Fighting Telecom Fraud – The New (Old) Trend for 2025!
Telecom providers, especially mobile network operators, have long faced the challenge of balancing rising data consumption with declining revenue per gigabyte (GB). The static Average Revenue Per User (ARPU)[1] highlights this struggle, pushing operators to seek new markets, improve efficiency, and focus on revenue assurance and fraud prevention. In 2025, a renewed focus on combating bypass fraud will emerge. This type of fraud involves users circumventing charging rules to gain free or discounted data access, putting both revenue and infrastructure under strain.
Understanding the Impact of Bypass Fraud
To grasp the impact of this fraud, consider data pricing. The average price of 1GB of data varies widely by region, ranging from $0.10 in highly competitive markets to over $1 in others. The global average retail price is $2.59. Each bypassed GB represents lost revenue for operators and adds infrastructure and operational costs. For instance, a fraudster consuming an average 20GB per month at a 5G user level could cost operators $1–$2 per user monthly. If this activity spreads, the losses multiply significantly.
The Financial Cost
The revenue loss is even more pronounced—up to 10 times the cost per GB. Fraudulent users avoid paying the retail price for data consumed, which forces operators to implement new policies, smarter detection, and better fraud prevention systems.
Common Bypass Fraud Tactics
One common tactic exploits zero-rated access. These are websites (e.g., for education, government, or social care) that are exempt from data charges. Fraudsters tunnel through these free domains to access non-exempt IP addresses. This is easier due to vulnerabilities in hosting setups and the varied construction of these sites.
While this might seem like a victimless crime, it isn’t. Network capacity has a real cost. Each GB consumed must be processed and transmitted, and data revenue is a key source of income for operators. Fraud directly undermines this revenue stream.
Challenges in Enforcement
Enforcing rules against bypass fraud requires robust systems for IP traffic handling and well-written Terms & Conditions (T&Cs). Poorly worded T&Cs can make it difficult to take action without damaging customer goodwill. For example, if policy rules aren’t clear, users might unknowingly exploit loopholes, leading to disputes.
Examples from the Field
In Brazil, zero-rated services like WhatsApp have led to debates about fairness. While WhatsApp usage is free, heavy usage has prompted discussions about charging the service providers. The Brazilian regulator Anatel plans to provide guidance in 2025[3]. These debates often stem from unclear T&Cs or technical limitations in enforcing them.
Looking Ahead
Operators must better understand user demographics, traffic patterns, and evolving internet protocols. This knowledge is essential for enforcing fair access policies and introducing new zero-rated services. Public-benefit sites, like online education or emergency services, will likely continue to be zero-rated, but fraudsters will always seek ways to exploit them.
In 2025, the Enea team expects a stronger focus on detecting and closing fraud loopholes, revising T&Cs, and refining processes for onboarding zero-rated services. Regulatory decisions may also grant operators greater flexibility to protect network neutrality while safeguarding revenue streams.
References:
[1] ARPU – https://www.statista.com/statistics/691710/mobile-voice-arpu-evolution-in-europe/
[2] Price of GB: https://www.visualcapitalist.com/the-cost-of-1-gb-of-mobile-data-worldwide/
[3] Anatel – item 8 of 2025 regulatory agenda on the need to regulate on the duties of users (content providers) of the internet. https://apps.anatel.gov.br/participaanatel/VisualizarTextoConsulta.aspx?TelaDeOrigem=2&ConsultaId=20267