In this article, the second in our "Regional Fraud
" series, we explore how attempts to offset revenue losses in the European Union have resulted in a surge in CLI Spoofing
in the region. CLI spoofing
is a major threat for telcos, enterprises and even subscribers. In 2019
- Revenue losses to telecom fraud as a whole, around the world, amounted to a whopping $28.3 billion
- Losses to CLI Spoofing, alone, amounted to $1 billion.
It's safe to assume that losses due to scammers spoofing numbers in the EU reach hundreds of millions
of dollars each year.
The main questions are, "How did this happen?", and, "What can the EU do about it?".
In short, termination rates in the EU have been notoriously high. This is where the problem began. Attempts to reduce rates initially hurt local service providers. And subsequent attempts to help them recover lost revenues through Origin Based Rating (OBR) lead to an upsurge in CLI Spoofing in the region.
If the EU doesn't implement a way of protecting themselves from CLI Spoofing, they will fail to help local service providers recover lost revenues and will remain stuck in the same place they were before the OBR era, only this time losing revenue to scammers spoofing numbers instead of low termination rates.
To find a solution to this problem, we first need to understand the history of termination rates in the European Union and what changes regulators adopted to help improve the situation (which ultimately backfired, creating a breeding ground for fraud).