Company Profile:

SBC Pacific Bell is one of the world's leading data, voice and Internet services providers.

Challenge/Business Situation:

• The rising incidence of the fraudulent use of calling cards affecting the profitability of calling card operations
• Calling card service has a very high transaction volume (110 calls per second) with over a million calls per day
• The percentage of fraudulent calls is very difficult to isolate
• No algorithm existed for determining whether a calling card call is fraudulent
  
  

Solution:

• Utilize distributed processing to manage the high transaction volume
• Utilize queuing theory and network traffic analysis to detect fraudulent calling card usage
• Please consult details of the analysis: Calling Card Fraud Detection.pdf
  
  

Results:

• Method 360 created fraud detection system on time and on budget using a team of 12 people
• The program was installed within multiple Regional Bell Operating Companies
• One company reported a saving of $750,000 per month after implementation of the fraud detection system