Mobileum grows assurance profile with WeDo acquisition

Mobileum has announced it will acquire risk and business management solutions provider WeDo Technologies, bringing together two of the bigger names in this niche segment.

Following the purchase of Evolved Intelligence in October 2018, Mobileum is seemingly on the move to dominant the market. The acquisition of WeDo adds additional weight to its analytics armoury, aiding telcos to detect and prevent fraud on their networks, as well as increasing the physical presence of the firm around the world.

“We are excited to partner with WeDo and support them in the next phase of their growth,” said Bobby Srinivasan, CEO of Mobileum. “As we continue to grow Mobileum, organically and inorganically, the addition of WeDo’s strong product engineering, customer footprint, consulting and services teams to our existing talented workforce around the world will allow us to expand the depth and breadth of our offerings.”

“The combined business offers our customers a richer and more diverse portfolio of solutions in the domains of Revenue Assurance, Fraud Management, Network Security, Roaming and Interconnect. As the mobile industry continues to evolve, this transaction will allow us to continue to invest in the future architecture, assuring the success of our customers along a journey of continuous transformation.”

The newly combined business will have 1,100 employees in 30 offices, serving 700 customers in 180 different countries. The existing WeDo platform and architecture will be maintained, though it will also be integrated with the Mobileum Active Intelligence platform.

Pinning down how big the revenue assurance and risk management software market actually is, however, is not the easiest of tasks.

The Communications Fraud Control Association suggests fraud costs the telecoms industry more than $38 billion a year, with roaming fraud accounting for $10.8 billion of that figure. Estimates from Credence Research suggests the global revenue assurance software market was worth $2.5 billion in 2017, with growth projected at 11% CAGR through to 2026. This sounds promising, however Heavy Reading Analyst James Crawshaw has some doubts.

If we are to assume WeDo is the leading player in the revenue assurance software market, it will have a notable market share. Looking at WeDo’s financials, the team increased orders to more than €60 million for 2018. The numbers aren’t quite adding up here.

Either this is an incredibly fragmented market with thousands of suppliers making up the $2.5 billion, WeDo is not a leading name in the revenue assurance software market or the market is worth considerably less than $2.5 billion.

It is not necessarily the end of the world if the addressable market is smaller than analysts are currently estimating, as long as there is growth potential. There is of course opportunity to grow, though as Crawshaw points out, WeDo’s orders have not really increased significantly over the last few years, suggesting this is somewhat of a stagnant market.

Breaking the bottleneck of counter fraud management

Telecoms.com periodically invites expert third parties to share their views on the industry’s most pressing issues. In this piece Joseph George, Senior Vice President of Fraud & Security at Mobileum, argues operators need to revise their approach to countering fraud.

We live in a golden age of data. For operators looking to counter fraud, there has never been more actionable information available at their fingertips, than there is now.

In theory, this is an amazing advantage for communications service providers (CSP) looking to stay one step ahead of increasingly sophisticated ‘fraudsters’, as well as gain insights that can help their business thrive in new service areas. A wealth of useful data, an increased ability to fight fraud, and a way to add to the bottom line all are all wonderful things for operators. However, this explosion of data has also created unforeseen challenges too.

Operators are reaching a tipping point, as the telecoms sector significantly expands its global services with faster broadband, 5G roll-out and more connected devices. Combined with the overall trend of traffic moving from voice to data networks, CSPs are facing huge challenges as many fraud management systems are buckling under the weight of trying to detect and act with the speed and accuracy needed to prevent potential revenue losses.

Simply put, many traditional fraud management systems can’t keep up with the sheer volume of data out there. It’s leaving operators staring at a mountain of overlooked (and underutilized) data, too much of a pain and inconvenience to be analysed thoroughly.

The root problem with many systems is that they can only handle limited datasets, not accounting for volume, variety and velocity of critical data. Also, modern capabilities and features are missing in older systems, including mobility, machine-learning, self-service analytics, and more visual and intuitive interfaces. In fact, some legacy systems still in use today by CSPs monitor fraud by only analysing aggregate records of calls.

There is a real, looming threat that fraud management is becoming a bottleneck, impeding CSPs’ ability to offer and expand services until fraud data can be interpreted and managed. Like a clogged kitchen sink, fraud management is creating a backup. Initially it might just cause a small pipe leak, but if operators aren’t proactive, they could have a full-blown burst on their hands.

That burst may be caused from the pressure of a mounting catalogue of services (and data) CSPs are involved in the delivery of, which they also need to analyse. Although outside their control, CSPs are often best positioned to identify instances of fraud occurring over carrier traffic on their networks. Examples of this include data fraud, international revenue share fraud and bypass fraud, among others. Along with the risk of IoT and sensor networks having fraudulent apps installed, the result is that the blind spots of many current CSP systems are being exposed by emerging sources of fraud.

So how can operators get ahead of the problem? How can they break this ballooning bottleneck, take advantage of that fact that they have access to vast amounts of data, and expand their services? The first step is to go beyond merely detecting fraud. CSPs should look inward, circling back and advancing their fraud protection tactics.

CSPs should have integrated, actionable and prescriptive control of fraud and abuse, based upon a combination of dynamically auto-configured business rules and policy control. By obtaining a high degree of detection accuracy, operators can get a clear understanding of the fraud data they are being presented with, and what it is telling them. With IoT for example, it means having an ability to uncover fraud outside of rule-based detection.

The implementation of predictive, big data technologies and machine-learning is a way to keep up with new frauds in real time, stopping it in its tracks. It also offers the added benefit of creating more parameters and making greater volumes of data available for analysis. All of this can be accomplished by employing a comprehensive multi-protocol solution that is nimble, fast and adds to an operator’s current system capabilities.

It’s no secret that the telecoms sector is significantly expanding its services and capabilities. But it’s the savvy operators who realize that breaking through the bottleneck of fraud data saves time and money in the long-term, and facilitates investment in new opportunities and services that otherwise would have been missed.

 

Joseph GeorgeJoseph George joined Mobileum in May 2017 as Senior Vice President, Fraud & Security. He leads the global strategy for solutions that help service providers control their risks related to fraud & security and prevent revenue leaks in their business.