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At Messaging & SMS World this year, Chief Industry Analyst Nick Lane previewed the findings of a study commissioned by MEF to look at the impact of fraud on A2P SMS. The report launches today. Download now and watch MEF members Itouch Messaging, Telenor, SMS Highway and WMC Global discuss the challenges of a delivering fraud-free messaging ecosystem.

The global A2P SMS messaging market was worth US$14.75 billion in 2018 and will increase to US$16.58 billion in 2023, but it could be significantly higher. Grey routes continue to blight the A2P SMS marketplace, Mobilesquared’s annual A2P SMS market forecasts revealed that grey route traffic has increased over the last 18 months and continues to cost the A2P SMS ecosystem billions of dollars in revenue leakage every year.

Mobilesquared’s Nick Lane and a panel of experts discuss the report and fraud in A2P during Messaging & SMS World

At the same time, while not all traffic carried via a grey route is malicious, the majority of fraudulent traffic that traverses the world is carried over a grey route. In addition, SIM farms continue to disguise A2P traffic as P2P SMS and exploit the mobile network operators (MNOs). This resurgence in grey route traffic confirms that fraud remains as much as a threat to MNOs and their subscribers, as it ever has.

MEF’s Enterprise Messaging Fraud Framework identifies 13 fraud types and A2P analyst expert, Mobilesquared has conducted a survey of 22 MNOs to explore the impact fraud has on the market in order to better understand how MNOs are reacting to these threats to the A2P ecosystem.

Mobile network operators need to keep the A2P SMS channel secure and clean from fraud to ensure prolonged consumer trust, and a safe environment for brands to communicate with their customers.

A fraud-ridden channel will drive brands and enterprises to alternative OTT messaging platforms, such as WhatsApp. The list of potential fraud types attacking SMS is considerable and an ongoing challenge for all stakeholders in the business messaging ecosystem.

The industry can still defend the long-term position of SMS as the cleanest and reliable communication mechanism, but this requires a collaborative approach across the ecosystem.

Download the Impact of Fraud on A2P SMS Monetisation Report

The Impact of Fraud on A2P SMS Monetisation report is available to download now. The paper looks at The Impact of Fraud on A2P SMS Monetisation through the lens each of the 13 fraud types identified in MEF’s Future of Messaging Programme’s Fraud Framework in order to better understand how MNOs are reacting to these threats to the A2P ecosystem.

Key Findings:

  • Grey routes are expected to cost the mobile network operators almost US$ 50 billion between 2018-2023. It is a revenue assurance imperative for operators to fight A2P business messaging sent via unregulated channels for P2P traffic.
  • Market education is required with 60% of mobile network operators having not yet protected their network from grey-routes and other A2P fraud by investing in fraud prevention solutions such as firewalls.
  • For those mobile network operators that have made the investment, increased messaging revenue not fraud prevention is the key success measure (70%)
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