SIM Swap, 12 Other Frauds Acts Threaten $58.7Bn Messaging Market- Report

Fraud in the enterprise mobile messaging industry continues to challenge market growth, as a cross-sector Working Group shines spotlight on identity and data theft, network manipulation and commercial exploitation.

SIM Swap and roaming intercept frauds are highlighted in MEF’s ‘Enterprise Mobile Messaging Fraud Framework 2.0’ as part of 13 fraud types identified including SMS Phishing, SIM Farms and Grey Routes.

According to the report, fraud is a persistent threat to both trust and the sustainability of the enterprise mobile messaging ecosystem which is why the industry is coming together to raise awareness and find solutions.

MEF published an update to its Enterprise Mobile Messaging Fraud Framework which helps identify the fraud types affecting all stakeholders in the enterprise mobile messaging value chain, also known as A2P or “Application to Person” messaging, and the measures needed to tackle sharp practices.

Developed by MEF’s cross-sector Working Group and part of the Future of Messaging Programme, the 2.0 edition of the framework includes two additional fraud types – SMS Roaming Intercept and SIM Swap - which are behind the diversion or interception of messages intended for consumers, such as those containing authorisation codes for online bank transfers or other types of confidential personal information.

In 2016, the global enterprise mobile messaging sector was forecast to be worth $17.2 billion, rising to $58.7 billion in 2020.

While the channel continues to evolve technically and grow in volume as brands and enterprises increasingly use mobile messaging for authentication, customer engagement and marketing, it is at risk of being undermined by rogue players finding new loopholes to exploit.

Taken together, all types of messaging fraud impact the global messaging business at an estimated cost to the industry of $2bn per annum.

MEF’s Enterprise Mobile Messaging Fraud Framework 2.0 raises awareness of mobile messaging identity and data theft, network manipulation and commercial exploitation.

A global collaborative Working Group of mobile network operators and enterprise mobile messaging companies have developed the framework which offers practical information on how businesses within the messaging delivery chain can protect themselves and their customers.

Participants include BICS, CLX Communications, CM Telecom, Deutsche Telekom, Dimoco Mobile Messaging, Eclipsoft, iconectiv, IMImobile, Infinite Convergence, Infobip, Infracast, iTouch Messaging Services, JT Global, Mahindra Comviva, Mitto, MMDSmart, mobilesquared, Movile, Nexmo, OpenMarket, rdcom.it mobile communications, RealNetworks, Route Mobile, SAP, Telefonica, TIMWE Group, Türk Telekom International, Twilio, TWW, Veoo, Vodafone, Wau Mobile and Zenvia.

The 13 types of fraud indexed within the framework include: identity theft; SMS originator spoofing; SMS phishing; access hacking; data theft; SIM swap fraud; SMS roaming intercept fraud; SMS malware (SMS Hacking); commercial exploitation; grey routes, bypass, non-interworked off-net routes; SIM farms; spam; artificial inflation of traffic (AIT); network / system manipulation; MAP global title faking; SCCP global title faking; SMSC compromise fraud.

Joanne Lacey COO at MEF said: “Enterprise mobile messaging is a channel trusted to deliver billions of messages daily, both safely and securely. However, a complex multi-stakeholder ecosystem means this success is continually threatened by fraudsters. MEF and its members are committed to working together to combat all fraud types to ensure sustainable growth of the sector and this framework is a key milestone in our Future of Messaging Programme.”