Understanding AIT Fraud and Its Impact

Nov 12, 2024

MEF Webinar on AIT Fraud

Presenter: Matt Ikram, Content Director at MEF Guest Speaker: Uros Mijatovic, VP of Business Operations at Mito

Introduction

  • Topic: Artificially Inflated Traffic (AIT) Fraud
  • Objective: Understanding AIT Fraud, its impact on businesses, and strategies to prevent it.

Speaker Introductions

  • Matt Ikram: Based in Washington, DC, with 20 years of experience in messaging.
  • Uros Mijatovic: Based in Belgrade, Serbia, with 15 years in messaging and a focus on security use cases.

What is AIT Fraud?

  • AIT/AGT Fraud: Abuse of two-factor authentication and SMS services, leading to financial gain through fraudulent traffic.
  • Mechanism: Fraudulent traffic mimics normal user behavior, making it difficult to detect.
  • No Silver Bullet: No single solution exists to completely prevent this type of fraud.

Impact on Businesses

  • Financial Loss: Can lead to significant financial damages, disputes, and reputational harm.
  • Example: Small businesses may face unsustainable costs due to unexpected fraudulent charges.
  • Risks: Loss of customer trust, potential account takeovers.

Detection and Prevention

  • Layered Approach: Multiple strategies and tools are required for effective detection and prevention.
  • Tools and Strategies: Automation, anomaly detection, real-time monitoring, and customer collaboration.
  • Mito's Approach: Agile adaptation, leveraging direct connections, and employing experienced teams.

Emerging Trends in AIT Fraud

  • Hit and Run Attacks: Rapid bulk requests meant to elude detection.
  • Shift in Tactics: Movement towards more sophisticated, less detectable methods.

Mito's Unique Position

  • Agility: Ability to quickly adapt and deploy new strategies.
  • Experience: Extensive industry knowledge and proactive adaptation to trends.
  • Partnerships: Collaboration with customers and mobile operators to address evolving threats.

Regulatory Environment

  • Current State: Limited penalties exist for fraudsters, indicating a need for greater regulatory intervention.
  • Potential for Change: Collaboration with regulatory bodies could help curtail fraudulent activities.

Conclusion

  • Importance of Collaboration: Need for industry-wide cooperation to combat AIT fraud.
  • MEF Anti-Fraud Yearbook: Available resource for understanding and combating fraud.
  • Call to Action: Encourage stakeholders to stay informed and proactive in combating fraud.

Contact Information

  • MEF Website: For the Anti-Fraud Yearbook and more resources.
  • Uros Mijatovic: Available for further discussion on LinkedIn.

Final Thoughts: Continual adaptation and close collaboration are key to combating AIT fraud effectively, and regulatory support is crucial for long-term sustainability of the industry.

Acknowledgements: Thanks to Uros Mijatovic and Mito for their insights and participation in this informative session.