Verify

Verify and validate customers globally using their phone number.

Velocity

Discover the network provider for every mobile number globally.

Authenticate

Protect customers, accounts, and transactions within your app.

Live

Discover if a mobile number is assigned to a subscriber.

Score

A real time phone number credibility score.

TeleShield™

Identify if a number has the propensity to be used for fraud.

Banks and Financial Services
E-Commerce
Insurance
Mobile Messaging
Gaming & Gambling
Communication and Service Providers
Identity & Verification Providers
eBooks
News
Developers
Viteza
FAQ
About us
Events
Careers
Contact us
Articles

The AIT problem

Fergal Parkinson

4 min read
A graphic featuring a hand holding a smartphone next to a laptop with a text overlay mentioning "the one time password problem" and a call to action button reading "read now".

The AIT problem

One of the key topics and discussion points that has been ever present at many of the industry events I have attended this year is one of Artificial Inflated Traffic (AIT), also known as SMS Pumping.

AIT is not a new fraud but it is continuing to rise sharply and can affect any business, large or small, that uses A2P SMS for verification via One-Time Passcodes (OTPs) or to communicate and engage with its customers.

AIT even appeared in mainstream news earlier this year when Elon Musk said that Twitter lost $60 million per year due to AIT and subsequently removed all SMS based identity verification (OTPs).  Other global brands are also starting to withhold payments from their SMS aggregators and mobile networks in an attempt to cover their fraud exposure.

Artificial Inflated Traffic

So what is AIT? And what can be done to prevent it?

Artificial Inflated Traffic

AIT exploits SMS messages delivering one-time passcodes (OTPs) which are most often used for verifying customer mobile phone numbers during the registration process.  In the Twitter example fraudsters generated fake SMS OTPs by creating a huge amount of bot accounts.  The fraudsters then received a share of the revenue generated to their complicit partners, often based in high-cost faraway destinations.

There is a certain irony with AIT as despite the cost associated with this type of fraudulent traffic, many companies in the telco ecosystem can be a potential beneficiary. Additionally, whilst enterprises are usually the victims of this type of fraud, there are a few who use it to boost their own subscriber base to demonstrate growth.

However, in the longer term, AIT is leading to reduced trust in SMS for delivering OTPs, revenue loss for enterprises and lower volumes damaging the industry. The global body, The Communications Fraud Control Association (CFCA) estimated that AIT resulted in losses of over $6.7 billion in 2021.

But all is not lost and there are ways that SMS aggregators, mobile network operators and enterprises can help detect and prevent AIT.

As an example, at TMT we have developed a global numbering and fraud prevention solution TeleShield which can help to:

  • Identify the line type allocated by the local regulator, and only send SMS to mobile numbers;
  • Provide a real-time check of the Caller ID (or A Number) to check if it’s an invalid number;
  • Confirm if a number has been assigned to a subscriber and is therefore ‘active’;
  • Block premium rate numbers;
  • Use machine-learning to detect unusual spikes in activity, whether that is the timing of messages, volume of messages, location or to blocks of adjacent numbers.

Enterprises can also help by detecting bots using CATPCHAs and monitor OTP conversion rates. They could also use other methods as an alternative to SMS based-verification, like TMT’s Authentication service. This new method of proving the possession of a mobile phone number does not need A2P SMS / OTP and therefore stops AIT as well as improving security and making life easier for customers.

It is critical that enterprises, SMS aggregators and operators all work together to help prevent this type of fraud and protect the industry from financial losses. The loss in trust and reputation for SMS as a channel will also cause volumes to sharply decline as enterprises move to OTT channels and other verification services.

Last updated on September 18, 2024

Contents

Related Articles

These are the top five scams of 2023

The Magic Behind TMT – The Global Numbering Plan

Highlighting the importance of phone security to prevent theft, comparing it to the loss of a passport.

A lost or stolen phone is now as bad as losing a passport


What Our Customers Are Saying

"Phone number verification plays a critical role in helping to detect and prevent online fraud. TMT ID’s TeleShield product provides easy access to global mobile data, enabling us to enhance the actionable results of our MaxMind minFraud® services."

MaxMind

"BTS (Business Telecommunications Services) is successfully using TMT’s Velocity and Live services to check the status of mobile numbers. This way we make sure we optimize the performance of the service offered to our customers and ensure the quality of terminating traffic to all countries.”

Business Telecommunications Services

"Working with TMT’s TeleShield service has expanded our ability to detect fraud and minimise the risk to our business. TeleShield brings peace of mind and the opportunity to stop fraud before it affects our customers’ bottom line or the service."

Six Degrees Labs

"LATRO relies on TMT’s TeleShield to provide the most up to date and reliable numbering qualification information within our fraud reporting tools, enabling us to protect our customer’s revenues and empowering them to defend themselves against fraudulent numbers."

LATRO

"TMT is a valued partner that enables us to manage our routing costs effectively. They proactively and continuously expand their operator and country coverage while delivering exceptional customer service. We can always count on them to achieve high-quality results and look forward to our continued collaboration."

Global Message Service

"TMT provides us with the most comprehensive numbering intelligence data through their fast and reliable Velocity and Live services. TMT is a trusted partner for us, their products ensure that we continue to optimise the best performance and service to our customers."

Global Voice

"TeleShield from TMT gives 42com the power to detect and target telephony fraud scams internationally, thereby protecting our company from the financial and customer experience impacts of telecommunications fraud."

Alberto Grunstein - CEO

"It has been a pleasure to work with the team at TMT. They have become an essential provider of accurate numbering data information and Number Portability services globally."

Luisa Sanchez - VP of SMS and Messaging Solutions, Identidad Technologies

"Deutsche Telekom Global Carrier uses TMT ID as one of their key suppliers for Mobile Number Portability Data services. Deutsche Telekom Global Carrier uses TMT ID’s Velocity MNP solution. This is an ultra-fast query service that optimises the routing of international voice calls and A2P messaging."

Deutsche Telekom Global Carrier

Ready to get started?

We provide the most comprehensive device, network and mobile numbering data available

Contact us > Chat to an expert >