announces the success of FraudStopper, a new toll-fraud detection system optimized for VoIP providers. FraudStopper was deployed in June 2011 at a nationwide CLEC based in New York City. The system has successfully detected numerous incidents of attempted theft of service, saving the CLEC tens of thousands of dollars in losses for international termination.
VoIP Toll Fraud became a major issue for many carriers in November 2010, when thieves began using the "SIPVicious" security scanning tool to search the Internet for VoIP service that could be stolen. ECG estimates that over US $1M in international termination service has been stolen by criminals targeting VoIP service providers in the United States. Some individual incidents have amounted to more than US $160,000.
Most fraud detection systems have simplistic thresholds to identify risky behavior. If a customer appears to make a large number of international calls, the system will alert automatically. But if that same customer routinely makes a large number of international calls and pays for the service, it could simply be their normal course of business. Such simplistic schemes cannot handle the wide diversity among VoIP customers, some of whom make no international calls, while others make numerous calls.