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Toll Fraud Detection an Important Part of a Telecom Expense Management System

In the aftermath of 9/11, security has become a major concern for many companies. An important aspect of this is the protection of telephone systems from toll fraud. reports that the FBI and FCC estimate over $4 billion in losses due to toll fraud, with a typical incident amounting to around $30,000 in fraudulent long distance charges. Furthermore, the FBI considers that some of these infringements may compromise our national security. To be fully effective in fraud detection and prevention the use of an automated Telecom Expense Management (TEM) system is indicated.

A telecom system can be compromised in many ways, not all the result of hackers gaining unauthorized access. For example, one company set up an 800 number for traveling employees. Somehow, a group of prisoners found out about this 800 number and used it call their favorite 900 adult services. Thousands of dollars in call charges later the problem was discovered. Had the company placed a 900-number block on their telephone system, this would not have occurred.

Industrial espionage is another matter of concern. It has been estimated that employees are the culprit in 85% of corporate espionage cases. According to the American Society for Industrial Security, losses as a result of corporate espionage could amount to as much as $63 billion annually. Thus, it is important to have the ability to track the source and destination of a call, as well as the time it was placed and its duration.

Increased and continuous vigilance, such as the development of appropriate policies and closely monitoring telecom usage, can do a great deal to avert such catastrophes. Security threats require fast corrective action. Modern call accounting software systems can circumvent many of these threats. Advanced security features alert personnel about anomalies in usage. With the addition of real-time call detail records (CDRs) and advanced phone bill tracking features, a quality call accounting system can soon pay for itself due to telecom cost savings.

Author, Peter Verhoeff, writes articles on the business benefits of call accounting and call detail record technology. More information can be found at

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