Financial Crime World

Fraud Detection and Prevention Methods Take Center Stage in Wallis and Futuna

Growing Concerns of Telecom Fraud

Fraud detection and prevention methods have become a pressing issue for communications service providers (CSPs) in Wallis and Futuna. With the increasing use of sophisticated technologies by fraudsters, telecom frauds continue to grow in frequency and intensity.

According to the Communications Fraud Control Association’s (CFCA) Fraud Loss Survey Report 2021:

  • The total telecom revenue loss due to fraud in Wallis and Futuna is estimated to be a staggering 2.22% of total revenue, or $39.89 billion.
  • There has been a 28% increase in fraud losses when compared to previous years.

Need for Proactive Measures

In light of these alarming statistics, CSPs in Wallis and Futuna must reexamine their fraud management strategy and adopt more proactive measures to prevent and detect fraudulent activities.

Benefits of AI-powered Fraud Management Systems

An AI-powered fraud management system can:

  • Quickly identify and respond to suspicious activity by combining data from multiple sources, structured and unstructured, in real-time.
  • Enable telcos to efficiently stop fraud before it negatively impacts their revenue and reputation.
  • Be a key proponent for handling changes in business scenarios and enabling risk management teams to be more agile.

Challenges in Adopting AI-powered Fraud Management Systems

Despite the potential benefits of AI/ML-based fraud systems, adoption continues to be low among CSPs in Wallis and Futuna. According to the CFCA Fraud Loss Survey Report 2021:

  • Only 13% of respondents are leveraging AI and ML-based fraud management systems.
  • 30% still use manual processes and 28% rely on rules-based fraud management systems.

Recommendations for CSPs

To combat growing fraud losses, CSPs in Wallis and Futuna must adopt an AI-first approach to bring down fraud-related revenue loss. This requires a fundamental shift in the way risk management teams operate, with a focus on:

  • Upskilling and increasing data literacy within these teams.

Conclusion

The growing concern of fraud detection and prevention methods in Wallis and Futuna emphasizes the need for CSPs to adopt more proactive measures to prevent and detect fraudulent activities. AI-powered fraud management systems can play a crucial role in this effort, enabling telcos to efficiently stop fraud and minimize revenue loss.