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GSMAP Doc 27/xx NRTRDE Project update James Cheong, Asia-Pacific Fraud Forum Chair Risk Manager, StarHub Ltd GSMAP#27; Bali, 5-8 Sep 2007 Restricted For Information © 2007 GSMEMC Association Restricted Restricted – Members & Associate Members Members & Associate Members X Notice: All GSM Association meetings are conducted in full compliance with the GSM Association’s antitrust policy Agenda • Asia-Pacific Fraud Forum • Roaming Fraud – Problem reminder • NRTRDE – Why Implement It? – How to Implement – Reminder on Liability • NRTRDE Project – Current Status – Communications • Frequently Asked Questions • NRTRDE Survey Results • Break-out discussion - All Restricted – Members & Associate Members Asia-Pacific Fraud Forum (APFF) • Established to provide a trusted regional forum on GSM fraud issues – Develop fraud awareness – Exchange of intelligence & best practice – Develop industry countermeasures – Assess the fraud exposure of new services • Consists of fraud managers of operator networks • 2 meetings/year (avg. 40 delegates) – Co-ordinates with international FF – Next meeting at Mobile Asia Congress in Macau 14-15 Nov 2007 Restricted – Members & Associate Members Roaming Fraud The problem Restricted – Members & Associate Members Roaming Fraud – Case Studies • Europe, June 2006 - Dealer colluded in the issue of subscriptions to fraudsters. Subsequent high volume of roaming calls between Greece and Tuvalu. 18 accounts identified with 24 hours and immediately suspended. Further analysis led to a further 43 accounts being identified and suspended. • Asia, June 2006 - Fraudsters applied to Asian operator for post paid SIM cards (business & personal use). There were no restrictions on international calls when roaming for new customers. While roaming in a European country, the SIMs called high-tariff and premium rate numbers using multiparty calls • North America, Aug to Oct 2006 – Subscription fraud. Fraudsters pass customer service security checks and obtain roaming & international calling. Massive calling to high-tariff numbers Niger (+227) begins within hours. Incidents in Austria, Greece, Laos, Netherlands, Pakistan, Thailand, UK Restricted – Members & Associate Members Roaming Fraud Risk Analysis Scenario Single Medium Large 1 SIM 10 SIMs 50 SIMs €1,560 €15,600 €78,000 €10,080 €100,800 €504,000 €57,600 €576,000 €2,880,000 Limited Type: 2 €/min single call Transmission of HUR within: 12 h Reaction of HPMN within: 1 h Typical Type: 3 €/min double call (call hold + call forward) Transmission of HUR within: 24 h Reaction of HPMN within: 4 h Severe Type: 4 €/min (e.g. satellite) conference call: 6 calls / SIM Transmission of HUR within: 36 h Reaction of HPMN within: 4 h Restricted – Members & Associate Members NRTRDE Why implement it? Restricted – Members & Associate Members Why Implement NRTRDE? NRTRDE implementation is valuable for operators, even those who do not suffer from significant roaming fraud at present: 1. NRTRDE will prevent significant roaming fraud from occurring in the first place – proactive risk reduction 2. Fraudsters are likely to move and target operators who do not implement NRTRDE 3. Operators who implement NRTRDE are likely to be more commercially attractive to roaming partners, and may carry more traffic 4. NRTRDE provides operators with the ability to manage bad debt/credit monitoring in addition to fraud. 5. Roaming partners will be pushing fraud loss liability onto VPMN. NRTRDE protects against the associated risks. Restricted – Members & Associate Members Why Implement NRTRDE? (2) 6. Operators who implement NRTRDE can offer higher-value services to new and roaming customers. 7. VPMNs that host inbound fraudulent roamers are making money from fraud. This is bad for the industry. NRTRDE would prevent this. 8. All operators using NRTRDE report reductions in fraud losses and business cases that significantly outperform expectation. Have you done the business case? 9. When roaming fraud occurs, the VPMN incurs huge interconnect costs with no guarantee that the HPMN will settle the bill. 10. Newer operators may find it harder to launch roaming unless they offer NRTRDE since the more roaming partners a network has the higher fraud risk exposure Restricted – Members & Associate Members NRTRDE How to Implement Restricted – Members & Associate Members NRTRDE Project – Document Overview Key NRTRDE Documents Fraud Forum FF.18: NRTRDE business requirements FF.19: Commercial Implentation Handbook TADIG TD 35: Technical format specification TD.39: Technical Implementation Handbook TD.63: NRTRDE General Scenarios TD.64: Example NRTRDE file BARG BA.20: Fraud prevention procedures BA.08: Timescales for data transfer Also: BA.50 Annex 11: template for amending roaming agreements Restricted – Members & Associate Members NRTRDE Newsletter – August 2007 • • • Newsletter contains Infocentre links to all key NRTRDE documentation. Sent to AP Chair for distribution, also to all APFF members (Aug 07) Contact me or [email protected] for a copy Restricted – Members & Associate Members Project Planning – Latest Recommended Timescales Duration (weeks) Recommended latest completion date Project kick-off / Project Manager appointed Begin signing updated roaming agreements - Week 1, 2008 Review PRDs and generate internal business requirements 3 Week 3 Project detailed design development 4 Week 7 RFP Developed, issued & response evaluation 8 Week 16 Secure capital cost approval for preferred solution 2 Week 18 NRTRDE solution implemented / go live 8 Week 26 (end Jun 08) Task Period of stabilization prior to roaming agreement NRTRDE provisions coming into effect Project complete. Roaming agreement NRTRDE provisions effective Restricted – Members & Associate Members Week 40 (1 Oct 08) Implementation Recommendations Lessons learned – Vodafone Group (implementing in 17 networks) • Start the project early! • Ensure that a project manager is appointed. Difficult to handle this under “business as usual”. • Respond to vendor information requests in a timely manner • Run internal NRTRDE workshops to discuss implementation issues and ensure there is a common understanding of requirements from different functions • Agree how to manage incoming NRTRDE CDR’s and error notifications outside normal business hours • Maintain a watch on NRTRDE support documentation updates • Plan a strategy for updating roaming agreements • Agree how to deal with any GSM operators not NRTRDE compliant by October 2008. Restricted – Members & Associate Members Liability Summary Normal Case (vast majority) Liability VPMN sends correctly formatted NRTRDE records to HPMN on time HPMN has information necessary to detect fraud and is liable for any fraud losses In exceptional cases: • Liability rests with the party that was at fault (i.e. not compliant with BA.20, BA.08 and TD.35), e.g. – VPMN sends NRTRDE records late or format incorrect – HPMN doesn’t send error reports or daily delivery reports – File delivery failure due to problem at HPMN Restricted – Members & Associate Members NRTRDE Project Current Status Restricted – Members & Associate Members NRTRDE Project – Remaining actions Remaining actions Status / date Fraud Forum Communications and Implementation monitoring Organise NRTRDE workshops Ongoing to end 2008 TADIG Manage NRTRDE Vendor Interworking Group Most active in Aug 2007 – inter-vendor testing taking place BARG Organise Roamfests to facilitate bilateral roaming agreement updates Co-locate with BARG meetings & GSMA events; BARG Sep ’07 (New Delhi) Mobile Asia Congress Nov ’07 (Macau) NRTRDE Steering Committee & GSMA Comms Dept Support operator awareness Maintain list of NRTRDE-ready networks Continuous action during the project lifecycle All GSMA members latest implementation deadline 1 Oct 2008 Restricted – Members & Associate Members NRTRDE – Communications Channels already in use: • Working groups & Regional Interest Group meetings • Roamfests • Speakers at external commercial conferences • 3GSM Congress Barcelona & Asia • Newsletters, brochure Difficult to reach operators that aren’t engaged with GSMA • Leverage existing data clearing house relationships • Roaming managers are ultimate channel to their partners Restricted – Members & Associate Members APFF NRTRDE Vendor Session • NRTRDE vendor session held at GSM North America meeting in August 2007 – Opportunity for vendors to present their product offering – Positive feedback from operators present • APFF plans to hold similar session in Macau 14-15 Nov – How vendor complies with NRTRDE – Discussion of architectural options, benefits and drawbacks – Evaluation of incoming NRTRDE data – Recommended implementation timeline – Solution differentiators Restricted – Members & Associate Members FAQ NRTRDE - Frequently Asked Questions Restricted – Members & Associate Members NRTRDE - Frequently Asked Questions 1. Is NRTRDE implementation mandatory for all GSMA members? 2. Will NRTRDE provide me with roaming data usage records? 3. How can I update my roaming agreements? 4. How is fraud loss liablity split between my network and our NRTRDE provider? 5. How can we manage fraud without rated records? Restricted – Members & Associate Members 1. Clarification - “Mandatory“ NRTRDE • GSMA NRTRDE project aims to facilitate and strongly encourage NRTRDE implementation by Oct 2008. – Target is entire GSM industry adoption, however – GSMA cannot mandate NRTRDE implementation by members – Ultimately roaming market forces will drive industry adoption • Requests from roaming partners Restricted – Members & Associate Members 2. Roaming Data Usage • No requirement for NRTRDE to support exchange of data usage records – Fraud risk is currently low – Additional burden on operators to implement & operate – May affect takeup of NRTRDE – Most data traffic routed via HPMN GGSN, so HPMN already has visibility • Anticipate possible future need for NRTRDE data usage support – Included in TD.35 & available for use if bilaterally agreed • Support for HURs will disappear from Oct ’08 – Operators will need to take responsibility for monitoring own subscribers’ roaming data usage Restricted – Members & Associate Members 3. NRTRDE - Impact on Roaming Agreements • Fraud prevention procedures specified in AA.13 Annex C.7 – NRTRDE requires update from AA.13 template version 3.13 (or earlier) to 3.14 • Remove detailed fraud prevention procedures from roaming agreements • Fraud prevention procedures specified in BA.20 instead – Reference to BA.20 added to AA.13 Restricted – Members & Associate Members NRTRDE - Impact on Roaming Agreements (2) • BA.20 – Roaming fraud prevention procedures • Describes both HUR and NRTRDE procedures – HUR procedures are stated as valid to 1 Oct 2008 only – Agreements updated now have no immediate effect, but will automatically require NRTRDE from 1 Oct 2008 – HUR procedures will be removed from BA.20 in a change request after 1 Oct 2008. • BA.20 also references BA.08 – required timescales for data transfer Restricted – Members & Associate Members NRTRDE - Impact on Roaming Agreements (3) • Need to amend agreements from old AA.13s to latest version? • Sign new AA.13 OR use Annex 11 of BA.50 to amend existing AA.13 “…the following amendments are made to the International Roaming Agreement signed by the Parties on DD/MM/YYYY …Annex X is replaced with the following Annex: [Insert new text/pages] …All other terms and conditions of the Agreement remain unchanged and in full force and effect…” Restricted – Members & Associate Members 4. SLA with NRTRDE agents • Roaming agreements specify that liability for noncompliance with the agreed fraud prevention procedures lies with either the HPMN or the VPMN. – Intentionally no mention of agents (vendor/service providers) or their liability in roaming agreements • If an operator uses an agent for NRTRDE exchange, service and liability provisions between the operator and its agent are a matter for individual bilateral service level agreements (SLA). • Suggested SLA provisions are contained in FF.19 – NRTRDE Commercial Implementation Handbook Restricted – Members & Associate Members 5. Pseudo-Rating incoming NRTRDE records • Charging information not mandatory within NRTRDE records – Should not be expected by HPMN • Instead, base roaming fraud management on: – Fraud profiling • Compare usage against historical usage profile – Pseudo “rough” rating • By NRTRDE vendor or at HPMN fraud mgmt system • HPMN needs to decide what level of pseudo rating is required – Achieve balance between accuracy and complexity Restricted – Members & Associate Members Near Real-Time Roaming Data Exchange Implementation Survey Results Restricted – Members & Associate Members NRTRDE: Decision outcome Overall EMC only Implement by end ‘07: Implement by Oct ‘08: No target date set: Will not implement: Decision not made No response Restricted – Members & Associate Members # 8 6 3 0 2 3 % 36% 27% 14% 0% 9% 14% NRTRDE Implementation Status Survey Results show: • Commitment to NRTRDE • EMC leading by example: 74% of EMC respondents (63% overall) plan to implement by Oct ’08 • Many operators’ projects are beginning or already underway. • 35% of EMC respondents (22% overall) have assigned budget and resources to internal NRTRDE project • Risks: • Communications to operators not engaged with GSMA. • Need to amend roaming agreements to support NRTRDE liability provisions. • Only 30% of respondents’ Roaming Depts have committed to updating roaming agreements Restricted – Members & Associate Members Summary & Operator Action Required • NRTRDE has the potential to eliminate significant roaming fraud from the GSM industry • NRTRDE implementation project will affect all GSM operators • If you haven‘t already done so: – Begin NRTRDE implementation project now. Restricted – Members & Associate Members Contacts APFF Chairman James Cheong Risk Manager, Starhub Mobile Pte Ltd [email protected] APFF Deputy Chairman Sam Wong Manager - Corporate Security and Fraud Management, PCCW Mobile HK [email protected] NRTRDE Project Leader Axel Rösner, T-Mobile Germany [email protected] NRTRDE Project Manager David Maxwell [email protected] Restricted – Members & Associate Members For Discussion: 1. Has an NRTRDE project started within your company, and is it due to complete by Oct ‘08? 2. Do you have a plan or schedule for updating roaming agreements? Restricted EMC Restricted – Members & Associate Members Appendix - NRTRDE Survey results 98 responses received Main illustration - overall results Red box - EMC results Note: Overall results are based on responses received only. EMC statistics include “no response”, so should not be directly compared with overall results without adjustment. Restricted EMC Restricted – Members & Associate Members NRTRDE Project Start-up Overall EMC only Complete: Not complete: No response: Kickoff mtg held% 45% 32% 23% Budget & Resources Assigned% Complete: 27% Not complete: 50% No response: 23% Project Plan Approved% Complete: 18% Not complete: 59% No response: 23% Restricted – Members & Associate Members NRTRDE Solution Identification Only overall results are shown. EMC-specific results are very similar Restricted – Members & Associate Members NRTRDE Technical Implementation EMC only Not started: Underway (<50% done): Underway (>50% done): Complete No response Restricted – Members & Associate Members % 64% 9% 5% 0% 23% Commitment to amend Roaming Agreements EMC only Yes: No: No commitment yet: Not sure: No response: Restricted – Members & Associate Members % 23% 14% 36% 5% 23%