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Guillaume Le Mener Head of Marketing & Corporate Development Mavenir Leonardo Hilario Planning & Project Manager Telefónica Hispanoamérica
Guillaume Le MenerHead of Marketing & Corporate Development
Mavenir
Leonardo HilarioPlanning & Project ManagerTelefónica Hispanoamérica
Securing New Revenue from Messaging Fraud PreventionTelefonica & Mavenir
Mobile 360 Latin America, Bogota, November 2017
TelefonicaLeonardo
Hilário
Planning and Project Manager
(Advertising)
MavenirGuillaumeLe Mener
Head of Marketing & Corporate Development
3
A G E N D AWhy commercial A2P messaging is worth protecting& the impact of A2P messaging fraud
Why fraud can be difficult to control& how machine-learning helps
Telefonica’s experience:The challenge, solution, results to date & future expectations
Securing New Revenue from Messaging Fraud Prevention
4
Mavenir Today
5
Our Customers Support
3+ BILLIONMobile Subscribers
350+Carriers
17 of top 20TIER 1 CARRIERS
GLOBALLY
Industry’s
LEADINGTECHNOLOGYWorld’s First VoWiFi, VoLTE, RCS and vEPC
10 BILLIONMonetization Requests
Annually
NGN Operating in
150+COUNTRIES
Leading VoWiFi / VoLTE, RCS and Messaging RCS Market Share
>50%Share of global messaging
75%Share of RCS in the U.S. and Canada
71%Share of VoLTE / VoWiFi in France, Germany, UK
37%Share of VoLTE / VoWiFi in the U.S. and Canada
Source:BasedonGSMA,GSA,TeleGeography andMavenir(July2016)– NumberoflaunchedMobileoperatornetworks¹LTMasofQ3’16.
Commercial (A2P) use of mobile messaging is big business
Source: MobileSquared GLOBAL A2P MESSAGING FORECASTS 2015-2020 (July 2016)
-
1,000
2,000
3,000
4,000
5,000
6,000
2015 2016 2017 2018 2019 2020
Milli
ons
Latin AmericaPotential A2P Messaging Revenues
49.7%CAGR
Global revenues by 2020 (multiple sources)$64Bn
6
A2P Fraud Impacts Subscribers, Enterprises and Operators
7
Reduced use of A2P
messaging
General Revenue
Loss
IncreasedChurn
A2P Messaging Revenue
Loss
Poor user experienceØ Inability to interact with the applicationØ Delivery failureØ Variability in delivery QoS
Reduced network service availabilityØ Subscribers in cells congested by SIM BoxesØ Roamers in networks connected via links congested
by A2P messagingØ Subscribers calling/messaging others in networks
connected via congested links
Poor subscriber satisfactionØ Poor A2P user experienceØ Service availability problemsØ Increased volumes of SPAM and malicious content
enabled by low cost delivery
Losses from SMS fraud up to
$6Billionannually
Communications Fraud Control Association, 2016
Operators in Latin America risk losing $billions
Source: MobileSquared GLOBAL A2P MESSAGING FORECASTS 2015-2020 (July 2016)
-
1,000
2,000
3,000
4,000
5,000
6,000
2015 2016 2017 2018 2019 2020
Milli
ons
Latin AmericaA2P Messaging Revenues
A2P revenue lost to grey route fraud in 201553.9%
Cumulative revenues lost from 2017 to 2020$7.2Bn
8
A G E N D AWhy commercial A2P messaging is worth protecting& the impact of A2P messaging fraud
Why fraud can be difficult to control& how machine-learning helps
Telefonica’s experience:The challenge, solution, results to date & future expectations
Securing New Revenue from Messaging Fraud Prevention
9
Fraudsters ensure fraud is difficult to detect and control
Hide their sources Vary the contentVary the campaign profile
Short bursts
Campaign Switching
Distributed sourcesFrequent changes
Monitor Results
They rapidly adapt to overcome detection rules
“Canary” accounts hidden amongst recipients
Your discount code is
4GY88X2
Random character sequences
ɢěɴμɩnëʀoιėx
Homographic Variation
http://bit.ly/22dgiV6
URL Shortening
Buy it nowOrder yours todayGet yours nowBuy some todayGet it nowOrder some nowPurchase one today...
Text Variation
10
Automatic Machine Learning adapts faster than the fraudsters
11
Real-TimeAnalysis>>StopsBypassFASTER
ComplexEver-changingRules>>NewbypasstechniquesalmostIMPOSSIBLE
vs
Complexvariations(sourcesandcontent)
Complexsetofrulesrequired
ManualTrafficAnalysis
ManualRuleDefinition
Manual+High-cost
Real-timeMachineLearning
DynamicComplexRuleEvolution
Automatic
Delay>>Moretrafficbypasses
DeterminableRules>>Newbypasstechniquesemerge
RevenueLossContinues RevenueLossStopped- Quickly&Effectively
TraditionalMethods MavenirSpamShield
ControlEveryRoute ü
RapidEvolutionofDetection
Rules
ComplexIndeterminable
Rules ü
ü
Mavenir SpamShield Delivers World-Leading Results
12
Head-to-headagainsttop2competitors
Upto
10xbetterdetection
Telkomsel selectsMavenir’s SpamShield foradvancedSMSspamdetectionandfiltering
Advancedmessagefilteringdetectsuptoeighttimesmore spamrelatedSMSmessagesthanbeforetobetterprotectcustomersfromspamandfraud.
Asep YSeptianaTelkomsel VicePresidentofITVASandCorporateServiceSolutionandManagement
SpamShield hasreducedtheeffortandhumaninterventionpreviouslyrequiredtooperateandmanagethefiltering,becausethereisnoneedtomanuallyconfigurefilteringrules
SpamShield’s abilitytofilteroutgreyroutemessagingenablesustosellSMSadvertisingviatheappropriatechannels
A G E N D AWhy commercial A2P messaging is worth protecting& the impact of A2P messaging fraud
Why fraud can be difficult to control& how machine-learning helps
Telefonica’s experience:The challenge, solution, results to date & future expectations
Securing New Revenue from Messaging Fraud Prevention
13
TelefónicaHispanoamérica14
01 THECHALLENGE
TelefónicaHispanoamérica15
§ Mavenir had made audits in all ournetworks to identify types offrauds;
§ A very small part of each country’sCDR were analyzed to base thefeasibility study;
§ It had statistically estimated wewere losing more than $18M peryear to Grey Routes in the region
TheChallengeHowtojustifytheinvestment?
TelefónicaHispanoamérica16
TheChallengeStatisticvsReality– P2Pusageanalysis
AmountofDestination(UserB)
Messagessen
t
99,75%
0,20%
0,03%
0,02%ofusersrepresents
almost70%oftraffic
COUNTRY1 COUNTRY2
98,5%oftheclientsrepresent44%ofmonthly
SMStraffic!
38%ofthetrafficisgeneratedby0,07%oftheusers
50
150
99%ofusersbehavelikethis:sendamaximumof150messagestoatmost50differentusers
TelefónicaHispanoamérica17
02 RESULTS
TelefónicaHispanoamérica18
TheResultsBeforeandAfterthefilters
-
5.000
10.000
15.000
20.000
25.000
-
1
2
3
4
5
6
7
8
9
10 M
ilhõe
s
Messages Blocked BlackList ControlList
Onthefirstdayweblocked9millionmessagesandregistered20.000
usersonBlacklist
Avg 180.000msg/user
TelefónicaHispanoamérica19
TheResultsBeforeandAfterthefilters
-
5.000
10.000
15.000
20.000
25.000
-
1
2
3
4
5
6
7
8
9
10
Milh
ões
NationalInterconnection(FinancialBalance)
Beforefilters,thecountry
hadadeficiton
interconnectioncosts.
After,itstartedtohaverevenues!
Balanceonfirstmonthofusage:US$3M
TelefónicaHispanoamérica20
TheResultsBeforeandAfterthefilters
-
5.000
10.000
15.000
20.000
25.000
-
1
2
3
4
5
6
7
8
9
10
Milh
ões
Butspammersarealwaysseekingfornewroutes!
InternationalTraffic
TelefónicaHispanoamérica21
TheResultsAmongtheregion
§ Messagesblockedbetween5%and10%oftotaltraffic onfirstweeks.Stabilizedon2%tilltoday(Totalregionaltrafficaround2bmonthlymessages)
§ RevenueCAGRof20% onthefirst3monthsoftheplatform
§ Usingonlybasicfilters.Startingtoconfigureadvancedfiltersonsomecountrieson4Q17.
TelefónicaHispanoamérica22
03 THEREALCHALLENGE
TelefónicaHispanoamérica23
TheRealChallengeIsthemarketpreparedtocontrolSPAMandFRAUD?
§ Theuserknowshowtoidentifyasuspiciousmessage?§ Whenauseridentifiesasuspiciousmessagehe/sheknowswhotocall?
§ Orcalldirectlytohis/hercarrier?§ OrcalltheRegulationAgency?
§ ThegovernmentregulatorspenalizethecarriersbasedoncomplaintsaboutlongnumberSpam?
§ Thegovernmentregulatorsunderstandthenecessityofthemessageanalysisandfilters?
§ Thecarriersarealignedbetweenthem?§ Thereareself-regulatedindependentassociationsineach
country/regiontocontrolplayers?
Time for your questions?
T H A N K Y O U
