples of marketing initiatives within telecommunications networks (such as low cost or free local minutes or partnerships with OTT providers) that have actively enabled fraud to take place. It is important to take a complete overview of the network’s activities
- By better understanding the nature of revenue loss to fraud, networks can have a more effective overview of the return on investment that fraud management solutions can achieve
A fraud audit involves conducting a thorough investigation of the threats and issues that a network faces and encompasses more than just a technical evaluation.