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BI systems can prevent cellular usage fraud

By Bruce Jones
Johannesburg, 26 Mar 2003

Tough anti-fraud programmes including the monitoring of call patterns are essential for mobile phone operators to combat the growing occurrence of cellphone fraud.

That`s the opinion of Bruce Jones, sales manager for the Commercial Sector at SAS Institute SA, the leader in business intelligence (BI). However, this means that telcos need to understand customers` cellphone usage patterns in order to monitor and identify the occurrences of fraud.

Any sudden usage change usually indicates that:

a.       The user is about to move to another service supplier, and is using up money with no intention of paying their last bill;

b.       The mobile phone has been stolen and is being used by someone else; or

c.       The business is suddenly booming, which represents an opportunity for cross-selling to the rest of the organisation.

"If a sudden usage change is noted, there needs to be some immediate form of intervention by the operator," says Jones. "That`s when BI systems become essential as they are the only systems that can trigger such alerts."

A major US operator, AT&T Wireless, recently lost thousands of US dollars because it did not recognise that a customer`s mobile phone was being used fraudulently.

Newsday, New York recently reported a case of a lost AT&T Wireless cellphone that was used to make more than $4 700 in calls. On investigation, it was found that this was largely made up of calls to a country that had never been called from that account before.

"It was obvious that the phone was being used fraudulently, and that the customer who had lost the phone could not be held accountable for the invoice," says Jones.

After months of negotiations, AT&T Wireless reviewed the case and billed the account only for the undisputed charges - about $200.

SAS data mining software adds intelligence to operational fraud systems, thereby enhancing the telecom`s ability to detect fraudulent transactions and identify patterns in such transactions so that fraud can be prevented in future.

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SAS is the market leader in providing a new generation of business intelligence software and services that create true enterprise intelligence. SAS solutions are used at more than 39 000 sites -- including 90% of the Fortune 500 -- to develop more profitable relationships with customers and suppliers; to enable better, more accurate and informed decisions; and to drive organisations forward. SAS is the only vendor that completely integrates leading data warehousing, analytics and traditional BI applications to create intelligence from massive amounts of data. For more than 25 years, SAS has been giving customers around the world The Power to Know. For more information, visit http://www.sas.com/sa.

Editorial contacts

Lianne Osterberger
Citigate ICT PR
(011) 804 4900
Lianne.Osterberger@citigatesa.com
Coral de Villiers
SAS Institute
(011) 713 3400