Table of Contents:

Definition and Overview

1. Introduction to Telecom Fraud

2. IT Security vs. SP Network Security

3. IP and NGN Vulnerabilities

4. Fraud-Assisting Business Drives

5. IP and NGN Challenges

6. Data Collection

7. Analysis Algorithms

Self-Test

Glossary

PDF of this tutorial

The successful containment of next-generation fraud presents many challenges. Preliminary identification and categorization of these challenges is crucial to the implementation of a fail-safe and all-encompassing defense perimeter to guarantee maximum network security. The following list is presented to simplify the reader's understanding of security requirements in both converging and next-generation networks.

NGN Technologies

• Are open and distributed by nature
• Lack inherent security mechanisms
• Run mission-critical applications
• Become increasingly complicated
• Are deployed before they have fully matured
• Offer few expert solutions for their effective management
• Require time- and cost-consuming integration and configuration

Next-Generation Fraud

• Can be easily concealed by hackers
• Makes security mechanisms extremely difficult to maintain, as result of the following:
• Inadequate passwords
• Incorrect configuration of firewalls
• Low employee awareness of security risks
• Insufficient knowledge of NGN environments
• Shortage in next-generation fraud specialists
• Enables fraud to be committed from multiple points in the network simultaneously
• Becomes easier to perform the following:
• IRC channels enable free transfer of sensitive information over open connections
• Tools, scripts, and detailed hacking instructions are publicly available on the Internet
• "Always-on" access technologies put domestic users at higher risk

Increased Incentive

• Profits from nonvoice services are rising.
• Total revenues are increasing.
• Revenues are shifting toward IP networks.
• Service value is based on content, not connection.
• Unlawful intrusion, resource abuse, and deliberate sabotage are easily committed.
• User identification, passwords, credit cards details, and codes are readily available.
• Potential for illegal gain is much higher than that offered by most first-grade felonies.

Growing Operator and SP Concerns

• Subscription fraud is increasing.
• Internal fraud is becoming a major problem.
• Hacking is no longer motivated by challenge or thrill.
• Newly devised billing schemes are being easily and unlawfully manipulated.
• New and highly sophisticated methods of fraud are introduced daily.
• Fraud scenarios are ever-changing.
• Discovery of new methods remains a "secret," enabling recurrence in another network.
• Privacy and data protection laws enable fraudsters to continue their activities.
• Most security mechanisms are only good for enforcing local access policies.

Requirements for Successful Containment of Fraud

• Security mechanisms must be complemented by a central fraud management system.
• The fraud analysis system should do the following:
• Maintain the integrity of the entire security infrastructure
• Act against the adversary and not against the specific attempt
• Enable easy, correct configuration
• Support swift, cost-effective integration of new technologies, products, and services
• Be equipped with an intelligent means of data collection
• Detect and present results on-line, enabling immediate counteraction before severe harm is done
• Assimilate the now familiar pattern to prevent its recurrence