MEF Programme Lead for Connectivity & Wholesale Isabelle Paradis discusses the scale of the AIT issue in A2P messaging, and what the industry can do to prevent it from undermining the messaging ecosystem.
In the shadows of the A2P messaging ecosystem lies a growing predator: Artificially Inflated Traffic (AIT). While it may not grab headlines like other fraud types, AIT is quietly wreaking havoc, draining billions of dollars, eroding trust, and putting the future of SMS at risk.
At a recent MEF Connectivity and Wholesale Interest group discussion, telecom leaders from Lanck Telecom, iBasis and BICS laid bare the scale of the crisis and, more importantly, outlined disruptive solutions to reclaim control.
It’s time to stop the bleeding, rethink the business model, and turn the tide. This is a fight we can’t afford to ignore.
The Problem: AIT is Telecom’s Silent Predator
AIT is no longer a small-scale nuisance – it’s a global epidemic;
Massive Financial Losses:
- Fraudulent AIT traffic makes up *5-40% of all international A2P SMS traffic, depending on the region.
- In 2023 alone, businesses lost *US$1.6 billion due to AIT. One major brand saw its SMS costs spike by 256% in just one week after an attack.
Broken Trust:
- Fake traffic drives brands to abandon SMS for alternative channels like WhatsApp and flash calls. However, these unregulated platforms come with their own risks, leaving end users more vulnerable to scams.
- If SMS becomes synonymous with fraud, the entire ecosystem—from operators to brands—will face an existential crisis.
While it may not grab headlines like other fraud types, AIT is quietly wreaking havoc, draining billions of dollars, eroding trust, and putting the future of SMS at risk… It’s time to stop the bleeding, rethink the business model, and turn the tide. This is a fight we can’t afford to ignore.”
The Vicious Cycle:
- Rising fraud leads to higher operating costs for carriers. In response, operators increase rates, forcing brands to cut corners and adopt cheaper, riskier routes. This, in turn, opens the door for fraudsters to exploit vulnerabilities.
AIT is a ticking time bomb, threatening to undermine the most reliable communication channel businesses have.
The Solutions: Fighting Back
Telecom must act now to reverse the damage. The MEF panelists offered actionable solutions that could turn the tide:
AI-Powered Defense:
- Advanced AI tools are revolutionizing fraud detection, offering 99% accuracy in spotting and stopping suspicious patterns.
- Real-time traffic monitoring and shortened supply chains are key to reducing opportunities for fraudsters to infiltrate the system.
Radical Transparency:
- Transparency is no longer optional. Operators, aggregators, and enterprises need to commit to clear reporting of legitimate traffic volumes and pricing structures.
- A dispute mechanism that freezes payments for questionable traffic can act as a powerful deterrent, ensuring fraudsters don’t profit from their schemes.
Unprecedented Collaboration:
- The fight against AIT isn’t a solo mission. Cross-industry collaboration is essential to share fraud patterns, best practices, and intelligence.
- Forums like MEF and GSMA must take the lead in uniting telecom players and creating a united front.
Rethinking the Business Model:
- Abandon outdated exclusivity deals that artificially inflate expectations and costs.
- Build leaner, more transparent frameworks that prioritize security, trust, and efficiency over unsustainable profit models.
Call to Action: The Time to Act is Now
AIT isn’t just a problem—it’s a defining moment for the telecom industry. The solutions are within reach, but success depends on collective action. Here’s how the industry can move forward:
- Invest in AI-powered tools to detect and block fraud in real-time.
- Demand transparency at every level of the supply chain.
- Collaborate fiercely—because no single player can fight AIT alone.
- Rethink the model to create an ecosystem that works for everyone, not just fraudsters.
The battle against AIT isn’t just about saving money—it’s about saving the trust and reliability of SMS, the backbone of business communication.
Will the telecom industry rise to the challenge? Or will it let AIT bleed the ecosystem dry? The choice is ours, but the time to act is now.
If you are interested to find out more about the topics impacting the Wholesale industry, please join the MEF Connectivity and Wholesale interest group discussions.
*Source: Mobilesquared, 2024: A2P SMS Under Siege
