Explaining the fraud market evolution with a 90s video game analogy
By Carlos Marques, Head of Product Marketing at WeDo Technologies on July 26, 2017
Filed under Telecommunications
Ah, the 90s. They were wonderful, weren’t they? Nirvana released Nevermind, people started to go online, and everyone was sure that the Y2K bug was going to bring about the end of the world. Do you want to know what else was great? Computer games running on a 386 DX computer. The 90s produced some of the most inspiring, innovative computer games the world has ever seen. You may have played Age of Empires, which was a very influential real-time strategy (RTS) game in its time. And while that may have been so, we cannot ignore the fact Sid Meier’s Civilization came first, in 1991, with just one objective: to build an empire that can last.
In this game, the player takes on the role of the leader of a civilization, starting with one settler unit, and attempts to build an empire in competition with other civilizations. Along with the larger tasks of exploration, warfare, and diplomacy, the player has to make decisions about where to build new cities, which improvements or units to build in each city, which advances in knowledge should be pursued, and how to transform the land surrounding the cities for maximum profit.
From time to time the player’s towns are attacked by barbarians with no specific nationality and no named leader. These threats only come from unclaimed terrain (land or sea), and over time there are fewer and fewer places from which barbarians would arise.
As time advances, new technologies can be developed and these technologies are the primary way in which the game changes and grows. These stages of scientific advancement, just as in real life, are directly linked with military strength. In Civilization, the war starts with a strong infantry unit, catapults and knights can be finished with riflemen, cannons and cavalry. He who has more cutting-edge units usually wins the war.
Like with modern fraud prevention and detection techniques, success in defeating the “barbarians” in Sid Meier’s Civilization is determined by the capability to reduce uncertainty from emerging fraud threats. However, “unclaimed terrains” can blind you from spotting these emerging threats, and that is why we rely on technological advances to manage fraud threats when fraudsters emerge.
Similar to the game, most of today’s Communications Service Providers (CSP) already have a weapon, or in this case, a fraud management tool, that is being used to stop the “barbarians”. But at first glance, we may mistakenly believe that this is a mature market since everybody already has a fraud management tool in place.
The question now becomes: “If you have a tool but it faces technological disadvantages against the fraudster’s tools, are you really equipped to battle fraud?” Certainly not.
At this point, the service provider has two options:
- Upgrade “weapon” to a more updated version, e.g. the CSP begins with arches and evolves to a crossbow
- Introduce a completely disruptive technology, e.g. where CSP opts for gunpowder or even nuclear weapons to exterminate their enemies
Either way, until you have the right weapon to defeat your potential enemy, the problem isn’t solved. But one thing is certain: war is an inevitable part of every fraudster’s game, even if you try to avoid it.
RAID.CLOUD JOINS FORCES WITH MICROSOFT AZURE TO DELIVER THE ULTIMATE WEAPON AGAINST FRAUD
Like in Sid Meier’s Civilization, falling behind the curve with outdated software and hardware can put your company at a disadvantage; however, the thought of updating any critical system, especially fraud management software (FMS), can seem overwhelming. But systems that are too old to cope with new requirements and have grown increasingly inefficient simply aren’t doing their job and could be putting your business in significant risk.
There’s a reason people stick with legacy fraud management software: replacing their existing system rely on an expensive, complicated proof of concept. But at some point the positives outweigh the negatives. Software-as-a-Service (SaaS) products often need a different approach: Try & Buy for free without encapsulated costs. Cloud technology enables WeDo Technologies and Microsoft to take care of keeping an FMS system up-to-date by rolling out regular software updates – including fraud detection rules and hotlist updates, so that fraud analysts don’t have to waste time maintaining the system to ensure it’s effective and accurate.
HOW CAN A FREE TRIAL HELP CSPs SECURE AGAINST FRAUD?
Joining forces with Microsoft Azure, WeDo Technologies wants to revolutionize the telecom fraud market space by offering the ability to try a fraud management product before you buy it. Telecom fraud management software has not traditionally followed this approach due to vendor’s hesitation to give their audience full access to their products. If you want to know definitively, without question, how our fraud management looks like, how it functions, and how as fraud manager you will personally interact with it you should try for free. As of today, we are launching the RAID.Cloud 60 Day free trail to deliver a new and improved trial experience for all our prospects and customers to try.
By providing a 60 Day free trial we want to ensure two things before anyone invests time and effort, even if they have significant fraud cases:
- The software is production-ready.
- The software is an ideal solution for their specific use case.
CSPs can gain a large advantage if their fraud departments are the first to achieve a particular technological advantage (the secrets of Artificial Intelligence, for example) and put it to use in a “military” context. The whole system of advancements, from beginning to end, is a full speed technology ride.
So, is the fraud management market mature? Not if it is always open and rejuvenating. In other words, I would say that it “Smells Like Teen Spirit!”