Protect Your Revenue from Zero-Rating Fraud

Internet and data access have become essential to daily life. Beyond entertainment, critical services-including voice and video calls, streaming, and social media-now operate primarily online. Universal, fast, and consistent data access is a necessity. For large telecom providers (both MNOs and MVNOs), mobile data and subscriptions represents the primary revenue stream.

However, this revenue source is increasingly targeted by fraudulent activities. Some users exploit billing loopholes and bypass charging mechanisms to obtain "free" data, taking advantage of gaps in metering systems. This should never be considered an "acceptable loss." Instead, it signals that current systems are inadequate at authenticating access, tracking usage, and ensuring accurate billing. Beyond lost revenue, these vulnerabilities also highlight potential security gaps in user activity auditing and traceability.

The revenue lost to this behaviour is not inconsequential, with analysis by Enea reveals that up to 2% of TCP/UDP traffic [core internet protocols]-may be linked to fraud. In some cases, short-lived but viral attacks could result in losses as high as $80,000 USD.

Zero-rated data access-such as promotional application/web usage, mandated educational or social service access, or essential internet signaling protocols like DNS-presents particular challenges. While these services are important for customer engagement and regulatory compliance, they also pose revenue and security risks when exploited.

To learn more about these issues and how to combat this type of fraud, check out our updated paper on revenue protection and fraud mitigation in the data path.

This problem cannot be solved simply by disabling zero-rating policies. Many zero-rated services are either mandated by regulators or necessary for competitive market positioning. Additionally, essential services like DNS must remain operational, as they are fundamental to internet connectivity.

Fraudsters are becoming increasingly sophisticated, sharing tactics and vulnerabilities in online forums. For example, one user exploiting data access fraud had over 20,000 followers, spreading these methods widely.

The good news? This type of fraud can be detected and prevented-often before significant damage occurs. In our upcoming insights, we'll dive deeper into the behavioral patterns behind these frauds and explain how to identify and stop them.

If you can't wait until the next insight….

Download our paper on Data Charging bypass fraud @ Link