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$583mn of A2P SMS Bypass Fraud during 2020 per Araxxe Tests

Every continent has multiple mobile operators receiving more than 20 percent of their SMS traffic via bypassed routes.

A fascinating initiative by RAFM test experts Araxxe saw them send over 3 million test SMS messages in order to measure A2P SMS bypass fraud. Extrapolating from test results to total traffic for 106 countries led Araxxe to calculate aggregate fraud losses of EUR492mn (USD583mn) across the whole of 2020.

The most infected businesses had a disturbingly high proportion of gray traffic. The worst SMS aggregator globally suffered a 98 percent infection rate. Gray traffic represented more than a third of total traffic in several countries.

Araxxe analyzed its results into six regions, which it represented as a series of maps showing financial losses and infection rates per country. The following table includes a link to each regional map and shows the total A2P SMS bypass fraud leakage in that region.

Region2020 A2P SMS Bypass Fraud (USD)
Africa and Middle East$187mn
Europe$244mn
Latin America$110mn
North America$61mn
Russia, Eastern Europe and Central Asia$117mn
SE Asia and Australia$85mn

Update 16:26 UTC, 17 March 2021: The title and opening paragraph have been reworded to clarify that the values of the estimated losses relate to the whole of 2020. We regret that a misunderstanding about when testing was performed wrongly gave the impression that these figures only covered losses in January 2021.

Eric Priezkalns
Eric Priezkalnshttp://revenueprotect.com

During his career, Eric has been a Director of Risk Management for a national telco, the Chief Executive of the Risk & Assurance Group, a Chief Marketing Officer for a software business, a consultant, a public speaker and the publisher of Commsrisk since its launch in 2006. Look here for more about the history of Commsrisk and the role played by Eric.

The comms providers that Eric has worked for include Qatar Telecom, Cable & Wireless, T‑Mobile, Sky and Worldcom. In addition to his proficiency at speaking about the current scamdemic, Eric is also a qualified chartered accountant and a subject matter expert in consumer protection, enterprise risk management, fraud prevention, data integrity and billing accuracy. Eric was the lead author of Revenue Assurance: Expert Opinions for Communications Providers, published by CRC Press. He can be reached through the contact form on this website.

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