Is Telecom Fraud a Problem in Cloud Communications?

Telecom fraud can be costly, but many businesses don’t know that they are a target with cloud communications.

When you are considering migrating to cloud communications, it may seem that it will solve every challenge. Solutions like unified communications as a service (UCaaS) simplify complex arrays of communications features into one application, as well as offering scalability and cost savings. But even as cloud solutions offer security features like end-to-end encryption and other tools, telecom fraud remains a vulnerable area for businesses.

The financial impact of telecom fraud can be staggering, but because of a lack of visibility and not enough awareness around the issue, many companies don’t recognize the risk until they’ve already been targeted.

Business executives are more aware of problems like cyber security risks and the impact of a network outage, but for many, the potential for fraud goes unnoticed. Telecom fraud can involve account takeovers to a hack that generates calls to expensive numbers, and they may go undetected for weeks. Losses can be up to six figures in revenue.

Why Telecom Fraud Awareness Is Low: In many cases, the fast migration to cloud solutions during the pandemic may be part of the awareness issue. Companies are operating complex environments that are often multi-layered, with communications tucked somewhere in the technology stack.

How Fraud Unfolds: You may be wondering how malicious actors gain access to a private network. In many cases, the private branch exchange (PBX) or the cloud-based network is hacked. In other situations, the account is accessed by a fraudster or a cloud-based number is a target. For example, a conferencing service that uses cloud-based numbers could be exploited with fraudulent traffic moving through at scale without detection for months.

The issue is not that cloud services are less secure than on-premises, traditional communications infrastructure. Telecom fraud is not new, nor is it limited to cloud communications. In some situations, the issue is that enterprises don’t realize the risk, or they assume it’s not their problem to address. Many don’t prioritize a proactive monitoring approach across communications, allowing scams to persist for longer than they normally could.

Another complication is the difference in compliance requirements across different countries, creating challenges for those that want to be more proactive in adopting certain security measures. While not insurmountable, these difficulties make the issue more complex.

The Solution: Prevention of telecom fraud is possible, but providers and their clients should be more proactive. With the help of an experienced telecom provider that can address fraud vulnerabilities, cloud communications can be better protected.

The first step is increasing visibility with a broad monitoring program that identifies suspicious activity along with the assistance of a telecom partner. In working together, the communications industry could better gather data and monitor trends along a broader scale.

Telecom fraud also requires an expansion of how all parties think about responsibility for stopping attacks. It’s not only the party that would incur the most financial impact of a fraud. It needs to be explored as an industry-wide responsibility.

To learn more about preventing telecom fraud and the associated revenue loss for your business, contact us at We can assist you in identifying vulnerabilities and developing the monitoring solutions you need to protect your company.