Billions lost by mobile companies through fraud and error

This is a guest post by Michael Howard. If you are interested to guest post in this blog, just head over to the Guest Post Guidelines.


A new report on the effects of mobile phone fraud and error that was published by Juniper Research has found that many mobile phone companies, manufacturers and operators are losing incredibly vast amounts of their revenue every single year, due to a combination and culmination of fraud and errors mainly in the billing process. The report suggests and argues that a figure somewhere around £36 billion is lost by those with business in the mobile phone industry on an annual basis mostly because the complex nature of the mobile phone networks renders it a lot harder for companies to pick up on security errors and fraud, with the most serious problems existing in areas such as the Middle East and Africa. In these parts of the world, the losses sustained by all the mobile phone companies on average are calculated to be around 15 percent each year, compared with much lower figures of 2.8 percent in America and only 1 percent in Europe.

Given that the estimated revenue that was generated by the entire mobile phone industry throughout the year of 2011 was in the region of $920 billion, this clearly represents a massive haemorrhage of huge amounts of money each year, with the Juniper Research study identifying twelve main different types of fraud involving mobile phones and users – including interconnect bypass, which mostly involves users passing off a much more expensive international call as just a domestic one – and subscription fraud, which is largely considered the single biggest area of mobile phone fraud and involves consumers using stolen or fake IDs and false personal information to activate mobile phone accounts of others or new ones altogether.

Image: Grant Cochrane /

The research director who works for Juniper Research, Windsor Holden, made this statement regarding these findings:

“What is making operators’ tasks more difficult is that in the post-iPhone world that is lots more data. We aren’t just talking about traffic on handsets. Now we have connected cars, connected homes,” before adding this:

“The problem will only get worse. Operators need systems that are intuitive and able to learn so that they can analyse data and look for patterns in the behaviour of traffic.”

The findings of Juniper Research have been supported by the results of similar research undertaken by others too, such as the advisory company KPMG.

There is however a new solution to the problem of mobile phone security that is breached as a result of stolen goods. A few brand new products have been launched by Mikuyasafe, a company offering mobile phone users the ability to back up any crucial or important content and information that is stored on their phones onto a secure server and to trace back to the stolen goods too.

A spokesman from Mikuyasafe stated that the cost mobile phone users would be facing when subscribing to such safety products offered by their company would by far be outweighed by their resultant avoidance of many of the security issues and personal information or data loss that is clearly associated with stolen mobile phones.


About the Author: Michael Howard works with consumers and mobile phone companies to help reduce the impact of mobile phone error and fraud.

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  1. Myrrtle says:

    Fraud is actually very common crime right now.. We should always be aware and make sure that we know more about it so at least we can avoid them..

  2. Denise says:

    Thanks for this wonderful post. I agree to both of you that fraud can be everywhere now If we don’t put extra protection to our business maybe we will the next victim.

  3. Karyn18 says:

    Another useful information that had been shared. Our business are real important because it’s the one our family is depending with our daily expenses. And we should be really aware of what’s happening inside and outside the business.

  4. Beulah says:

    We really to have security to avoid fraud so that we will not going to be a victims of this person and loss lot of money.

  5. Nolan says:

    Thanks Michael for writing on such an important matter. As we are becoming more & more developed some dishonest persons are also mastering their way to do fraud. The only way to get rid of it is to take precious protection.

  6. Cameron says:

    This billionaire companies should first ensure their own security. Sometimes they don’t take the matter of error & security with due respect. At last which costs them most.

    Thanks for such an informative post.

  7. Nicole says:

    Security is the most important things in which every person takes first to consider, without it, everything is nothing….

  8. John Miller says:

    Fraud is these days common crime indeed. I think to defend such crime effectively mobile companies need to make their steps pretty stronger. Thanks

  9. Steve Waugh says:

    Nowadays fraud is one of the major crime. As far as I came to know about this crime effect I think mobile companies need to take strong steps. Thanks dude. 🙂

  10. rafael says:

    Security is the most important Nowadays fraud is one of the major crime. tank you

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