Fraud not only threatens your customer, it also threatens your basic profitability. “These events can destroy anywhere from $10,000 to $250,000 in margins for carriers, in a very short period of time,” says Chris Lee, CEO Cloud Age Solutions. In this podcast, Lee outlines the scope of the problem and reminds carriers that fraud losses come right out of the bottom line and represent revenue that cannot be replaced. From Lee’s perch, he observes that the carriers are often more revenue focused than security driven, perhaps overlooking the hard reality that lost money on fraud is the most expensive of all losses, since it comes right out of the profit bucket. And a single event can vaporize profits for weeks, or even months. Lee makes the case for vigilance and lays out a plan that consists of prevention and mitigation. Prevention of events before they happen. This can include reviewing processes and better controls. Mitigation means “reducing the attack surface”. Carriers need to watch unusually long calls and other occurrences that basically red flag a call. Lee outlines how Cloud Age helps carriers tighten things up to prevent an event, but can help even when a fraud event has occurred.
We learn about their SaaS platform called gpxcloud that provides CDR analytics and cost management, and the company’s success in negotiating large fraud losses down significantly with underlying carriers, although Lee notes that cannot always be done, and the best move is to prevent fraud before it happens.