30th July 2024 – London – The Growing Threat of AIT Fraud: Implications for the A2P SMS Ecosystem

Artificial Inflation of Traffic Prevention Solutions Strategy Report 2024

Artificially Generated Traffic (AIT) fraud has emerged as a significant threat to the Application-to-Person (A2P) SMS ecosystem, with far-reaching economic and operational impacts. A recent review of vendor responses in ROCCO’s first AIT Prevention Solutions Strategy Report, highlights the critical nature of this issue, shedding light on its financial repercussions, the factors driving businesses away from A2P SMS, and the evolving landscape influenced by new technologies like Rich Communication Services (RCS).

What’s the scale of the problem?: “Blocked 9.2M fraudulent messages, saving $5.8M from 2022-2023”  – Quote from the Report

Economic Impact of AIT Fraud

The financial toll of AIT fraud on the A2P SMS ecosystem is substantial. According to the majority of vendors surveyed, the economic impact of AIT exceeds USD 250 million. This figure underscores the severity of the problem, emphasizing the need for effective countermeasures. The volume of AIT traffic reflects its significant footprint within the ecosystem, although estimates of its share of total A2P SMS traffic vary widely, ranging from 4% to 30%. This discrepancy highlights the challenge in quantifying the full extent of AIT’s impact.

Consequences for Enterprises

One of the most pressing consequences of AIT fraud is the erosion of trust in SMS as a communication channel. Enterprises are increasingly affected by AIT, which not only diminishes their confidence in SMS but also drives them to explore alternative messaging channels. However, while AIT contributes to this shift, it is not seen as the primary driver. Instead, high termination rates and escalating prices are identified as the main reasons businesses are moving away from A2P SMS. Notably, high termination costs also incentivize fraudulent activities, particularly in regions like Africa and developing economies in the Asia-Pacific (APAC) area.

How are Vendors combating this:

“Cutting-edge technologies and sophisticated algorithms are evolving to outsmart increasingly cunning AIT fraudsters and protect messaging systems” – Quote from the Report

The solution “Prioritises Compliance with GDPR, CCPA, PCI, and ISO27001 Certifications” – Says another.

This report is produced exclusively for ROCCO Executive Members. To find out more contact HQ@ROCCO.GROUP

To read more about the report Click Here.