IDC Predicts Cellular/PCS Fraud Losses to Reach $677 Million in 2002

FRAMINGHAM, Mass., December 8, 1998 — With cellular and PCS fraud losses forecast to reach $677 million in 2002, it is essential for carriers to understand the components of fraud and the solutions available to combat it. International Data Corporation's (IDC) new report: High Crimes and Misdemeanors: Cellular/PCS Fraud (IDC #17417), identifies the various types of fraud and the solutions available to combat fraud, and profiles the offerings of the major fraud solution vendors. Among the types of fraud solutions addressed are personal identification numbers, profiling systems, RF fingerprinting, authentication, verification, frauder databases, prepaid systems, security systems and real-time billing. The report also provides forecasts of the dollar losses due to the various types of fraud.

"Given the considerable competition in the cellular/PCS markets, any financial loss, including fraud losses, is significant," said Julie Rietman, Senior Analyst in the Wireless and Mobile Communications research program and author of the study. "Carriers must take the necessary steps to reduce fraud if they plan to survive in today’s competitive landscape."

One of the key findings of the report is that, while cloning fraud is on the decline, subscription fraud is on the rise. The bad news is that subscription fraud is forecast to reach losses of $473 million in 2002. The good news is that more and more solutions are coming onto the market to combat subscription fraud. Frauder databases are just one example. By using a frauder database, a carrier can often identify it when a potential subscriber provides invalid data, such as a zip code and address that don't match or a social security number that doesn't exist. However, these solutions don't mean the fraud problem will be solved. Because fraud perpetrators are a very adaptive group, the fraud problem will never be totally eliminated. The best carriers can do is stay abreast of the new types of fraud and implement solutions to combat fraud in a timely manner.

This report is available for purchase by contacting Janis Dempsey at (508) 935-4145 or by e-mail at jdempsey@idc.com. For additional information on IDC's Wireless and Mobile Communications research program, please contact Kara Murphy, Group Marketing Manager, at (508) 935-4136.

About IDC

International Data Corporation is the world's leading provider of information technology data, analysis, and consulting. With research centers in more than 42 countries and more than 300 research analysts worldwide, IDC is uniquely positioned to provide a global perspective on IT market and technology trends.

Based in Framingham, Mass., IDC is a subsidiary of International Data Group (IDG), the world’s largest publisher of computer-related information and the leading global provider of information services on information technology.

Additional IDC information/copies of recent news releases can be found on IDC's home page (http://www.idc.com).

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