Dealing with a $2.4 Billion SMS Problem
Artificial Inflation of Traffic (AIT) is a type of fraud in the A2P SMS path where traffic is boosted to generate additional revenue for those passing on the message further down the path. About 5% of all international A2P traffic is believed to be AIT, costing brands $2.4 billion between 2022 and 2024. AIT is significantly impacting the A2P ecosystem, as brands look for alternative messaging channels.
AIT Fraud is a Problem for the Entire A2P SMS Ecosystem
AIT hits brands using SMS to communicate with consumers, such as sending one-time passwords or delivery notifications. We have estimated that brands will lose at least $2.4 Billion between 2022 and 2024. But the fact is that AIT also causes financial losses and reputational damage to CPaaS providers, aggregators, and MNOs in the A2P path.
It is not only brands that (suffer) losses from AIT. CPaaS providers and aggregators are also at risk of being left with the cost of AIT fraud. Most AIT traffic is not generated on brand websites. It is generated further down the path through fake accounts created at CPaaS providers, by exploiting weaknesses in APIs, or in transit by aggregators. In these cases, where there is no brand to bill, the CPaaS provider or aggregator will have to carry the cost.
In addition to financial damages, AIT imposes a risk of losing business due to customer dissatisfaction and financial disputes. Furthermore, it erodes public trust in A2P messaging when brands are defrauded and consumers receive fake messages.
The Six Types of AIT
AIT is not a single fraud scheme, though. We have identified six key types of AIT, injected at different points in the delivery path of A2P SMS and causing damage to all parts of the delivery chain. The bottom line is that only the fraudsters gain from AIT. At the same time, the A2P ecosystem stands to see revenue decline as brands move their communications to other channels due to the additional cost and risks associated with AIT fraud.
The three types of fraud estimated to have the most significant impact on the market are:
- Counterfeit Fabrication AIT: traffic injected in transit by an aggregator.
- Amplification bot Generation of AIT: traffic created by triggering one-time-passwords and other message-generating triggers at brand websites and services.
- Masquerade Parasite Generation of AIT: traffic injected through accounts created at a CPaaS provider.
Download white paper: A2P SMS Under Siege – Artificially Inflated Traffic and Its Impact on the Industry for the complete description of all AIT types.
Are You Ready to Fight Back?
We are! AIT fraud is threatening CPaaS providers, aggregators and MNOs. Let us help you:
- Eliminate financial loss. Someone has to pay for the AIT traffic that fraudsters gain from. Brands, CPaaS providers, and aggregators are all at risk of suffering financial damage due to AIT.
- Avoid reputational damage. AIT can cause reputational damage. Brands and MNOs with consumer customers face the most significant reputational risk.
- Keep and grow business. AIT causes customer dissatisfaction, eventually leading to the loss of business. CPaaS providers and aggregators are especially vulnerable to losing business due to AIT.
Contact us to learn more about how we can help you fight AIT: