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How To Avoid Bankruptcy Doing Telecom Business
Have you ever wondered why there are very few telecom companies and why so many start-ups quickly go out of business in the industry? This happens despite the large profit-margins that can easily be made on calls, especially for those in the VoIP business.
The problem, as is with other businesses, is when you take your eyes off the ball. As a telecoms provider, there are two main things you need to watch out for:
Calls being made on your network being billed at less than what you pay to connect the calls
Free calls on your system which you are not aware of
Every system with a computer interface can be hacked and unfortunately, hackers have had plenty of time to practice different methods of getting free long-distance calls.
Below are some of the fraudulent methods you need to be aware of and prevent if you want to avoid bankruptcy doing telecom business:
This is one of the oldest tricks in the book. It involves taking advantage of cheaper rates between countries. For example, a call from Country A to Country B could be 10 cents per minute. However, if that call is routed through Country C, the total cost comes down to 8 cents a minute.
Sure, such situations should not occur, but they do and hackers love them! The quality might not be as great, but if it will save customers a few dollars every month, they would gladly pay for it.
This is another common tactic, in which a calling card is used that makes international calls appear as thought they are local. The dialler therefore pays a highly subsidised price, and you pay the price for not detecting the fraudulent activity on your network.
Call Transfer Fraud
If you thought the previous ones were bad, this next one is diabolical. With call transfer fraud, hackers can make free international calls and sell these ‘free calls’ to other people. This is a common threat for softswitch users.
Typically, they hack into a private branch exchange (PBX) and transfer calls to the fraudsters own telecom business and offer rock-bottom prices to their own clients. They get all the credit and you are left wondering why you have a high bill.
Stay ahead of fraudsters
There are so many other types of frauds: domestic and international revenue share fraud, traffic pumping or switch access stimulation, CNAM revenue pumping or dip pumping, premium rate services, false answer supervision and so many others.
In order to protect your business from crumbling, it is important to keep a close eye on what is happening with your network. If someone is making free calls, taking advantage of different connection rates or is driving up your costs artificially, you need to know about it.
Route Test specialises in carrying out VoIP QoS tests. Our quick and detailed tests will make you aware of every activity on your network and we will show you how to plug in the holes if you have been breached. Simply put, it is the only way to ensure your telecom business does not go bankrupt.